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Destra Focused Equity Fund

A Shares

  • ticker: DFOAX
  • cusip: 250 64T 502

    I Shares

    • ticker: DFOIX
    • cusip: 250 64T 809

C Shares

  • ticker: DFOCX
  • cusip: 250 64T 601

Portfolio Managers

WestEnd Advisors

WestEnd Advisors maintains a consistent investment philosophy; its cornerstone being that Sector and Industry performance is highly correlated with particular stages of the business cycle.

Investment Team

Robert L. Pharr
Chief Investment Officer of WestEnd Advisors

Edmund N. Durden
Partner

Frederick O. Porter, CFA
Partner

Investment Objective

The Fund's objective is to seek long-term capital appreciation.

Investment Strategy and Philosophy

Under normal market conditions, the Fund invests primarily (at least 80% of net assets, plus the amount of any borrowings for investment purposes) in equity securities. The Fund’s portfolio managers believe that sector and industry performance is correlated with particular stages of the business cycle. The managers select sectors they believe will experience economic tailwinds, and avoid sectors they see as untimely. They target high-quality, market-leading companies within the favored sectors.

Investment Process

Science of Business Cycle Analysis

WestEnd Advisors’ proprietary sector analysis seeks to determine the best performing sectors in each business cycle phase.

The Business Cycle

As portfolio holdings are shifted to newly favored sectors, the Fund’s style emphasis will shift between traditional growth and traditional value orientations.

Performance

Quarterly

as of 9/30/17

ticker share class 3 MO YTD 1YR 3YR 5YR from
incep.
distribution
DFOAX1 A at NAV 3.18 12.27 11.98 4.21 9.25 8.93 annually
DFOAX A -1.47 7.21 6.92 2.62 8.25 8.16 annually
DFOIX I 3.27 12.49 12.32 4.52 9.58 9.28 annually
DFOCX C 3.01 11.68 11.22 3.45 8.44 8.78 annually
Index2

4.48 14.24 18.61 10.81 14.22 12.82

Monthly

as of 9/30/17

ticker share class 3 MO YTD 1YR 3YR 5YR from
incep.
distribution
DFOAX1 A at NAV 3.18 12.27 11.98 4.21 9.25 8.93 annually
DFOAX A -1.47 7.21 6.92 2.62 8.25 8.16 annually
DFOIX I 3.27 12.49 12.32 4.52 9.58 9.28 annually
DFOCX C 3.01 11.68 11.22 3.45 8.44 8.78 annually
Index2

4.48 14.24 18.61 10.81 14.22 12.82

1 At NAV

2 The S&P 500 Index (see glossary for definition).

Class A shares performance reflects the deduction of the maximum sales charge of 4.50%

Included in the each Fund’s Class A shares expenses is a distribution and service (12b-1) fee of 0.25%.

Class C shares have a maximum contingent deferred sales charge (CDSC) of 1.00%. However, w/CDSC performance for Class C shares reflects the deduction of 1.00% for all shares redeemed within 12 months of purchase.

Included in the each Fund’s Class C shares expenses is a distribution and service (12b-1) fee of 1.00%.

Data presented reflects past performance, which is no guarantee of future results. Investment results and principal value will fluctuate s that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Performance shown for Class A Shares with load includes the Fund’s maximum sales charge of 4.50%. Returns for period of less than one year are not annualized, and include reinvestment of all distributions.

The Adviser has agreed to cap expenses such that the total annual fund operating expenses, excluding brokerage commissions and other trading expenses, taxes, acquired fund fees and other extraordinary expenses (such as litigation and other expenses not incurred in the ordinary course of busine ss) at 1.60% for Class A, 2.35% for Class C and 1.32% for Class I. This waiver will continue in effect until February 1, 2022. The waiver may be terminated or modified prior to February 1, 2022 only with the approval of the Board of Trustees of the Trust. The gross expenses for the Class A, Class C and Class I shares are 2.22%, 2.72% and 1.37 % respectively. Class A and C shares have a 12b-1 fee of 0.25% and distribution fee of up to 0.75% for Class C Shares. A contingent deferred sales charge of 1.00% applies on Class C shares redeemed within 12 months of purchase.

Portfolio Characteristics

as of 6/30/17

The Fund S&P 500 Index3
Number of Holdings: 21 505
Average Market Cap $187.1 bil $43.2 bil
Price to Earning: Trailing Operating 20.1x 23.6x
Price to Book 3.4x 3.0x

Sector Breakdown

as of 3/31/17

Top 10 Holdings (% of total assets)

as of 6/30/17

TJX Companies Inc5.21%
JPMorgan Chase & Co5.19%
The Kroger Co5.12%
Walt Disney Co5.04%
Goldman Sachs Group Inc5.04%
Gilead Sciences Inc4.98%
UnitedHealth Group Inc4.96%
Medtronic PLC4.91%
Allergan PLC4.88%
PayPal Holdings Inc4.87%

Holdings are subject to change without notice. There is no assurance that the investment process will lead to successful investing.

All compositions are subject to daily changes with market actions.

Literature

Glossary

Price/Earnings (trailing): A valuation ratio of a company’s current share price compared to its per-share earnings over the previous four quarters.

Price/Book: A ratio used to compare a stock’s market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter’s book value per share.

Average Market Capital: The average of market capitalization (market price multiplied by the number of shares outstanding) of the stocks in a portfolio.

The S&P 500 Index is a commonly recognized market-capitalization-weighted index of 500 widely held equity securities, designed to measure broad U. S. equity performance.

Risks

Some important risks of the Fund are: Equity Securities Risk: Stock markets are volatile. The price of equity securities fluctuates based on changes in a company’s financial condition and overall market and economic conditions. Sector Focus Risk: The Fund will typically focus its investments on companies within particular economic sectors. To the extent that it does so, developments affecting companies in those sectors will have a magnified effect on the Fund’s net asset value and total return. Diversification/Limited Holdings Risk: The Fund is non-diversified, which means that it may invest in the securities of fewer issuers than a diversified fund. As a result, it may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, may experience increased volatility and may be highly concentrated in certain issues. Furthermore, because the Fund has a relatively small number of issuers the Fund has greater susceptibility to adverse developments in one issuer or group of issuers. Investment Strategy Risk: The Fund invests in common stocks of companies that the subadviser believes will perform well in certain phases of the business cycle. The subadviser’s investment approach may be out of favor at times, causing the Fund to underperform funds that also seek capital appreciation but use different approaches to the stock selection and portfolio construction process.

Investors should consider the investment objectives and policies, risk considerations, charges, and ongoing expenses of an investment carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. Please read the prospectus carefully before you invest or send money. To obtain a prospectus, please contact your investment representative or Destra Capital Investments LLC or download a PDF here.

Risk is inherent in all investing. The value of your investment in the Fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. The risks of the Fund will result from both the Fund’s direct investments and its indirect investments made through the Subsidiary. Accordingly, the risks that result from the Subsidiary’s activities will be described herein as the Fund’s risks.