Clifford Capital Partners Fund
Institutional Class

TICKER: CLIFX

Fund Overview

OBJECTIVE

The investment objective of the Clifford Capital Partners Fund (the “Partners Fund”) is long-term capital appreciation.

HIGHLIGHTS

The blend of Core Value and Deep Value companies provides alpha potential with less volatility than a pure deep value strategy

  • Core Value: high returns on capital, sustainable competitive advantages, and strong management teams

  • Deep Value: negative market sentiment, defensible franchise value, and high expected return potential

INVESTMENT APPROACH

We use a bottom-up approach that seeks to identify businesses where expectations are irrationally low, leading to significant undervaluation, based on our independent research. Both Core and Deep Value companies exhibit:

  • Strong balance sheets
  • Market overreaction short-term events
  • Key Thesis Points™ (long-term catalysts) that will improve fundamentals

 

Primarily invests in US Large, Mid, and Small Cap companies at the time of purchase

Concentrated portfolio of 25-35 positions

Quick Look

as of 12/31/2022

Total Assets
(all share classes)

$113mm

Inception Date

01/30/14

CUSIP

98147A246

Primary Benchmark

Russell 3000 Value Index

Minimum Initial Investment

$100,000

Gross Expense Ratio

1.42%

Net Expense Ratio*

0.90%

Availability

Open

*Clifford Capital Partners, LLC (the Adviser) has contractually agreed to reduce fees and/or reimburse certain fund expenses until January 31, 2024.

Investment Team

Ryan Batchelor

Ryan Batchelor

PORTFOLIO MANAGER

Allan Nichols

Allan Nichols

SENIOR ANALYST

David Passey

David Passey

SENIOR ANALYST

Morningstar RatingTM,1

4/5

as of 12/31/2022

Overall (out of 393 funds)

Morningstar Category

Mid-Cap Value

The Overall Morningstar Rating, a weighted average of the three-, five-, and ten-year (if applicable) ratings, is out of 393 funds in the Mid-Cap Value category, based on risk-adjusted return as of December 31st, 2022

Documents

©2021 Morningstar. All Right Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar not its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

1 The Morningstar RatingTM for funds, or “star rating”, is calculated for mutual funds with at least a three-year history. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics.  The Morningstar rating is for the Institutional Class Only; other classes may have different performance characteristics.

Performance

Average Annual Total Returns

as of 6/30/21

*Returns for periods of less than one year are not annualized.

Current performance may be lower or higher than the data quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. To obtain the Fund’s performance current to the most recent month-end, please call 800.673.0550. A Fund’s performance, especially for short time periods, should not be the sole factor in making an investment decision.

Performance

Average Annual Total Returns

as of 12/31/2022

1-mo

3-mo

YTD

1-yr

3-yr

5-yr

Since
Inception

CLIFX

-4.0%

13.7%

-3.9%

-3.9%

8.5%

7.7%

10.0%

Russel 3000 Value

-4.2%

12.2%

-8.0%

-8.0%

5.9%

6.5%

8.3%

Russell Mid Cap Value

-5.1%

10.4%

-12.1%

-12.1%

5.8%

5.7%

8.0%

*Returns for periods of less than one year are not annualized.

Current performance may be lower or higher than the data quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. To obtain the Fund’s performance current to the most recent month-end, please call 800.673.0550. A Fund’s performance, especially for short time periods, should not be the sole factor in making an investment decision.

Growth of Hypothetical Investment

as of 12/31/2022

The hypothetical chart does not reflect the deduction of fees, sales charges, or taxes that you would pay on fund distributions or the redemption of fund shares.

Clifford Partners Fund

Russell 3000 Value Index

Calendar Year Returns

as of 12/31/22

Characteristics

as of 6/30/21

Characteristics

as of 12/31/2022

Portfolio

Index

Number of Holdings

30

2235

Average Market Cap ($ Weighted)

$44.2B

$142.7B

Median Market Cap

$6.7B

$2.0B

Price / Earnings (trailing)

14.1

14.1

Price / Cash Flow

9.1

9.5

Price / Book

2.1

2

Turnover (LTM)

17.3%

n/a

Active Share

94%

0%

Top 10 Holdings

as of 9/30/2022

% of Net Assets

General Mills

5.2%

AutoZone

5.1%

Cardinal Health

5.0%

First Citizens BancShares

4.7%

CVB Financial

4.6%

Change Healthcare

4.3%

First Hawaiian

4.2%

DXC Technology

4.0%

Community Trust Bancorp

3.9%

Kraft Heinz

3.8%

Portfolio holdings exclude cash and short-term investments. Cash represented 3.5% of the total portfolio. Current and future holdings are subject to change and risk. For a complete list of the Fund’s portfolio securities, call 800.673.0550.

Performance Statistics

as of 12/31/2022 – 5 Year

Alpha

Beta

Standard Deviation

Upside
Capture

Downside
Capture

Sortino

Sharpe

Information
Ratio

R-Squared

CLIFX

1.1

1.08

21.6

102.3

98.2

0.43

0.29

0.16

90.50

Russell 3000 Value

0.0

1.00

19.1

100.0

100.0

0.39

0.27

-

1.00

Statistics definitions found in “Important Disclosures Below.”


Sector Allocation

as of 6/30/21

Sector

Portfolio

Index

Information Technology

22.8%

9.9%

Financials

21.9%

21.1%

Consumer Discretionary

15.2%

5.9%

Health Care

10.6%

16.9%

Industrials

8.6%

12.2%

Consumer Staples

5.5%

6.9%

Energy

5.2%

5.2%

Materials

4.4%

3.9%

Utilities

2.1%

4.8%

Communication Services

0.0%

8.2%

Real Estate

0.0%

5.0%

Cash

3.7%

0.0%

Weights are calculated as a percentage of net assets including cash & cash equivalents

Sector Allocation

as of 12/31/2022

Weights are calculated as a percentage of net assets including cash & cash equivalents. Sector information is based on a representative account as of the date shown and subject to change.

Commentary & Literature

Partners Fund Distributions – Institutional Class

Distribution Date

Distribution NAV

Income

S/T Cap Gain

L/T Cap Gain

Total Per Share

% of NAV

12/30/2022

12/29/2021

12/30/2020

12/30/2019

12/28/2018

12/27/2017

12/12/2016

12/24/2015

12/24/2014

18.18

19.32

16.70

15.40

12.68

14.75

14.25

10.52

11.95

0.1988

0.2945

0.3417

0.2499

0.1520

0.1238

0.0727

0.1244

0.0923

0.1113

0.3013

0.0000

0.0000

0.0000

0.1874

0.0000

0.1203

0.1310

0.0609

0.2396

0.0000

0.0000

0.6134

0.4647

0.0000

0.0000

0.0000

0.3710

0.8354

0.3417

0.2499

0.7564

0.7759

0.0727

0.2447

0.2233

2.04%

4.32%

2.05%

1.62%

6.04%

5.26%

0.51%

2.33%

1.87%

Important Disclosures

For more complete information, please download the fund’s prospectus or call 800.673.0550 for copies. You should consider the fund’s investment objectives, risks, charges, and expenses carefully before you invest. Information about these and other important subjects is in the fund’s prospectus which you should read carefully before investing.