THE ADVISORS INNER CIRCLE FUND II CHAMPLAIN SMALL COMPANY FUND Advisor Shares: CIPSX Institutional Shares: CIPNX CHAMPLAIN MID CAP FUND Advisor Shares: CIPMX Institutional Shares: CIPIX CHAMPLAIN EMERGING MARKETS FUND Advisor Shares: CIPDX Institutional Shares: CIPQX PROSPECTUS 11.28.17 INVESTMENT ADVISER:, LLC The U.S. Securities and Exchange Commission has not approved or disapproved these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.
About This Prospectus This prospectus has been arranged into different sections so that you can easily review this important information. For detailed information about the Funds, please see: Page Champlain Small Company Fund... 1 Investment Objective... 1 Fund Fees and Expenses... 1 Principal Investment Strategies... 2 Principal Risks of Investing in the Fund... 2 Performance Information... 3 Investment Adviser... 4 Portfolio Managers... 4 Champlain Mid Cap Fund... 5 Investment Objective... 5 Fund Fees and Expenses... 5 Principal Investment Strategies... 6 Principal Risks of Investing in the Fund... 6 Performance Information... 7 Investment Adviser... 8 Portfolio Managers... 8 Champlain Emerging Markets Fund... 9 Investment Objective... 9 Fund Fees and Expenses... 9 Principal Investment Strategies... 10 Principal Risks of Investing in the Fund... 10 Performance Information... 12 Investment Adviser... 13 Portfolio Managers... 13 Page Summary Information about Purchasing and Selling Fund Shares, Taxes and Financial Intermediary Compensation... 14 More Information about Risk... 15 More Information about Fund Investments... 16 Information about Portfolio Holdings... 16 Investment Adviser... 16 Portfolio Managers... 18 Purchasing, Selling and Exchanging Fund Shares... 20 Other Policies... 26 Payments to Financial Intermediaries................... 28 Dividends and Distributions... 29 Taxes... 29 Additional Information... 30 Financial Highlights................................. 31 How to Obtain More Information About the Funds...Back Cover The Champlain Small Company Fund is closed to investments by new shareholders and financial adviser platforms, other than those by financial advisers with existing clients in the Fund and from clients of retirement or 529 plan providers. The Champlain Mid Cap Fund is closed to investments by new shareholders and financial adviser platforms, other than those by qualified retirement plans and feebased advisory programs with centralized investment discretion that have selected the Fund as an investment option prior to October 1, 2017. Each Fund reserves the right to permit additional investments on a case-by-case basis as deemed appropriate by and in the sole discretion of Champlain Investment Partners, LLC, the Fund s adviser (the Adviser ). Institutional Shares of the Champlain Emerging Markets Fund are currently not available for purchase.
CHAMPLAIN SMALL COMPANY FUND INVESTMENT OBJECTIVE The Champlain Small Company Fund (the Small Company Fund or the Fund ) seeks capital appreciation. FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Advisor Shares Institutional Shares Management Fees 0.83% 0.83% Distribution (12b-1) Fees 0.25% None Other Expenses 0.25% 0.23% Total Annual Fund Operating Expenses 1.33% 1.06% Less Fee Reductions and/or Expense Reimbursements 1 (0.03)% (0.01)% Total Annual Fund Operating Expenses After Fee Reductions and/or Expense Reimbursements 1.30% 1.05% 1 Champlain Investment Partners, LLC (the Adviser ) has contractually agreed to reduce fees and reimburse expenses to the extent necessary to keep Total Annual Fund Operating Expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses and non-routine expenses (collectively, excluded expenses )) from exceeding 1.30% and 1.05% of the average daily net assets of the Advisor Shares and the Institutional Shares, respectively, until November 30, 2018. In addition, if at any point Total Annual Fund Operating Expenses (not including excluded expenses) are below the expense caps, the Adviser may receive from the Fund the difference between the Total Annual Fund Operating Expenses (not including excluded expenses) and the expense caps to recover all or a portion of its prior fee reductions or expense reimbursements made during the preceding three-year period during which this agreement (or any prior agreement) was in place. This agreement may be terminated: (i) by the Board of Trustees (the Board ) of The Advisors Inner Circle Fund II (the Trust ), for any reason at any time; or (ii) by the Adviser, upon ninety (90) days prior written notice to the Trust, effective as of the close of business on November 30, 2018. Example This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund s operating expenses (including one year of capped expenses in each period) remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 Year 3 Years 5 Years 10 Years Advisor Shares $132 $418 $726 $1,599 Institutional Shares $107 $336 $584 $1,293 Portfolio Turnover The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund s performance. During its most recent fiscal year, the Fund s portfolio turnover rate was 40% of the average value of its portfolio. 1
