Small Cap Growth Fund | KGROX

Fact Sheet 9/30/22

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Risk
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Highlights

  • Seeks to invest in companies with durable business models able to deploy assets into growing sets of opportunities with the potential to generate superior rates of return.
  • Invests across the full spectrum of growth by classifying these investment types into three categories:  Early Growth, Steady Compounder, Material Positive Change.
  • Sector diversification utilized in aiming to achieve alpha vs. the benchmark primarily from individual stock selection.
  • Fundamental, bottom-up investment approach, investigated by a team of research analysts solely focused on small- to mid- capitalization equities.

 

Diversification does not assure a profit, nor protect against loss in a declining market.
Alpha measures nonsystematic return, or the return that cannot be attributed to the market.

The Growth Investment Philosophy at Kennedy

We seek companies with durable business models able to deploy assets into growing sets of opportunities with the potential to generate superior rates of return.

We invest across the full spectrum of growth and classify these investments as:

Early Growth  |  Steady Compounder  |  Material Positive Change

We utilize these classifications because it defines the key risks to be monitored as we evaluate the investment.

Principal Investment Strategy (Investment Types)

Cash Flow Return On Investments (CFROI) is the ratio of gross cash flow to gross investments, translated into an internal rate of return. CFROI® is a registered trademark in the United States and other countries (excluding the United Kingdom) of Credit Suisse First Boston or its subsidiaries or affiliates.

Investment Process

Kennedy Capital Small Cap Growth Fund Facts

  • Objective: The Fund investment objective is capital appreciation.
  • Portfolio Managers: Jean Barnard, CFA® & Ryan Dunnegan, CPA
  • Ticker Symbol: KGROX
  • CUSIP: 46144X305
  • Share Class: Institutional
  • Inception Date: 04/27/2022
  • Investment style: U.S. Domestic Small Cap Growth Equity 
  • Minimum Initial Investment: $50,000
  • Expense Ratios: Gross 1.44% | Net 0.89%
  • Management Fee: 0.82%
  • Benchmark: Russell 2000® Growth

Fact Sheet 9/30/22

 

The Fund’s advisor has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that total annual fund operating expenses do not exceed 0.89% of the average daily net assets of the Institutional Class, exclusive of certain expenses identified in the Fund’s prospectus. This agreement is in effect until April 30th, 2023, and it may be terminated before that date only by the Trust’s Board of Trustees. The Fund’s advisor is permitted to seek reimbursement from the Fund of fees waived or payments made to the Fund for a period ending three full years after the date of the waiver or payment, subject to limitations described in the prospectus.

About Kennedy Capital

Kennedy Capital Management is a boutique investment firm focused on a goal of generating attractive returns in the small and mid-cap domestic equity markets for our clients since 1980. Led by our Director of Research, our centralized research team uses a detail-oriented, bottom-up proprietary research process driven by a team of more than a dozen sector-specific analysts. We believe this level of specialization provides a competitive advantage allowing us to regularly capitalize on overlooked opportunities. We are an independent and 100% employee-owned investment adviser.  

Not FDIC Insured. No Bank Guarantee. May Lose Value. Distributed by IMST Distributors, LLC 

Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. This and other important information is contained in the fund's full Prospectus and Summary ProspectusPlease read carefully before investing.

Month-End Returns
as of 11/30/2022
CumulativeAnnualized
1 MonthQuarter-to-DateYear-to-DateSince Inception
(04/27/2022)
1 YearSince Inception
(04/27/2022)
Small Cap Growth Fund
(I-Share Class)
5.68%13.56%-0.50%--
RUSSELL 2000® GROWTH1.63%11.27%-1.46%--

Quarter-End Returns as of
9/30/2022
CumulativeAnnualized
1 MonthQuarter-to-DateYear-to-DateSince Inception
(04/27/2022)
1 YearSince Inception
(04/27/2022)
Small Cap Growth Fund
(I-Share Class)
-8.57%-1.67%--11.50%--
RUSSELL 2000® GROWTH-9.00%0.24%--8.82%--

The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the most recent month-end performance, please call (833) 737-7788. Cumulative performance may not be indicative of the Fund’s long-term potential. The Fund returns will fluctuate over long and short-term period. Periods over one year are annualized.

Expense ratio as of most recent prospectus is 1.44% (gross) / 0.89% (net). The net expense ratio reflects the contractual agreement to waive fees and/or pay operating expenses until April 30th, 2023. The net expense ratio ensures total annual fund operating expenses do not exceed 0.89% (exclusions exist) until April 30th, 2023.

The Fund’s advisor has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that total annual fund operating expenses do not exceed 0.89% of the average daily net assets of the Institutional Class, exclusive of certain expenses identified in the Fund’s prospectus. This agreement is in effect until April 30th, 2023 and it may be terminated before that date only by the Trust’s Board of Trustees. The Fund’s advisor is permitted to seek reimbursement from the Fund of fees waived or payments made to the Fund for a period ending three full years after the date of the waiver or payment, subject to limitations described in the prospectus.

The Russell 2000® Growth Index measures the performance of the small cap segment of the U.S. equity universe, commonly referred to as “small” cap . It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. You cannot invest directly into an index.

Not FDIC Insured. No Bank Guarantee. May Lose Value. Distributed by IMST Distributors, LLC

Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. This and other important information is contained in the fund's full Prospectus and Summary Prospectus. Please read carefully before investing.

Risk Management

The Fund is generally managed on a sector neutral basis with modest over- and under-weights as compared to the Index, driven by bottom-up stock selection  The fund seeks to manage investment risk by maintaining broad issuer and industry diversification among the Fund’s holdings, and by utilizing fundamental analysis of risk/return characteristics in the security selection process.

