Good point on the liquidity issues if not adjusted for free-float. I guess liquidity is paramount for capital markets functioning.
I see heavy insider selling in some company shares for nearly year and no insider buying. I am also seeing hedge funds lightening up on some of the retail favored stocks. All these extra shares add to the free-float, which then impacts how much of the retail favored stocks are weighted in the index. (At least they are not doing it by trading volume.)
XLK methodology is a bit strange any way.
Let us see when Apple gets back what it is giving up in the index.

The use of free-float in indexes is sensible as that is the float that is publicly available. So, excluded are restricted stock (held by executives, directors, connected entities, etc), closely-held stock (insiders, major holders), Treasury stock (buybacks that aren't cancelled). If total market-cap is used, then funds will try to buy many more shares than are publicly available, and that would create a problem.
Many recent IPOs offer extreme examples (ARM, Saudi ARMCO - in Middle Eastern markets, etc) where only a small % of market-cap is issued.
Most other funds use proportional adjustments when caps are encountered. For example, if 3 stocks are eligible to be counted in 50% limitation, and they have approximately the same free-floats, then 3X = 50, or X = 0.1667, or 16.67% weight for each may be used. But the XLK formula knocks down the smallest (even by the tiniest amount), so 2X + 4.5 = 50, or X = 0.2275, or the weights 22.75%, 22.75%, 4.5%. That is what will cause this massive shift as NVDA used to be #3, but now AAPL is #3.
https://corporatefinanceinstitute.com/resources/career-map/sell-side/capital-markets/free-float/
https://www.investopedia.com/terms/f/freefloatmethodology.asp

https://www.sec.gov/Archives/edgar/data/1545440/000158064224003191/westwoodcapappinc_497.htm
497 1 westwoodcapappinc_497.htm 497
June 17, 2024
WESTWOOD CAPITAL APPRECIATION AND INCOME FUND
Class A Shares Ticker Symbol: WWTAX
Class C Shares Ticker Symbol: WTOCX
Institutional Shares Ticker Symbol: WLVIX
A Series of Ultimus Managers Trust
Supplement to the Prospectuses and Statement of Additional Information
dated February 28, 2024, as supplemented
On May 24, 2024, the Fund discontinued all sales of its shares, except shares purchased by existing shareholders through an established automatic investment plan, or shares acquired through the reinvestment of dividends and distributions. Effective July 16, 2024, shares of the Fund are no longer available for purchase and, at the close of business on July 16, 2024, all outstanding shares of the Fund will be redeemed at net asset value (the “Transaction”).
The Board of Trustees of the Trust (the “Board”), in consultation with the Fund’s investment adviser, Westwood Management Corp. (the “Adviser”), determined and approved to discontinue the Fund’s operations based on, among other factors, the Adviser’s belief that it would be in the best interests of the Fund and its shareholders to discontinue the Fund’s operations. Through the date of the Transaction, the Adviser will continue to waive investment advisory fees and reimburse expenses of the Fund, as necessary, in order to maintain the Fund at its current expense limit, as specified in the Fund’s current Prospectus and Summary Prospectus.
In connection with the Transaction, the Board directed that: (i) all of the Fund’s portfolio securities be liquidated in an orderly manner not later than July 16, 2024; and (ii) all outstanding shareholder accounts on July 16, 2024 be closed and the proceeds of each account, less any required withholding, be sent to the shareholder’s address of record or to such other address as directed by the shareholder, including special instructions that may be needed for Individual Retirement Accounts (“IRAs”) and qualified pension and profit sharing accounts. As a result of the Transaction, the Fund’s portfolio holdings will be reduced to cash or cash equivalents. Accordingly, going forward, shareholders should not expect the Fund to achieve its stated investment objective.
Shareholders may redeem all or a portion of their shares of the Fund on any business day prior to July 16, 2024 as specified in the Fund’s Prospectus.
The Transaction will be considered for tax purposes a sale of Fund shares by shareholders, and shareholders should consult with their own tax advisors to ensure its proper treatment on their income tax returns. In addition, shareholders invested through an IRA or other tax-deferred account should consult the rules regarding the reinvestment of these assets. In order to avoid a potential tax issue, shareholders generally have 60 days from the date that proceeds are received to re-invest or “rollover” the proceeds into another IRA or qualified retirement account; otherwise, the proceeds may be required to be included in the shareholder’s taxable income for the current tax year.
If you have any questions regarding the Fund or the Transaction, please call the Fund toll free at 1-877-FUND-WHG (1-877-386-3944).
Investors Should Retain this Supplement for Future Reference.