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in securities of small companies. For purposes of this policy, a small company is a company that, at the time of initial purchase, has a market capitalization of less than $2.5 billion or is included in the Russell 2000 Index or S&P SmallCap 600 Index. The Fund seeks capital appreciation by investing mainly in common stocks of small companies that the Adviser believes have strong long-term fundamentals, superior capital appreciation potential and attractive valuations. Through the consistent execution of a fundamental bottom-up investment process, which focuses on an analysis of individual companies, the Adviser expects to identify a diversified universe of small companies which trade at a discount to their estimated or intrinsic fair values. As such, the Adviser seeks to mitigate company specific risk by limiting position sizes to 5% of the Fund s total assets at market value. The Adviser may sell a security when it reaches the Adviser s estimate of its fair value or when information about a security invalidates the Adviser s basis for making the investment. The Adviser may also sell a security when its market capitalization exceeds $3 billion, although the Fund may hold a security whose market capitalization exceeds $3 billion if it has not reached the Adviser s estimate of its fair value. Additionally, the Adviser may also sell securities in order to maintain the 5% limit on position sizes or when exposure to a sector exceeds the Adviser s sector weight rules, which require that each of the five major sectors (healthcare, consumer, technology, industrial and financial) represent (i) no more than the greater of 25% of the Fund s total assets or 125% of the sector s weighting in the S&P SmallCap 600 Index; and (ii) no less than 75% of the sector s weighting in the S&P SmallCap 600 Index. The Fund is broadly diversified and seeks to create value primarily through favorable stock selection. PRINCIPAL RISKS OF INVESTING IN THE FUND As with all mutual funds, there is no guarantee that the Fund will achieve its investment objective. You could lose money by investing in the Fund. A Fund share is not a bank deposit and it is not insured or guaranteed by the FDIC, or any government agency. The principal risk factors affecting shareholders investments in the Fund are set forth below. Market Risk The prices of and the income generated by the Fund s securities may decline in response to, among other things, investor sentiment, general economic and market conditions, regional or global instability, and currency and interest rate fluctuations. Active Management Risk The Fund is subject to the risk that the Adviser s judgments about the attractiveness, value, or potential appreciation of the Fund s investments may prove to be incorrect. If the investments selected and strategies employed by the Fund fail to produce the intended results, the Fund could underperform in comparison to other funds with similar objectives and investment strategies. Equity Risk Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund s equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. Small-Capitalization Company Risk The Fund is also subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole. The small-capitalization companies that the Fund invests in may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, investments in these smallsized companies may pose additional risks, including liquidity risk, because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small-cap stocks may be more volatile than those of larger companies. These securities may be traded over-the-counter or listed on an exchange. 2
PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund s Advisor Shares performance from year to year for the past 10 years and by showing how the Fund s Advisor Shares average annual total returns for 1, 5 and 10 years and since inception compare with those of a broad measure of market performance. The Fund s Institutional Shares do not have a full calendar year of performance and, therefore, the Fund s Institutional Shares performance information is not presented. The Institutional Shares would have substantially similar performance as the Advisor Shares because the shares are invested in the same portfolio of securities and the annual returns would differ only to the extent that the expenses of the Institutional Shares are lower than the expenses of the Advisor Shares. Of course, the Fund s past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund s website at www.cipvt.com or by calling 1.866.773.3238. 23.86% 24.30% 36.21% 28.03% 10.84% 3.88% 10.66% 4.07% BEST QUARTER (06.30.09) 17.87% -1.21% -24.04% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 WORST QUARTER (12.31.08) -23.44% The performance information shown above is based on a calendar year. The Fund s Advisor Shares performance from 01.01.17 to 09.30.17 was 8.56%. Average Annual Total Returns for Periods Ended 12.31.16 This table compares the Fund s average annual total returns for the periods ended December 31, 2016 to those of an appropriate broadbased index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts ( IRAs ). 1 Year 5 Years 10 Years Since Inception (11.30.04) Fund Returns Before Taxes 28.03% 14.69% 10.33% 10.72% Fund Returns After Taxes on Distributions 27.24% 13.03% 9.11% 9.60% Fund Returns After Taxes on Distributions and Sale of Fund Shares 16.54% 11.49% 8.20% 8.67% Russell 2000 Index (reflects no deduction for fees, expenses or taxes) 21.31% 14.46% 7.07% 7.96% 3
