Investing in mutual funds always carries a degree of risk, and it’s crucial for potential investors to be fully aware of these risks before making any decisions. Medalist Partners Funds are no exception, and understanding the associated risks is a vital part of informed investing.
It’s important to remember that mutual fund investing involves risk, and principal loss is possible. Investment performance can fluctuate, and past performance is not a guarantee of future results. Any performance figures may reflect fee waivers, and without these waivers, total returns could be lower.
Funds like the Medalist Partners MBS Total Return Fund and the Medalist Partners Short Duration Fund invest in debt securities. These investments are subject to interest rate risk, meaning as interest rates rise, the value of debt securities typically decreases. Conversely, prepayment risk, the risk that borrowers will repay their loans earlier than expected, tends to be more prevalent when interest rates are declining. These risks are generally amplified for longer-term debt securities. Current financial market volatility and reduced liquidity in credit and fixed-income markets can negatively impact fund performance.
Furthermore, investments in Mortgage-Backed Securities (MBS) and Asset-Backed Securities (ABS) come with specific additional risks. These include credit risk (the risk of default by borrowers), interest rate risk, prepayment risk, real estate market risk, potential illiquidity, and the possibility of default. These investments are also more susceptible to adverse economic conditions. Commercial mortgage-backed securities, in particular, are closely tied to the risks inherent in the underlying real estate market securing the mortgage loans. Due to these factors, Medalist Partners Funds may not be suitable for all investors.
The MBS Total Return Fund also invests in lower-rated and non-rated securities, which carry a higher risk of loss of principal and interest compared to higher-rated securities. This fund may engage in short selling, where potential losses can exceed the initial investment. Liquidity risk is also a factor, as some fund holdings may be less liquid and difficult to sell quickly. The use of derivatives like futures, forwards, and swaps introduces risks that are different from, and sometimes greater than, traditional investments. Leverage, which the fund may employ, can magnify both gains and losses in portfolio value. Investments in TBA (To Be Announced) securities involve interest rate and investment exposure risks. Similarly, When-Issued securities carry the risk of less favorable pricing upon delivery and potential losses if securities are not delivered.
The Medalist Partners Funds are exclusively offered to United States residents. The information provided is intended solely for individuals within the United States. Nothing on this website should be construed as a solicitation to buy or an offer to sell shares of any Medalist Funds in any jurisdiction where such an offer or solicitation would be unlawful under securities laws.
Before investing, it is crucial to carefully read and consider the prospectus. For a hard copy of the prospectus, please call 855-736-7799. Medalist Partners Funds are distributed by Quasar Distributors, LLC.
