09/03/2024 | Press release | Distributed by Public on 09/03/2024 09:21
POLEN BANK LOAN FUND
A Series of FundVantage Trust
Summary Prospectus - September 1, 2024
Class/Ticker: Institutional Class (PBKIX)/Investor Class (PBKRX)
Click here to view the Fund's Statutory Prospectus or Statement of Additional Information.
Before you invest, you may want to review the Fund's prospectus, which contains more information about the Fund and its risks. You can find the Fund's prospectus and other information about the Fund, including the Fund's Statement of Additional Information ("SAI") and shareholder reports, online at https://www.polencapital.com/strategies/bank-loan-fund. You can also get this information at no cost by calling (888) 678-6024, by sending an email request to [email protected], or from any financial intermediary that offers shares of the Fund. The Fund's prospectus, dated September 1, 2024, and SAI, dated September 1, 2024, as amended from time to time, are incorporated by reference into this Summary Prospectus.
Investment Objective
Polen Bank Loan Fund (the "Fund") seeks to achieve overall total return consisting of a high level of current income together with long-term capital appreciation.
Fees and Expenses
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.
Shareholder Fees (fees paid directly from your investment): | |||||||
Investor |
Institutional |
||||||
Redemption Fee (as a percentage of amount redeemed within 60 days of purchase)1 | 1.00 | % | 1.00 | % |
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment): | |||||||
Investor Class |
Institutional Class |
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Management Fees | 0.65 | % | 0.65 | % | |||
Distribution (Rule 12b-1) Fees | 0.25 | % | None | ||||
Other Expenses | 1.46 | % | 1.46 | % | |||
Total Annual Fund Operating Expenses | 2.36 | % | 2.11 | % | |||
Fee Waiver and/or Expense Reimbursement2 | (1.36 | )% | (1.36 | )% | |||
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement1 | 1.00 | % | 0.75 | % |
1 | The Redemption Fee will take effect on November 1, 2024. |
2 | Polen Capital Credit, LLC ("Polen Credit" or the "Adviser") has contractually agreed to reduce its investment advisory fee and/or reimburse certain expenses of the Fund to the extent necessary to ensure that the Fund's total operating expenses (excluding taxes, fees and expenses attributable to a distribution or service plan adopted by FundVantage Trust (the "Trust"), interest, extraordinary items, "Acquired Fund Fees and Expenses" and brokerage commissions) do not exceed 0.75% (on an annual basis) with respect to the Fund's average daily net assets (the "Expense Limitation"). The Expense Limitation will remain in place until August 31, 2025 unless the Board of Trustees approves its earlier termination. The Adviser is entitled to recover, subject to approval by the Board of Trustees, such amounts reduced or reimbursed for a period of up to three (3) years from the date on which the Adviser reduced its compensation and/or assumed expenses for the Fund. The Adviser is permitted to seek reimbursement from the Fund, subject to certain limitations, for fees it waived and Fund expenses it paid to the extent the total annual fund operating expenses do not exceed the limits described above or any lesser limits in effect at the time of the reimbursement. No reimbursement will occur unless the Fund's expenses are below the Expense Limitation. |
Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in Investor Class shares and Institutional Class shares of the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same (reflecting any contractual fee waivers). Although your actual costs may be higher or lower, based on these assumptions your costs would be:
1 Year | 3 Years | 5 Years | 10 Years | ||||||
Investor Class | $102 | $606 | $1,137 | $2,592 | |||||
Institutional Class | $77 | $529 | $1,009 | $2,333 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 120% of the average value of its portfolio.
Summary of Principal Investment Strategies
The Fund pursues its investment objective by seeking to outperform the broader bank loan market over a complete credit cycle. The "credit cycle" is a cyclical event that generally occurs over a several year timeframe as access to credit increases or decreases for borrowers. The "bank loan market" generally comprises first lien and second lien senior loans that are provided by a group of lenders and are structured, arranged and administered by one or several commercial or investment banks.
