https://www.sec.gov/Archives/edgar/data/1023391/000089706917000173/cg891.htm497 1 cg891.htm
Filed pursuant to Rule 497(k)
Filed pursuant to Rule 497(e)
1933 Act File No. 333-12745
1940 Act File No. 811-07831
FMI Funds, Inc.
FMI International Fund
Investor Class FMIJX / Institutional Class FMIYX
March 17, 2017
Supplement to the Prospectus and Summary Prospectus
dated January 31, 2017
FMI International Fund (the “Fund”) to be Closed to New Investors
Effective April 30, 2017, the Fund will be closed to new investors. Except as indicated below, after April 30, 2017, only investors of the Fund on April 30, 2017, whether owning shares of record or through a processing intermediary, are eligible to purchase shares of the Fund. Exceptions include:
§ Participants in an employee retirement plan for which the Fund is an eligible investment alternative and whose records are maintained by a processing intermediary having an agreement with the Fund in effect on April 30, 2017.
§ Clients of a financial adviser or planner who had client assets invested in the Fund on April 30, 2017.
§ Employees, officers and directors of the Fund or Fiduciary Management, Inc., the investment adviser to the Fund (referred to as the “Adviser”), and members of their immediate families (namely, spouses, siblings, parents, children and grandchildren).
§ Firms having an existing business relationship with the Adviser, whose investment the officers of the Fund determine, in their sole discretion, would not adversely affect the Adviser’s ability to manage the Fund effectively.
§ An investment in the Fund that officers of the Fund determine, in their sole discretion, would not adversely affect the Adviser’s ability to manage the Fund effectively.
The Fund reserves the right, at any time, to re-open or modify the extent to which the future sales of shares are limited.
In connection with the closing of the Fund, the discussion on “Exchanging Shares” on page 33 of the Prospectus is deleted and replaced in its entirety with the following:
EXCHANGING SHARES
Shares of a Fund may be exchanged for shares of any other Fund or for the First American Retail Prime Obligations Fund, subject to minimum purchase requirements:
·FMI Large Cap Fund
·FMI Common Stock Fund
·FMI International Fund (must be an existing shareholder of the FMI International Fund, as the Fund is closed to new investors)
·First American Retail Prime Obligations Fund
at the relative net asset values. An affiliate of USBFS advises the First American Retail Prime Obligations Fund. This is a money market mutual fund offered to respond to changes in your goals or market conditions. Neither USBFS nor First American Retail Prime Obligations Fund is affiliated with the Funds nor the Adviser. You may have a taxable gain or loss as a result of an exchange because the Internal Revenue Code treats an exchange as a sale of shares. The registration of both the account from which the exchange is being made and the account to which the exchange is being made must be identical. Exchanges may be authorized by telephone unless the option was declined on the account application.
How to Exchange Shares
1.Read this Prospectus (and the current prospectus for the fund for which shares are to be exchanged) carefully. (Please note that the FMI International Fund is currently closed to new investors, subject to certain limited exceptions as set forth above.)
2. Determine the number of shares you want to exchange keeping in mind that exchanges to open a new account are subject to a $1,000 minimum ($2,500 with regard to the FMI International Fund and the First American Retail Prime Obligations Fund) for Investor Class shares and a $100,000 minimum for Institutional Class shares.
3.Write to FMI Funds, Inc., c/o U.S. Bancorp Fund Services, LLC, P.O. Box 701, Milwaukee, Wisconsin 53201-0701.
Once a telephone transaction has been placed, it cannot be canceled or modified.
Call the transfer agent at 1-800-811-5311 to obtain the necessary exchange authorization forms and the First American Retail Prime Obligations Fund Prospectus. This exchange privilege does not constitute an offering or recommendation on the part of the FMI Funds or the Adviser of an investment in any of the foregoing mutual funds.
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The date of this Supplement is March 17, 2017.
Please retain this Supplement for future reference.
