Sales Charges & How to Reduce Them

INVESTING IN THE HOTCKIS & WILEY FUNDS

Classes A and C
The Hotchkis & Wiley Funds are available primarily through financial intermediaries. Although you may fill out an application and purchase the Funds directly, we recommend you obtain advice from an investment professional (e.g., a broker, financial planner, registered investment advisor, bank representative or insurance agent). Professional financial advisors may analyze your financial needs in total (they aren't just selecting stocks or funds). If you would like to purchase the funds directly, please call 800-796-5606 to request an application and summary prospectus. Please also read Sales Charges and How to Reduce Them below.

If you do use an investment professional, there are often different ways you can pay for advice. We recommend that you speak with your investment professional to understand how you will be paying for advice.

If you select Class C shares, you do not pay an initial sales charge at the time of purchase. However, the Distributor compensates the selling dealer or other financial intermediary. Shareholders eligible to invest at net asset value ($1 million sales charge breakpoint discount) may not purchase Class C shares. If you redeem Class C shares within one year after purchase, you may be charged a deferred sales charge of 1.00%. Class C shares convert automatically to Class A shares of the respective Fund approximately eight years after purchase. Class A shares are subject to lower annual expenses than Class C shares. The Global Value Fund and Capital Income Fund are not currently offering Class C shares to investors.

Class I
Eligible investors may purchase Class I shares without a sales charge. Eligible investors are generally institutional investors and high net worth individuals with a minimum initial investment of $1 million. If you would like to purchase the funds directly, please call 800-796-5606 to request an application and summary prospectus.

Class R
Class R shares are offered only by the Large Cap Value Fund and Mid-Cap Value Fund and are available only to retirement plans (this does not include IRA accounts or similar individual retirement accounts). If you would like to purchase the funds directly, please call 800-796-5606 to request an application and summary prospectus.


Sales Charges and How to Reduce Them

A reduced or waived sales charge on a purchase of Class A shares may apply for purchases under a Right of Accumulation or Letter of Intent or Reinstatement Privilege.

Right of Accumulation
A Right of Accumulation permits you to pay the sales charge applicable to the current market value based on the maximum offer price of all shares you own in the Funds held at the financial intermediary at which you are making the current purchase. If the current purchase is made directly through the Transfer Agent, then only those shares held directly at the Transfer Agent may apply toward the right of accumulation. You may not aggregate shares held at different financial intermediaries. The following are relationships that, if held individually or in any combination within the group, can be aggregated: the individual; his/her spouse; his/her children under 21; any account that has the same social security number as the individual; his/her spouse and/or his/her children under 21. Shares held in the name of a nominee or custodian under pension, profit-sharing or other employee benefit plans may not be combined with other shares to qualify for the right of accumulation. The Right of Accumulation may be amended or terminated at any time.

Letter of Intent
A Letter of Intent permits you to pay the Class A sales charge that would be applicable if you agree to buy at least $25,000 in the Hotchkis & Wiley Funds (excluding the High Yield Fund and Capital Income Fund) within a 13-month period, starting with the first purchase pursuant to the Letter of Intent. A Letter of Intent for the High Yield Fund permits you to pay the Class A sales charge that would be applicable if you agree to buy at least $100,000 in the High Yield Fund within a 13-month period, starting with the first purchase pursuant to the Letter. A Letter of Intent for the Capital Income Fund permits you to pay the Class A sales charge that would be applicable if you agree to buy at least $50,000 in the Capital Income Fund within a 13-month period, starting with the first purchase pursuant to the Letter of Intent. The Letter of Intent is not a binding obligation to purchase any amount of Class A shares, but its execution will result in the purchaser paying a lower sales charge at the appropriate quantity purchase level. A purchase not originally made pursuant to a Letter of Intent may be included under a subsequent Letter of Intent executed within 90 days of such purchase if you notify the transfer agent in writing of this intent within the 90-day period. The value of Class A shares of a Fund presently held, based on the maximum offer price, on the date of the first purchase under the Letter of Intent may be included as a credit toward the completion of the Letter, but the reduced sales charge applicable to the amount covered by the Letter will be applied only to new purchases. At the end of the 13-month period, if the total amount of shares does not equal the amount stated in the Letter of Intent, you will be notified and must pay the difference between the sales charge on the Class A shares purchased at the reduced rate and the sales charge applicable to the shares actually purchased through the Letter. Class A shares equal to 5.0% of the intended amount will be held in escrow during the 13-month period (while remaining registered in the name of the purchaser) for this purpose. The first purchase under the Letter of Intent must be at least 5.0% of the dollar amount of such Letter. If a purchase during the term of such Letter would otherwise be subject to a further reduced sales charge based on the right of accumulation, the purchaser will be entitled on that purchase and subsequent purchases to that further reduced percentage sales charge, but there will be no retroactive reduction of the sales charges on any previous purchase.

Reinstatement Privilege
If you redeem Class A shares and within 60 days buy new Class A shares in the same Fund and register the account in the same way as the redeemed shares, you will not pay a sales charge on the new purchase amount. The amount eligible for this Reinstatement Privilege may not exceed the amount of your redemption proceeds.

Breakpoints
If you purchase Class A shares, you will pay a sales charge at the time of purchase as shown in the following table.
 

DIVERSIFIED VALUE, LARGE CAP VALUE, MID-CAP VALUE, SMALL CAP VALUE, GLOBAL VALUE,
AND VALUE OPPORTUNITIES FUNDS
Your Investment As a % of Offering Price As a % of Your Investment1 Dealer Compensation
as a % of Offering Price
Less than $25,000 5.25% 5.54% 5.00%
$25,000 but less than $50,000 4.75% 4.99% 4.50%
$50,000 but less than $100,000 4.00% 4.17% 3.75%
$100,000 but less than $250,000 3.00% 3.09% 2.75%
$250,000 but less than $1 mm 2.00% 2.04% 1.80%
$1 mm and greater 0.00% 0.00% 0.00%

 

HIGH YIELD FUND
Your Investment As a % of Offering Price As a % of Your Investment1 Dealer Compensation
as a % of Offering Price
Less than $100,000 3.75% 3.90% 3.50%
$100,000 but less than $250,000 3.25% 3.36% 3.00%
$250,000 but less than $500,000 2.25% 2.30% 2.00%
$500,000 but less than $1 mm 1.75% 1.78% 1.50%
$1 mm and greater 0.00% 0.00% 0.00%

 

CAPITAL INCOME FUND
Your Investment As a % of Offering Price As a % of Your Investment1 Dealer Compensation
as a % of Offering Price
Less than $50,000 4.75% 4.99% 4.50%
$50,000 but less than $100,000 4.25% 4.44% 4.00%
$100,000 but less than $250,000 3.50% 3.63% 3.25%
$250,000 but less than $500,000 2.50% 2.56% 2.25%
$500,000 but less than $1 mm 2.00% 2.04% 1.75%
$1 mm and greater 0.00% 0.00% 0.00%

1Rounded to the nearest one-hundredth percent.

No initial sales charge applies to shares that you buy through reinvestment of dividends.

If you invest $1,000,000 or more in Class A shares, you do not pay an initial sales charge, and the Advisor compensates the selling dealer or other financial intermediary. You may be charged a deferred sales charge of 0.75% if you redeem your shares within one year after purchase.

More Information
Please see the Fund Literature section to view the summary prospectus, prospectus and Statement of Additional Information for more information about sales charges and other share classes.




The Hotchkis & Wiley Funds are distributed by Quasar Distributors, LLC