Westwood Quality SmallCap Fund Class C (WHGCX)

Overview

The fund is a financial investment entity primarily focused on capitalizing on the potential of small-cap companies by investing at least 80% of its net assets, as well as any funds acquired through borrowing for the purpose of investing, into the equity securities of these entities. It targets companies that fall within the market capitalization range of the Russell 2000® Index at the time of the initial purchase. This strategic focus on small-cap companies is aimed at tapping into the growth potential that these firms may offer, under the premise that smaller companies, while potentially more volatile, may offer significant growth opportunities.

Products and Services

The fund's investment portfolio is comprised of a variety of equity securities, with a primary focus on common stocks. However, it diversifies its investments by including shares of exchange-traded funds (ETFs), real estate investment trusts (REITs), and master limited partnerships (MLPs) to potentially enhance returns and mitigate risks associated with investing in small-cap companies. Each of these investment types plays a critical role in the fund's overall strategy.

• Common Stocks: The cornerstone of the fund's investment strategy, common stocks of small-cap companies offer the potential for substantial growth. By investing in these securities, the fund seeks to benefit from the expansion and success of these companies.
• Exchange-Traded Funds (ETFs): Shares of ETFs provide the fund with exposure to a diversified portfolio of equities within a single investment, offering a balance between high returns and risk mitigation. ETFs are selected to align with the fund’s focus on small-cap companies.
• Real Estate Investment Trusts (REITs): Including REITs in the investment mix allows the fund to gain exposure to the real estate market, which can offer stable income through dividends and potential capital appreciation. REITs add a layer of diversification to the fund’s portfolio, spreading risk across different sectors.
• Master Limited Partnerships (MLPs): MLPs are included for their potential to generate steady income through operations in the energy, natural resources, or real estate sectors. These investments can offer tax advantages and serve to further diversify the fund's holdings.