Disclosures & Notes

Not An Offer or Inducement

Nuance Investments, LLC (Nuance or the Company) has created this site for informational purposes only and does not constitute an offer or solicitation to sell shares or securities in the Company or any related or associated company. Any such offer or solicitation will be made only by means of the Company's offer of discretionary investment management services under written contract. None of the information or analyses presented are intended to form the basis for any investment decision, and no specific recommendations are intended. The content on this site does not constitute investment advice or counsel or solicitation for investment in any security. This site does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. The Company expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) the use of this presentation book, (ii) reliance on any information contained herein, (iii) any error, omission or inaccuracy in any such information or (iv) any action resulting therefrom. 

Investment Performance

Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this documentation and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities may fluctuate and that each security's price or value may rise or fall. Accordingly, investors may receive back less than originally invested. 

No Warranties

Nuance takes care to ensure that the information provided is accurate and up to date. However this documentation is provided without warranties of any kind, either expressed or implied, including but not limited to warranties of title or implied warranties of merchantability or fitness for a particular purpose. Opinions expressed herein are subject to change without notice. All information and content in this book is furnished "as is," without warranty of any kind, express or implied, including but not limited to implied warranties of merchantability, fitness for a particular purpose, or non-infringement. The Company will not assume any liability for any loss or damage kind, arising, whether direct or indirect, caused by the use of any part of the information provided. Certain information herein has been obtained from third-party sources believed to be reliable, but we do not guarantee or warrant its completeness or accuracy.

Copyright

You may not copy, reproduce, recompile, decompile, disassemble, reverse engineer, distribute, publish, display, perform, modify, upload to, create derivative works from, transmit or in any way exploit any part of this material, except that you may use for your own personal, noncommercial use. The analysis and presentation included in this material may not be re-circulated, redistributed or published without our prior written consent. Modification of the materials content would be a violation of our copyright and other proprietary rights. Additionally, you may not offer any part of this material for sale or distribute it over any other medium including but not limited to over-the-air television or radio broadcast, a computer network or hyperlink framing on the internet without our prior written consent. The information contained herein may not be used to construct a database of any kind. Nor may the information be stored (in its entirety or in any part) in databases for access by you or any third party or to distribute any database services containing all or part of the information without our prior written consent. 


GIPS COMPLIANCE DISCLOSURES


Compliance Statement

Nuance claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS® standards. Nuance has been independently verified for the periods 11/03/08 – 03/31/21 by Absolute Performance Verification. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm's policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report. GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

Fees and Returns

Nuance is an investment adviser registered with the Securities and Exchange Commission. The firm maintains a complete list and description of composites, which is available upon request. Results are based on fully discretionary separate accounts under management, including those accounts no longer with the firm. The U.S. Dollar is the currency used to express performance returns and assets. Performance results are presented both net and gross of management fees and include the reinvestment of income. Both gross and net of fee returns are reduced by trading expenses that may occur. Pure gross performance may be presented for any wrap composites. Net of fee performance returns are presented after actual standard management fees, performance-based management fees, and all trading expenses that may occur. No other fees are deducted aside from trading and management fees for the calculation of net of fee performance. The full fee schedule for all Nuance products is available upon request. It should be noted that the collection of fees produces a compounding effect on the total rate of return net of management fees. Nuance reserves the right to modify fee structures on an account by account basis at its discretion. Incentive fee structures and performance-based fee structures are available for qualified clients and are negotiated individually. In instances where Nuance has multiple accounts under an advisory relationship, Nuance typically calculates the amount of assets under management for the purpose of determining the applicable fee breakpoint by including all assets under that relationship.

