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WCM China Quality Growth Fund Investor Class: WCQGX Institutional Class: WCMCX |
| Summary Prospectus | September 1, 2020 |
Before you invest, you may want to
review the Fund’s prospectus, which contains more information about the Fund and its risks. You can find the Fund’s
Statutory Prospectus and Statement of Additional Information and other information about the Fund online at http://www.wcminvestfunds.com/china-quality-growth-fund.
You may also obtain this information at no cost by calling 1-888-988-9801 or by sending an e-mail request to [email protected].
The Fund’s Statutory Prospectus and Statement of Additional Information, both dated September 1, 2020, as each may be amended
or supplemented, are incorporated by reference into this Summary Prospectus.
Beginning on January 1, 2021, as permitted
by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ shareholder reports will no
longer be sent by mail, unless you specifically request paper copies of the reports from the Funds, if you hold your shares directly
with the Funds, or from your financial intermediary, such as a broker-dealer or bank, if you hold your shares through a financial
intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is
posted and provided with a website link to access the report.
If you already elected to receive
shareholder reports electronically, you will not be affected by this change and you need not take any action. If you hold your
shares directly with the Funds, you may elect to receive shareholder reports and other communications from the Funds electronically
by contacting the Funds at 1-888-988-9801 or, if you hold your shares through a financial intermediary, by contacting your financial
intermediary.
You may elect to receive all future reports
in paper free of charge. If you hold your shares directly with the Funds, you can inform the Funds that you wish to continue receiving
paper copies of your shareholder reports by contacting the Funds at 1-888-988-9801 or, if you hold your shares through a financial
intermediary, by contacting your financial intermediary. Your election to receive reports in paper will apply to all of the series
of Investment Managers Series Trust managed by WCM Investment Management, LLC you hold directly or through your financial intermediary,
as applicable.
Investment Objective
The investment objective of the WCM China Quality
Growth Fund (the “Fund”) is long-term capital appreciation.
Fees and Expenses of the Fund
This table describes the fees and expenses
that you may pay if you buy and hold shares of the Fund.
|
Investor Class Shares |
Institutional Class Shares | |||||||
| Shareholder Fees (fees paid directly from your investment) |
||||||||
| Maximum sales charge (load) imposed on purchases | None | None | ||||||
| Maximum deferred sales charge (load) | None | None | ||||||
| Wire fee | $20 | $20 | ||||||
| Overnight check delivery fee | $25 | $25 | ||||||
| Retirement account fees (annual maintenance fee) | $15 | $15 | ||||||
| Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) |
||||||||
| Management fees | 1.00% | 1.00% | ||||||
| Distribution (Rule 12b-1) fee | 0.25% | None | ||||||
| Other expenses | 16.78% | 16.78% | ||||||
| Shareholder service fee | 0.15% | 0.15% | ||||||
| All other expenses | 16.63% | 16.63% | ||||||
| Total annual fund operating expenses | 18.03% | 17.78% | ||||||
| Fees waived and/or expenses reimbursed1 | (16.53%) | (16.53%) | ||||||
| Total annual fund operating expenses after waiving fees and/or reimbursing expenses1 | 1.50% | 1.25% | ||||||
| 1 | The Fund’s advisor has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that total annual fund operating expenses (excluding any taxes, leverage interest, brokerage commissions, dividend and interest expenses on short sales, acquired fund fees and expenses (as determined in accordance with SEC Form N-1A), expenses incurred in connection with any merger or reorganization, and extraordinary expenses such as litigation expenses) do not exceed 1.50% and 1.25% of the average daily net assets of the Fund’s Investor Class and Institutional Class shares, respectively. This agreement is in effect until August 31, 2030, and it may be terminated before that date only by the Trust’s Board of Trustees. The Fund’s advisor is permitted to seek reimbursement from the Fund, subject to certain limitations, of fees waived or payments made to the Fund for a period ending three full years after the date of the waiver or payment. This reimbursement may be requested from the Fund if the reimbursement will not cause the Fund’s annual expense ratio to exceed the lesser of (a) the expense limitation in effect at the time such fees were waived or payments made, or (b) the expense limitation in effect at the time of the reimbursement. |
Example
This example is intended to help you compare
the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000
in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes
that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. The example reflects
the Fund’s contractual fee waiver and/or expense reimbursement only for the term of the contractual fee waiver and/or expense
reimbursement.
Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
| One Year | Three Years | |
| Investor Class | $153 | $474 |
| Institutional Class | $127 | $397 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions,
when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover may indicate higher
transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected
in annual fund operating expenses or in the example, affect the Fund’s performance. For the period of March 31, 2020, through
April 30, 2020, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio.
Principal Investment Strategies
Under normal market conditions, the Fund invests
at least 80% of its net assets (including amounts borrowed for investment purposes) in equity securities of Chinese companies.
