http://www.sec.gov/Archives/edgar/data/1396092/000120928615000762/e1791.htm
497 1 e1791.htm
Big 4 OneFund
Investor Class Shares (FOUIX)
Institutional Class Shares (FOURX)
Supplement dated December 23, 2015
to the Prospectus and Statement of Additional Information
each dated September 19, 2014
The Board of Trustees (the “Board”) of World Funds Trust (the “Trust”) has approved a Plan of Liquidation (the “Plan”) relating to the Big 4 OneFund (the “Fund”), effective December 23, 2015. Chicago Partners Investment Group, LLC, the Fund’s investment adviser (the “Adviser”), has recommended to the Board to approve the Plan based on its representations of its inability to market the Fund and the Adviser’s indication that it does not desire to continue to support the Fund. As a result, the Board has concluded that it is in the best interest of the Fund’s shareholders to liquidate the Fund.
In connection with the proposed liquidation and dissolution of the Fund called for by the Plan, the Board has directed the Trust’s principal underwriter to cease offering shares of the Fund immediately as of the date of this Supplement. Shareholders may continue to reinvest dividends and distributions in the Fund or redeem their shares until the liquidation.
It is anticipated that the Fund will liquidate on or about December 31, 2015. Any remaining shareholders on the date of liquidation will receive a distribution of their remaining investment value in full liquidation of the Fund. If you have questions or need assistance, please contact your financial advisor directly or the Fund toll-free at 1.800.673.0550.
IMPORTANT INFORMATION FOR RETIREMENT PLAN INVESTORS
If you are a retirement plan investor, you should consult your tax advisor regarding the consequences of any redemption of Fund shares. If you receive a distribution from an Individual Retirement Account or a Simplified Employee Pension (SEP) IRA, you must roll the proceeds into another Individual Retirement Account within sixty (60) days of the date of the distribution in order to avoid having to include the distribution in your taxable income for the year. If you receive a distribution from a 403(b)(7) Custodian Account (Tax-Sheltered account) or a Keogh Account, you must roll the distribution into a similar type of retirement plan within sixty (60) days in order to avoid disqualification of your plan and the severe tax consequences that it can bring. If you are the trustee of a Qualified Retirement Plan, you may reinvest the money in any way permitted by the plan and trust agreement.
This Supplement, and the existing Prospectus dated September 19, 2014, provide relevant information for all shareholders and should be retained for future reference. Both the Prospectus and the Statement of Additional Information dated September 19, 2014 have been filed with the Securities and Exchange Commission, are incorporated by reference, and can be obtained without charge by calling the Fund toll-free at 1.800.673.0550.

FYI: Investors pulled more money from U.S. mutual funds last week than they have in any seven-day period in the past two and a half years.
Net redemptions reached $28.6 billion in the week ended Dec. 16, according to a statement from the Investment Company Institute, a trade group. It was the biggest weekly outflow since June 2013, ICI data show.
Regards,
Ted
http://www.bloomberg.com/news/articles/2015-12-23/investors-pull-most-money-from-u-s-mutual-funds-in-two-years

FYI: The chart below shows returns across asset classes in 2015. Key conclusions:
- The turbulence in high yield was really not a big deal when compared with the performance of other risky assets, including equities
- US stocks down 1% and stocks in core Europe up 7%
- EM equities at the extremes, with Brazil down 13% and Russia up 23%
- USD EM corporate bond returns down modestly
- The best performer in fixed income was…US and European government bonds
Regards,
Ted
http://www.ritholtz.com/blog/2015/12/returns-across-asset-classes-in-2015/print/

FYI:
Regards,
Ted
http://video.cnbc.com/gallery/?video=3000468751&play=1

@little5bee - if you're looking for a 'safe' dividend you're best shot at that is with both EPD and MMP. They have the coverage in spades via cash flow from operations with no need to access the market for additional capital. They both have also been so beaten down along with the rest of the sector that the potential for capitals gains are there as well and as the best of the breed I would expect them to have the most support.
AMJ and AMPL by design or necessity are exposed to the risks of dividend reductions and realignment if energy continues to get hammered and more MLP's become "Kinderized", go belly up or just eliminate their current divy's in an attempt to stay afloat. I've considered AMLP but I am content to wait for MR. Price to show the way forward. See here for one persons slant on AMLP's er:
http://investwithanedge.com/alerian-mlp-etf-amlp-finally-admits-its-8-expense-ratio
Fair disclosure - I own EPD and MMP and have for quite some time. I'm green on both but I was much greener earlier in the year. I'm underwater on KMI and working toward selling out without giving it away. Since it's in a Roth there are no tax advantages to be had but I don't expect the company to go bankrupt.