Fees for separate accounts in the Nuance Mid Cap Value composite generally are 0.85% for assets under $25 million,.80% for clients with assets under management between $25-50 million, .75% for clients with assets under management between $50-75 million, .70% for clients with assets under management between $75-$100 million, and .65% for assets greater than $100 million. Nuance's annual advisory fee is 0.75% of the average daily net assets for the Nuance Mid Cap Value Fund. For the Nuance Mid Cap Value Fund, the net expense ratio is 1.19% and 0.94% of the average daily net assets attributable to the Investor Class and the Institutional Class shares, respectively. The net expense ratio for the Z Class is 0.79%. Nuance has contractually agreed to reduce its management fees and pay fund expenses until at least August 28, 2021, to ensure that total annual fund operating expenses (exclusive of certain expenses as indicated in the prospectus) do not exceed 1.18% for the Investor Class, 0.93% for the Institutional Class, and 0.78% for the Z Class. The net expense ratio represents what investors have paid as of the prospectus dated 8/28/2020.

Fees for separate accounts in the Nuance Concentrated Value composite generally are 0.95% for assets under $25 million,.90% for clients with assets under management between $25-50 million, .85% for clients with assets under management between $50-75 million, .80% for clients with assets under management between $75-$100 million, and .75% for assets greater than $100 million. Nuance's annual advisory fee is 0.85% of the average daily net assets for the Nuance Concentrated Value Fund. For the Nuance Concentrated Value Fund, the net expense ratio is 1.30% and 1.05% of the average daily net assets attributable to the Investor Class and the Institutional Class shares, respectively. Nuance has contractually agreed to reduce its management fees and pay fund expenses until at least August 28, 2021, to ensure that total annual fund operating expenses (exclusive of certain expenses as indicated in the prospectus) do not exceed 1.28% of the average daily net assets of the Investor Class and 1.03% of the average net assets of the Institutional Class. The net expense ratio represents what investors have paid as of the prospectus dated 8/28/2020.
The Nuance Concentrated Value Long-Short Fund charges 1.00% management fees. Please refer to the website or to the prospectus for a full schedule of fees and expenses.

Valuations are net of all applicable withholding taxes. Portfolios are valued in accordance with GIPS® Valuation Principles. More information regarding standard investment management fees and the calculation of performance-based investment management fees is available upon request. From the inception of each composite until 12/31/10, Time Weighted Return was compounded on a monthly basis. Beginning 01/01/11 through present, Time Weighted Return was compounded on a daily basis. Nuance updated its index performance source from Bloomberg to FactSet effective 12/31/2020. Historical index returns have been amended to reflect FactSet source information. 

Definition of the Firm

The definition of the firm is the foundation for firm-wide compliance and creates defined boundaries for determining the assets of the firm. In this instance, the firm is defined as Nuance Investments, LLC (Nuance). Nuance founded on November 1, 2008, was formed on the belief that the ability to outperform the broad stock market is predicated on a consistent and disciplined value investing approach. The Investment Management Team selects securities for the Nuance investment portfolio’s by using an extensive quantitative screening and fundamental research process that identifies leading businesses selling at a discount to fair value and that have the potential to generate above-average rates of returns over time. The Investment Management Team seeks to identify companies across a range of industries and market sectors that have leading and sustainable market share positions, above-average financial strength, and are trading at a discount to their internal view of intrinsic value. The Investment Management Team may sell an investment when it believes it has surpassed its intrinsic value by applying the screening process described above, for purposes of portfolio construction or risk management, or when a more attractive investment opportunity becomes available. The total firm assets will be defined as all discretionary and non-discretionary assets under management within Nuance. This includes primary investment management accounts, sub-advisory investment management accounts and wrap accounts as well as both fee-paying and nonfee paying assets.

Strategy: Our core offerings are the Nuance Mid Cap Value Strategy, the Nuance Concentrated Value Strategy and the Nuance Concentrated Value Long-Short Strategy.

