Mutual Funds

5

F/m Investments European L/S Small Cap Fund

About the fund

The F/m Investments European L/S Small Cap Fund invests in European small cap companies, long and short.

Investment Objective

The Fund seeks to generate absolute returns by investing both long and short in European small capitalization companies.

Goal

Management seeks to outperform European equities over a market cycle with less volatility and drawdown.

Strategy

The sub-advisor uses bottom-up, fundamental analysis with a focus on management and free cash flow and conducts approximately 600 company meetings yearly.

Fund Facts

Fund Performance

TICKER  
BESMX (Institutional Class)
BESRX (Investor Class)

PREDECESSOR FUND INCEPTION
10/31/2007

FUND INCEPTION
12/30/2015

OBJECTIVE
Absolute Returns

BENCHMARK
MSCI Europe Small Cap Index

MORNINGSTAR CATEGORY
Long/Short Equity

MINIMUM INVESTMENT
$50,000 (Institutional Class)
$5,000 (Investor Class)

NUMBER OF HOLDINGS
35 to 55 Long (approximate)
15 to 25 Short (approximate)

GROSS EXPENSE RATIO:
3.85% (Institutional Class)
4.15% (Investor Class.)

NET EXPENSE RATIO:
3.35% (Institutional Class)
3.65% (Investor Class.)

Includes dividend and interest expense on short sales, acquired fund fees and expenses. When excluded the net with limitation expense ratio is 2.24% for Institutional Class shares and 2.54% for Investor Class shares. See “Expense Limitation” for additional information.

Important Fund Information

Expense Limitation

Pursuant to an operating expense limitation agreement between F/m Investments, LLC (the “Adviser”) and the Fund, the Adviser has agreed to waive its fees and/or absorb expenses of the Fund to ensure that Total Annual Fund Operating Expenses (excluding any front-end or contingent deferred sales loads, brokerage fees and commissions, acquired fund fees and expenses, borrowing costs (such as interest and dividend expense on securities sold short), taxes and extraordinary or non-recurring expenses, including, but not limited to, litigation) for the Fund do not exceed 2.24% and 2.54% of the Fund’s average net assets, for Institutional Class and Investor Class shares, respectively, through February 28, 2022. This operating expense limitation agreement can be terminated only by, or with the consent of, the Board of Trustees. The Adviser is permitted to receive reimbursement from the Fund for fees it waived and Fund expenses it paid, subject to the limitation that: (1) the reimbursement for fees and expenses will be made only if payable within three years from the date the fees and expenses were initially waived or reimbursed; and (2) the reimbursement may not be made if it would cause the expense limitation in effect at the time of the waiver or currently in effect, whichever is lower, to be exceeded.

Indices and Category

The indices shown are for informational purposes only, are not reflective of any investment, nor are they professionally managed. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features. There is no guarantee that any investment strategy will achieve its objectives, generate profits, or avoid losses. Unless otherwise indicated, all data presented above is from Predecessor Fund inception through the current period-end.

The MSCI Europe Small Cap Index captures small cap representation across the 15 Developed Markets (DM) countries in Europe. With over 900 constituents, the index covers approximately 14% of the free float-adjusted market capitalization in the European equity universe.

The Morningstar Long-Short Equity Category is an average monthly return of all funds in the Morningstar Long-Short Equity Category, including the Fund. The Long-Short Category, as defined by Morningstar, contains a universe of funds that hold sizeable stakes in both long and short positions in equities and related derivatives. Performance of the Morningstar Category Average is generated on the 1st business day of the month.

Glossary

Alpha is a measure of the difference between a fund’s actual returns and its expected performance, give its level of risk as measured by beta.
Beta is a measure of a fund’s sensitivity to market movements.
Standard Deviation, a measure of volatility and risk, is a statistical measure of the dispersion of returns for a given security or market index.
Correlation is a statistical measure of how two securities move in relation to each other, based on historical data.
R-Squared is a statistical measure of the percentage of a fund’s or security’s movements that can be explained by movements in a benchmark index. R-Squared values range from 0 to 1. A high R-Squared reflects performance patterns associated with an index. A low R-Squared reflects performance patterns different from an index.
Sharpe Ratio compares the excess return of an investment to its volatility or standard deviation.
Treynor Ratio compares the excess return of an investment to its market risk or beta.
Maximum Drawdown is the maximum loss from a peak to a trough of a portfolio, before a new peak is attained.

Data provided by Investors FastTrack.