THE ADVISORS' INNER CIRCLE FUND
CORNERSTONE ADVISORS GLOBAL PUBLIC EQUITY FUND (THE "FUND")
SUPPLEMENT DATED JULY 11, 2013
TO THE
PROSPECTUS
DATED MARCH 1, 2013
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED
IN THE PROSPECTUS AND SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS.
On June 28, 2013, shareholders of the Fund approved a new investment
sub-advisory agreement (the "New Agreement") between Cornerstone Advisors, Inc.
("Cornerstone"), the investment adviser of the Fund, and Numeric Investors LLC
("Numeric"), with respect to the Fund. In addition, at the May 15, 2013
meeting of the Board of Trustees of The Advisors' Inner Circle Fund, the
Trustees approved the termination of TCW Investment Management Company ("TCW")
as sub-adviser to the Fund, effective upon shareholder approval of the New
Agreement between Cornerstone and Numeric. Accordingly, TCW has now been
terminated as sub-adviser to the Fund, and Numeric now serves as sub-adviser to
the Fund pursuant to the New Agreement.
Accordingly, effective immediately, the Prospectus is amended as follows:
1. ALL REFERENCES TO TCW INVESTMENT MANAGEMENT COMPANY IN THE PROSPECTUS ARE
HEREBY DELETED.
2. IN THE SUBSECTION ENTITLED "INVESTMENT SUB-ADVISERS AND PORTFOLIO
MANAGERS" ON PAGE 8 OF THE PROSPECTUS, THE FOLLOWING TEXT IS HEREBY ADDED
IN THE APPROPRIATE ALPHABETICAL ORDER THEREOF:
NUMERIC INVESTORS LLC
Jayendran Rajamony, Ph.D., CFA, Portfolio Manager and Researcher, has managed
the portion of the assets of the Global Public Equity Fund allocated to Numeric
Investors LLC ("Numeric") since 2013.
Joe Schirripa, CFA, Director of U.S. and Global Strategies and Investment
Committee Member, has managed the portion of the assets of the Global Public
Equity Fund allocated to Numeric since 2013.
3. UNDER THE HEADING "GLOBAL PUBLIC EQUITY FUND," IN THE SECTION ENTITLED
"INVESTMENT SUB-ADVISERS AND PORTFOLIO MANAGERS" BEGINNING ON PAGE 53 OF
THE PROSPECTUS, THE FOLLOWING TEXT IS HEREBY ADDED IN THE APPROPRIATE
ALPHABETICAL ORDER THEREOF:
NUMERIC INVESTORS LLC ("Numeric"), 470 Atlantic Avenue, 6th Floor, Boston,
Massachusetts 02210, serves as investment sub-adviser to a portion of the
assets of the Global Public Equity Fund. As of June 30, 2013, Numeric had
approximately $9.5 billion in assets under management.
PORTFOLIO MANAGERS:
Jayendran Rajamony, Ph.D., CFA, Portfolio Manager and Researcher, has managed
the portion of the assets of the Global Public Equity Fund allocated to Numeric
since 2013. Dr. Rajamony joined Numeric in 2004. Prior to joining Numeric,
Dr. Rajamony worked at Independence
Investments in Boston as a quantitative analyst. Earlier, he served as a
quantitative portfolio manager in the student-run Cayuga M.B.A hedge fund at
Cornell University. Dr. Rajamony has over 11 years of investment experience.
He holds an M.B.A. with distinction from Cornell University, a Ph.D. in
Physical Oceanography from the University of Rhode Island, and a Bachelor of
Technology (Honors) from the Indian Institute of Technology, Kharagpur, India.