The Nuance Mid Cap Value Composite consists of separately managed accounts and pooled investment funds (portfolios) in the Mid Cap Value strategy. The composite was created and incepted on November 3, 2008. Nuance Mid Cap Value seeks to achieve long-term capital appreciation by investing primarily in equity securities (including common stocks, preferred stocks and convertible securities) of companies organized in the United States that the Investment Management Team believes are high quality, though temporarily out of favor. The market capitalization of at least 80 percent of the portfolio will be maintained in companies with market capitalizations between the smallest and largest members of the Russell Mid Cap® Index (defined using a trailing 12 month average of the smallest and largest members on a month to month basis). The weighted average market capitalization will also be maintained between the smallest and largest members of the Russell Midcap® Index. The Investment Management Team will invest primarily in the equity securities of U.S. companies; however the portfolio may invest up to 15% of its assets in equity securities of foreign companies classified as “developed” by MSCI. Nuance utilizes MSCI to classify its international holdings. The country classification of a company is generally determined by the company’s country of incorporation and the primary listing of its securities. MSCI will classify a company in the country of incorporation if its securities have a primary listing in this country. In such cases where a company’s securities have a primary listing outside of the country of incorporation, an additional analysis is performed to determine the company’s country classification. 25 percent of the portfolio assets will generally not have positions of greater than 5.00 percent. Cash will generally not be greater than 10 percent of the market value of the portfolio. Each security position will not be greater than 7.50 percent of the market value of the portfolio. Each portfolio will not exceed a 25 percent weighting in one industry as defined by Global Industry Classification Standards (GICS®). A typical portfolio will hold between 50 and 90 securities. There is no minimum separate account asset level necessary for inclusion in the composite.

Benchmark: For comparison purposes, the composite is measured against the Russell Midcap® Value Index as the primary index. The Russell Midcap® Value Index measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell Midcap® Index companies with lower price-to-book ratios and lower forecasted growth values. Secondary indices are the S&P MidCap 400® Value TR Index and the S&P 500® TR Index.

The Nuance Concentrated Value Composite consists of separately managed accounts and pooled investment funds (portfolios) in the Concentrated Value strategy. The composite was created and incepted on November 13, 2008. Nuance Concentrated Value seeks to achieve long-term capital appreciation by investing primarily in equity securities of companies organized in the United States that the Investment Management Team believes are high quality, though temporarily out of favor. The Investment Management Team will invest primarily in the equity securities of U.S. companies; however the portfolio may invest up to 25% of in equity securities of foreign companies classified as “developed” by MSCI. Nuance utilizes MSCI to classify its international holdings. The country classification of a company is generally determined by the company’s country of incorporation and the primary listing of its securities. MSCI will classify a company in the country of incorporation if its securities have a primary listing in this country. In such cases where a company’s securities have a primary listing outside of the country of incorporation, an additional analysis is performed to determine the company’s country classification. 50 percent of the portfolio assets will generally not have positions of greater than 5.00 percent. Cash will generally not be greater than 25 percent of the market value of the portfolio. Each security position will not be greater than 15.00 percent of the market value of the portfolio. Each portfolio will not exceed a 25 percent weighting in one industry as defined by Global Industry Classification Standards (GICS®). A typical portfolio will hold between 15 and 35 securities. There is no minimum separate account asset level necessary for inclusion in the composite.

Benchmark: For comparison purposes, the composite is measured against Russell 3000® Value Index as the primary index. The Russell 3000® Value Index measures the performance of the broad value segment of the U.S. equity universe. It includes those Russell 3000 companies with lower price-to-book ratios and lower forecasted growth values. Secondary index is the S&P 500 TR Index.

