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Reorganization at Rondure Global Advisors

edited February 2023 in Fund Discussions
https://www.sec.gov/Archives/edgar/data/915802/000139834423004075/fp0082418-3_497.htm

97 1 fp0082418-3_497.htm
FINANCIAL INVESTORS TRUST



Rondure New World Fund

Rondure Overseas Fund
(each, a “Fund”)



Supplement dated February 23, 2023 to the
Prospectus and Statement of Additional Information,
each dated August 31, 2022, as supplemented

The Board of Trustees (the “Board”) of Financial Investors Trust (the “Trust”), based upon the recommendation of Rondure Global Advisors, LLC, the investment adviser to the Funds, approved the proposed reorganization of each Fund into correspondingly named series of Northern Lights Fund Trust III (each, a “New Fund”), subject in each case to the approval of the shareholders of the relevant existing Fund (each, a “Reorganization”).

The Board also approved an Agreement and Plan of Reorganization and Termination (the “Plan”) that provides that each existing Fund will assign all of its assets to the corresponding New Fund, in exchange solely for (1) the number of the New Fund shares equivalent in value to shares of the relevant existing Fund outstanding immediately prior to the closing date of the Reorganization, and (2) the New Fund’s assumption of all of the relevant existing Fund’s liabilities, followed by a distribution of those shares to such existing Fund’s shareholders so that the existing Fund’s shareholders receive shares of the corresponding New Fund equivalent in value to the shares of the existing Fund held by such shareholder on the closing date of the Reorganization. Each Reorganization is intended to qualify as a tax-free reorganization for federal income tax purposes.

The Trust will hold a shareholder meeting on or about April 12, 2023, as may be adjourned, at which shareholders of each existing Fund as of February 22, 2023 will be asked to consider and vote on the Plan. If shareholders of each Fund approve the Reorganization with respect to that Fund, the Reorganizations are expected to take effect in or around June 2023.

Shareholders of each existing Fund will receive a combined prospectus/proxy statement with additional information about the shareholders meeting, the Reorganizations, and the New Funds. Please read these materials carefully, as they will contain a more detailed description of the Reorganizations.


Please retain this supplement with your Prospectus and
Statement of Additional Information.


New filing:
https://www.sec.gov/Archives/edgar/data/1537140/000158064223000969/rondure_485a.htm

Comments

  • Can anyone please explain what does reorganizing a mutual fund into a mutual fund trust accomplish? Layman's terms please if you can. Also, is this move good for the shareholders? TIA
  • +1….(also for Grandeur)…..please:)
  • @wdavidsnowball : Could one of the monthly contributors comment on the reorganizing of mutual funds into a MF Trust accomplish.
    Mark, Graust, & myself would like to know.

    From TheShadow Reorganization at Rondure Global Advisors

    Thank you, Derf
  • edited February 2023
    Most fund firms put several of their funds within "trusts" or "series". That allows for streamlined fund governance and operations, including creating or shutting some funds within. This way a large fund firm with 100+ funds will be keeping track of only a handful of trusts/series.

    This isn't something we the investors should worry about. However, one irritating consequence of this is that in Edgar/EC searches, the trust/series name will work, but fund name/ticker won't. So, sometimes I have to look into fund prospectus or SIA to figure out if it is within some trust/series. This is more a fault of Edgar/SEC search.
  • @yogibearbull The two fund companies in question, Grandeur & Rondure don't have 100+ funds. Any chance this involves ETF's ? If easy of operation , why not do Trust at the beginning ?
    Thanks Derf
  • edited February 2023
    @Derf, that I don't know specifically about Rondure situation.

    But this sort of stuff grows unwieldly and unexpectedly over time - like weeds. And firms try to streamline things at some point.

    You will be surprised to know how some of Vanguard funds are internally organized. https://www.sec.gov/Archives/edgar/data/102909/000110465922102217/tm2226327d3_4017f2.htm

    So, you and I may think of Vanguard Star Fund/VGSTX differently than how the Edgar/SEC thinks of Vanguard Star Funds (s bolded intentionally). I guess that commonality among them is that they are all funds-of-funds. To emphasize my earlier point, ticker VGSTX produces zero results at Edgar/SEC but we know that the fund exists. Vanguard TDFs (somewhat different kind of funds-of-funds with glide-paths) belong to something called VG Chester Funds - who could guess that name?