Joe Schirripa, CFA, Director of U.S. and Global Strategies and Investment
Committee Member, has managed the portion of the assets of the Global Public
Equity Fund allocated to Numeric since 2013. Mr. Schirripa joined Numeric in
2003. Prior to joining Numeric, he worked at Standish Mellon where he helped
manage the International Small Cap strategy and was the analyst covering
non-U.S. technology and telecom companies. Mr. Schirripa has over 14 years on
investment experience. He received an M.B.A. from the M.I.T. Sloan School of
Management, an M.S. in Electrical Engineering from M.I.T., and a B.S. in
Physics from M.I.T.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
THE ADVISORS' INNER CIRCLE FUND
CORNERSTONE ADVISORS INCOME OPPORTUNITIES FUND (THE "FUND")
SUPPLEMENT DATED JULY 11, 2013
TO THE
PROSPECTUS
DATED MARCH 1, 2013
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED
IN THE PROSPECTUS AND SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS.
On June 28, 2013, shareholders of the Fund approved a new investment
sub-advisory agreement (the "New Agreement") between Cornerstone Advisors,
Inc., the investment adviser of the Fund, and Strategic Income Management, LLC
("SiM"), with respect to the Fund. Accordingly, SiM now serves as sub-adviser
to the Fund pursuant to the New Agreement.
Accordingly, effective immediately, the Prospectus is amended as follows:
1. IN THE SUBSECTION ENTITLED "INVESTMENT SUB-ADVISERS AND PORTFOLIO
MANAGERS" ON PAGE 21 OF THE PROSPECTUS, THE FOLLOWING TEXT IS HEREBY ADDED
IN THE APPROPRIATE ALPHABETICAL ORDER THEREOF:
STRATEGIC INCOME MANAGEMENT, LLC
Gary J. Pokrzywinski, CFA, Chief Investment Officer and High Yield Portfolio
Manager, has managed the portion of the assets of the Income Opportunities Fund
allocated to Strategic Income Management, LLC ("SiM") since 2013.
Brian L. Placzek, CFA, Director of Research -- High Yield and Senior Analyst,
has managed the portion of the assets of the Income Opportunities Fund
allocated to SiM since 2013.
2. UNDER THE HEADING "INCOME OPPORTUNITIES FUND," IN THE SECTION ENTITLED
"INVESTMENT SUB-ADVISERS AND PORTFOLIO MANAGERS" BEGINNING ON PAGE 53 OF
THE PROSPECTUS, THE FOLLOWING TEXT IS HEREBY ADDED IN THE APPROPRIATE
ALPHABETICAL ORDER THEREOF:
STRATEGIC INCOME MANAGEMENT, LLC ("SiM"), 720 Olive Way, Suite 1675, Seattle,
Washington 98101, serves as investment sub-adviser to a portion of the assets
of the Income Opportunities Fund. SiM, a Washington limited liability company,
was founded in 2010 by Randy Yoakum and Gary J. Pokrzywinski. As of June 30,
2013, SiM had approximately $556.42 million in assets under management.
PORTFOLIO MANAGERS:
Gary J. Pokrzywinski, CFA, Chief Investment Officer and High Yield Portfolio
Manager, has managed the portion of the assets of the Income Opportunities Fund
allocated to SiM since July 1, 2013. Prior to co-founding SiM in 2010, Mr.
Pokrzywinski was the Chief Investment Officer and a High Yield Portfolio
Manager for Edge Asset Management and its predecessor. He has over 25 years of
experience in the fixed income financial markets. Mr. Pokrzywinski received a
bachelor's degree in finance and management information systems from the
University of Wisconsin -- Milwaukee.
Brian L. Placzek, CFA, Director of Research -- High Yield and Senior Analyst,
has managed the portion of the assets of the Income Opportunities Fund
allocated to SiM since July 1, 2013. Prior to joining SiM in 2010, Mr. Placzek
was Head of Fixed Income/Research at Edge Asset Management and its predecessor.
Mr. Placzek has over 25 years of experience in investment management and
financial analysis. He received a bachelor's degree in liberal arts from
Seattle University.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
THE ADVISORS' INNER CIRCLE FUND
CORNERSTONE ADVISORS GLOBAL PUBLIC EQUITY FUND (THE "GLOBAL PUBLIC EQUITY FUND")
CORNERSTONE ADVISORS INCOME OPPORTUNITIES FUND (THE "INCOME OPPORTUNITIES FUND")
(TOGETHER, THE "FUNDS")
SUPPLEMENT DATED JULY 11, 2013
TO THE
STATEMENT OF ADDITIONAL INFORMATION (THE "SAI")
DATED MARCH 1, 2013
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED
IN THE SAI AND SHOULD BE READ IN CONJUNCTION WITH THE SAI.
