Definitive Materials Filed by Investment Companies. (497)
15 Octobre 2013 - 9:10PM
Edgar (US Regulatory)
THE ADVISORS' INNER CIRCLE FUND II (THE "TRUST")
FROST INTERNATIONAL EQUITY FUND (THE "FUND")
Supplement dated October 15, 2013 to the Class A Shares Prospectus and
Institutional Class Shares Prospectus dated December 3, 2012 (together, the
"Prospectuses")
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN
THE PROSPECTUSES AND SHOULD BE READ IN CONJUNCTION WITH SUCH PROSPECTUSES.
Effective October 15, 2013, the Fund's Prospectuses are amended and supplemented
as follows:
1. The Fund's "Principal Investment Strategies" section is hereby
deleted and replaced with the following:
Under normal market conditions, the Fund invests at least 80% of its net assets,
plus any borrowings for investment purposes, in equity securities of non-U.S.
issuers. This investment policy may be changed by the Fund upon 60 days' prior
notice to shareholders. The Fund invests primarily in common stocks, but may
also invest in other types of equity securities, such as preferred stock,
convertible securities, warrants or other similar publicly traded securities.
The Fund may also purchase American Depositary Receipts ("ADRs") and Global
Depositary Receipts ("GDRs").
The Fund's investments are ordinarily diversified among regions, countries and
currencies, as determined by its sub-adviser, Thornburg Investment Management,
Inc. ("Thornburg"). Thornburg intends to invest in promising companies with
sound fundamentals trading at a discount to their long term value. This approach
encompasses both "value" and "growth" stocks. The relative proportions of these
different types of securities will vary over time. The Fund may invest in
companies of any size.
Debt securities will be considered for investment when Thornburg believes them
to be more attractive than equity alternatives. The Fund may purchase debt
securities of any maturity and quality. The Fund evaluates currency risk on a
stock-by-stock basis. The Fund will hedge currency exposure utilizing forward
contracts if deemed appropriate by the portfolio management team. Currency
hedging, if utilized, is to protect the investment thesis for a given stock from
being significantly undermined by dollar/foreign currency fluctuations when the
portfolio management team perceives currency risk to be high.
Thornburg primarily uses individual issuer analysis to make investment
decisions. The Fund typically invests in the following types of companies:
o Financially sound companies with well established businesses selling
at low valuations;
o Companies which normally exhibit steady earnings growth, cash flow
characteristics and/or dividend growth;
o Growing companies that appear to have proprietary advantages in
industry segments that Thornburg expects to grow faster than the
overall market; and
o Companies in the process of establishing a leading position in a
product, service or market with the potential to grow at an above
average rate.
Value and growth, for purposes of Thornburg's selection criteria, relate to both
current and projected measures. Among the specific factors which may be
considered by Thornburg in identifying securities for inclusion in the Fund's
portfolio are:
o Price/earnings ratio
o Price/revenue ratio
o Price/book value
o Price/cash flow ratio
o Debt/capital ratio
o PE/growth rate ratio
o Enterprise value/EBITDA ratio
o Dividend yield
o Dividend growth potential
o Security and constancy of revenue stream
o Undervalued assets
o Asset appreciation potential
o Relative earnings growth potential
o Potential for future developments
o Industry growth potential
o Growth discount model
o Industry leadership
o Business model
o Management strength
o Franchise value
o Value based on earnings
o Potential size of business
2. In the Fund's "Principal Risks" section, the "Investment Style
Risk" paragraph is hereby deleted and replaced with the
following:
VALUE INVESTMENT STYLE RISK - Value investing focuses on companies with stocks
that appear undervalued in light of factors such as the company's earnings, book
value, revenues or cash flow. If Thornburg's assessment of a company's value or
prospects for exceeding earnings expectations or market conditions is wrong, the
Fund could suffer losses or produce poor performance relative to other funds. In
addition, "value stocks" can continue to be undervalued by the market for long
periods of time.
GROWTH INVESTMENT STYLE RISK - The Fund invests in equity securities of
companies that Thornburg believes will increase their earnings at a certain rate
that is generally higher than the rate expected for non-growth companies. If a
growth company does not meet these expectations, the price of its stock may
decline significantly, even if it has increased earnings. Many growth companies
do not pay dividends. Companies that pay dividends often have lower stock price
declines during market downturns. Over time, a growth investing style may go in
and out of favor, causing the Fund to sometimes underperform other equity funds
that use differing investing styles.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
FIA-SK-020-0100
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