INVESTMENT ADVISER Champlain Investment Partners, LLC PORTFOLIO MANAGERS Portfolio Manager Position with the Adviser Years of Experience with the Fund Scott T. Brayman Chief Investment Officer of Small and Mid Cap Strategies/Managing Partner Corey N. Bronner Senior Member of the Investment Team/Partner Since 2010 Joseph M. Caligiuri Senior Member of the Investment Team Since 2010 Joseph J. Farley Senior Member of the Investment Team/Partner Since 2014 Erik C. Giard-Chase Senior Member of the Investment Team Since 2009 Robert D. Hallisey Senior Member of the Investment Team Since 2016 Andrew J. Hanson Senior Member of the Investment Team Since 2010 Finn R. McCoy Head Trader/Partner Since 2008 Since Inception (2004) For important information about the purchase and sale of Fund shares, taxes and financial intermediary compensation, please turn to Summary Information about Purchasing and Selling Fund Shares, Taxes and Financial Intermediary Compensation on page 14 of the prospectus. 4
CHAMPLAIN MID CAP FUND INVESTMENT OBJECTIVE The Champlain Mid Cap Fund (the Mid Cap Fund or the Fund ) seeks capital appreciation. FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Advisor Shares Institutional Shares Management Fees 0.72% 0.72% Distribution (12b-1) Fees 0.25% None Other Expenses 0.20% 0.21 Total Annual Fund Operating Expenses 1 1.17% 0.93% 1 Champlain Investment Partners, LLC (the Adviser ) has contractually agreed to reduce fees and reimburse expenses to the extent necessary to keep Total Annual Fund Operating Expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses and non-routine expenses (collectively, excluded expenses )) from exceeding 1.20% and 0.95% of the average daily net assets of the Advisor Shares and the Institutional Shares, respectively, until November 30, 2018. In addition, if at any point Total Annual Fund Operating Expenses (not including excluded expenses) are below the expense caps, the Adviser may receive from the Fund the difference between the Total Annual Fund Operating Expenses (not including excluded expenses) and the expense caps to recover all or a portion of its prior fee reductions or expense reimbursements made during the preceding three-year period during which this agreement (or any prior agreement) was in place. This agreement may be terminated: (i) by the Board of Trustees (the Board ) of The Advisors Inner Circle Fund II (the Trust ), for any reason at any time; or (ii) by the Adviser, upon ninety (90) days prior written notice to the Trust, effective as of the close of business on November 30, 2018. Example This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 Year 3 Years 5 Years 10 Years Advisor Shares $119 $372 $644 $1,420 Institutional Shares $95 $296 $515 $1,143 Portfolio Turnover The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund s performance. During its most recent fiscal year, the Fund s portfolio turnover rate was 33% of the average value of its portfolio. 5
PRINCIPAL INVESTMENT STRATEGIES Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in securities of medium-sized companies. For purposes of this policy, a medium-sized company is a company that, at the time of initial purchase, has a market capitalization of less than $15 billion or is included in the Russell Mid Cap Index or S&P MidCap 400 Index. The Fund seeks capital appreciation by investing mainly in common stocks of medium-sized companies that the Adviser believes have strong longterm fundamentals, superior capital appreciation potential and attractive valuations. Through the consistent execution of a fundamental bottom-up investment process, which focuses on an analysis of individual companies, the Adviser expects to identify a diversified universe of medium-sized companies that trade at a discount to their estimated or intrinsic fair values. As such, the Adviser seeks to mitigate company-specific risk by limiting position sizes to 5% of the Fund s total assets at market value, at the time of purchase. The Adviser may sell a security when it reaches the Adviser s estimate of its fair value or when information about a security invalidates the Adviser s basis for making the investment. The Adviser may also sell securities in order to maintain the 5% limit on position sizes or when exposure to a sector exceeds the Adviser s sector weight rules, which require that each of the five major sectors (healthcare, consumer, technology, industrial and financial) represent no more than 25% of the Fund s total assets. The Fund is broadly diversified and the Adviser seeks to create value primarily through favorable stock selection. PRINCIPAL RISKS OF INVESTING IN THE FUND As with all mutual funds, there is no guarantee that the Fund will achieve its investment objective. You could lose money by investing in the Fund. A Fund share is not a bank deposit and is not insured or guaranteed by the FDIC, or any government agency. The principal risk factors affecting shareholders investments in the Fund are set forth below. Market Risk The prices of and the income generated by the Fund s securities may decline in response to, among other things, investor sentiment, general economic and market conditions, regional or global instability, and currency and interest rate fluctuations. Active Management Risk The Fund is subject to the risk that the Adviser s judgments about the attractiveness, value, or potential appreciation of the Fund s investments may prove to be incorrect. If the investments selected and strategies employed by the Fund fail to produce the intended results, the Fund could underperform in comparison to other funds with similar objectives and investment strategies. Equity Risk Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund s equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. Mid-Capitalization Company Risk The Fund is also subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole. The medium-sized companies the Fund invests in may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, investments in these medium-sized companies may pose additional risks, including liquidity risk, because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, mid-capitalization stocks may be more volatile than those of larger companies. These securities may be traded over-the-counter or listed on an exchange. 6
PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund s Advisor Shares performance from year to year and by showing how the Fund s average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance. Of course, the Fund s past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund s website at www.cipvt.com or by calling 1.866.773.3238. 28.14% 37.28% 20.30% 2.34% 11.48% 7.69% 1.18% 18.38% BEST QUARTER (06.30.09) WORST QUARTER (09.30.11) 16.34% -16.83% 2009 2010 2011 2012 2013 2014 2015 2016 The performance information shown above is based on a calendar year. The Fund s Advisor Shares performance from 01.01.17 to 09.30.17 was 12.49%. Average Annual Total Returns for Periods Ended 12.31.16 This table compares the Fund s average annual total returns for the periods ended December 31, 2016 to those of an appropriate broadbased index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts ( IRAs ). After-tax returns are shown only for Advisor Shares. After-tax returns for Institutional Shares will vary. Fund Returns Before Taxes 1 Year 5 Years Since Inception Advisor Shares 18.38% 14.57% 10.74% 1 Institutional Shares 18.68% 14.87% 12.58% 2 Fund Returns After Taxes on Distributions Advisor Shares 17.01% 12.45% 9.23% Fund Returns After Taxes on Distributions and Sale of Fund Shares Advisor Shares 11.13% 11.17% 8.36% Russell Midcap Index (reflects no deduction for fees, expenses or taxes) 13.80% 14.72% 9.62% 3 1 Advisor Shares of the Fund were offered beginning June 30, 2008. 2 Institutional Shares of the Fund were offered beginning January 3, 2011. 3 Index comparison begins June 30, 2008. 7
INVESTMENT ADVISER Champlain Investment Partners, LLC PORTFOLIO MANAGERS Portfolio Manager Position with the Adviser Years of Experience with the Fund Scott T. Brayman Chief Investment Officer of Small and Mid Cap Strategies/Managing Partner Corey N. Bronner Senior Member of the Investment Team/Partner Since 2010 Joseph M. Caligiuri Senior Member of the Investment Team Since 2010 Joseph J. Farley Senior Member of the Investment Team/ Partner Since 2014 Erik C. Giard-Chase Senior Member of the Investment Team Since 2009 Robert D. Hallisey Senior Member of the Investment Team Since 2016 Andrew J. Hanson Senior Member of the Investment Team Since 2010 Since Inception (2008) Finn R. McCoy Head Trader/Partner Since Inception (2008) For important information about the purchase and sale of Fund shares, taxes and financial intermediary compensation, please turn to Summary Information about Purchasing and Selling Fund Shares, Taxes and Financial Intermediary Compensation on page 14 of the prospectus. 8
CHAMPLAIN EMERGING MARKETS FUND INVESTMENT OBJECTIVE The Champlain Emerging Markets Fund (the Emerging Markets Fund or the Fund ) seeks long-term capital appreciation. FUND FEES AND EXPENSES This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Shareholder Fees (fees paid directly from your investment) Redemption Fee As a percentage of amount redeemed, if redeemed within 30 days of purchase 2.00% Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Advisor Shares Institutional Shares Management Fees 1 1.00% 1.00% Distribution (12b-1) Fees 0.25% None Other Expenses 2.78% 2.78% Total Annual Fund Operating Expenses 4.03% 3.78% Less Fee Reductions and/or Expense Reimbursements 2 (2.53)% (2.53)% Total Annual Fund Operating Expenses after Fee Reductions and/or Expense Reimbursements 1.50% 1.25% 1 Management Fees have been restated to reflect current fees. 2 Champlain Investment Partners, LLC (the Adviser ) has contractually agreed to reduce fees and reimburse expenses to the extent necessary to keep Total Annual Fund Operating Expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses and non-routine expenses (collectively, excluded expenses )) from exceeding 1.50% and 1.25% of the average daily net assets of the Advisor Shares and the Institutional Shares, respectively, until November 30, 2018. In addition, if at any point Total Annual Fund Operating Expenses (not including excluded expenses) are below the expense caps, the Adviser may receive from the Fund the difference between the Total Annual Fund Operating Expenses (not including excluded expenses) and the expense caps to recover all or a portion of its or the Predecessor Fund s (as defined below) adviser s prior fee reductions or expense reimbursements made during the preceding three-year period during which this Agreement (or any prior agreement) was in place. This agreement may be terminated: (i) by the Board of Trustees (the Board ) of The Advisors Inner Circle Fund II (the Trust ), for any reason at any time; or (ii) by the Adviser, upon ninety (90) days prior written notice to the Trust, effective as of the close of business on November 30, 2018. Example This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund s operating expenses (including one year of capped expenses in each period) remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 1 Year 3 Years 5 Years 10 Years Advisor Shares $153 $995 $1,854 $4,074 Institutional Shares $127 $921 $1,735 $3,857 9
