Mondrian U.S. Small Cap Equity Fund

Fund Facts as of 12/17/2018

Ticker MPUSX
Net Expense Ratio* 0.90%
Gross Expense Ratio 12.40%
Sales Charge None
Inception Date 12/17/2018
Benchmark Russell 2000
Minimum Initial Investment $500,000
Minimum Subsequent Investment $100
CUSIP 36381Y504

Mondrian Investment Partners Limited (the “Advisor”) has contractually agreed to waive fees and reimburse expenses to the extent necessary to keep Total Annual Fund Operating Expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses and non-routine expenses) from exceeding 0.90% of the Fund’s average daily net assets until February 28, 2021.

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Fund News

London, UK, December 17, 2018 – Mondrian Launches U.S. Small Cap Equity Strategy as a Mutual Fund

Mondrian Investment Partners Limited announced the launch of the Mondrian U.S. Small Cap Equity Fund, an active value-oriented defensive strategy.  The Fund seeks long-term capital appreciation, benchmarks against the Russell 2000 and invests in U.S. securities below $4 billion in market capitalization.

Fund Features

Universe of Securities

The team uses a screen to scour the universe of investable equities for new investment ideas. We initially screen the universe for securities with market capitalization of up to $4.0 billion, and will continue holding such companies until they reach a market capitalization of $8.0 billion, as long as they remain attractive per our dividend discount model (DDM) valuation. A quantitative screen filters this large universe to give a list of stocks that may warrant further investigation. The screen makes use of a multi-factor approach, utilizing company specific information and taking into consideration risk and sustainable growth factors that complement Mondrian’s investment philosophy. The quantitative screen is interactive, allowing analysts to judge whether the inputs are valid and sustainable using their qualitative judgments, as well as taking forward ideas that are not initially selected by it. Analysts assess the screen output to see which companies it has highlighted have the right characteristics for the portfolio and warrant detailed research.

Security Selection

Security selection is the most important part of Mondrian’s equity investment process. Mondrian uses the same dividend discount valuation model of future income streams across all markets, securities and industries. Securities which are significantly mispriced relative to the dividend discount valuation are purchase and sale candidates.

Key to the security selection process is fundamental company analysis and a regular program of meeting with companies. Meeting with the management of holdings is important to the investment process. The firm uses forward looking valuations, and therefore, the business plans and projections for a company’s future are extremely important.

Currency Selection

Sector and industry selection forms a secondary part of the Fund’s portfolio construction process. Levels of all allocations to sectors are monitored to ensure prudent diversification. Sector allocations can vary substantially from the index.

The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000 Index is constructed to provide a comprehensive and unbiased smallcap opportunity barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set.