On June 28, 2013, shareholders of the Global Public Equity Fund approved a new
investment sub-advisory agreement between Cornerstone Advisors, Inc.
("Cornerstone"), the investment adviser of the Fund, and Numeric Investors LLC
("Numeric"), with respect to the Fund. In connection with this approval, at
the May 15, 2013 meeting of the Board of Trustees of The Advisors' Inner Circle
Fund, the Trustees approved the termination of TCW Investment Management
Company ("TCW") as sub-adviser to the Global Public Equity Fund, effective upon
shareholder approval of the new sub-advisory agreement between Cornerstone and
Numeric. In addition, on June 28, 2013, shareholders of the Income
Opportunities Fund approved a new investment sub-advisory agreement between
Cornerstone, the investment adviser of the Fund, and Strategic Income
Management, LLC ("SiM"), with respect to the Fund. Accordingly, TCW has been
terminated as sub-adviser to the Global Public Equity Fund, Numeric now serves
as sub-adviser to the Global Public Equity Fund and SiM now serves as
sub-adviser to the Income Opportunities Fund.
Accordingly, effective immediately, the SAI is amended as follows:
1. ALL REFERENCES TO TCW INVESTMENT MANAGEMENT COMPANY IN THE SAI ARE HEREBY
DELETED.
2. UNDER THE HEADING "INVESTMENT SUB-ADVISERS" ON THE COVER OF THE SAI,
"Numeric Investors LLC" AND "Strategic Income Management, LLC" ARE HEREBY
ADDED IN THE APPROPRIATE ALPHABETICAL ORDER THEREOF.
3. IN THE CHART UNDER THE HEADING "SUB-ADVISERS" ON PAGE S-33 OF THE SAI,
"Numeric Investors LLC" IS HEREBY ADDED TO THE LIST OF SUB-ADVISERS OF THE
GLOBAL PUBLIC EQUITY FUND IN THE APPROPRIATE ALPHABETICAL ORDER THEREOF.
4. IN THE CHART UNDER THE HEADING "SUB-ADVISERS" ON PAGE S-33 OF THE SAI,
"Strategic Income Management, LLC" IS HEREBY ADDED TO THE LIST OF
SUB-ADVISERS OF THE INCOME OPPORTUNITIES FUND IN THE APPROPRIATE
ALPHABETICAL ORDER THEREOF.
5. IN THE CHART UNDER THE HEADING "SUB-ADVISORY FEES" ON PAGE S-34 OF THE
SAI, THE FOLLOWING TEXT IS HEREBY INSERTED BELOW THE ROW RELATING TO
MARSICO CAPITAL MANAGEMENT, LLC:
--------------------------------------------------------------------------------
SUB-ADVISER FEE
--------------------------------------------------------------------------------
Numeric Investors LLC 0.85% on $0-25 million
0.80% above $25 million
--------------------------------------------------------------------------------
|
6. IN THE CHART UNDER THE HEADING "SUB-ADVISORY FEES" ON PAGE S-34 OF THE
SAI, THE FOLLOWING TEXT IS HEREBY INSERTED BELOW THE ROW RELATING TO OFI
STEELPATH, INC.:
--------------------------------------------------------------------------------
SUB-ADVISER FEE
--------------------------------------------------------------------------------
Strategic Income Management, LLC 0.50%
--------------------------------------------------------------------------------
|
7. IN THE SECTION ENTITLED "THE PORTFOLIO MANAGERS" BEGINNING ON PAGE S-36 OF
THE SAI, THE FOLLOWING TEXT RELATING TO NUMERIC INVESTORS LLC IS HEREBY
ADDED IN THE APPROPRIATE ALPHABETICAL ORDER THEREOF:
NUMERIC INVESTORS LLC
Numeric Investors LLC ("Numeric"), 470 Atlantic Avenue, 6th Floor, Boston,
Massachusetts 02210, serves as investment sub-adviser to a portion of the
assets of the Global Public Equity Fund. Numeric, a Delaware limited liability
company established in 1989, is an indirect wholly-owned subsidiary and
operating company of Numeric Holdings LLC. As of June 30, 2013, Numeric had
approximately $9.5 billion in assets under management.