Portfolio Turnover The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund s performance. During its most recent fiscal year, the Fund s portfolio turnover rate was 37% of the average value of its portfolio. PRINCIPAL INVESTMENT STRATEGIES Under normal market conditions, the Fund will invest at least 80% of its net assets (plus borrowings for investment purposes) in equity securities of issuers who are economically tied to an emerging market country. The Adviser considers emerging market countries to include most Asian, Eastern European, African, Middle Eastern and Latin American nations, including, but not limited to, China, Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Taiwan, Thailand, Bangladesh, Pakistan, Sri Lanka, Vietnam, Czech Republic, Poland, Greece, Turkey, Russia, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates ( UAE ), Egypt, South Africa, Kenya, Nigeria, Argentina, Brazil, Chile, Colombia, Mexico and Peru. The Adviser identifies what it considers to be emerging market countries based upon its own analysis of measures of economic growth, political stability, industrialization and legal and regulatory framework. The Adviser will also consider classifications as defined by Morgan Stanley Capital International ( MSCI ), the World Bank, the United Nations, and the International Monetary Fund ( IMF ), or other entities or organizations, as the Adviser may determine from time to time. The Adviser typically considers an issuer to be economically tied to an emerging market country if: (1) the company is organized under the laws of an emerging market country or has its principal office in an emerging market country; (2) at the time of investment, the company derived a significant portion (i.e., 50% or more) of its total revenues during its most recently completed fiscal year from business activities in an emerging market country; or (3) at the time of investment, the company s equity securities are traded principally on stock exchanges or over-the-counter markets in an emerging market country. Under normal circumstances, the Fund will invest in large-, midand small- capitalization emerging market country issuers. Although the Adviser expects, under normal market conditions, that the level of the Fund s investments in equity securities of issuers who are economically tied to an emerging market country will exceed 80% of the Fund s net assets (plus borrowings for investment purposes), the Adviser may invest the balance in exchange-traded funds ( ETFs ), including long-only ETFs, ETFs that may enter into short sales and inverse ETFs. The Adviser uses an active management investment approach to researching, identifying and selecting portfolio companies. The research process encompasses a scorecard approach by which the Adviser analyzes individual securities based on a set of predetermined factors. The analysis aims to identify growing but stable companies trading at attractive valuations relative to anticipated growth in revenue and earnings. The investment approach seeks to provide a standardized process that minimizes bias and prevents strategy shift. Further, the scorecards establish a record of investment conclusions that can be used in the review process. The Fund may engage in active and frequent trading of its portfolio securities to achieve its investment objective. PRINCIPAL RISKS OF INVESTING IN THE FUND As with all mutual funds, there is no guarantee that the Fund will achieve its investment objective. You could lose money by investing in the Fund. A Fund share is not a bank deposit and is not insured or guaranteed by the FDIC, or any government agency. The principal risk factors affecting shareholders investments in the Fund are set forth below. Market Risk The prices of and the income generated by the Fund s securities may decline in response to, among other things, investor sentiment, general economic and market conditions, regional or global instability, and currency and interest rate fluctuations. Active Management Risk The Fund is subject to the risk that the Adviser s judgments about the attractiveness, value, or potential appreciation of the Fund s investments may prove to be incorrect. If the investments selected and strategies employed by the Fund fail to produce the intended results, the Fund could underperform in comparison to other funds with similar objectives and investment strategies. Equity Risk Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund s equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. 10
Small- and Mid-Capitalization Company Risk The small- and mid-capitalization companies in which the Fund may invest may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, investments in these small- and mid-sized companies may pose additional risks, including liquidity risk, because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small- and mid-cap stocks may be more volatile than those of larger companies. These securities may be traded over-the-counter or listed on an exchange. Large-Capitalization Company Risk The large-capitalization companies in which the Fund invests may not respond as quickly as smaller companies to competitive challenges, and their growth rates may lag the growth rates of well-managed smaller companies during strong economic periods. Foreign Company Risk Investing in foreign companies, including direct investments and through American Depositary Receipts ( ADRs ), which are traded on U.S. exchanges and represent an ownership in a foreign security, poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. These risks will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign companies generally are denominated in a foreign currency. Securities of