@PRESSmUP Why no T-bill or cds ?

No specific reason. My current positions have good coverage within the FI space, provide a healthy distribution, good opportunity for capital appreciation, and liquidity if needed. I spent a fair amount of time examining the funds, so I'm pretty pleased with the folks managing the money.

From Bloomberg this evening:
”How the US Mopped Up a Third of Global Capital Flows Since Covid “
(Excerpt) “In the face of calls around the world to diversify out of the dollar in recent years, the US has nabbed almost one-third of all the investment that flowed across borders since Covid struck. An International Monetary Fund analysis sent by request to Bloomberg News shows that the share of global flows has climbed — not fallen — since a shortage of dollars in 2020 spooked global investors and the 2022 freezing of Russian assets stoked questions about respect for free movement of capital. The pre-pandemic US average share was just 18%, according to the IMF. “
Article by Enda Curran and Saleha Mohsin - Bloomberg Media / June 16, 2024

https://www.cnn.com/videos/world/2024/06/16/fareeds-take-europe-america-pace-gps-digvid.cnn

Insightful, but does the current US/Euro gap indicate future trend or represent a possible turning point? One thing for sure, the US will not stay this far ahead forever. There is good growth in the US, but possibly better value may be found overseas.

Ya, I ventured overseas years ago. The "old saw" was that Europe was "old money." I was looking for a bargain. And I had some EM holdings, too. These days, Europe is even more complicated: Ukraine war, Right-wing election gains. One currency, but many different national budgets.... I did well investing in EM bonds through the GFC and for a while beyond, and then I got out, following some good advice from someone in here.
Politically, China is uninvestable these days. Authoritarian. Curtailed civil and human rights. They're putting the screws to "special territories" Hong Kong and Macau, too. After having visited there in early 2019, it makes me so sad and angry to see it happening. The Markets have no conscience. But this whole business in China is morally distressing. I'm sworn off of foreign investments in my mutual funds; funds are still the lion's share of what I own. My fund managers have me in UK and Europe, just a tiny bit. I own a Canadian stock with a great dividend; is that "foreign?" Also, a Luxembourg-based maker of oil drilling pipes. Two still very tiny single-stock holdings. In retirement, I like YIELD. My (junk) bond funds provide most of that. Keeping a close eye on them--- a "short leash." Currently, my portfolio provides a 4.05% yield, as calculated by the ever-reliable (LOL) Morningstar.

...the dividend would have presumably added to the Total Return

Two identical investments will net out equal total returns over a full year cycle, no matter when the distributions are made. That is tautology. There is no point to your comparison, unless factoring in market timing or tax liability considerations.
Dividends are a component of total return, as are share price appreciation and distributed capital gains. That is a fact, not a "presumption" (see https://www.investopedia.com/terms/t/totalreturn.asp).
Given most any two similar (though non-identical) "Core" portfolio allocations, one with a slight tilt favoring dividend contributions and the other giving neutral weight to dividend payers, I hold that, ALL ELSE BEING MORE OR LESS EQUAL, the fund that consistently pays out higher dividends will usually outperform over the long term. This is the only theory I am trying to put forward here. I believe that ten-year charts for PRWCX provide some support to this thesis, and that David Giroux' stock picking skills will continue to surpass those of his competition.
If any of the points I make here have confused you I apologize, but I must confess your arguments don't make a lot of sense to me, either.

