https://www.sec.gov/Archives/edgar/data/1950357/000121390024076311/ea0213708-01_497.htm97 1 ea0213708-01_497.htm 497
BCM FOCUS FUNDS
As to its Separate Series
BCM FOCUS SMALL/MICRO-CAP FUND
Supplement dated September 6, 2024
to the Prospectus and Statement of Additional Information dated February 27, 2024
This Supplement to the Prospectus and Statement of Additional Information for the BCM Focus Small/Micro-Cap Fund, a series of the BCM Focus Funds (the “Trust”), updates the Prospectus for the BCM Focus Small/Micro-Cap Fund, and the Statement of Additional Information for the Trust dated February 27, 2024, to amend certain information as described below.
NOTICEOF LIQUIDATION
OF THE BCM FOCUS SMALL/MICRO-CAP FOCUS FUND
At a meeting of the Board of Trustees held on August 23, 2024, upon the recommendation of Bares Capital Management, Inc., the Fund’s Investment Advisor, the Board of Trustees (the “Board”), including all the independent trustees of the BCM Focus Funds (the “Trust”), as such is defined under the Investment Company Act of 1940, unanimously approved a proposal to liquidate the BCM Focus Small/Micro-Cap Fund (the “Fund”) pursuant to a “Plan of Liquidation”. After careful consideration of several factors which they deemed relevant to their making the decision whether to liquidate the Fund, the Board concluded that it is in the best interest of the Fund and its shareholders to liquidate the Fund. The Board, therefore, approved that the Fund is to be liquidated on or about October 11, 2024 (the “Liquidation Date”). The Liquidation Date may be changed without notice at the discretion of the Trust’s officers.
Suspension of Sales. Shares of the Fund will close to new purchases as of the close of the market on the date of this Supplement and the Fund will begin an orderly dissolution. To the extent there are any dividend or distribution payments made prior to the Liquidation Date, they will continue to be paid either in cash or in additional shares of the Fund, depending on each shareholder’s current election, as disclosed in the Prospectus. The Fund reserves the right to change this policy at any time.
Liquidation of Assets. The Fund may depart from its stated investment objective and policies as it prepares to liquidate and distribute its assets to its shareholders. It is anticipated that beginning at the close of the market on the date of this supplement the Fund’s portfolio will be positioned into cash, cash equivalents or other liquid assets. Shareholders who remain in the Fund until the Liquidation Date will automatically receive, promptly following the Liquidation Date, a liquidation distribution equal to the net asset value of the shares of the Fund that such shareholder then holds plus, accrued and unpaid earnings of the Fund at the time of liquidation. The liquidation of the Fund’s portfolio is likely to result in increased transaction costs, which may be borne by the Fund and its shareholders and may result in higher capital gains for taxable shareholders. Shareholders should contact their tax advisers concerning the tax consequences of the liquidation.
The liquidation of the Fund may result in one or more taxable events for shareholders subject to federal income tax. The redemption of shares prior to the Liquidation Date will generally cause a redeeming shareholder to realize a capital gain or loss depending on the shareholder’s tax basis in the shares. Similarly, liquidation proceeds paid to a shareholder as of (or prior to) the Liquidation Date will generally give rise to capital gains or capital losses depending on the shareholder’s tax basis in the shares. In addition, on or prior to the Liquidation Date, the Fund may declare taxable distributions attributable to its net investment income and net short- and/or long-term capital gain (including capital gains, if any, from the liquidation of the Fund’s assets) in advance of the Fund’s regular distribution schedule. All or a portion of any such distributions may be taxable as ordinary income.
Shareholders should consult a personal tax adviser with respect to the effects of the liquidation and of any associated distributions.
IMPORTANT INFORMATION FOR
RETIREMENT PLAN INVESTORS
If you are a
retirement plan investor, you should consult your tax advisor regarding the consequences of a 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.
Shareholders who hold their shares through an IRA should consult their tax advisers concerning the tax implications of a distribution, their eligibility to roll over a distribution and the procedures applicable to such rollovers. Caution: If you hold shares through an IRA and do not reinvest liquidation or redemption proceeds through your IRA (i.e., if you cash a check representing those proceeds or deposit or reinvest them in a different account), such proceeds may be subject to a 10% penalty and taxed as ordinary income in the year of receipt.
ANY SHAREHOLDERS WHO HAVE NOT REDEEMED OR EXCHANGED THEIR SHARES OF THE FUND PRIOR TO OCTOBER 11, 2024 WILL HAVE THEIR SHARES AUTOMATICALLY REDEEMED AS OF THAT DATE, AND PROCEEDS WILL BE SENT TO THE ADDRESS OR ACCOUNT OF RECORD.
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Shareholders should read this Supplement in conjunction with the BCM Focus Small/Micro-Cap Fund’s Prospectus and the Statement of Additional Information, each as supplemented from time to time. This document provides information that you should know before investing and should be retained for future reference. This document is available upon request and without charge by calling UMB Fund Services, Inc. at (888)885-8859.
Investors should retain this supplement for future reference.