The Fund’s advisor considers a company to be a Chinese company if it has been organized under the laws of, has its principal
offices in, or has its securities principally traded in, China, or if the company derives at least 50% of its revenues, net profits
or incremental revenue growth (typically over the past five years) from, or has at least 50% of assets or production capacities
in, China. For purposes of the Fund’s investments, China also includes its special administrative regions and other districts,
such as Hong Kong and Taiwan.
The Fund’s investments in equity securities
may include common stock, including A-Shares, and depository receipts. The Fund’s investments in depository receipts may
include American, European, Canadian and Global Depository Receipts (“ADRs”, “EDRs”, “CDRs”
and “GDRs”, respectively). ADRs and CDRs are receipts that represent interests in foreign securities held on deposit
by U.S. and Canadian banks or trust companies, respectively. EDRs and GDRs have the same qualities as ADRs, although they may be
traded in several international trading markets. The Fund may also use participation certificates issued by foreign banks or brokers
evidencing ownership of underlying stock issued by a foreign company. Participation certificates are used by foreign investors
to access local markets and to gain exposure to, primarily, equity securities of issuers listed on a local exchange.
The Fund’s
advisor uses a bottom-up approach that seeks to identify companies believed to be quality companies and have above-average potential
for growth in assets and the rate of return on invested capital. The Fund’s advisor considers quality growth companies to:
(i) have a history of predictable and consistent earnings growth; (ii) have regular, growing dividend payments; (iii) be industry
leaders with sustainable competitive advantages; (iv) have corporate cultures emphasizing strong, quality and experienced management;
(v) have little or no debt; (vi) have attractive relative valuations; and (vii) have potential for asset base growth. In selecting
securities, the Fund’s advisor also considers other factors including, among others, political risk, monetary policy risk,
and regulatory risk. The Fund will generally hold the equity securities of approximately 30 to 50 issuers, and the Fund
may invest in securities of any market capitalization. The Fund generally invests in companies in any sector, however, from time
to time the Fund may invest a significant portion of its assets in the securities of companies in one or more sectors.
The Fund is classified as “non-diversified”
under the Investment Company Act of 1940 (the “1940 Act”), which means that it may invest more of its assets in a smaller
number of issuers than “diversified” funds.
Principal Risks of Investing
Risk is inherent in all investing and you could
lose money by investing in the Fund. A summary description of certain principal risks of investing in the Fund is set forth below.
Before you decide whether to invest in the Fund, carefully consider these risk factors associated with investing in the Fund, which
may cause investors to lose money. There can be no assurance that the Fund will achieve its investment objective.
Market Risk. The market price
of a security or instrument may decline, sometimes rapidly or unpredictably, due to general market conditions that are not specifically
related to a particular company, such as real or perceived adverse economic or political conditions throughout the world, changes
in the general outlook for corporate earnings, changes in interest or currency rates, or adverse investor sentiment generally.
In addition, local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public
health issues, or other events could have a significant impact on a security or instrument. The market value of a security or instrument
also may decline because of factors that affect a particular industry or industries, such as labor shortages or increased production
costs and competitive conditions within an industry.
Equity Risk. The value of
the equity securities held by the Fund may fall due to general market and economic conditions, perceptions regarding the industries
in which the issuers of securities held by the Fund participate, or factors relating to specific companies in which the Fund invests.
Foreign Investment Risk. The
prices of foreign securities may be more volatile than the prices of securities of U.S. issuers because of economic and social
conditions abroad, political developments, and changes in the regulatory environments of foreign countries. In addition, changes
in exchange rates and interest rates may adversely affect the values of the Fund’s foreign investments. Foreign companies
are generally subject to different legal and accounting standards than U.S. companies, and foreign financial intermediaries may
be subject to less supervision and regulation than U.S. financial firms. Foreign securities include ADRs, EDRs, CDRs and GDRs.
Unsponsored ADRs and GDRs are organized independently and without the cooperation of the foreign issuer of the underlying securities,
and involve additional risks because U.S. reporting requirements do not apply. In addition, the issuing bank may deduct shareholder
distribution, custody, foreign currency exchange, and other fees from the payment of dividends.
Risks Associated with China,
Hong Kong and Taiwan.
China: The Chinese government exercises
significant control over China’s economy through its industrial policies (e.g., allocation of resources and other preferential
treatment), monetary policy, management of currency exchange rates, and management of the payment of foreign currency denominated
obligations. Changes in these policies could adversely impact affected industries or companies in China. China’s economy,
particularly its export-oriented industries, may be adversely impacted by trade or political disputes with China’s major
trading partners, including the U.S. In addition, as its consumer class continues to grow, China’s domestically oriented
industries may be especially sensitive to changes in government policy and investment cycles. China’s currency, which historically
has been managed in a tight range relative to the U.S. dollar, may in the future be subject to greater uncertainty as Chinese authorities
change the policies that determine the exchange rate mechanism. From time to time and as recently as January 2020, China has experienced
outbreaks of infectious illnesses, and the country may be subject to other public health threats or similar issues in the future.