foreign companies may not be registered with the U.S. Securities and Exchange Commission (the SEC ) and foreign companies are generally not subject to the regulatory controls imposed on U.S. issuers and, as a consequence, there is generally less publically available information about foreign securities than is available about domestic securities. Income from foreign securities owned by the Fund may be reduced by a withholding tax at the source, which tax would reduce income received from the securities comprising the portfolio. The Fund may also be subject to taxes on trading profits or on transfers of securities in some countries. Foreign securities may also be more difficult to value than securities of U.S. issuers. While ADRs provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs continue to be subject to many of the risks associated with investing directly in foreign securities. Emerging Markets Risk Many of the risks with respect to foreign investments are more pronounced for investments in issuers in emerging market countries. Emerging market countries tend to have fewer government exchange controls, more volatile interest and currency exchange rates, less market regulation, and less developed economic, political and legal systems than do more developed countries. In addition, emerging market countries may experience high levels of inflation and may have less liquid securities markets and less efficient trading and settlement systems. As a consequence, issuers in emerging market countries may be susceptible to increased political or social instability, economies based on only a few industries, unstable currencies, runaway inflation, highly volatile securities markets, unpredictable shifts in policies relating to foreign investments, lack of protection for investors against parties that fail to complete transactions, and the potential for government seizure of assets or nationalization of companies. Changes in the price of oil have a direct and significant effect on the economies of Gulf countries such as Bahrain, Kuwait, Oman, Qatar, and the UAE, i.e., if the price of oil increases, these countries benefit, and if the price of oil declines, these countries would be adversely affected. Foreign Currency Risk As a result of the Fund s investments in securities or other investments denominated in, and/or receiving revenues in, foreign currencies, the Fund will be subject to currency risk. Currency risk is the risk that foreign currencies will decline in value relative to the U.S. dollar, in which case, the dollar value of an investment in the Fund would be adversely affected. These currency movements may occur separately from, and in response to, events that do not otherwise affect the value of the security in the issuer s home country. Exchange-Traded Funds Risk ETFs are pooled investment vehicles whose shares are listed and traded on U.S. stock exchanges. To the extent the Fund invests in ETFs, the Fund will be subject to substantially the same risks as those associated with the direct ownership of the securities held by such ETFs. As a shareholder of an ETF, the Fund relies on that ETF to achieve its investment objective. If the ETF fails to achieve its objective, the value of the Fund s investment could decline, which could adversely affect the Fund s performance. By investing in an ETF, Fund shareholders indirectly bear the Fund s proportionate share of the fees and expenses of the ETF, in addition to the fees and expenses that Fund shareholders directly bear in connection with the Fund s own operations. The shares of certain ETFs may trade at a premium or discount to their intrinsic value (i.e., the market value may differ from the net asset value of an ETF s shares). For example, supply and demand for shares of an ETF or market disruptions may cause the market price of the ETF to deviate from the value of the ETF s investments, which may be emphasized in less liquid markets. Inverse ETFs seek to provide investment results that match a negative multiple of the performance of an underlying index. To the extent that the Fund invests in Inverse ETFs, the Fund will indirectly be subject to the risk that the performance of such ETF will fall as the performance of that ETF s benchmark rises. Inverse ETFs often reset daily, meaning that they are designed to achieve their stated objectives on a daily basis. Due to the effect of compounding, their performance over longer periods of time can differ significantly from 11
the inverse of the performance of their underlying index or benchmark during the same period of time. These investment vehicles may be extremely volatile. Non-Diversified Fund Risk The Fund is non-diversified, meaning that it may invest a large percentage of its assets in a single issuer or a relatively small number of issuers. Because the Fund is non-diversified, it may be more susceptible to a single adverse economic or political occurrence affecting one or more of the issuers, and may experience increased volatility due to its investments in those securities. Portfolio Turnover Risk The Fund is subject to portfolio turnover risk since it may buy and sell investments frequently. Such a strategy often involves higher expenses, including brokerage commissions, and may increase the amount of capital gains (in particular, short term gains) realized by the Fund. Shareholders may pay tax on such capital gains. PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund s Advisor Shares performance from year to year and by showing how the Fund s Advisor Shares average