COMPENSATION. Numeric receives a fee based on the assets under management of
the Global Public Equity Fund as set forth in the Investment Sub-Advisory
Agreement between Numeric and the Adviser.
Numeric's Compensation Committee (the "Compensation Committee") reviews and
decides on compensation issues for every employee. Specifically for portfolio
managers, the Compensation Committee evaluates quantitative and qualitative
factors in determining compensation. For all investment professionals, Numeric
believes that a blend between objective and subjective factors provides the
best overall view of an investment professional's contribution.
Compensation is based on the investment manager's contribution to success at
the individual, team and firm wide levels. The Compensation Committee reviews
several long-term and short-term performance metrics (alpha versus benchmark,
performance versus na[]ve model portfolios and relative performance versus
peers), focusing more heavily on longer term metrics (three and five years).
Individual investment professionals are not compensated on the growth of assets
in his/her specific strategy. The Compensation Committee also evaluates the
employee's contribution to the research process both in terms of creativity and
productivity.
Qualitative inputs are also important and include a portfolio manager's
contribution to the broader investment team, research ideas and ability to work
well with others in the organization. These qualitative inputs are used for
research analysts as well, along with their contribution to the success of
their team and the firm.
Strategy performance is formally evaluated on a (rotating) monthly basis at the
Investment Committee and more frequently as needed. Research projects are
evaluated on an ad hoc basis as milestones and deadlines approach.
Additionally, each year each employee receives a comprehensive written review
from his/her superior. This review evaluates the employee's achievements over
the previous year, highlighting areas of successes and areas for improvements.
Numeric's compensation package has three major components: base salary, bonus
and, in some cases, equity in the firm. The combination of these three is
designed to be industry competitive and to provide a significant incentive to
attract and retain top investment talent. Numeric utilizes several industry
surveys and other market knowledge to determine industry norms for each
position. Numeric seeks to pay above median and often top quartile, total cash
compensation.
Numeric believes that the methodology used in this review process achieves the
purpose of aligning the interests of its investment professionals with its
clients to incentivize long-term investment performance.
OWNERSHIP OF FUND SHARES. The Fund is required to show the dollar amount range
of each portfolio manager's "beneficial ownership" of shares of the Fund as of
the most recently completed fiscal year end. Dollar amount ranges disclosed
are established by the SEC. "Beneficial ownership" is determined in accordance
with Rule 16a-1(a)(2) under the 1934 Act.
--------------------------------------------------------------------------------
NAME DOLLAR RANGE OF FUND SHARES OWNED(1)
--------------------------------------------------------------------------------
Jayendran Rajamony, Ph.D., CFA None (Global Public Equity Fund)
--------------------------------------------------------------------------------
Joe Schirripa, CFA None (Global Public Equity Fund)
--------------------------------------------------------------------------------
|
(1) Valuation date is June 30, 2013.
OTHER ACCOUNTS. The portfolio managers are responsible for the day-to-day
management of certain other accounts, as listed below. The information below is
provided as of June 30, 2013.
REGISTERED INVESTMENT OTHER POOLED
COMPANIES INVESTMENT VEHICLES OTHER ACCOUNTS
------------------------- -------------------------- ------------------------
NUMBER OF TOTAL ASSETS NUMBER OF TOTAL ASSETS NUMBER OF TOTAL ASSETS
PORTFOLIO MANAGER ACCOUNTS (IN MILLIONS) ACCOUNTS (IN MILLIONS) ACCOUNTS (IN MILLIONS)
-------------------------------------------------------------------------------------------------------------------
Jayendran Rajamony, Ph.D., CFA 1 $20.0 1 $122.7 9 $798.8
0 $0 0 $0 0 $0
-------------------------------------------------------------------------------------------------------------------
Joe Schirripa, CFA 1 $16.8 0 0 23 $5,828.6
0 $0 0 $0 12* $4,026.1
-------------------------------------------------------------------------------------------------------------------
|
* These accounts, which are a subset of the accounts in the preceding row, are
subject to a performance-based advisory fee.