    Vanguard STAR Funds:
    Vanguard LifeStrategy Conservative Growth Fund
    Vanguard LifeStrategy Growth Fund
    Vanguard LifeStrategy Income Fund
    Vanguard LifeStrategy Moderate Growth Fund
    Vanguard STAR Fund

    Fidelity funds are also organized as several trusts/series and some of their names are just related to the Fido location in the Boston area.
  • Thanks YBB. Have a good day.
  • Mark said:

    Can anyone please explain what does reorganizing a mutual fund into a mutual fund trust accomplish? Layman's terms please if you can. Also, is this move good for the shareholders? TIA

    The first is an interesting question, and one that Yogi has addressed, but not the right question for these funds. They are already in a trust - the second line in Shadow's transcription reads: FINANCIAL INVESTORS TRUST.

    A more focused question would be: what does reorganizing mutual funds from one trust into a different trust accomplish? Check for changes (infrequent) in fees, waivers, clawbacks, management firms. Also shareholder voting rights (see below).

    Rondure Global Advisors has been using a trust (Financial Investors Trust) and will be moving to Northern Lights Trust III. They are both Delaware statutory trusts, so the laws governing them are the same (Delaware).

    But because they are different trusts, they have different trustees (those are the fiduciaries you vote for to represent your interests in the funds). Also, since the size of the two trusts are almost surely different, a shareholder vote will have more (or less) weight than before.

    Yogi wrote that large fund firms use trusts (aggregating their funds) for efficiency. Boutiques do the same, except that instead of aggregating their funds together in a trust they run, they join together with other boutiques in a trust they don't run. So you find funds from multiple families in a single trust.

    Here's a list of some of the funds in Financial Investors Trust. I've underlined some funds/families that have appeared in posts here:

    JCRAX - FINANCIAL INVESTORS TRUST - ALPS/CoreCommodity Management CompleteCommodities Strategy Fund Investor Shares
    INDAX - FINANCIAL INVESTORS TRUST - ALPS/Kotak India Growth Fund Investor Shares
    LPEFX - FINANCIAL INVESTORS TRUST - ALPS/Red Rocks Listed Private Equity Fund Investor Shares
    ALIBX - FINANCIAL INVESTORS TRUST - ALPS | Smith Balanced Opportunity Fund Investor Class
    SMCVX - FINANCIAL INVESTORS TRUST - ALPS | Smith Credit Opportunities Fund Investor Class
    FINANCIAL INVESTORS TRUST - ALPS/Smith Short Duration Bond Fund Class A
    FINANCIAL INVESTORS TRUST - ALPS/Smith Total Return Bond Fund Class A
    AMWYX - FINANCIAL INVESTORS TRUST - ALPS/WMC Research Value Fund Investor Shares
    CHNAX - FINANCIAL INVESTORS TRUST - Clough China Fund Investor Shares
    HSSAX - FINANCIAL INVESTORS TRUST - Emerald Banking and Finance Fund Class A
    HSPGX - FINANCIAL INVESTORS TRUST - Emerald Growth Fund Class A
    EFCAX - FINANCIAL INVESTORS TRUST - Emerald Insights Fund Class A
    ESTAX - FINANCIAL INVESTORS TRUST - Emerald Select trueLiberty Income Fund Class A
    ELASX - FINANCIAL INVESTORS TRUST - Emerald Small Cap Value Fund Class A
    GPEOX - FINANCIAL INVESTORS TRUST - Grandeur Peak Emerging Markets Opportunities Fund Investor Class
    FINANCIAL INVESTORS TRUST - Grandeur Peak Global Contrarian Fund Institutional Class
    FINANCIAL INVESTORS TRUST - Grandeur Peak Global Explorer Fund Institutional Class
    GPMCX - FINANCIAL INVESTORS TRUST - Grandeur Peak Global Micro Cap Fund Institutional Class
    GPGOX - FINANCIAL INVESTORS TRUST - Grandeur Peak Global Opportunities Fund Investor Class
    GPROX - FINANCIAL INVESTORS TRUST - Grandeur Peak Global Reach Fund Investor Class
    GGSOX - FINANCIAL INVESTORS TRUST - Grandeur Peak Global Stalwarts Fund Investor Class
    GPIOX - FINANCIAL INVESTORS TRUST - Grandeur Peak International Opportunities Fund Investor Class
    GISOX - FINANCIAL INVESTORS TRUST - Grandeur Peak International Stalwarts Fund Investor Class
    FINANCIAL INVESTORS TRUST - Grandeur Peak US Stalwarts Fund Institutional Class
    RMRGX - FINANCIAL INVESTORS TRUST - Highland Resolute Fund Class I
    RLTAX - FINANCIAL INVESTORS TRUST - RiverFront Asset Allocation Aggressive Investor Shares
    RLGAX - FINANCIAL INVESTORS TRUST - RiverFront Asset Allocation Growth & Income Investor Shares
    RMIAX - FINANCIAL INVESTORS TRUST - RiverFront Asset Allocation Moderate Investor Shares
    RNWOX - FINANCIAL INVESTORS TRUST - RONDURE NEW WORLD FUND Investor Class
    ROSOX - FINANCIAL INVESTORS TRUST - RONDURE OVERSEAS FUND Investor Class
    SFGIX - FINANCIAL INVESTORS TRUST - Seafarer Overseas Growth and Income Fund Investor
    SFVLX - FINANCIAL INVESTORS TRUST - Seafarer Overseas Value Fund Investor Class
    DGIFX - FINANCIAL INVESTORS TRUST - The Disciplined Growth Investors Fund
    VVPLX - FINANCIAL INVESTORS TRUST - Vulcan Value Partners Fund Investor Class Shares
    VVPSX - FINANCIAL INVESTORS TRUST - Vulcan Value Partners Small Cap Fund Investor Class Shares