PRCWX traditionally lags its peers further and further as the year goes on, then distributes a massive dividend and CG payout in December, putting it squarely back in the pre-tax Total Return lead.
This statement says that the dividend adds to total return - the "massive dividend" helps a fund that is lagging to catch up (and surpass) in Total Return. In 2023 the price of PRWCX declined on Dec 19th (ex-div date) commensurate with the size of its dividend, thus netting zero increase in Total Return. That is, not putting it squarely back in the Total Return lead.
The equalization of NAV to distribution only holds effect on the ex dividend date and NAV should revert to mean reasonably quickly.
This statement acknowledges this effect but says that it was temporary. Over time (two months was mentioned) the fund would recover this loss. At that point the dividend would have presumably added to the Total Return, putting the fund squarely back in the lead.
It's the underlined section that is problematic.
-------
Consider two funds that pay out over a year roughly equal dividends (percentage wise). One pays quarterly, one annually. As I understand the statements above, the one paying quarterly will pull ahead in total return during the year - it will pay out its quarterly dividend, see its price drop but recover sometime within that quarter. So its total return will for those first three quarters gradually exceed that of the other fund.
But come December, the second fund will make a larger distribution (full year's worth rather than a quarter) and that will let it catch up (perhaps surpass) in total return. That catch up will be complete in a couple of months once the price has "reverted to the mean". At least that seems to be the claim.
For simplicity and clarity, let's consider two purely hypothetical funds, each holding the same one stock. Fund A distributes quarterly, Fund B annually. Suppose the underlying stock pays a div on March 31 (record date much earlier, but irrelevant), and Fund A distributes divs on the same day.
To compute total return, one assumes all fund divs are reinvested. With that assumption, the pre- and post-distribution portfolios of Fund A are the same, and are also the same as the Fund B portfolio (which made no quarterly distribution). Going forward, both funds will have the same total return because they have identical portfolios.
Fund B does not lag just because it doesn't make quarterly distributions. It does not catch up with a "massive dividend" at year end. A dividend payment has no effect on total return.
------
Where I think the confusion arises is in how investors perceive stock divs. Many investors feel that higher div stocks have better returns. But consider stocks like BRK, or see:
https://www.investopedia.com/articles/investing/082015/3-biggest-misconceptions-dividend-stocks.asp
Even if one buys into this theory, funds don't work that way. In part because fund distributions include capital gains which are not part of this stock div theory. In part because there are so many moving parts in funds that one can't tell from the yield what's going on. A fund could be invested in a mix of money losing companies (with no divs) and companies with high div payout ratios (distributing cash since they are stagnant), or strong companies with respectable payout ratios. The fund yields could be similar either way.

It would help if you could advance some explanation of why the price of a fund, determined by the prices of over 300 underlying securities, would appreciate merely because it distributed a dividend.

You missed my point by 180 degrees here. My position is that dividends are ultimately beneficial to total returns. Although a divided payout negatively disrupts share price trajectory temporarily, mean price reversion and the compounding effect tend to push net asset value gains in subsequent periods.