Any spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic output, result
in market closures, travel restrictions or quarantines, and generally have a significant impact on the Chinese economy.
Hong Kong: If China were to exert
its authority so as to alter the economic, political or legal structures or the existing social policy of Hong Kong, investor and
business confidence in Hong Kong could be negatively affected, which in turn could negatively affect markets and business performance
and have an adverse effect on the Fund’s investments.
Taiwan: Although the relationship
between China and Taiwan has been improving, there is the potential for future political or economic disturbances that may have
an adverse impact on the values of investments in either China or Taiwan, or make investments in China and/or Taiwan impractical
or impossible.
Emerging Market Risk. Many
of the risks with respect to foreign investments are more pronounced for investments in issuers in developing or emerging market
countries. Emerging market countries tend to have less government exchange controls, more volatile interest and currency exchange
rates, less market regulation, and less developed economic, political and legal systems than those of more developed countries.
In addition, emerging market countries may experience high levels of inflation and may have less liquid securities markets and
less efficient trading and settlement systems.
A-Share Market Suspension Risk.
The A-Shares market can have a higher propensity for trading suspensions than many other global equity markets. Trading suspensions
in certain stocks could lead to greater valuation risks, liquidity risks and costs for the Fund.
A-Shares Tax Risk. The Fund’s
investments in A-Shares will be subject to a number of taxes and tax regulations in China. The application of many of these tax
regulations is at present uncertain. Moreover, the People’s Republic of China (“PRC”) has implemented a number
of tax reforms in recent years, including the value added tax reform, and may continue to amend or revise existing PRC tax laws
in the future. Changes in applicable PRC tax law, particularly taxation on a retrospective basis, could reduce the after-tax profits
of the Fund directly or indirectly by reducing the after-tax profits of the Chinese companies in which the Fund invests. Uncertainties
in the Chinese tax rules governing taxation of income and gains from investments in A-Shares could result in unexpected tax liabilities
for the Fund. The Fund’s investments in securities issued by Chinese companies, including A-Shares, may cause the Fund to
become subject to withholding income tax and other taxes imposed by the PRC. The PRC taxation rules are evolving, may change, and
new rules may be applied retroactively. Any such changes could have an adverse impact on Fund performance.
Risk of Investing through Stock
Connect. Investing in A-Shares through Stock Connect is subject to trading, clearance, settlement and other procedures, which
could pose risks to the Fund. Trading through Stock Connect is also subject to a daily quota (the “Daily Quota”), which
limits the maximum net purchases under Stock Connect each day, and as such, buy orders for A-Shares would be rejected once the
Daily Quota is exceeded (although the Fund will be permitted to sell A-Shares regardless of the Daily Quota balance). Thus, the
Daily Quota may restrict the Fund’s ability to invest in A-Shares through Stock Connect on a timely basis and could affect
the Fund’s ability to effectively pursue its investment strategy. Stock Connect will only operate on days when both the Chinese
and Hong Kong markets are open for trading and when banking services are available in both markets on the corresponding settlement
days. Therefore, an investment in A-Shares through Stock Connect may subject the Fund to the risk of price fluctuations on days
when the Chinese markets are open, but Stock Connect is not trading.
Nationalization Risk. Investments
in China may be subject to loss due to expropriation or nationalization of assets and property or the imposition of restrictions
on foreign investments and repatriation of capital.
Growth-Oriented Investment Strategies
Risk. Growth funds generally focus on stocks of companies believed to have above-average potential for growth in revenue and
earnings. Growth securities typically are very sensitive to market movements because their market prices frequently reflect projections
of future earnings or revenues, and when it appears that those expectations will not be met, the prices of growth securities typically
fall.
Currency Risk. The value
of investments in securities denominated in foreign currencies increases or decreases as the rates of exchange between those currencies
and the U.S. Dollar change. Currency conversion costs and currency fluctuations could erase investment gains or add to investment
losses. Currency exchange rates can be volatile and are affected by factors such as general economic conditions, the actions of
the United States and foreign governments or central banks, the imposition of currency controls, and speculation.
Management and Strategy Risk.
The value of your investment depends on the judgment of the Fund’s advisor about the quality, relative yield, value or
market trends affecting a particular security, industry, sector or region, which may prove to be incorrect.
Liquidity Risk. 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 if the Fund is forced to sell an illiquid asset to meet redemption requests or other cash needs it may
only be able to sell those investments at a loss. Illiquid assets may also be difficult to value.
