Westwood Quality SmallCap Fund Class A (WHGAX)

Overview

The fund is designed to primarily focus on investments within the small-cap sector, targeting companies that align with the market capitalization range of the Russell 2000® Index at the time of their initial purchase. By investing at least 80% of its net assets, along with any borrowings for investment purposes, into equity securities of these small-cap companies, the fund aims to capitalize on the growth potential that these entities can offer. Evident in its strategic approach is a broad definition of equity securities, which not only encompasses common stocks but extends to include shares of exchange-traded funds (ETFs), real estate investment trusts (REITs), and master limited partnerships (MLPs), providing a diversified portfolio for its investors. This method reflects a mix of direct investments and indirect exposures to the small-cap market, offering a balanced blend of risk and reward suitable for different types of investors looking to benefit from the dynamic small-cap sector.

Products and Services

• Common Stocks - The fundamental components of the fund's investments, common stocks represent shares of ownership in small-cap companies within the market capitalization range of the Russell 2000® Index. These stocks are a primary vehicle through which the fund seeks growth, capitalizing on the potential of these companies to expand and increase in value over time.
• Exchange-Traded Funds (ETFs) - To achieve broader market exposure and diversification, the fund invests in shares of ETFs. These ETFs are carefully selected to complement the fund's small-cap focus, often targeting sectors or themes that align with the fund's overall investment strategy. This inclusion allows for a more diverse and risk-managed investment approach.
• Real Estate Investment Trusts (REITs) - By including REITs in its portfolio, the fund diversifies its investment into real estate, a sector often characterized by its stable income through rent, and potential for capital appreciation. REITs offer a way for the fund to access the property market indirectly, adding another layer of diversification to the investment mix.
• Master Limited Partnerships (MLPs) - MLPs represent another specialized segment of the fund’s investments, focusing on the energy sector and related infrastructure. These investments can offer tax advantages and high yield potential, making them an attractive option for income-focused investors within the framework of the fund’s diversified portfolio strategy.