Meritage Portfolio Management    

Our Difference: The Meritage Yield-Focus Equity Fund

Structured to provide equity returns with significantly above average income as the key driver.   Emphasis on cash distributions helps manage risk over full market cycles.   Actively-managed, non-traditional equity asset classes provide valuable diversification.


  • We believe the search for attractive yield opportunities should include a broad array of equity types as a means of both enhancing returns and reducing risk through diversification: high-yielding common stocks, Master Limited Partnerships, Real Estate Investment Trusts, convertible preferred stocks, non-convertible preferred stocks, and Business Development Companies.

  • Designed to offer significant participation in up markets, enhanced downside protection in down markets, and outperformance over full market cycles.
  • Adds valuable diversification to traditional equity portfolios because of its different return profile.
  • The Meritage investment team has been using this specific strategy for over 10 years to manage assets for institutions and individuals in separately managed accounts.

Investment Strategy

  • The Investment team focuses on adding value in two ways:

    1. Bottom-up security selection
    2. Active allocation among six different equity categories based on relative attractiveness.

  • Portfolio diversification by security type:
Type of Equity  Portfolio Investment Range
(% of Total Assets)
Common Stock 50%-75%
Master Limited Partnerships (“MLPs”) 0%-25%
Real Estate Investment Trusts (“REITs”) 0%-25%
Convertible Preferred Stock 0%-15%
Non-Convertible Preferred Stock 0%-15%
Business Development Companies (“BDCs”) 0%-10%
  • The search for mispriced securities is driven by the Advisor’s proprietary quantitative processes (different models for stocks, MLPs and REITs).

  • The Advisor emphasizes “optimal diversification” in constructing the portfolio, which is the Fund manager’s concept of being concentrated enough to generate attractive excess returns yet diversified enough to control risk. The resulting portfolio will typically be invested in 45 – 60 companies.

Small-Cap investing involves greater risk not associated with investing in more established companies, such as greater price volatility, business risk, less liquidity and increased competitive threat.

Diversification does not ensure a profit or guarantee against loss.

Given the significant differences between separately managed accounts and mutual funds, investors should consider the differences in expenses, tax implications and the overall objectives between separately managed accounts and mutual funds before investing. Past performance of the strategy/separately managed account is not indicative of future performance of the fund.

Foreign investments, including ADRs, are subject to sovereign risk and may be adversely affected by changes in currency exchange rates, future political and economic developments, and the possible imposition of exchange controls or other foreign governmental laws or restrictions.

BDCs are publicly-traded closed-end funds that seek capital appreciation and income by investing in smaller companies during their initial stages of development. With respect to investments in BDCs, the Fund plans to invest only in publicly traded BDCs. A BDC may invest in the equity and debt securities of smaller and developing companies as well as companies that are experiencing financial crises (“Portfolio Companies”).  Investments in smaller and developing Portfolio Companies involve a greater risk of loss due to their youth and limited track records and are more susceptible to competition and economic and market changes due to limited products and market shares. 

MLPs, also known as publicly traded partnerships, predominately operate, or directly or indirectly own, energy-related assets. MLPs are subject to certain risks inherent in the structure of MLPs, including complex tax structure risks, limited ability for election or removal of management, limited voting rights, potential dependence on parent companies or sponsors for revenues to satisfy obligations, and potential conflicts of interest between partners, members and affiliates.

REITS are companies that pool investor funds to invest primarily in income producing real estate or real estate related loans or interests. Investors should be aware of the risks involved with investing in REITs and real estate securities, such as declines in the value of real estate and increased susceptibility to adverse economic or regulatory developments.



Value Equity Fund
Growth Equity Fund
Yield-Focus Equity Fund
Fund Information
Fact sheet
Portfolio Management Team
Clint W. Anderson, CFA®,
Lead Manager

Mark E. Eveans, CFA®

Sharon L. Divine, CFA®

John M. Wallis, CFA®

Fund Facts
Institutional Shares

CUSIP 14064D600 14064D501

Inception 12/20/2013 12/20/2013

Min. Initial Inv. $2,500 $100,000

Subsequent Inv. $100 $1,000

Expense Ratio 1.41% net 1.16% net
  1.91% gross 1.66% gross
  Contractual through 12/31/19

12b-1 Fee 0.25% None



7500 College Blvd., Suite 1212, Overland Park KS 66210, Tel 913-345-7000. © Meritage Funds. All rights reserved.

Past performance is no guarantee of future results. The investment return and principal value of an investment in the Funds will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Meritage Mutual Funds. This and other important information about the Funds is contained in the Prospectus, which can be obtained by calling Shareholder Services at (855) 261-0104. The Prospectus should be read carefully before investing.

Distributed by Unified Financial Securities, LLC. (Member, FINRA)