Small Cap Value Fund | KVALX
Fact Sheet 6/30/23
Diversification does not assure a profit, nor protect against loss in a declining market.
We believe the operating cash-flow returns of a business provide a useful measure of corporate performance. Reinvesting cash-flow into high-return projects creates a powerful compounding effect, creating value for shareholders overtime.
We work to identify companies that are able to reinvest in their businesses at attractive rates of return, and invest in those companies at prices we believe don’t adequately reflect the potential value creation from those investments.
We focus on cash-flow return on investment (CFROI®) as a more insightful way to evaluate corporate performance, deriving inputs for discounted cash-flow based tools to build a better estimate of stock valuation. Heavy emphasis is placed on quality of management. We believe that our long-standing industry expertise allows us to contextualize observations better than many of our peers. This labor intensive, bottom-up approach, combined with discounted cash-flow analysis, forms the basis for our investment processes.
*ROIC - Return on Invested Capital
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.
The sector groups referenced are combinations of GICS sectors used to illustrate the way in which KCM divides sector and industry group coverage amongst its research analyst team. For the purposes of this piece, “Consumer” includes the GICS sectors Consumer Staples and Consumer Discretionary; “Technology” includes the Information Technology sector; other sectors have been grouped together as displayed.
Fact Sheet 6/30/23
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, 2024 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.
Kennedy Capital Management is a boutique investment firm focused on a goal of generating attractive returns in the micro, 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.
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.
| Month-End Returns as of 8/31/2023 | Cumulative | Annualized | |||||
| 1 Month | Quarter-to-Date | Year-to-Date | Since Inception (04/27/2022) | 1 Year | Since Inception (04/27/2022) |
||
| Small Cap Value Fund (I-Share Class) | -1.47% | 4.58% | 9.04% | 8.67% | 10.55% | 6.38% | |
| RUSSELL 2000® VALUE | -4.81% | 2.37% | 4.94% | -1.26% | 2.17% | -0.94% | |
| Quarter-End Returns as of 6/30/2023 | Cumulative | Annualized | |||||
| 1 Month | Quarter-to-Date | Year-to-Date | Since Inception (04/27/2022) | 1 Year | Since Inception (04/27/2022 |
||
| Small Cap Fund (I-Share Class) | 10.32% | 4.69% | 4.27% | 3.91% | 11.85% | 3.32% | |
| RUSSELL 2000® VALUE | 7.94% | 3.18% | 2.50% | -3.55% | 6.01% | -3.03% | |
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 10.08% (gross) / 0.89% (net). The net expense ratio reflects the contractual agreement to waive fees and/or pay operating expenses until April 30th, 2024. The net expense ratio ensures total annual fund operating expenses do not exceed 0.89% (exclusions exist) until April 30th, 2024.
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, 2024 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® Value 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.
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.
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:
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 Value 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. large companies. Value investing is subject to
the risk that the market will not recognize a security’s inherent value for a long time or at all. 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 Prospectus. Please read carefully before investing.
Data as of 6/30/23
| Company Name | % of Assets |
|---|---|
| Alamo Group, Inc. | 2.0 |
| Gibraltar Industries, Inc. | 1.9 |
| Bank OZK | 1.7 |
| Wintrust Financial Corporation | 1.6 |
| Home BancShares, Inc. | 1.6 |
| Bloomin' Brands, Inc. | 1.6 |
| Stifel Financial Corporation | 1.6 |
| ANI Pharmaceuticals, Inc. | 1.5 |
| Wabash National Corporation | 1.5 |
| TopBuild Corporation | 1.4 |
| Sector | KVALX | RUSSELL 2000® VALUE |
|---|---|---|
| Financials | 22.8% | 24.2% |
| Industrials | 18.3% | 14.7% |
| Consumer Discretionary | 10.5% | 10.3% |
| Real Estate | 10.3% | 10.6% |
| Health Care | 10.1% | 10.1% |
| Materials | 6.8% | 4.9% |
| Information Technology | 6.7% | 6.2% |
| Energy | 5.5% | 9.1% |
| Utilities | 3.5% | 4.4% |
| Consumer Staples | 2.0% | 2.6% |
The holdings and weightings are subject to change.
| KVALX | RUSSELL 2000® VALUE | |
|---|---|---|
| Weighted Average Market Cap ($M)2 | 3,197 | 2,356 |
| Forecasted Price/Earnings Ratio (Fiscal Year 2)(x)3 | 11.3 | 13.9 |
| Price to Book (x)4 | 2.3 | 1.5 |
| Price to Sales (x)5 | 2.0 | 1.9 |
| LT Debt/Total Capital (%)6 | 34.0 | 34.6 |
| Return-on-Equity (%)7 | 12.4 | 7.1 |
Source: FactSet Research Systems, Inc.
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 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.
4.) The price to book (P/B) ratio is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.
5.) The price to sales (P/S) ratio is a valuation ratio that compares a company’s stock price to its revenues.
6.) The long-term debt to total capitalization is a ratio showing the financial leverage of a firm, calculated by dividing long term debt by the amount of capital available.
7.) Return on equity (ROE) is the amount of net income returned as a percentage of shareholders equity.
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.
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.
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 Prospectus. Please read carefully before investing.