Leadsman Capital Strategic Income Fund to liquidate

TheShadow

http://www.sec.gov/Archives/edgar/data/1396092/000120928615000184/e1618.htm

497 1 e1618.htm
LEADSMAN CAPITAL STRATEGIC INCOME FUND

Supplement dated April 7, 2015
to the Prospectus and Statement of Additional Information
each dated September 15, 2014

The Board of Trustees (the “Board”) of World Funds Trust (the “Trust”) has approved a Plan of Liquidation (the “Plan”) relating to the Leadsman Capital Strategic Income Fund (the “Fund”), effective April 7, 2015. Leadsman Capital LLC, the Fund’s investment adviser (the “Adviser”), has recommended to the Board to approve the Plan based on its representations of its inability to market the Fund and the Adviser’s indication that it does not desire to continue to support the Fund. As a result, the Board has concluded that it is in the best interest of the Fund’s shareholders to liquidate the Fund.

In connection with the proposed liquidation and dissolution of the Fund called for by the Plan, the Board has directed the Trust’s principal underwriter to cease offering shares of the Fund immediately as of the date of this Supplement. Shareholders may continue to reinvest dividends and distributions in the Fund or redeem their shares until the liquidation.

It is anticipated that the Fund will liquidate on or about April 7, 2015. Any remaining shareholders on the date of liquidation will receive a distribution of their remaining investment value in full liquidation of the Fund. If you have questions or need assistance, please contact your financial advisor directly or the Fund toll-free at 1.800.673.0550.

IMPORTANT INFORMATION FOR RETIREMENT PLAN INVESTORS

If you are a retirement plan investor, you should consult your tax advisor regarding the consequences of any redemption of Fund shares. If you receive a distribution from an Individual Retirement Account or a Simplified Employee Pension (SEP) IRA, you must roll the proceeds into another Individual Retirement Account within sixty (60) days of the date of the distribution in order to avoid having to include the distribution in your taxable income for the year. If you receive a distribution from a 403(b)(7) Custodian Account (Tax-Sheltered account) or a Keogh Account, you must roll the distribution into a similar type of retirement plan within sixty (60) days in order to avoid disqualification of your plan and the severe tax consequences that it can bring. If you are the trustee of a Qualified Retirement Plan, you may reinvest the money in any way permitted by the plan and trust agreement.

This Supplement, and the existing Prospectus dated September 15, 2014, provide relevant
information for all shareholders and should be retained for future reference. Both the
Prospectus and the Statement of Additional Information dated September 15, 2014 have
been filed with the Securities and Exchange Commission, are incorporated by reference,
and can be obtained without charge by calling the Fund toll-free at 1.800.673.0550.

David_Snowball

Hey, they held bravely on (for six whole months!) waiting for investors to discover them. Surely that qualifies as evidence of brilliant business planning and persistence, doesn't it?

David

Ted

@MFO Members: The Fund only had $410,005 AUM, that's not going to cut it. You need a minimum of one million just to cover expenses.
Regards,
Ted

David_Snowball

Most of the folks I've spoken with talk about two sorts of expenses: "hard expenses" which represents money you've absolutely got to pay to other people, and "soft expenses" which is compensation to the manager for running the fund. I've been told that you need about $10 million in the portfolio to cover the hard expenses, even assuming a lean operation. To reach the "ongoing business operation" level of revenue, managers talk about $50-100 million; below that, it's somewhere between a hobby and a side business.

David

hank

Sounds like a "leaden" affair. They needed better marketing people.

Old_Joe

@Hank- Sir! We deserve an apology for that one. "leaden" affair, indeed. Hmmmpf!!

scott

hank said:

Sounds like a "leaden" affair. They needed better marketing people.

hank

(For Old Joe, Scott & others possessing limited vocabularies.)

Leaden: adjective

1. inertly heavy like lead; hard to lift or move:as
a leaden weight; leaden feet.

2.. dull, spiritless, or gloomy, as in mood or thought:

3. of a dull gray color:

4. oppressive; heavy:

5. sluggish; listless

6. of poor quality or little value.

7. made or consisting of lead.

Source: Dictionary.com http://dictionary.reference.com/browse/leaden

Old_Joe

@hank: I'm frantically attempting to reduce my vocabulary so as to comply with our new lowest-common denominator 40-word limit as imposed by Donald Jr.

Even so , your pun was outrageous!

hank

"I'm frantically attempting to reduce my vocabulary so as to comply with our new lowest-common denominator 40-word limit as imposed by Donald Jr."

Good one OJ. Get ya-self an old typewriter with a "sticky" cap-lock key and you'll really look cool.