https://www.sec.gov/Archives/edgar/data/1498498/000119312524161727/d765972d497.htm
497 1 d765972d497.htm ASHMORE FUNDS
ASHMORE FUNDS
Supplement dated June 14, 2024
to the Statutory Prospectus for Class A, Class C and Institutional Class Shares
of Ashmore Emerging Markets Corporate Income ESG Fund
On June 12, 2024 the Board of Trustees of Ashmore Funds approved a plan of liquidation (the “Plan of Liquidation”) for the Ashmore Emerging Markets Corporate Income ESG Fund (the “Fund”), with such liquidation scheduled to take place on or about June 14, 2024 (the “Liquidation Date”). On or before the Liquidation Date, the Fund will seek to convert substantially all of its portfolio securities and other assets to cash or cash equivalents. Therefore, the Fund may depart from its stated investment objectives and policies as it prepares to liquidate its assets and distribute them to shareholders. Any shares of the Fund outstanding on the Liquidation Date will be automatically redeemed on that date. As soon as practicable after the Liquidation Date, the Fund will distribute pro rata to the Fund’s shareholders of record as of the close of business on the Liquidation Date all of the remaining assets of the Fund, after paying, or setting aside the amount to pay, any expenses and liabilities of the Fund.
The Fund may make one or more distributions of income and/or net capital gains on or prior to the Liquidation Date in order to eliminate Fund-level taxes. For taxable shareholders, the automatic redemption on the Liquidation Date generally will be treated like other redemptions of shares generally – that is, as a sale that may result in a gain or loss to shareholders for U.S. federal income tax purposes.
Effective as of the close of business on June 14, 2024, Institutional Class Shares of the Fund will no longer be available for purchase by new or existing investors or be available for exchanges from the other series of Ashmore Funds, except for shares that may be purchased as a result of dividend reinvestments.
At any time prior to the Liquidation Date, shareholders may redeem their shares of the Fund pursuant to the procedures set forth under “How to Sell or Exchange Shares” in the Fund’s Prospectus.
Shareholders may also exchange their shares for shares of a different series of Ashmore Funds, subject to any investment minimums and other restrictions on exchanges as described under “How to Sell or Exchange Shares” in the Fund’s Prospectus.
Investors Should Retain This Supplement for Future Reference

Ya'll holding IG bond funds/etf's or bonds within your other mixed allocation funds have made some decent gains in the past two weeks; you know, lower yields = higher prices.
Treasury yields since April 5. Will the downward trend continue? I don't have that answer, only a chart.
Remain curious,
Catch

M* shows MRFOX has zero turnover (8/31/2023) ... Not sure what the current MRFOX turnover is. I was hoping with heavy inflows they would be able to buy new or more promising investments.
Four of the fund's 19 holdings (see below) were new positions as of the turnover reporting date. Turnover is the lesser of percentage bought (in dollars, not positions) and percentage sold. Apparently the fund didn't sell shares of any holdings in the year ending 8/31/23 but added new holdings (likely adding to existing holdings as well).
https://www.morningstar.com/investing-definitions/turnover-ratio
But when I look at holdings at M*, M* says of the 18 holdings 7 are three star (means fairly valued) and rest are two star or one star (means overvalued). No 4 or 5 star holdings.
Those are star ratings today of equities that the fund held four months ago. How promising were those stocks when that last portfolio snapshot was taken? Let alone how promising they were last August when the fund added four stocks.
In the six months between Aug 2023 and Feb 2024 the fund liquidated one position. A naive calculation would suggest a turnover ratio of 5.3% (1 stock out of 19 sold). The actual dollar weighted turnover (including any sales of shares in the other 18 companies) came to 7% (not annualized). That seems more typical of the fund, which had turnover ratios of 24%, 14%, and 14% for FYs 2021, 2020, and 2019.
Semiannual report, Feb 29, 2024
Annual report, Aug 31, 2023

>> The underlying premise, viz. that dividends increase total returns, is mistaken
I understand the arithmetic here, but when I compare the last three years of (e.g.) Apple and Barnes Group stock performance on Stockchart adjusted (div) and unadjusted (no div), the div value is higher by a few percent with each stock. The delta is due to ... what? Corporate capital gains?