Participation Certificates Risk.
Participation certificates represent interests in securities listed on certain foreign exchanges, and thus present similar
risks to investing directly in such securities. The risks of investing in participation certificates includes foreign investment
risk. Participation certificates also expose investors to counterparty risk, which is the risk that the entity issuing the note
may not be able to honor its financial commitments. The purchaser of a participation certificate must rely on the credit worthiness
of the bank or broker who issues the participation certificate, and these notes do not have the same rights as a shareholder of
the underlying foreign security.
Market Capitalization Risk.
Larger, more established companies may be unable to attain the high growth rates of successful, smaller companies during periods
of economic expansion. The securities of small-capitalization or mid-capitalization companies may be subject to more abrupt or
erratic market movements and may have lower trading volumes or more erratic trading than securities of larger, more established
companies or market averages in general. In addition, such companies typically are more likely to be adversely affected than large
capitalization companies by changes in earning results, business prospects, investor expectations or poor economic or market conditions.
Market Turbulence Resulting from
COVID-19. An outbreak of an infectious respiratory illness caused by a novel coronavirus known as COVID-19 has negatively affected
the worldwide economy, as well as the economies of individual countries, the financial health of individual companies and the market
in general in significant and unforeseen ways. The future impact of COVID-19 is currently unknown, and it may exacerbate other
risks that apply to the Fund. Any such impact could adversely affect the Fund’s performance, the performance of the securities
in which the Fund invests and may lead to losses on your investment in the Fund.
Sector Focus Risk. The Fund
may invest a larger portion of its assets in one or more sectors than many other mutual funds, and thus will be more susceptible
to negative events affecting those sectors. For example, as of April 30, 2020, 25.6% of the Fund’s assets were invested in
the consumer discretionary sector. Consumer discretionary companies are companies that provide non-essential goods and services,
such as retailers, media companies and consumer services. These companies manufacture products and provide discretionary services
directly to the consumer, and the success of these companies is tied closely to the performance of the overall domestic and international
economy, interest rates, competition and consumer confidence.
Non-Diversification Risk.
The Fund is classified as “non-diversified,” which means the Fund may invest a larger percentage of its assets in the
securities of a smaller number of issuers than a diversified fund. Investment in securities of a limited number of issuers exposes
the Fund to greater market risk and potential losses than if its assets were diversified among the securities of a greater number
of issuers.
Limited Operating History. The
Fund is recently organized and has a limited operating history. As a result, prospective investors have a limited track record
or history on which to base their investment decisions.
Cybersecurity Risk. Cybersecurity
incidents may allow an unauthorized party to gain access to Fund assets, customer data (including private shareholder information),
or proprietary information, or cause the Fund, the Fund’s advisor, and/or other service providers (including custodians,
sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality.
In an extreme case, a shareholder’s ability to exchange or redeem Fund shares may be affected. Issuers of securities in which
the Fund invests are also subject to cybersecurity risks, and the value of those securities could decline if the issuers experience
cybersecurity incidents.
Performance
The Fund commenced operations on March 31,
2020, and does not have a full calendar year performance record to compare against other mutual funds or broad measures of securities
market performance such as indices. Performance information will be available after the Fund has been in operation for one calendar
year.
Investment Advisor
WCM Investment Management, LLC (the “Advisor”
or “WCM”)
Portfolio Managers
Michael Tian, Portfolio Manager, has been responsible
for the day-to-day management of the Fund’s portfolio since its inception on March 31, 2020.
Purchase and Sale of Fund Shares
To purchase shares of the Fund, you must invest
at least the minimum amount.
| Investor Class | Institutional Class | |||
| Minimum Investments | To Open Your Account | To Add to Your Account | To Open Your Account | To Add to Your Account |
| Direct Regular Accounts | $1,000 | $100 | $100,000 | $5,000 |
| Direct Retirement Accounts | $1,000 | $100 | $100,000 | $5,000 |
| Automatic Investment Plan | $100 | $50 | $5,000 | $2,500 |
| Gift Account For Minors | $1,000 | $500 | $100,000 | $5,000 |
Fund shares are redeemable on any business
day the New York Stock Exchange (the “NYSE”) is open for business, by written request or by telephone.
Tax Information
The Fund’s distributions are generally
taxable, and will ordinarily be taxed as ordinary income, qualified dividend income or capital gains, unless you are investing
through a tax-advantaged arrangement, such as a 401(k) plan or an individual retirement account. Shareholders investing through
such tax-advantaged arrangements may be taxed later upon withdrawal of monies from those arrangements.
Payments to Broker-Dealers and Other Financial
Intermediaries
If you purchase shares of the Fund through
a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for
the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer
or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
