North Square Select Small Cap Fund Receives Its First Morningstar Overall Rating of Five Stars
CHICAGO, March 11, 2025 /PRNewswire/ -- The North Square Select Small Cap Fund Class I shares (ADVGX) has received its first Morningstar Overall Rating of five stars among 591 Small Blend category funds, based on risk-adjusted performance as of January 31, 2025, according to North Square Investments, the Fund's investment adviser. The Select Small Cap Fund was formerly the North Square Advisory Research Small Cap Value Fund, having had its name changed on February 28th.
Class I shares also received five stars for the three-year period ended 1/31/25 among 591 Small Blend category funds, but has not yet received ratings for five or ten years. For the same period, the Select Small Cap Fund finished among the top 6% of funds in its Morningstar Small Blend category peer group, ranking 33rd among 591 funds based on Morningstar total return. The Fund has not been in existence long enough to receive rankings for longer time periods.
Call 855-551-5521 or visit northsquareinvest.com for the most recent month-end performance results. Current performance may be lower or higher than the performance data quoted. The performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown reflects contractual fee waivers. Without such waivers, total returns would be reduced. Short term performance, in particular, is not a good indication of the fund's future performance, and an investment should not be made based solely on returns.
"We congratulate our North Square Select Small Cap Fund portfolio managers at Advisory Research for the Select Small Cap Fund's first Morningstar rating of five stars, which we consider a very positive debut," said North Square CEO and Co-Founder Mark Goodwin. "We are also pleased to rename the Fund to highlight our subadvisor's fundamental, research-intensive methodology that generally results in a high conviction portfolio of select small cap stocks."
"As the Fund pursues its investment objective of long-term capital appreciation, we believe Advisory Research's private equity approach to the public markets—with its strong focus on downside risk management and company specific actions to unlock shareholder value—differentiates the firm from many small cap equity managers.
Advisory Research Chairman Matt Swaim, CFA, is one of the three portfolio managers of the Select Small Cap Fund, along with his colleagues (also Managing Directors) Christopher Harvey, CFA, and Bruce Zessar, CFA. The three portfolio managers have an average 24 years of investment industry experience.
"We are delighted the Select Small Cap Fund has received an overall rating of five stars from Morningstar," Swaim said. "In today's market, we see a unique opportunity to identify undervalued businesses in a segment that is often overlooked. While the small-cap sector is currently trading at a discount relative to the broader market, it is also ripe with inefficiencies. These inefficiencies arise from a growing trend where many investors, rather than focusing on individual businesses, gain exposure through broad market ETFs (Exchange Traded Funds). We believe in owning businesses with strong competitive moats, the potential for high-quality reinvestment opportunities, and management teams whose incentives are aligned with our long-term objectives. We understand that incentives drive outcomes, and the strong performance of the Fund reflects this alignment."
For additional Fund performance information, portfolio holdings, and characteristics, please see the North Square Select Small Cap Fund's Fact Sheet.
About Advisory Research
Advisory Research Investment Management, a Chicago-based asset manager, offers actively-managed U.S. and global equity strategies, catering to institutional and intermediary investors through separate account management and private funds. Learn more about Advisory Research at advisoryresearch.com.
About North Square
Founded in 2018 and headquartered in Chicago, Illinois, North Square Investments is an independent, multi-boutique investment firm dedicated to delivering differentiated active investment strategies to the market. North Square has an experienced senior management team comprised of seasoned professionals, a board composed of industry veterans, and is backed by Estancia Capital Partners. As of January 31, 2025 North Square had $2.12 billion of assets under management in 12 mutual funds, one closed end fund and one ETF. With North Square's ownership interests (majority and minority, respectively) in the distinctly branded firms of CS McKee and Oak Ridge Investments, collective assets under management and advisement totaled $12.83 billion. Learn more about North Square Investments at northsquareinvest.com.
Principal Risks of Investing: Risk is inherent in all investing including an investment in the Fund. An investment in the Fund involves risk, including the following principal risks, among others: Equity Risk, Sector Focus Risk, Market Risk, Small-Cap Company Risk, Preferred Securities Risk, Convertible Securities Risk, Currency Risk, Value-Oriented Investment Strategies Risk, Foreign Investment Risk, and Management and Strategy Risk. Summary descriptions of these and other principal risks of investing in the Fund are set forth in the Fund's prospectus. 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. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Please see the Fund's prospectus for additional risk disclosures.
Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by calling 855-551-5521. Please read the prospectus carefully before you invest.
The Morningstar Rating™ for funds, or "star rating", is calculated monthly for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products 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 managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. The Rating/Ranking may reflect the waiver of all or a portion of the fund's fees. Without such waiver, the Ratings/Rankings may have been lower.
© 2025 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor 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.
Morningstar Rankings represent a fund's total return percentile rank relative to all funds in the same Morningstar Category for the same time period. The highest (or most favorable) percentile rank is 1%, and the lowest (or least favorable) percentile rank is 100%. It is based on Morningstar total return, which includes both income and capital gains or losses and is not adjusted for sales charges or redemption fees.
For the one-year period ended 1/31/25, the Select Small Cap Fund finished among the top 9% of funds in its Morningstar Small Blend category peer group, ranking 62nd among 620 funds based on Morningstar total return.
A competitive or economic moat, often attributed to investor Warren Buffett, is a term used to describe a company's competitive advantage. Like a moat protects a castle, certain advantages help protect companies from their competitors.
North Square is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. Information contained herein derives from third-party sources believed to be reliable by the Adviser. However the accuracy and completeness cannot be guaranteed.
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SOURCE North Square Investments