The Fund seeks to achieve its objective mainly by investing in bank loans and other high yield fixed income securities with a focus on "middle market" issuers in the United States and, to a lesser extent, Canada. The Adviser considers middle market companies to be those with normalized earnings before interest, tax and depreciation ("EBITDA") in the range of $75-250 million. The Adviser believes that the flexibility to invest, sell, and reinvest throughout the capital structure of an issuer and, in particular, in bank loans will enable the Adviser to tailor its investment approach to the specific credit-related circumstances of that issuer as they may change from time to time and thereby select the most attractive opportunities for the Fund.
The Fund intends to invest its assets primarily in credit instruments that are rated below investment grade by some or all relevant independent rating agencies, including Moody's Investors Service, Standard and Poor's Rating Services and Fitch Ratings (including a significant portion of such assets in credit instruments in the lower tier of the high yield and leveraged loan market that are rated B and below). Additionally, certain other high yield securities may be unrated by rating agencies, but determined by the Adviser to be of similar quality as other below investment grade bonds and credit instruments and accordingly purchased for investment by the Fund. The Fund does not have a percentage limitation on investing in securities that are rated below investment grade.
High yield fixed income securities include high yield corporate bonds, senior loans, convertible bonds, preferred stock, and other types of debt instruments (including, without limitation, unregistered (Rule 144A) securities, floating and variable rate securities and other restricted fixed income securities to the extent permitted by the Investment Company Act of 1940, as amended (the "1940 Act")). In addition, the Fund may also hold positions in equity or other assets that the Fund receives as part of a reorganization process of a high yield issuer, and may hold those assets until such time as the Adviser believes that a disposition is most advantageous. From time to time, the Fund may make investments in distressed or defaulted securities or in issuers that are in bankruptcy. The Fund does not have any maturity or duration requirements.
In making these investments, the Adviser seeks to purchase instruments that the Adviser believes are undervalued and offer a compelling risk/reward ratio. Specifically, the Adviser's investment process attempts to exploit inefficiencies in the high yield credit markets by adhering to a disciplined, bottom-up, fundamentally-oriented investment process with an emphasis on downside protection. This process applies value investing principles through rigorous research coupled with financial, structural and legal analysis, including a review of bankruptcy law considerations where applicable. The
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foundation of this investment process is to derive an accurate, real-time valuation of a target company, and only invest in securities of that company's capital structure that offer a significant margin of safety coupled with strong total return potential. By utilizing such a fundamental, bottom-up approach to investing, the Adviser seeks to add value first and foremost through security selection.
The Adviser intends to manage a relatively concentrated portfolio typically comprising between 50-100 issuers and 60-110 issues; however, the Fund may fall outside such ranges at the Adviser's discretion based on then-available investment opportunities. The Fund has adopted an investment policy providing that under normal circumstances, the Fund will invest at least 80% of the value of its assets (net assets plus the amount of any borrowings for investment purposes) in bank loans. For purposes herein, a bank loan is an instrument arranged by a bank (or similar financial institution) to a company that typically holds legal claim to such company's assets that is senior to all (or substantially all) other debt obligations.
Summary of Principal Risks
The Fund is subject to the principal risks summarized below. The order of the below risk factors does not indicate the significance of any particular risk factor and the relative significance of each risk below may change over time. These risks could adversely affect the Fund's net asset value ("NAV"), yield and total return. It is possible to lose money by investing in the Fund. The Fund may not be a suitable investment for all investors.
Bank Loan Risk: T he Fund's investment in secured and unsecured assignments of (or participations in) bank loans may create substantial risk. In making investments in bank loans, which are made by banks or other financial intermediaries to borrowers, the Fund will depend primarily upon the creditworthiness of the borrower for payment of principal and interest. In addition, the settlement of bank loans occurs on an extended (multi-week) basis, which may prevent the Fund from obtaining liquidity of certain assets within a desired timeframe. In addition, there is the potential that bank loans and other similar instruments may not be considered "securities" and, as a result, the Fund may not be entitled to rely on the anti-fraud protections under the federal securities laws and instead may have to resort to state law and direct claims.● |
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Private Placement Risk: Private placements involves securities not registered under the Securities Act of 1933, as amended (the "1933 Act"). In addition to the general risks associated with fixed income securities, such securities (including "144A" securities) may be subject to restrictions on resale, transaction costs for such securities may be higher than comparable securities, and there may be no liquid secondary market for such securities.