CONFLICTS OF INTEREST. Numeric's portfolio managers' management of other
accounts may give rise to potential conflicts of interest in connection with
their management of the Global Public Equity Fund's investments, on the one
hand, and the investments of the other accounts, on the other. The other
accounts might have similar investment objectives as the Global Public Equity
Fund or hold, purchase or sell securities that are eligible to be held,
purchased or sold by the Global Public Equity Fund. While the portfolio
managers' management of other accounts may give rise to the following potential
conflicts of interest, Numeric does not believe that the conflicts, if any, are
material or, to the extent any such conflicts are material, Numeric believes
that it has designed policies and procedures to manage those conflicts in an
appropriate way.
A potential conflict of interest may arise as a result of Numeric's portfolio
managers' day-to-day management of the Global Public Equity Fund. Because of
their positions with the Global Public Equity Fund, the portfolio managers know
the size, timing and possible market impact of Global Public Equity Fund
trades. It is theoretically possible that the portfolio managers could use this
information to the advantage of other accounts they manage and to the possible
detriment of the
Global Public Equity Fund. However, Numeric has adopted policies and procedures
reasonably designed to allocate investment opportunities on a fair and
equitable basis over time.
A potential conflict of interest may arise as a result of Numeric's portfolio
managers' management of the Global Public Equity Fund and other accounts,
which, in theory, may allow them to allocate investment opportunities in a way
that favors other accounts over the Global Public Equity Fund. This conflict of
interest may be exacerbated to the extent that the portfolio managers receive,
or expect to receive, greater compensation from their management of the other
accounts than from the Global Public Equity Fund. Notwithstanding this
theoretical conflict of interest, it is Numeric's policy to manage each account
based on its investment objectives and related restrictions and, as discussed
above, Numeric has adopted policies and procedures reasonably designed to
allocate investment opportunities on a fair and equitable basis over time and
in a manner consistent with each account's investment objectives and related
restrictions. For example, while the portfolio managers may buy for other
accounts securities that differ in identity or quantity from securities bought
for the Global Public Equity Fund, such securities might not be suitable for
the Global Public Equity Fund given its investment objectives and related
restrictions.
7. IN THE SECTION ENTITLED "THE PORTFOLIO MANAGERS" BEGINNING ON PAGE S-36 OF
THE SAI, THE FOLLOWING TEXT RELATING TO STRATEGIC INCOME MANAGEMENT, LLC IS
HEREBY ADDED IN THE APPROPRIATE ALPHABETICAL ORDER THEREOF:
STRATEGIC INCOME MANAGEMENT, LLC
Strategic Income Management, LLC ("SiM"), 720 Olive Way, Suite 1675, Seattle,
Washington 98101, serves as investment sub-adviser to a portion of the assets
of the Income Opportunities Fund. SiM, a Washington limited liability company,
was founded in 2010 by Randy Yoakum and Gary J. Pokrzywinski and is 100%
employee-owned. As of June 30, 2013, SiM had approximately $556.42 million in
assets under management.
COMPENSATION. SiM receives a fee based on the assets under management of the
Income Opportunities Fund as set forth in the Investment Sub-Advisory Agreement
between SiM and the Adviser.
SiM competitively compensates portfolio managers through a combination of base
salary, an annual performance bonus and their profits interest in the firm as a
whole. This profit interest, as well as the potential for bonuses, provides an
incentive for superior performance. SiM does not anticipate allocating fee
revenue from the Income Opportunities Fund to specific investment management
personnel. SiM's intent is to motivate investment personnel by utilizing
objective performance benchmarks and not specifically fee revenue.