annual total returns for 1 year and since inception compare with those of a broad measure of market performance. The Fund operated as the New Sheridan Developing World Fund (the Predecessor Fund ), a series of ALPS Series Trust, prior to November 16, 2015, at which time the Predecessor Fund was reorganized into the Fund (the Reorganization ). In connection with the Reorganization, the Fund assumed the performance and accounting history of the Predecessor Fund prior to the date of the Reorganization. Accordingly, the performance shown for periods before the Reorganization represents the performance of Advisor Shares of the Predecessor Fund. The Predecessor Fund s returns in the bar chart and table have not been adjusted to reflect the Fund s expenses. If the Predecessor Fund s performance information had been adjusted to reflect the Fund s expenses, the performance may have been higher or lower for a given period depending on the expenses incurred by the Predecessor Fund for that period. The Fund s Institutional Shares had not commenced operations as of the date of this prospectus, and, therefore, the Fund s Institutional Shares performance information is not presented. The Institutional Shares would have substantially similar performance as the Advisor Shares because the shares are invested in the same portfolio of securities and the annual returns would differ only to the extent that the expenses of the Institutional Shares are lower than the expenses of the Advisor Shares. Of course, the Fund s past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund s website at www.cipvt.com or by calling 1.866.773.3238. -2.99% BEST QUARTER (09.30.16) 6.44% -12.96% 2015 2016 WORST QUARTER (09.30.15) -14.62% The performance information shown above is based on a calendar year. The Fund s Advisor Shares performance from 01.01.17 to 09.30.17 was 26.60%. Average Annual Total Returns for Periods Ended 12.31.16 This table compares the Fund s average annual total returns for the periods ended December 31, 2016 to those of an appropriate broadbased index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts ( IRAs ). Returns after taxes on distributions and sale of Fund shares may be higher than before-tax returns when a net capital loss occurs upon the redemption of Fund shares. 12
Fund Returns Before Taxes 1 Year Since Inception (09.08.14) Advisor Shares -2.99% -1.88% Fund Returns After Taxes on Distributions Advisor Shares -3.14% -2.02% Fund Returns After Taxes on Distributions and Sale of Fund Shares Advisor Shares -1.64% -1.47% MSCI Emerging Markets Index (reflects no deduction for fees, expenses or taxes) 11.19% -4.42% 1 1 Index comparison begins September 30, 2014. INVESTMENT ADVISER Champlain Investment Partners, LLC PORTFOLIO MANAGERS Portfolio Manager Position with the Adviser Years of Experience with the Fund Years of Experience with the Predecessor Fund Russell E. Hoss Senior Member of the Investment Team Since Inception (2015) Since Inception (2014) Richard W. Hoss Senior Member of the Investment Team Since Inception (2015) Since Inception (2014) For important information about the purchase and sale of Fund shares, taxes and financial intermediary compensation, please turn to Summary Information about Purchasing and Selling Fund Shares, Taxes and Financial Intermediary Compensation on page 14 of the prospectus. 13
SUMMARY INFORMATION ABOUT PURCHASING AND SELLING FUND SHARES, TAXES AND FINANCIAL INTERMEDIARY COMPENSATION Purchase and Sale of Fund Shares To purchase Advisor Shares of the Funds for the first time, you must invest at least $10,000 ($3,000 for IRAs). To purchase Institutional Shares of the Funds for the first time, you must invest at least $1,000,000. There is no minimum for subsequent investments. The Funds may accept investments of smaller amounts in their sole discretion. If you own your shares directly, you may redeem your shares on any day that the New York Stock Exchange (the NYSE ) is open for business (a Business Day ) by contacting the Funds directly by mail at: Champlain Funds, P.O. Box 219009, Kansas City, Missouri 64121-9009 (Express Mail Address: Champlain Funds, c/o DST Systems, Inc., 430 West 7th Street, Kansas City, Missouri 64105) or telephone at 1.866.773.3238. If you own your shares through an account with a broker or other institution, contact that broker or other institution to redeem your shares. Your broker or financial intermediary may charge a fee for its services in addition to the fees charged by the Funds. Tax Information The Funds intend to make distributions that may be taxed as ordinary income or capital gains, unless you are investing through a taxdeferred arrangement, such as a 401(k) plan or IRA, in which case your distribution will be taxed when withdrawn from the tax-deferred account. Payments to Broker-Dealers and Other Financial Intermediaries If you purchase shares of the Funds through a broker-dealer or other financial intermediary (such as a bank), each Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend a Fund over another investment. Ask your salesperson or visit your financial intermediary s website for more information. 14