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Performance Information
The bar chart and the performance table below provide an indication of the risks and volatility of investing in the Fund by showing: (a) changes in the performance of the Fund's Institutional Class shares from year to year; and (b) how the average annual total return of the Fund's Institutional Class shares compare to those of a regulatorily required broad-based securities market index (Bloomberg U.S. Universal Index) (the "Regulatory Benchmark") and the Morningstar LSTA U.S. Leveraged Loan Index (the "Performance Benchmark"). The Performance Benchmark is generally more representative of the market sectors and/or types of investments in which the Fund invests or to which the Fund has exposure and which the Adviser uses to measure the Fund's performance. The Fund has included in the table below the performance of the Regulatory Benchmark, which represents a broader measure of market performance, to comply with new regulatory requirements. Total returns would have been lower had certain fees and expenses not been waived or reimbursed. Past performance, both before and after taxes, does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at https://www.polencapital.com/strategies/bank-loan-fund or by calling the Fund toll-free at (888) 678-6024.
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Calendar Year-to-Date Total Return as of June 30, 2024: 4.92%
During the periods shown in the chart:
Best Quarter | Worst Quarter | |||||
4.14% | (0.07)% | |||||
(March 31, 2023) | (September 30, 2022) |
Polen Bank Loan Fund - Institutional Class Shares Average Annual Total Returns as of December 31, 2023 |
1 Year |
Since Inception (June 30, 2022) |
|||||
Return Before Taxes | 15.45 | % | 10.98 | % | |||
Return After Taxes on Distributions | 10.72 | % | 6.97 | % | |||
Return After Taxes on Distributions and Sale of Shares | 8.98 | % | 6.61 | % | |||
Morningstar LSTA U.S. Leveraged Loan Index (reflects no deduction for fees, expenses or taxes)1 | 13.32 | % | 11.52 | % | |||
Bloomberg U.S. Universal Index (reflects no deduction for fees, expenses or taxes)1 | 6.17 | % | 2.46 | % |
1 |
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns shown are for Institutional Class shares; after-tax returns for Investor Class shares will vary.
Management of the Fund
Investment Adviser
Polen Capital Credit, LLC serves as the Fund's investment adviser.
Portfolio Managers
John W. Sherman, Portfolio Manager at the Adviser, has served as a portfolio manager of the Fund since its inception in 2022.
Benjamin J. Santonelli, Portfolio Manager at the Adviser, has served as an assistant portfolio manager of the Fund since its inception in 2022.
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Purchase and Sale of Fund Shares
Minimum Investment Requirements | ||||||||
Account Type | Minimum |
Investor Class |
Institutional Class |
|||||
Regular Accounts | Initial Investment | $3,000 | $100,000 | |||||
Additional Investments | $100 | $0 | ||||||
Individual Retirement Accounts | Initial Investment | $2,000 | $100,000 | |||||
Additional Investments | $100 | $0 | ||||||
Automatic Investment Plan | Initial Investment | $2,000 | $100,000 | |||||
Additional Investments | $100 | $0 |
You can only purchase and redeem shares of the Fund on days the New York Stock Exchange (the "Exchange") is open and through the means described below.
Purchase or Redemption by Mail:
Regular Mail: Polen Credit Funds FundVantage Trust c/o BNY Mellon Investment Servicing P.O. Box 534445 Pittsburgh, PA 15253-4445 |
Overnight Mail: Polen Credit Funds FundVantage Trust c/o BNY Mellon Investment Servicing Attention: 534445 500 Ross Street, 154-0520 Pittsburgh, PA 15262 (888) 678-6024 |
Purchase by Wire:
Please contact Fund shareholder services ("Shareholder Services") toll-free at (888) 678-6024 for current wire instructions.
Redemption by Telephone:
Call Shareholder Services toll-free at (888) 678-6024.
Tax Information
The Fund intends to make distributions that may be taxed as ordinary income or capital gains. Such distributions are not currently taxable when shares are held through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. However, subsequent withdrawals from any tax-deferred account in which the shares are held may be subject to federal income tax.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the financial intermediary for the sale of Fund shares and/or for related services to shareholders. These payments may create a conflict of interest by influencing the broker-dealer or other financial intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's website for more information.
Click here to view the Fund's Statutory Prospectus or Statement of Additional Information.
FV1501-0924
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