NICHOLAS PARTNERS SMALL CAP GROWTH FUND

Retail: NPSYX | Institutional: NPSGX

investing in dynamic, innovative companies

HIGHLIGHTS
Asset Class / Style
US Equity / Growth
Capitalization
Small Cap
Benchmark
Russell 2000 Growth®
Approach
Active
Driver of Expected Return Stock Selection
FUND FACTS
Share
Retail Institutional
Ticker Symbol
NPSYX NPSGX
CUSIP
00774Q734 00774Q726
Inception Date
1/16/2019 1/16/2019
Total Expense Ratio (Net)* 1.24% 0.99%
Total Expense Ratio (Gross)
2.03% 1.78%
Minimum Investment $2,000 $100,000
*Adviser has contractually agreed to waive fees until January 31, 2021.
INVESTMENT OBJECTIVE
Nicholas Partners Small Cap Growth Fund (the “Fund”) seeks long-term capital appreciation.
OVERVIEW
The Fund invests primarily in small-cap companies (those with market capitalizations within the range of the Russell 2000 Growth Index when purchased). We believe the Fund offers investors attractive opportunities for capital appreciation and diversification within this less-widely-followed market segment. Small-cap companies have historically demonstrated higher revenue and earnings growth potential than larger companies over the last 20+ years. The Advisor actively seeks to capitalize on a disciplined forward-looking investment process which targets successful, growing companies—those that have managed change advantageously and we believe are poised to exceed expectations. 
INVESTMENT PHILOSOPHY
Nicholas Investment Partners believes long-term success in investing in dynamic, growing companies results from identifying companies meeting the following three criteria:
Positive Change – Growing companies that manage change advantageously and are poised to exceed expectations.

Sustainability -- Long-term revenue and earnings potential, financial strength and quality of management.