That addresses the dividends. However, are not capital gains separate?
Regardless of what distributions are called, the effect is the same. Though for tax purposes distributions may be characterized as ordinary income divs, qualified income divs, or cap gains divs.
Since you mentioned gaming the system, it's worth mentioning that the IRS has a rule to protect against gaming cap gains. Say that you buy a fund at $10 the day before it distributes a cap gain div of $1. The next day the fund is priced at $9, and you sell your shares.
You think you've got a $1 long term gain (cap gain div) and a more valuable $1 short term loss. The IRS says that you must treat that loss (of a share you held for one day) as a long term loss. Unless you hold the share for at least six months, you can't play this game.
https://fairmark.com/investment-taxation/capital-gain/selling-mutual-fund-shares/shares-held-six-months-or-less/
The IRS has a different rule to protect against gaming qualified divs. Generally it is necessary for a security to be held for at least 61 days (starting 60 days before the ex-div date) for the div to be qualified. Funds must satisfy this rule in order to pass through divs as qualified.
https://www.fidelity.com/tax-information/tax-topics/qualified-dividends
If you don't hold likewise hold the fund shares for a 61 day period around the fund's ex-div date, then the fund divs cannot be treated as qualified. Even if the fund's 1099-DIV says that they are.

Thanks @msf. That addresses the dividends. However, are not capital gains separate? Are the cap gains also included in the NAV? I’ve heard (in the distant past) that some fund managers will not reveal the date the cap gains are to be distributed ahead of time because some investors could game the system.

https://www.sec.gov/Archives/edgar/data/720309/000119312524160798/d844723d497.htm
497 1 d844723d497.htm AMG FUNDS III
Filed pursuant to Rule 497(e)
File Nos. 002-84012 and 811-03752
AMG FUNDS III
AMG GW&K High Income Fund
Supplement dated June 13, 2024 to the Prospectus and Statement of Additional Information,
each dated May 1, 2024
The following information supplements and supersedes any information to the contrary relating to AMG GW&K High Income Fund (the “Fund”), a series of AMG Funds III (the “Trust”), contained in the Fund’s Prospectus and Statement of Additional Information, dated as noted above.
The Board of Trustees of the Trust has approved a plan to liquidate and terminate the Fund (the “Liquidation”), which is expected to occur on or about September 11, 2024 (the “Liquidation Date”). Effective on or about June 14, 2024, it is expected that the Fund will begin selling its portfolio investments and will invest the proceeds in cash and cash equivalents, in anticipation of the Liquidation. Proceeds of the Liquidation are expected to be distributed to shareholders of the Fund promptly following the Liquidation Date in full redemption of each shareholder’s shares of the Fund.
Effective immediately following the close of business on June 13, 2024, the Fund will no longer accept investments, except for investments made through existing asset allocation programs investing in the Fund, and shares purchased pursuant to automatic investment programs, such as automatic investments through 401(k) plans and reinvestments of any dividends and distributions. Those shareholders investing in the Fund through one of the exceptions described above may continue to purchase shares of the Fund provided that such transactions settle prior to the Liquidation Date.
A letter will be sent to shareholders who hold shares directly with the Fund (“Direct Shareholders”) setting forth the various options and instructions with respect to the Liquidation and the distribution of Direct Shareholders’ redemption proceeds. Any Direct Shareholder may elect to have redemption proceeds sent to them via check. Direct Shareholders may also elect to exchange their Fund shares into the same share class of any other fund in the AMG Funds family of funds that is open to new investors (subject to minimum initial investment requirements as described in such fund’s prospectus). Shareholders who hold their shares in the Fund through a financial intermediary should contact their financial representative to discuss their options with respect to the Liquidation and the distribution of such shareholders’ redemption proceeds.
The Fund intends to distribute its accumulated net capital gains and net investment income, if any, to shareholders of record of the Fund as of the close of business on June 17, 2024; these distributions may be taxable to shareholders who do not hold their shares in a tax-advantaged account such as an IRA or 401(k).
PLEASE KEEP THIS SUPPLEMENT FOR FUTURE REFERENCE