    Source: https://fintel.io/ff/915802

    Here are some of the funds/families in the new trust, Northern Lights Trust III. Nothing pops out at me:
    AAMAX - NORTHERN LIGHTS FUND TRUST III - Absolute Capital Asset Allocator Fund Class A Shares
    ACMAX - NORTHERN LIGHTS FUND TRUST III - Absolute Capital Defender Fund Class A Shares
    ADOAX - NORTHERN LIGHTS FUND TRUST III - ACM Dynamic Opportunity Fund Class A Shares
    TINIX - NORTHERN LIGHTS FUND TRUST III - ACM Tactical Income Fund Class I
    BWDAX - NORTHERN LIGHTS FUND TRUST III - Boyd Watterson Limited Duration Enhanced Income Fund Class A Shares
    CINTX - NORTHERN LIGHTS FUND TRUST III - Centerstone International Fund Class I
    CENTX - NORTHERN LIGHTS FUND TRUST III - Centerstone Investors Fund Class I
    CPQAX - NORTHERN LIGHTS FUND TRUST III - Counterpoint Long-Short Equity Fund Class A Shares
    CPAEX - NORTHERN LIGHTS FUND TRUST III - Counterpoint Tactical Equity Fund Class A Shares
    CPATX - NORTHERN LIGHTS FUND TRUST III - Counterpoint Tactical Income Fund Class A Shares
    TMNAX - NORTHERN LIGHTS FUND TRUST III - Counterpoint Tactical Municipal Fund Class A
    HYTR - NORTHERN LIGHTS FUND TRUST III - CP High Yield Trend ETF
    FPAG - NORTHERN LIGHTS FUND TRUST III - FPA Global Equity ETF
    GHSIX - NORTHERN LIGHTS FUND TRUST III - Good Harbor Tactical Select Fund Class I Shares
    QQH - NORTHERN LIGHTS FUND TRUST III - HCM Defender 100 Index ETF
    LGH - NORTHERN LIGHTS FUND TRUST III - HCM Defender 500 Index ETF
    HCMNX - NORTHERN LIGHTS FUND TRUST III - HCM Dividend Sector Plus Fund Class A Shares
    HCMFX - NORTHERN LIGHTS FUND TRUST III - HCM Dynamic Income Fund Investor Class Shares
    HCMEX - NORTHERN LIGHTS FUND TRUST III - HCM Income Plus Fund Class A Shares
    HCMGX - NORTHERN LIGHTS FUND TRUST III - HCM Tactical Growth Fund Class A Shares
    LIONX - NORTHERN LIGHTS FUND TRUST III - Issachar Fund Class N Shares
    GHTAX - NORTHERN LIGHTS FUND TRUST III - Leland Real Asset Opportunities Fund Class A Shares
    LDPAX - NORTHERN LIGHTS FUND TRUST III - Leland Thomson Reuters Private Equity Buyout Index Fund Class A
    LDVAX - NORTHERN LIGHTS FUND TRUST III - Leland Thomson Reuters Venture Capital Index Fund Class A Shares
    MVPFX - NORTHERN LIGHTS FUND TRUST III - Marathon Value Portfolio
    NFMAX - NORTHERN LIGHTS FUND TRUST III - Newfound Multi-Asset Income Fund Class A
    NFGAX - NORTHERN LIGHTS FUND TRUST III - Newfound Risk Managed Global Sectors Fund Class A Shares
    NFDIX - NORTHERN LIGHTS FUND TRUST III - Newfound Risk Managed U.S. Growth Fund Class I Shares
    NFDAX - NORTHERN LIGHTS FUND TRUST III - Newfound Risk Managed U.S. Sectors Fund Class A Shares
    LSEIX - NORTHERN LIGHTS FUND TRUST III - Persimmon Long/Short Fund Class I Shares
    APSHX - NORTHERN LIGHTS FUND TRUST III - Pinnacle Sherman Multi-Strategy Core Fund Class A
    IPTRX - NORTHERN LIGHTS FUND TRUST III - Pinnacle TrendRating Innovative Equity Fund Class I
    RQEAX - NORTHERN LIGHTS FUND TRUST III - RESQ Dynamic Allocation Fund RESQ Dynamic Allocation Class A Shares
    RQIAX - NORTHERN LIGHTS FUND TRUST III - RESQ Strategic Income Fund Class A Shares
    SDFAX - NORTHERN LIGHTS FUND TRUST III - Swan Defined Risk Emerging Markets Fund Class A Shares
    SDJAX - NORTHERN LIGHTS FUND TRUST III - Swan Defined Risk Foreign Developed Fund Class A Shares
    SDRAX - NORTHERN LIGHTS FUND TRUST III - Swan Defined Risk Fund Class A Shares
    SDAAX - NORTHERN LIGHTS FUND TRUST III - Swan Defined Risk Growth Fund Class A Shares
    SDAYX - NORTHERN LIGHTS FUND TRUST III - Swan Defined Risk Growth Fund Class Y Shares
    SDCAX - NORTHERN LIGHTS FUND TRUST III - Swan Defined Risk U.S. Small Cap Fund Class A Shares
    TCBAX - NORTHERN LIGHTS FUND TRUST III - The Covered Bridge Fund Class A Shares
    TEBRX - NORTHERN LIGHTS FUND TRUST III - The Teberg Fund