OWNERSHIP OF FUND SHARES. The Fund is required to show the dollar amount range
of each portfolio manager's "beneficial ownership" of shares of the Fund as of
the most recently completed fiscal year end. Dollar amount ranges disclosed
are established by the SEC. "Beneficial ownership" is determined in accordance
with Rule 16a-1(a)(2) under the 1934 Act.
--------------------------------------------------------------------------------
NAME DOLLAR RANGE OF FUND SHARES OWNED(1)
--------------------------------------------------------------------------------
Gary J. Pokrzywinski, CFA None (Income Opportunities Fund)
--------------------------------------------------------------------------------
Brian L. Placzek, CFA None (Income Opportunities Fund)
--------------------------------------------------------------------------------
|
(1) Valuation date is June 30, 2013.
OTHER ACCOUNTS. The portfolio managers are responsible for the day-to-day
management of certain other accounts, as listed below. The information below is
provided as of June 30, 2013.
REGISTERED INVESTMENT OTHER POOLED
COMPANIES INVESTMENT VEHICLES OTHER ACCOUNTS
------------------------- -------------------------- ------------------------
NUMBER OF TOTAL ASSETS NUMBER OF TOTAL ASSETS NUMBER OF TOTAL ASSETS
PORTFOLIO MANAGER ACCOUNTS (IN MILLIONS) ACCOUNTS (IN MILLIONS) ACCOUNTS (IN MILLIONS)
-------------------------------------------------------------------------------------------------------------------
Gary J. Pokrzywinski, CFA 1 $493.97 0 $0 0 $0
-------------------------------------------------------------------------------------------------------------------
Brian L. Placzek, CFA 1 $493.97 0 $0 0 $0
-------------------------------------------------------------------------------------------------------------------
|
None of the accounts listed above is subject to performance-based advisory
fees.
CONFLICTS OF INTEREST. SiM's portfolio managers' management of other accounts
may give rise to potential conflicts of interest in connection with their
management of the Income Opportunities Fund's investments, on the one hand, and
the investments of the other accounts, on the other. The other accounts might
have similar investment objectives as the Income Opportunities Fund or hold,
purchase or sell securities that are eligible to be held, purchased or sold by
the Income Opportunities Fund. While the portfolio managers' management of
other accounts may give rise to the following potential conflicts of interest,
SiM does not believe that the conflicts, if any, are material or, to the extent
any such conflicts are material, SiM believes that it has designed policies and
procedures to manage those conflicts in an appropriate way.
A potential conflict of interest may arise as a result of SiM's portfolio
managers' day-to-day management of the Income Opportunities Fund. Because of
their positions with the Income Opportunities Fund, the portfolio managers know
the size, timing and possible market impact of Incomes Opportunities Fund
trades. It is theoretically possible that the portfolio managers could use this
information to the advantage of other accounts they manage and to the possible
detriment of the Income Opportunities Fund. However, SiM has adopted policies
and procedures reasonably designed to allocate investment opportunities on a
fair and equitable basis over time.
A potential conflict of interest may arise as a result of SiM's portfolio
managers' management of the Income Opportunities Fund and other accounts,
which, in theory, may allow them to allocate investment opportunities in a way
that favors other accounts over the Income Opportunities Fund. This conflict of
interest may be exacerbated to the extent that its portfolio managers receive,
or expect to receive, greater compensation from their management of the other
accounts than from the Income Opportunities Fund. Notwithstanding this
theoretical conflict of interest, it is SiM's policy to manage each account
based on its investment objectives and related restrictions and, as discussed
above, SiM has adopted policies and procedures reasonably designed to allocate
investment opportunities on a fair and equitable basis over time and in a
manner consistent with each account's investment objectives and related
restrictions. For example, while the portfolio managers may buy for other
accounts securities that differ in identity or quantity from securities bought
for the Income Opportunities Fund, such securities might not be suitable for
the Income Opportunities Fund given its investment objectives and related
restrictions.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
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