https://www.sec.gov/Archives/edgar/data/879947/000119312524160793/d849966d497.htm
497 1 d849966d497.htm AMG FUNDS II
Filed pursuant to Rule 497(e)
File Nos. 033-43089 and 811-06431
AMG FUNDS II
AMG GW&K Enhanced Core Bond ESG Fund
Supplement dated June 13, 2024 to the Prospectus and Statement of Additional Information,
each dated May 1, 2024
The following information supplements and supersedes any information to the contrary relating to AMG GW&K Enhanced Core Bond ESG Fund (the “Fund”), a series of AMG Funds II (the “Trust”), contained in the Fund’s Prospectus and Statement of Additional Information, dated as noted above.
The Board of Trustees of the Trust has approved a plan to liquidate and terminate the Fund (the “Liquidation”), which is expected to occur on or about September 11, 2024 (the “Liquidation Date”). Effective on or about June 14, 2024, it is expected that the Fund will begin selling its portfolio investments and will invest the proceeds in cash and cash equivalents, in anticipation of the Liquidation. Proceeds of the Liquidation are expected to be distributed to shareholders of the Fund promptly following the Liquidation Date in full redemption of each shareholder’s shares of the Fund.
Effective immediately following the close of business on June 13, 2024, the Fund will no longer accept investments, except for investments made through existing asset allocation programs investing in the Fund, and shares purchased pursuant to automatic investment programs, such as automatic investments through 401(k) plans and reinvestments of any dividends and distributions. Those shareholders investing in the Fund through one of the exceptions described above may continue to purchase shares of the Fund provided that such transactions settle prior to the Liquidation Date.
A letter will be sent to shareholders who hold shares directly with the Fund (“Direct Shareholders”) setting forth the various options and instructions with respect to the Liquidation and the distribution of Direct Shareholders’ redemption proceeds. Any Direct Shareholder may elect to have redemption proceeds sent to them via check. Direct Shareholders may also elect to exchange their Fund shares into the same share class of any other fund in the AMG Funds family of funds that is open to new investors (subject to minimum initial investment requirements as described in such fund’s prospectus). Shareholders who hold their shares in the Fund through a financial intermediary should contact their financial representative to discuss their options with respect to the Liquidation and the distribution of such shareholders’ redemption proceeds.
The Fund intends to distribute its accumulated net capital gains and net investment income, if any, to shareholders of record of the Fund as of the close of business on June 17, 2024; these distributions may be taxable to shareholders who do not hold their shares in a tax-advantaged account such as an IRA or 401(k).
PLEASE KEEP THIS SUPPLEMENT FOR FUTURE REFERENCE

https://www.sec.gov/Archives/edgar/data/912036/000119312524160800/d807981d497.htm
497 1 d807981d497.htm AMG FUNDS IV
Filed pursuant to Rule 497(e)
File Nos. 033-68666 and 811-08004
AMG FUNDS IV
AMG Beutel Goodman International Equity Fund
Supplement dated June 13, 2024 to the Prospectus and Statement of Additional Information,
each dated March 1, 2024
The following information supplements and supersedes any information to the contrary relating to AMG Beutel Goodman International Equity Fund (the “Fund”), a series of AMG Funds IV (the “Trust”), contained in the Fund’s Prospectus and Statement of Additional Information, dated as noted above.
The Board of Trustees of the Trust has approved a plan to liquidate and terminate the Fund (the “Liquidation”), which is expected to occur on or about September 11, 2024 (the “Liquidation Date”). Effective on or about June 14, 2024, it is expected that the Fund will begin selling its portfolio investments and will invest the proceeds in cash and cash equivalents, in anticipation of the Liquidation. Proceeds of the Liquidation are expected to be distributed to shareholders of the Fund promptly following the Liquidation Date in full redemption of each shareholder’s shares of the Fund.
Effective immediately following the close of business on June 13, 2024, the Fund will no longer accept investments, except for investments made through existing asset allocation programs investing in the Fund, and shares purchased pursuant to automatic investment programs, such as automatic investments through 401(k) plans and reinvestments of any dividends and distributions. Those shareholders investing in the Fund through one of the exceptions described above may continue to purchase shares of the Fund provided that such transactions settle prior to the Liquidation Date.
A letter will be sent to shareholders who hold shares directly with the Fund (“Direct Shareholders”) setting forth the various options and instructions with respect to the Liquidation and the distribution of Direct Shareholders’ redemption proceeds. Any Direct Shareholder may elect to have redemption proceeds sent to them via check. Direct Shareholders may also elect to exchange their Fund shares into the same share class of any other fund in the AMG Funds family of funds that is open to new investors (subject to minimum initial investment requirements as described in such fund’s prospectus). Shareholders who hold their shares in the Fund through a financial intermediary should contact their financial representative to discuss their options with respect to the Liquidation and the distribution of such shareholders’ redemption proceeds.
The Fund intends to distribute its accumulated net capital gains and net investment income, if any, to shareholders of record of the Fund as of the close of business on June 17, 2024; these distributions may be taxable to shareholders who do not hold their shares in a tax-advantaged account such as an IRA or 401(k).
PLEASE KEEP THIS SUPPLEMENT FOR FUTURE REFERENCE