The Nuance Concentrated Value Long-Short Composite is a single-portfolio composite in the Concentrated Value Long-Short strategy. The composite was created and incepted on December 31, 2015. Nuance Concentrated Value Long-Short product seeks to achieve long-term capital appreciation by investing primarily in equity securities (including common stocks, preferred stocks and convertible securities) of companies organized in the United States that the Investment Management Team believes are high quality, though temporarily out of favor and through short investments in U.S. equity securities with below average competitive positions and unattractive risk reward profiles. The Investment Management Team will invest primarily in the equity securities of U.S. companies; however the portfolio may invest up to 25% of its assets in equity securities of foreign companies classified as “developed” by MSCI. Nuance utilizes MSCI to classify its international holdings. The country classification of a company is generally determined by the company’s country of incorporation and the primary listing of its securities. MSCI will classify a company in the country of incorporation if its securities have a primary listing in this country. In such cases where a company’s securities have a primary listing outside of the country of incorporation, an additional analysis is performed to determine the company’s country classification. Cash will generally not be greater than 25 percent of the market value of the long portfolio. 50 percent of the long portfolio assets will generally not have positions of greater than 5 percent. Each long security position will generally not be greater than 15 percent of the market value of the portfolio. Each short security position will not be greater than 5 percent of the net market value of the portfolio. The long portfolio will generally not exceed a 25 percent weighting in one industry as defined by Global Industry Classification Standards (GICS®). A typical portfolio on the long side will hold between 15 and 35 securities and 0-50 securities on the short side. Maximum gross exposure will be 200% of total assets. Maximum net exposure will be 100% of total assets and minimum net exposure will be -25% of total assets. There is no minimum separate account asset level necessary for inclusion in the composite.

Benchmark: For comparison purposes, the composite is measured against S&P 500 Index as a primary index. The S&P 500 TR Index measures the performance of the large cap segment of the U.S. equity universe. The index captures approximately 80% of the available market capitalization.

Dispersion: Dispersion is calculated from gross of fee returns using an equal-weighted standard deviation methodology. Only those accounts included for the full calculation period are part of the dispersion calculation. The 3-year Ex-post annualized standard deviation value is calculated using 36 consecutive monthly gross of fee returns to the end calculation period. Prior to January 1, 2017 dispersion was calculated using an asset-weighted methodology. The calculation methodology was updated based on a new performance system dispersion calculation.

Nuance has adopted a Significant Security & Cash Flow Policy since inception of the Concentrated Value and Mid Cap Value composites. An account will be removed from a composite if a client has given specific instructions that prevent full investment of securities or cash flow(s) in a timely manner (defined as 5 business days or greater), or if a single security or cash flow is equal or greater than 10 percent of the total account value based on the beginning of the month market value. If these circumstances exist, the account will be removed from the composite and added back to the composite on the first day of the following month.

The Nuance Concentrated Value Long-Short composite has no significant cash flow policy.

More information regarding Composite List and descriptions and policies for valuing investments, calculating performance, and preparing GIPS reports are available upon request by contacting client.services@nuanceinvestments.com or 816-743-7080. To obtain information about the pooled funds included in the strategies, please contact client.services@nuanceinvestments.com or 816-743-7080. 

Use of Professional Designations

Certain employees of Nuance may carry the CFA Charterholder designation. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute. The CFA charter is a globally respected, graduate-level investment credential established in 1962 and awarded by CFA Institute — the largest global association of investment professionals. There are currently more than 90,000 CFA charterholders working in 135 countries. To earn the CFA charter, candidates must: 1) pass three sequential, six-hour examinations; 2) have at least four years of qualified professional investment experience; 3) join CFA Institute as members; and 4) commit to abide by, and annually reaffirm, their adherence to the CFA Institute Code of Ethics and Standards of Professional Conduct.

Additional Notes and Disclosures

The use of derivatives may be employed for purposes of currency hedging and or to equitize the cash position of the portfolios.

Past performance is not indicative of future results. Any investment contains risk including the risk of total loss. There is no guarantee that an investment with the strategy will meet its investment objectives. Please request a copy of the Firm's Full General Disclosures for more information.

On 06/01/2010, the firm changed its name to Nuance Investments, LLC. Prior to 06/01/2010 the firm name was Mariner Value Strategies, LLC.

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