Timeliness – Relative price strength of the stock and industry, liquidity, institutional sponsorship and market sentiment.
WHAT SETS US APART?
  • Over 30 years of experience investing in small- to mid-cap companies
  • Specialists in identifying dynamically growing companies whose revenues and earnings are catalyzed by positive change
  • Edge comes from combining fundamental research with objectivity and efficiency of quantitative analytics
  • Investment expertise in both equities and convertibles provides insights across a company’s capital structure
MANAGEMENT
CATHERINE NICHOLAS
Managing Partner, Chief Investment Officer & Lead Portfolio Manager
JOHN WYLIE
Partner & Portfolio Manager
PERFORMANCE – Monthly
(as of 9/30/2019)
  MTD
(9/1/19–
9/30/19
YTD
(1/16/19–
9/30/19)
Since
Inception (1/16/19)
NPSYX Retail Shares --- --- ---
NPSGX Institutional Shares
-5.22% 10.70% 10.70%
Russell 2000 Growth® (benchmark) -0.82%   6.86%   6.86%
PERFORMANCE – Quarterly
(as of 9/30/2019)
  Q3
(7/1/19–
9/30/19
YTD
(1/16/19–
9/30/19)
Since
Inception (1/16/19)
NPSYX Retail Shares --- --- ---
NPSGX Institutional Shares
-6.35% 10.70% 10.70%
Russell 2000 Growth® (benchmark) -4.17%   6.86%   6.86%
Returns over one year are annualized. The performance data quoted represents past performance, which is not an indication or a 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. Current performance may be lower or higher than the performance quoted. Performance figures assume all distributions are reinvested. Investment performance does not reflect the redemption fee of 2.00% on shares held less than 30 days; if it was reflected, the total return would be lower than shown. 
CHARACTERISTICS
(as of 9/30/2019)
  Small Cap Growth Fund Russell 2000 Growth® (benchmark)
Number of Holdings
78 1,164
Active Share 
93% ---
Market Cap (Weighted Average)
$3.7 bil
$2.5 bil
Market Cap (Median) $2.7 bil
$856 mil
P/E Ratio (FY2) 20.2x
17.5x
Price/Book Ratio   3.1x   3.5x
EPS Growth (FY1 to FY2)
23.8% 17.1%
EPS Growth (3 to 5 YR) 16.8% 14.6%
  • Active Share is the percent of companies in the portfolio that differs from the benchmark.
  • Market Cap refers to the total dollar market value of a company's outstanding shares. This figure is commonly used to determine a company's size.
  • Price/Book Ratio compare a company's current market price to its book value.
  • P/E Ratio (FY2) is a forward-looking valuation measure of a company’s common stock. It encapsulates the amount of earnings estimated for next year per dollar of current share price. For the fund, the individual P/E stock ratios are then weighted by their respective portfolio market values in order to calculate a weighted harmonic average representative of the portfolio as a whole. P/E Ratio (FY2) is not a forecast of the fund’s future performance.
  • EPS Growth (FY1 to FY2) is the percent change in FY2 consensus EPS estimate to FY1 consensus EPS estimate. EPS Growth (FY1 to FY2) is not a forecast of the fund's future performance.
  • EPS Growth (3 to 5 YR) is the average consensus long-term EPS growth rate estimate over the next 3 to 5 years using a weighted average for holdings at the aggregate level. EPS Growth (3 to 5 YR) is not a forecast of the fund’s future performance.
EXPOSURES (excluding cash)
(as of 9/30/2019)
  • SECTOR
  • MARKET CAP
GICS Sector Allocations Small Cap Growth Fund Russell 2000 Growth® (benchmark)
Active Weight
Communications Services 1.21% 2.46% -1.25%
Consumer Discretionary 19.25% 12.32% 6.93%
Consumer Staples 13.87% 3.47% 10.40%
Energy
1.18% 0.68% 0.50%
Financials 4.96% 5.99% -1.04%
Health Care 24.48% 27.47% -2.99%
Industrials 7.59% 19.63% -12.03%
Information Technology 20.69% 18.12% 2.57%
Materials 0.00% 3.19% -3.19%
Real Estate 6.77% 4.89% 1.88%
Utilities 0.00% 1.79% -1.79%
Market Capitalization Small Cap Growth Fund Russell 2000 Growth® (benchmark)
Active Weight
> $15B 0.00% 0.00% 0.00%
$7.5–$15B 4.23% 0.00% 4.23%
$4.5B–$7.5B 30.38% 8.80% 21.58%
$1.5B–$4.5B
49.93% 63.83% -13.90%
$750M–$1.5B 12.78% 16.99% -4.21%
$400M–$750M 1.32% 6.25% -4.94%
< $400M
1.36% 4.13% -2.76%
HOLDINGS (excluding cash)
(as of 9/30/2019)
  • TOP 10 HOLDINGS
Security
Small Cap Growth Fund Russell 2000 Growth® (benchmark)
Active Weight
CACI International Inc 
  3.76%
0.00%   3.76%
Nomad Foods Ltd.
  3.34% 0.00%   3.34%
Callaway Golf Company
  3.27% 0.00%   3.27%
Simply Good Foods Co
  3.01% 0.00%   3.01%
Kemper Corporation
  2.95% 0.00%   2.95%
Americold Realty Trust
  2.86% 0.00%   2.86%
Terreno Realty Corporation
  2.84% 0.03%   2.81%
SkyWest, Inc
  2.72% 0.00%   2.72%
Freshpet Inc
  2.69% 0.18%   2.52%
Monolithic Power Systems, Inc.
  2.50% 0.00%   2.50%
TOTAL 29.97% 0.21% 29.75%
Holdings are subject to change. 
To determine if this Fund is an appropriate investment for you, carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information may be found in the Fund’s prospectus, and if available, the summary prospectus, which may be obtained by clicking here. Please read the prospectus, and if available the summary prospectus, carefully before investing.

Mutual fund investing involves risk including possible loss of principal. In addition to the normal risks associate with investing, investments in smaller companies typically exhibit higher volatility. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. REIT investments are subject to changes in economic conditions, credit risk and interest rate fluctuations.

There is no assurance the fund's investment objective will be achieved or maintained.

The Funds is distributed by SEI Investment Distribution Company (SIDCO) 1 Freedom Valley Dr, Oaks PA 19456. SIDCO is not affiliated with Nicholas Investment Partners. Additional information about SIDCO can be found on BrokerCheck.