Bought bunch of oil bonds since last yr and you do see a declines in prices.

Is there such a thing as oil preferred shares? A stock beat up by the market that still has the ability to "weather the storm" and continues to pay a dividend (has low debt/ relatively high revenue) might even be better than a preferred share.
I second @little5bee recent quote:

"CVX is yielding 4.5% and XOM is yielding almost 4%. I won't get rich, but I think these two companies have the financial resources to protect those dividends. If they keep sliding, I'm planning to buy more. No, they are not the most exciting positions from a risk/reward standpoint, but I'd rather have a "safe" dividend than roll the dice on a capital gain."

@Mark Thanks! How about AMJ or AMLP....still prefer EPD and MMP? AMJ is trading at a slight discount to NAV.
EDIT: Why the huge ER on AMLP? according to Schwab, it's over 5%!!!

@little5bee - start with EPD and MMP. Then SE/SEP followed by a crap shoot.

Some folks might do well to consider QMNNX. I would not expect 2015 numbers going forward, but unlike most Market-Neutral category options, this one is truly market neutral. The I-shares minimum at FIDO is $100,000, but the N-shares do not. The 1.55% fee for N is high but on the low side for most in that category.

@Old_Joe CVX is yielding 4.5% and XOM is yielding almost 4%. I won't get rich, but I think these two companies have the financial resources to protect those dividends. If they keep sliding, I'm planning to buy more. No, they are not the most exciting positions from a risk/reward standpoint, but I'd rather have a "safe" dividend than roll the dice on a capital gain.
Which MLPs are best positioned to weather this downturn and protect their dividends? Any recommendations? I'd like to start buying those, as well, but since some of the stalwarts...like Kinder Morgan...have been decimated, I don't know where to start.

Again: the Saudi's can shut down our shale and marginally more-expensive production only as long as they keep their price below our production cost which seems to be somewhere in the $40-50 range. Let's stipulate that we're all geniuses and buy in reasonably close to the bottom. Then what? How does this great price recovery happen so we all get rich?

Yes, all those services included. NJ and Oregon the only two left of the 50?

http://www.sec.gov/Archives/edgar/data/709364/000094937715000418/e37710rpr-rse_isi497.htm
497 1 e37710rpr-rse_isi497.htm
The Royce Fund
Supplement to the Investment, Service, and Institutional Class Shares Prospectus dated May 1, 2015
Royce Premier Fund
Royce Special Equity Fund
Effective January 4, 2016 (the “Effective Date”), Royce Premier Fund and Royce Special Equity Fund will reopen to new shareholders and new relationships. Investment, Service, and Institutional Class shares of Royce Premier Fund and Royce Special Equity Fund may be acquired by purchase or exchange on or after the Effective Date in accordance with the provisions of the Funds’ Statutory Prospectus, dated May 1, 2015, relating to those share classes (the “Prospectus”).
Royce Premier Fund and Royce Special Equity Fund have been open only to existing shareholders and existing relationships in accordance with the provisions of a Supplement, also dated May 1, 2015 (the “Supplement”), to the Prospectus. The Supplement is rescinded in all respects as of the Effective Date, and shall be of no force and effect thereafter.
Royce & Associates, LLC, investment adviser to each of Royce Premier Fund and Royce Special Equity Fund, reserves the right to: (i) reject any investment that it believes will adversely affect its ability to manage these Funds; and (ii) close and re-open these Funds to new or existing shareholders at any time.
December 22, 2015
ISIOPENSUP-1215
http://www.sec.gov/Archives/edgar/data/709364/000094937715000420/e37710rpr-rse_crk497.htm
Supplement to the Consultant, R, and K Class Shares Prospectus dated May 1, 2015 -Royce Premier Fund &
Royce Special Equity Fund
http://www.sec.gov/Archives/edgar/data/709364/000094937715000422/e37710rpr_w497.htm
Supplement to the W Class Shares Prospectus dated May 1, 2015-Royce Premier Fund

"In big terms, the XLV added an additional $5.0 billion in market capitalization over the same period going from $12.7 billion to $18.7 billion." Because that makes sense....

