Scout
Investments, Inc. (Scout) recently launched its Scout Equity
Opportunity Fund (SEOFX). The no-load, all-cap Scout Equity Opportunity
Fund is benchmarked to the Russell 3000® Index and seeks to
provide long-term capital appreciation by investing in companies that
are uniquely levered. These companies represent a corporate
capitalization structure that enables maximum shareholder return through
the optimal balance of debt and equity.
“We believe superior risk-adjusted relative performance can be achieved
through long-term ownership of a diversified portfolio of levered
stocks,” said Brent Olson, lead portfolio manager for the Fund. “Through
the use of fixed income valuation metrics, we approach investing from a
defined perspective that allows us to identify companies that we believe
are undervalued and thus attractive for investors.”
The Fund invests in companies with stable or growing free cash flow, in
the process of balance sheet improvement or growth, that demonstrate a
meaningful desire to improve their leverage profile or move to an
optimal debt level.
“We recognize debt metrics as a leading indicator for equity performance
and use this as the basis for our disciplined investment process,” Olson
said. “Through analysis of trends in the broader fixed income markets,
as well as debt metrics, such as cash flow, leverage and earnings, we
identify companies that we believe provide opportunity for future growth
and profitability.”
“The Scout Equity Opportunity Fund is an exciting addition to our
industry-leading investment product suite that strives to deliver
relative outperformance over full market cycles,” said Andy Iseman,
chief executive officer of Scout Investments. “We are pleased to provide
a distinct investment solution led by a tenured manager and supported by
Scout’s domestic equity research team.”
About Scout Investments
Scout Investments, Inc., a global asset manager headquartered in
Kansas City, Mo., manages more than $32 billion in equity and fixed
income investment strategies for institutions and individual investors.
Scout is the investment subsidiary of UMB Financial Corporation (NASDAQ:
UMBF). Please visit scoutinv.com
for more information on our firm and our products.
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The Fund’s Prospectus or Summary Prospectus, available by calling
800.996.2862 or visiting scoutfunds.com, include investment objectives,
risks, fees, expenses, and other important information. Please read and
consider carefully before investing.
Equity Opportunity risk considerations: Small and mid cap stocks
are more susceptible to market volatility due to risks such as lack of
management experience, product diversification, financial resources,
competitive strength, and liquidity. Real Estate Investment Trusts
(REITS) may be affected by economic conditions including credit risk,
interest rate risk and other factors that affect property values, rents
or occupancies of real estate. Foreign investments present additional
risks due to currency fluctuations, economic and political factors,
government regulations, differences in accounting standards and other
factors. Highly leveraged companies tend to be more sensitive to issuer,
political, market and economic developments especially during economic
downturns or periods of rising interest rates. Although the Fund invests
in companies that may be highly leveraged, the fund itself does not use
leverage as an investment strategy. Groups of stocks, such as value and
growth, go in and out of favor which may cause certain funds to
underperform other equity funds.
The return of principal in a fixed income fund is not guaranteed. When
interest rates go up the value of bonds go down. Fixed income funds have
the same issuer, interest rate, inflation, maturity and credit risks
that are associated with underlying fixed income securities owned by the
Fund. High yield securities involve greater risk than investment grade
securities.
The Scout Funds are distributed by UMB Distribution Services, LLC, 803
W. Michigan St. Milwaukee, WI 53233, an affiliate of UMB Financial
Corporation and managed by Scout Investments, Inc., a subsidiary of UMB
Financial Corporation.
SCOUT, SCOUT INVESTMENTS, the Scout design and the Ribbon design –
Reg. U.S. Tm. Off.
NOT FDIC INSURED – NO BANK GUARANTEE – MAY LOSE VALUE
Copyright Business Wire 2014