MORE INFORMATION ABOUT RISK Investing in each Fund involves risk and there is no guarantee that a Fund will achieve its goal. The Adviser s judgments about the markets, the economy, or companies may not anticipate actual market movements, economic conditions or company performance, and these judgments may affect the return on your investment. In fact, no matter how good of a job the Adviser does, you could lose money on your investment in a Fund, just as you could with similar investments. The value of your investment in a Fund is based on the value of the securities the Fund holds. These prices change daily due to economic and other events that affect particular companies and other issuers. These price movements, sometimes called volatility, may be greater or lesser depending on the types of securities a Fund owns and the markets in which they trade. The effect on a Fund of a change in the value of a single security will depend on how widely the Fund diversifies its holdings. The Emerging Markets Fund is non-diversified, meaning that it may invest a large percentage of its assets in a single issuer or a relatively small number of issuers. Equity Risk (All Funds) Equity securities in which the Funds invest include common stock, preferred stock, convertible debt, warrants and rights, shares of American Depositary Receipts ( ADRs ), and exchange traded funds ( ETFs ) that attempt to track the price movement of equity indices. Common stock represents an equity or ownership interest in an issuer. Preferred stock provides a fixed dividend that is paid before any dividends are paid to common stockholders, and which takes precedence over common stock in the event of a liquidation. Like common stock, preferred stocks represent partial ownership in a company, although preferred stock shareholders do not enjoy all of the voting rights of common stockholders. Also, unlike common stock, a preferred stock pays a fixed dividend that does not fluctuate, although the company does not have to pay this dividend if it lacks the financial ability to do so. Investments in equity securities in general are subject to market risks that may cause their prices to fluctuate over time. The value of securities convertible into equity securities, such as warrants or convertible debt, is also affected by prevailing interest rates, the credit quality of the issuer and any call provision. Fluctuations in the value of equity securities in which a mutual fund invests will cause a fund s net asset value ( NAV ) to fluctuate. An investment in a portfolio of equity securities may be more suitable for long-term investors who can bear the risk of these share price fluctuations. Foreign Company Risk (Emerging Markets Fund) Investments in securities of foreign companies (including direct investments as well as investments through ADRs) can be more volatile than investments in U.S. companies. Diplomatic, political, or economic developments, including nationalization or appropriation, could affect investments in foreign companies. Foreign securities markets generally have less trading volume and less liquidity than U.S. markets. In addition, the value of securities denominated in foreign currencies, and of dividends from such securities, can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar. Financial statements of foreign issuers are governed by different accounting, auditing, and financial reporting standards than the financial statements of U.S. issuers and may be less transparent and uniform than in the United States. Thus, there may be less information publicly available about foreign issuers than about most U.S. issuers. Transaction costs are generally higher than those in the United States and expenses for custodial arrangements of foreign securities may be somewhat greater than typical expenses for custodial arrangements of similar U.S. securities. Some foreign governments levy withholding taxes against dividend and interest income. Although in some countries a portion of these taxes are recoverable, the non-recovered portion will reduce the income received from the securities comprising the portfolio. The Fund may also be subject to taxes on trading profits or on transfers of securities in some countries. Emerging Markets Risk (Emerging Markets Fund) Many of the risks with respect to foreign investments are more pronounced for investments in issuers in emerging market countries. Emerging market countries tend to have less government exchange controls, more volatile interest and currency exchange rates, less market regulation, and less developed economic, political and legal systems than those of more developed countries. In addition, emerging market countries may experience high levels of inflation and may have less liquid securities markets and less efficient trading and settlement systems. Their economies also depend heavily upon international trade and may be adversely affected by protective trade barriers and the economic conditions of their trading partners. Emerging market countries may have fixed or managed currencies that are not free-floating against the U.S. dollar and may not be traded internationally. Inflation and rapid fluctuations in inflation rates have had and may continue to have negative effects on the economies and securities markets of certain countries. Emerging markets typically have substantially less volume than U.S. markets, securities in these markets are less liquid, and their prices often are more volatile than those of comparable U.S. companies. Delays may occur in settling securities transactions in emerging market countries, which could adversely affect the Fund s ability to make or liquidate investments in those markets in a timely fashion. In addition, it may not be possible for the Fund to find satisfactory custodial services in an emerging market country, which could increase the Fund s costs and cause delays in the transportation and custody of its investments. 15