quick Schwab update: In 2024 I've sent several messages to CS' customer service for various and fairly (basic) enquiries ranging from why I couldn't DRIP something to asking them why some income wasn't showing up on my Projected Income page. On at least 3 such requests (including one from last week), my notes went into the ether and I never got a response. This is unfortunate because since moving to Schwab in 2020, they were always very responsive -- I never went more than 2 days before getting an answer to my enquiry that was more than their system automatically acknowledging receipt of my note. :(

https://www.sec.gov/Archives/edgar/data/1762332/000139834424011580/fp0088639-1_497.htm
497 1 fp0088639-1_497.htm
FROST FAMILY OF FUNDS
(the “Trust”)
Frost Municipal Bond Fund
(the “Fund”)
Supplement dated June 11, 2024 to the Fund’s Summary Prospectus (the “Summary Prospectus”), Prospectus (the “Prospectus”) and Statement of Additional Information (“SAI”), each dated November 28, 2023
This supplement provides new and additional information beyond that contained in the Summary Prospectus, Prospectus and SAI, and should be read in conjunction with the Summary Prospectus, Prospectus and SAI.
The Board of Trustees of the Trust, at the recommendation of Frost Investment Advisors, LLC (the “Adviser”), the investment adviser of the Fund, has approved a plan of liquidation providing for the liquidation of the Fund’s assets and the distribution of the net proceeds pro rata to the Fund’s shareholders, effective as of August 5, 2024. In connection therewith, the Fund is closed to investments from new and existing shareholders effective July 31, 2024. The Fund is expected to cease operations and liquidate on or about September 5, 2024 (the “Liquidation Date”). The Liquidation Date may be changed without notice at the discretion of the Trust’s officers.
Prior to the Liquidation Date, shareholders may redeem (sell) their shares in the manner described in the “Purchasing, Selling and Exchanging Fund Shares – How to Redeem Fund Shares” section of the Prospectus. For those Fund shareholders that do not redeem (sell) their shares prior to the Liquidation Date, the Fund will distribute to each such shareholder, on or promptly after the Liquidation Date, a liquidating cash distribution equal in value to the shareholder’s interest in the net assets of the Fund as of the Liquidation Date.
Beginning August 5, 2024, in anticipation of the liquidation of the Fund, the Adviser may manage the Fund in a manner intended to facilitate the Fund’s orderly liquidation, such as by holding cash or making investments in other highly liquid assets. As a result, during this time, all or a portion of the Fund may not be invested in a manner consistent with its stated investment strategies, which may prevent the Fund from achieving its investment objective.
The liquidation distribution amount will include any accrued income and capital gains, will be treated as a payment in exchange for shares and will generally be a taxable event for shareholders investing through taxable accounts. You should consult your personal tax advisor concerning your particular tax situation. Shareholders remaining in the Fund on the Liquidation Date will not be charged any transaction fees by the Fund. However, the net asset value of the Fund on the Liquidation Date will reflect costs of liquidating the Fund. Shareholders will receive liquidation proceeds as soon as practicable after the Liquidation Date.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.