    Source: https://fintel.io/ff/1537140
  • Received this email this afternoon:

    April 13, 2023

    Dear Fellow Shareholders,

    You recently received a supplement to the prospectus of the Rondure Global Funds dated February 23, 2023, with information about an upcoming shareholder meeting. The purpose of the meeting, as outlined in the supplement, is a shareholder vote about a proposal to reorganize the funds from their existing trust (Financial Investors Trust or FIT) into a new trust in order to move the funds' back-office service provider from SS&C (formerly ALPS) to Ultimus Fund Solutions. The reorganizations are expected to be tax-free for federal income tax purposes. There will be no impact on the ownership of Rondure Global Advisors, or on our team or investment process.

    Some of you have been asking about the shareholder meeting date, which was originally set for April 12. Due to unforeseen delays in the filing process, the mailing of meeting materials was postponed. As a result, the shareholder meeting date has been rescheduled to May 31, 2023. You will soon receive a new prospectus supplement announcing the new date.

    You or your designee will also be receiving in the coming weeks a proxy statement and other materials with information about the reorganization, including voting instructions.

    If you have additional questions after you receive the mailing, please feel free to contact me directly.

    Thank you for your help,

    Sunshine Stein
  • update:

    https://www.sec.gov/Archives/edgar/data/915802/000139834423012096/fp0083914-2_497.htm

    FINANCIAL INVESTORS TRUST

    Rondure New World Fund
    Rondure Overseas Fund
    (each, a “Fund”)


    Supplement dated June 16, 2023

    To the Summary Prospectus, Prospectus and Statement of Additional Information,
    each dated August 31, 2022, as supplemented

    On June 14, 2023, the shareholders of each Fund approved an Agreement and Plan of Reorganization and Termination pursuant to which each Fund will be reorganized into correspondingly named series of Northern Lights Fund Trust III (each, a “Reorganization”). Each Reorganization is expected to close after the close of business on or about July 21, 2023.

    *********

    Please retain this supplement with your Summary Prospectus, Prospectus and Statement of Additional Information.

  • Did you get any mail/email/phone call to vote for this change?
    I got a mail asking me to call to vote. I called and went with their proposal.
  • I received a proxy to vote my shares.
  • update:

    https://www.sec.gov/Archives/edgar/data/915802/000139834423013179/fp0084407-1_497.htm

    497 1 fp0084407-1_497.htm
    FINANCIAL INVESTORS TRUST

    Rondure New World Fund
    Rondure Overseas Fund
    (each, a “Fund”)

    Supplement dated July 17, 2023
    To the Summary Prospectus, Prospectus and Statement of Additional Information,
    each dated August 31, 2022, as supplemented

    The Funds’ Reorganization date, as previously announced in the Supplement dated June 16, 2023 to the Funds’ Summary Prospectus, Prospectus and SAI, has been extended to on or about October 6, 2023.

    For additional information regarding the Funds’ Reorganization, see the Supplement dated June 16, 2023 to the Funds’ Summary Prospectus, Prospectus and SAI.


    *********



    Please retain this supplement with your Summary Prospectus, Prospectus and Statement of
    Additional Information.




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