Sell Discipline

The Advisor may sell all or a portion of a position of the Fund’s portfolio holding when in its opinion one or more of the following occurs, among other reasons:

  • Change in investment thesis
  • Change in our Growth Life Cycle classification
  • Decaying fundamentals
  • Ability to replace with a better opportunity
  • Market capitalization consistently exceeds the index range
  • Positions face additional review if they underperform the benchmark by 20% over a quarter or year

Important Information:  Equity securities (stocks) are generally more volatile and carry more risk than fixed income securities (bonds) and money market investments. The net asset value per share of the Small Cap Growth fund (the Fund) will fluctuate as the value of the securities in the portfolio changes. Common stocks, and funds investing in common stocks, generally provide greater returns over long time periods than fixed income securities. The Fund is comprised primarily of equity securities and is subject to market risk. Stocks may decline due to general market and economic conditions or due to company specific circumstances. The Fund is comprised of small capitalization (“Small cap”) stocks. Small cap stocks typically carry additional risk, since smaller companies generally have a higher risk of failure, and historically have experienced a greater degree of volatility. Small capitalization companies generally have a greater risk of failure, and their stocks generally have greater volatility, than large companies. Growth securities may be particularly sensitive to market conditions. The Fund is newly organized and thus has no track record of its own on which to base an investment decision. Mutual fund investing involves risk, including loss of principal.

Not FDIC Insured. No Bank Guarantee. May Lose Value. Distributed by IMST Distributors, LLC 

Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. This and other important information is contained in the fund's full Prospectus and Summary ProspectusPlease read carefully before investing.

Data as of 9/30/22

Portfolio Managers

Jean Barnard, CFA®
Portfolio Manager

  • 30 years of industry experience
  • Joined KCM in February 2018
  • Director of Research
  • B.S. in Economics and Political Science from Yale University

Ryan Dunnegan, CPA 
Portfolio Manager

  • 16 years of industry experience
  • Joined KCM as a Research Analyst in 2013
  • B.S. in Business Administration with a concentration in Accounting from Saint Louis University
  • Master of Accounting from Saint Louis University

Top 10 Holdings 

Company Name% of Assets
e.l.f. Beauty, Inc.3.6
WillScot Mobile Mini Holdings Corporation2.8
Ping Identity Holding Corporation2.6
Skyline Champion Corporation2.4
Casella Waste Systems, Inc.2.4
ASGN, Inc.2.3
Paylocity Holding Corporation2.3
WNS (Holdings) Limited2.2
Axon Enterprise, Inc.2.2
Axonics, Inc.2.1

Top 10 Sector Weightings1

SectorKGROXRUSSELL 2000® GROWTH
Health Care24.6%25.2%
Industrials20.8%17.1%
Information Technology19.3%19.5%
Consumer Discretionary14.3%10.9%
Consumer Staples5.6%4.2%
Financials5.5%6.0%
Real Estate3.5%2.1%
Communication Services1.7%2.4%
Energy0.0%6.5%
Materials0.0%4.3%

The holdings and weightings are subject to change.

Characteristics

 KGROXRUSSELL 2000® GROWTH
Number of Holdings701,121
Weighted Average Market Cap ($M)2 3,7672,875
Weighted Median Market Cap ($M)3 3,3192,580
CFROI FY1 (Current Year)4 9.67.6
Asset Growth FYI (%)514.910.0
Forecasted P/E (FY2) (x)6 21.819.8

Source: FactSet Research Systems, Inc., Credit Suisse HOLT Lens™

1.) Based on Global Industry Classification Standard (GICS), which was developed by and is the exclusive property and a service mark of MSCI Inc. (MSCI) and Standard & Poor's, a division of The McGraw Hill Companies, Inc. (S&P). Excludes cash.
2.) The weighted average market capitalization is a stock market index constructed on the market capitalization of individual stocks.
3.) The weighted median market capitalization is the midpoint of market capitalization (market price multiplied by the number of shares outstanding) of the stocks in a portfolio.
4.) Cash Flow Return On Investments (CFROI) is the ratio of gross cash flow to gross investments, translated into an internal rate of return. CFROI® is a registered trademark in the United States and other countries (excluding the United Kingdom) of Credit Suisse First Boston or its subsidiaries or affiliates.
5.) Asset Growth FY1 is the difference between the current value of an asset and its purchase price, the value at the time the asset was acquired.
6.) The price to earnings (P/E) ratio is defined as a ratio for valuing a company that measures its current share price relative to its per share earnings.

The Russell 2000® Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-value ratios and higher forecasted growth values. The Russell 2000® Growth Index is constructed to provide comprehensive and unbiased barometer for the small-cap growth segment. The Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set and that the represented companies continue to reflect growth characteristics. You cannot invest directly into an index.

Not FDIC Insured. No Bank Guarantee. May Lose Value. Distributed by IMST Distributors, LLC 

Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. This and other important information is contained in the fund's full Prospectus and Summary ProspectusPlease read carefully before investing.

Not FDIC Insured. No Bank Guarantee. May Lose Value. Distributed by IMST Distributors, LLC 

Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. This and other important information is contained in the fund's full Prospectus and Summary ProspectusPlease read carefully before investing.

For more information about Kennedy Capital Management’s strategies and investment management services, call (833) 737-7788 or send us an email at funds@kennedycapital.com.

Not FDIC Insured. No Bank Guarantee. May Lose Value. Distributed by IMST Distributors, LLC 

Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. This and other important information is contained in the fund's full Prospectus and Summary ProspectusPlease read carefully before investing.