West Loop Realty Fund
REIAX, REICX, REIIX
Holdings West Loop Realty Fund
|As of 3/31/2020||% of Net Assets (Excluding Cash)|
|Crown Castle International Corp||7.77%|
|SBA Communications Corp||7.56%|
|American Tower Corp||6.10%|
|AvalonBay Communities Inc||5.39%|
|Camden Property Trust||5.12%|
|Americold Realty Trust||4.69%|
|Kilroy Realty Corp||4.12%|
|Invitation Homes Inc||3.91%|
As of 3/31/2020
The Fund's investment objective is to achieve current income and long-term growth of capital.
The Fund seeks to achieve its investment objective by investing in equity Real Estate Investment Trusts (REITs) and other real estate related entities. Under normal market conditions, the Fund will pursue its investment objective by investing at least 80% of its net assets (plus any borrowings for investment purposes) in income-producing equity securities, including common stocks, preferred stocks, convertible securities, rights, and warrants, of publicly traded companies participating in the real estate sector, such as Real Estate Investment Trusts (“REITs”).
The Fund is structured to provide investors with:
A focused portfolio, under normal market conditions, of approximately 20 to 30 investments in REITs and other companies participating in the real estate sector, diversified by property type, geographic location and issuer strategy, in an attempt to maximize risk-adjusted returns. The Fund’s portfolio companies may be of any size market capitalization, including small- and mid-capitalization companies. The Fund’s strategy is long only.
Access to an experienced professional REIT investment team with extensive knowledge and industry contacts with property management teams.
Access to a unique approach that allocates across three sub-strategies:
|Core||Companies with superior balance sheets, established track records, and moderate growth||40-70%|
|Value-Add||Companies with moderate operating leverage, established track records, and high growth, both internal and external||20-50%|
|Opportunistic||Companies with high operating leverage, less established track records, and high growth, both internal and external||0-25%|
Before investing you should carefully consider the West Loop Realty Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus and summary prospectus, a copy of which may be obtained by calling 800-207-7108. Please read the Fund’s prospectus or summary prospectus carefully before investing.
RISK AND OTHER DISCLOSURES:
An investment in the West Loop Realty Fund is subject to risk, including the possible loss of principal amount invested and including, but not limited to, the following risks, which are more fully described in the prospectus:
Market Turbulence Resulting from COVID-19. the outbreak of COVID-19 has negatively affected the worldwide economy, including the U.S. The future impact of COVID-19 is currently unknown, and it may exacerbate other risks that apply to the Fund. Market: the market price of a security may decline, sometimes rapidly or unpredictably, due to general market conditions that are not specifically related to a particular issuer, company, or asset class. Local, regional or global events such as the spread of infectious illness or other events could have a significant impact on a security or instrument. REITs: REITS involve additional risks compared to those from common stock. REITs are dependent upon management skills; generally may not be diversified; and are subject to heavy cash flow dependency, defaults by borrowers, self-liquidation, and tax risks. Real Estate Market: the Real Estate industry is subject to certain market risks such as property revaluations, interest rate fluctuations, rental rate fluctuations and operating expenses, increasing vacancies, rising construction costs and potential modifications to government regulations. Sector Concentration: The focus of the Fund’s portfolio on the real estate sector may present more risks than if the portfolio were broadly diversified over numerous sectors. Management and Strategy. The evaluation and selection of the Fund’s investments depend on the judgment of the Fund’s Sub-Advisor about the quality, relative yield, value or market trends affecting a particular security, industry, sector or region, which may prove to be incorrect. Equity: The value of the equity securities held by the Fund may fall due to general market and economic conditions, perceptions regarding the real estate industry, or factors relating to specific companies. Market Capitalization. Real estate companies tend to be small- to medium-sized companies in relation to the equity markets as a whole. Small- to medium-sized real estate company shares can be more volatile than large company stocks. The securities of small-capitalization and mid-capitalization companies may be subject to more abrupt or erratic market movements. Growth-Oriented Investment Strategy: Growth securities typically are very sensitive to market movements. When revenues do not meet expectations, the prices of growth securities typically fall. Non-Diversification: As a non-diversified fund, the Fund may focus its assets in the securities of fewer issuers, which exposes the Fund to greater market risk than if its assets were diversified among a greater number of issuers. Interest Rate: Rising interest rates may impact the prices of REITS, and could increase operating costs and reduce the ability of REITs and other real estate companies to carry out acquisitions or expansions in a cost-effective manner. Tax: In order to qualify for the favorable tax treatment generally available to regulated investment companies, the Fund must satisfy certain diversification requirements. The Fund’s strategy of investing in a relatively small number of securities may cause it inadvertently to fail to satisfy the diversification requirements. If the Fund were to fail to qualify as a regulated investment company, it would be taxed in the same manner as an ordinary corporation, and distributions to its shareholders would not be deductible by the Fund in computing its taxable income. Liquidity: The Fund may not be able to sell some or all of the investments that it holds due to a lack of demand in the marketplace or other factors such as market turmoil, or it may only be able to sell those investments at a loss. Liquid investments may become illiquid or less liquid after purchase by the Fund, particularly during periods of market turmoil. Convertible Securities: Convertible securities are subject to market and interest rate risk and credit risk. Fixed Income Securities: Generally fixed income securities decrease in value if interest rates rise and increase in value if interest rates fall, and longer-term and lower rated securities are more volatile than shorter-term and higher rated securities. Preferred Stock: The market value of preferred stock is subject to company-specific and market risks applicable generally to equity securities and is also sensitive to changes in the company’s creditworthiness, and changes in interest rates. Warrants and Rights: Warrants and rights can provide a greater potential for profit or loss than an equivalent investment in the underlying security, may lack a liquid secondary market for resale, and their prices may fluctuate as a result of speculation or other factors. Foreign investment: These risks include currency fluctuations, economic or financial instability, lack of timely or reliable financial information or unfavorable political or legal developments. Foreign companies are generally subject to different legal and accounting standards than U.S. companies.
The Fund may not be suitable for all investors. We encourage you to consult with appropriate financial professionals before considering an investment in the Fund.
Distributed by Foreside Fund Services, LLC. www.foreside.com
Liberty Street Advisors, Inc. is the advisor to the Fund. The Fund is part of the Liberty Street family of funds within the series of Investment Managers Series Trust.