Comments
Say you owned it in taxable account @ one brokerage, and it closed, and you couldn't buy it in another taxable account @ another brokerage. THEN you could considering doing 1 share transfer and you'll be set. I think you will agree this seems reasonable.
Now then if you had shares in taxable, and if you are eligible to invest in IRA, and fund closed, I think you could still transfer 1 share to IRA, and you again be okay.
However, if you have shares in IRA, and if you try to transfer 1 share into taxable, you are running afoul of the rules. I guess if you don't mind paying penalty for what will effectively be a withdrawal you might be okay. However, think about it now. Why you want to go through the hassle? If you have Schwab or Scottrade, just purchase $100 worth since that's the minimum.
I just put in order for $100 in my IRA.
I have quite a few funds in both taxable and IRA, but with only 1 fund in both...RPMGX, in my mind the best fund I've ever owned. Looking for more, simply for consolidation purposes, and the FMI fund is under consideration.
Derf
1 taxabe to another taxable - not sure why you would want to do - that i think should be fine. But AGAIN, $100 minimum why, Why, WHY?
Yes your right I could pay in cash, but,thought I'd use some of the profit in fund (ADE) to buy fund BGE with out taxable event. All to take place in taxable account.
That was way too much analysis for me. Someone, have mercy!
Count the total number of holdings FMIJX = 35+18+11 vs OAKIX = 59+11. What is interesting is that 11 holdings for FMIJX are "Short". I'm guessing these are the holdings for hedging currency.
Anyways, I'm going to watch for divergence as indicator to switch.
1. OAKIX has suffered outflows and may have reopened in order not to sell stocks to cover.
2. FMI management seems to close funds much sooner that Oakmark. FMI large cap closed years ago with only a few billion. They've since reopened but they appear to close down funds with a lot less AUM.
Just my opinion
Article on the topic:
https://forbes.com/sites/moneybuilder/2011/12/01/what-determines-the-strength-of-a-currency/#72d4bae816c6
"As a non-diversified fund, the FMI International Fund tends to concentrate its investment on fewer companies than a diversified mutual fund. The Fund holds approximately 25-40 stocks, with most major industry groups represented."
Never said it was good or bad, my point was concentrated funds tend to closer sooner to preserve flexibility. Personally, I like them and own a few of them.
FWIW saying I like the 'concentrated' nature of the fund and in particular this one. It's been on my watchlist for ages as part of my foreign stock exposure, and I just opened a 1/3-sized starter position the other day to get in before it closes ... planning to average into any major drops if/when/as they occur to get up to my target position size.
I doubt you will ever see wild swings in FMIJX, and that's not just because managers are more competent or they invest in "value" stocks. Their top holding could be carved in half and it would go down 2%. Par for the course. And FMIJX is more diversified across sectors which is the real diversification we seek. We all know too well how diversified Large Cap Growth was (NOT!) in the early 2000s.
My point was - and I quoted some numbers already - FMIJX has more than 35 "holdings". Can't simply go by number of disclosed holdings to determine concentration.
As an aside, I didn't know Mutual Funds are not required to divulge ALL their holdings. Recently reading annual report for FPIVX, I read "the fund does not disclose all its holdings". So I went checking. I wouldn't be surprised if the 18 (other) and 11 (short) holdings of FMIJX are undisclosed. Need to go do some digging. Right now I'm trusting M* (what have I done!)
PS - Your logic on owning concentrated funds, i.e. best ideas I like. I own a few myself, but not what you might like
COBYX, FAIRX, APPLX, PROVX, CGMFX, FVALX, INTLX,...not sure I got all of them.
Getting back to APPLX gold bets have it underperforming till a couple of years back, but it seems to have come around. I can buy gold or I can buy funds who use gold as a hedge - HSTRX, FEVAX, APPLX.
So, I'm just not seeing much there to bank on going forward, but wondered if you might have some insight that's different from the view from this house.