WCM ALTERNATIVES: EVENT-DRIVEN FUND
Attractive, risk-adjusted returns with minimal volatility in virtually all market environments
Daily NAV as of 3/27/2020
| Inception Date | Ticker | CUSIP | NAV | Change ($) | YTD Return (%) |
|---|---|---|---|---|---|
| 3/22/2017 | WCERX | 95737C202 | $9.58 | $-0.09 | -12.67% |
| 1/2/2014 | WCEIX | 95737C103 | $9.61 | $-0.10 | -12.72% |
Investment Objective
The Fund seeks to provide attractive risk-adjusted returns with minimal volatility in virtually all market environments. Risk-adjusted return is a concept that considers not only an investment's return, but also the potential risk involved in producing that return.Investment Strategy
The Fund typically attempts to generate profits by capturing price movements generated by specific events. This may include investing in companies that are involved in publicly announced mergers, acquisitions, asset sales or other divestitures, restructurings, re-financings, recapitalizations, reorganizations or other special situations. By investing based on event-driven criteria, the Fund seeks to benefit from the successful conclusion of a specific event, rather than on the performance of the overall market.| At a Glance | ||
|---|---|---|
| WCEIX | WCERX | |
| Inception Date: | January 2, 2014 | March 22, 2017 |
| Investment Minimum: | $1.0M | $2,000 |
| Ticker: | WCEIX | WCERX |
| CUSIP: | 95737C103 | 95737C202 |
| Management Fee:(1) | 1.25% | 1.25% |
| Gross Expense:(1), (2) | 2.30% | 2.55% |
| Total Fund Assets as of 2/29/2020: | $230.8M | $230.8 M |
| Total Strategy Assets as of 2/29/2020: | $530.6 M | $530.6 M |
(1)As of prospectus dated 5/01/2019.
(2)Expense ratios are as of the Supplement dated December 11, 2019 to the Prospectus dated May 1, 2019. The total annual operating expense ratios of the Fund’s Institutional Class shares and Investor Class shares that were applicable to investors were 2.30% and 2.55% respectively. The Adviser has contractually agreed to waive its investment advisory fee and to reimburse the Fund for other ordinary operating expenses to the extent necessary to limit ordinary operating expenses (not including brokerage commissions, short dividends, interest expense, taxes, acquired fund fees and expenses or extraordinary expenses) to an amount not to exceed 1.57% and 1.82% for Institutional Class shares and Investor Class shares respectively. This expense limitation will apply January 1, 2020 through December 31, 2020, unless it is terminated by the Board of Trustees at an earlier time. Acquired Fund Fees and Expenses and Interest and Dividend Expense on securities Sold Short were 0.11% and 0.46% respectively.
Portfolio Composition as of 2/29/2020
Position Summary
| Top five positions as % of NAV: | 26.08% |
| Average position size: | 0.99% |
| Number of long positions: | 165 |
| Percent Invested: | 163.00% |
Exposure
| Long: | 163.00% |
| Short: | -19.83% |
| Net: | 143.17% |
Risk Summary (since inception 1/02/14)
| Beta vs. S&P 500 Index: | 0.2 |
| Standard Deviation: | 4.09 |
Strategy Allocation and Contribution to Performance
| Strategy | Allocations | Contribution |
|---|---|---|
| Arbitrage: | 59.31% | -0.93% |
| Special Situations: | 11.81% | -0.52% |
| Credit = Credit-Catalyst Opportunities: | 13.06% | -0.30% |
| Extraordinary Events = Restructuring: | 15.82% | -0.42% |
| Total: | 100% | -2.18% |
Regional Allocations (Gross exposure)
Sector Allocations (Gross exposure)
Beta is a measure of the fund’s sensitivity to market movements. A portfolio with a beta greater than 1 is more volatile than the market and a portfolio with a beta less than 1 is less volatile than the market. The S&P 500 Index is a broad based unmanaged index of 500 stocks, which is widely recognized as representative of the equity market in general. It is shown with dividends reinvested. Standard Deviation is the degree by which returns vary relative to the average return. The higher the standard deviation, the greater the variability of the investment. R-Squared is a statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a benchmark index. A fund with a low R-squared (70 or less) doesn't act much like the index.
As of Month-End: 02/29/2020
| YTD | 3-month | 1-year | 3-year | 5-year | 10-year | Since Inception | |
|---|---|---|---|---|---|---|---|
| WCM Alternatives - Event Driven Fund Inst. Class | -2.18% | -0.34% | 4.98% | 5.61% | 3.39% | % | 3.74% |
| WCM Alternatives - Event Driven Fund Inv. Class | -2.10% | -0.35% | 4.68% | 5.37% | 3.14% | % | 3.49% |
| The ICE BofAML US 3-Month Treasury Bill Index | 0.28% | 0.42% | 2.18% | 1.73% | 1.13% | % | 0.92% |
| Wilshire Liq Alt Event Driven TR USD | -0.37% | 0.06% | 3.55% | 2.60% | 1.39% | % | 1.12% |
As of Quarter-End: 12/31/2019
| YTD | 3-month | 1-year | 3-year | 5-year | 10-year | Since Inception | |
|---|---|---|---|---|---|---|---|
| WCM Alternatives - Event Driven Fund Inst. Class | 11.13% | 2.72% | 11.13% | 7.00% | 4.29% | % | 4.22% |
| WCM Alternatives - Event Driven Fund Inv. Class | 10.73% | 2.62% | 10.73% | 6.71% | 4.02% | % | 3.95% |
| The ICE BofAML US 3-Month Treasury Bill Index | 2.28% | 0.46% | 2.28% | 1.67% | 1.07% | % | 0.90% |
| Wilshire Liq Alt Event Driven TR USD | 6.11% | 1.29% | 6.11% | 3.03% | 1.66% | % | 1.21% |
Expense ratios are as of the Supplement dated December 11, 2019 to the Prospectus dated May 1, 2019. The total annual operating expense ratios of the Fund’s Institutional Class shares and Investor Class shares that were applicable to investors were 2.30% and 2.55% respectively. The Adviser has contractually agreed to waive its investment advisory fee and to reimburse the Fund for other ordinary operating expenses to the extent necessary to limit ordinary operating expenses (not including brokerage commissions, short dividends, interest expense, taxes, acquired fund fees and expenses or extraordinary expenses) to an amount not to exceed 1.57% and 1.82% for Institutional Class shares and Investor Class shares respectively. This expense limitation will apply January 1, 2020 through December 31, 2020, unless it is terminated by the Board of Trustees at an earlier time. Acquired Fund Fees and Expenses and Interest and Dividend Expense on securities Sold Short were 0.11% and 0.46% respectively.
The performance data quoted represents past performance and does not guarantee 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 the original costs. Current performance may be lower or higher than the performance quoted. Returns shown above are averaged annually for periods over one year.The Wilshire Liquid Alternative Event Driven Index measures the performance of the event driven strategy component of the Wilshire Liquid Alternative Index. Event driven strategies predominantly invest in companies involved in corporate transactions such as mergers, restructuring, distressed, buy backs, or other capital structure changes. The ICE BofA Merrill Lynch US 3-Month Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month. Indices are unavailable for direct investment.
The performance shown above for the WCM Alternatives - Event Driven Fund Investor Class Shares for periods prior to March 22, 2017 is based on the performance for the original share class of the Fund, the Institutional Shares, and is adjusted to reflect the Investor Class 12b-1 fee. The Institutional Shares were first offered on January 2, 2014, while the Investor Class Shares were first offered on March 22, 2017. Annual returns would differ only to the extent that Investor Class Shares do not have the same expenses as Institutional Class Shares.