Tom Tobin suggests there are reasons to be wary of health care investing in 2016. The article provides numerous things to consider. Here are a few excerpts:
"From the beginning of 2013, the year before the roll out (of Obamacare), to the peaks of 2015, the S&P 500 was up +47.8% while the XLV nearly doubled that effort by rising +91.1%. For the hospitals, who likely saw the most incremental benefit, increased patient volume and less unpaid charity care led to stock returns of +141.6%. In small terms, a $10,000 investment in a basket of hospital stocks would have peaked a few months ago at over $24,000. In big terms, the XLV added an additional $5.0 billion in market capitalization over the same period going from $12.7 billion to $18.7 billion. The reason the portfolio returns were so big is because the tide of newly insured medical consumers was so large; the largest in over 30 years by our estimate."
"Heading into 2016 we will enter a period we are calling the #ACATaper, when the benefits of millions of new medical consumers and the money to pay for their care tapers off back to slow to negative growth and the industry resumes grappling with the litany of cost pressures that existed before Obamacare, and will certainly exist after it."
"The ACA has created a year-over-year comparison so enormous that healthcare stocks will probably unwind rather violently. In fact, there is already evidence that the taper is underway as we have already seen an abrupt about-face for the industry."
"Beyond 2016, there are additional industry headwinds to consider which the ACA either masked or exacerbated. Demographics are putting downward pressure on pricing as Baby Boomers are graduating into Medicare leaving their employer-based commercial insurance behind."
"One of the great alterations that Obamacare made to the U.S. Medical Economy, among the many others, is the rise of information technology in the delivery of healthcare. The highly likely outcome over the years to come is that Americans receive better care at a cheaper price; a crazy idea after 50 years of excess healthcare inflation. Breaking the inflation cycle will be one of the great benefits of Obamacare."
"For now, given what we think unfolds in 2016, we would encourage investors to approach healthcare stocks with extreme caution in the short term. That’s why our list of shorts is far longer than our longs these days, and it’s going to be a while before that changes."
See: http://www.investopedia.com/articles/investing/122115/why-perfect-storm-brewing-healthcare.asp

http://energy.gov/eere/vehicles/fact-835-august-25-average-historical-annual-gasoline-pump-price-1929-2013
Interesting chart for gas prices from 1929 to 2013 normalized in 2013 dollars. I started driving at 16 in 1970 and from the chart, .35 is exactly the price I remember filling my dad's car with, That would be $1.63 in today's dollars... ok, not quite filling. I think I put a gallon or two in the tank... once in a while.

Jeez. I recall 1971, and gas was .19 cents per gallon. Easier to comprehend that. How does $2.00 gas compare, today? (inflation, and everything else...) My still shiny-new, miniscule stake in COP is down -10.5% since it was begun, just a few weeks ago. I'm not thinking of adding until into the New Year. Further to fall? Not trying to time the bottom. Even if it comes off a new bottom, these are BARGAIN prices.

Dumped my MLP funds INFIX and TMLPX, waited too long, but with them down almost 50% since they were added, that would mean they would have to move up 100% for me to get back to even. Doubt that will happen anytime soon to say the least. Right now proceeds parked in cash, but they represented only 4% of my equity portion when purchased. I am not likely to reenter this sector in near future, I do have some exposure with more general equity funds anyway. That's enough for now.

Treasury Bills Beat Oil 30 Years On
Posted on December 22, 2015 by David Ott Acropolis Investment Management
The annualized standard deviation of monthly returns for WTI spot was 25.21 percent. To put that in perspective, it was 16.86 percent for the S&P 500 during the same period, which include the tech bubble/burst and the 2008 financial crisis.
That’s right, oil was 50 percent more volatile than stocks, but it yielded lower returns than Treasury bills over a 32 year period.

The orange line below takes the historical prices and puts them into today’s dollars ... I find it remarkable that oil was trading at the equivalent of $65 per barrel when the data first started (1983)compared to the $35 level today.

http://acrinv.com/treasury-bills-beat-oil-30-years-on/
Update 12/23/15 Oil and Energy Stocks
Posted on December 23, 2015 by David Ott
One of my favorite long-timer readers asked me today to follow up on the chart from yesterday to include the performance of energy stocks
The best quality sector data from S&P only dates back to 1989, so this data set isn't quite as long as what I showed yesterday, but the story is basically the same and I have to admit that I was surprised by how well energy stocks have done over the last 25 or so years.
In fact, despite the absolute bear market in energy stocks, which have fallen by about a third since their peak last year, they are still outperforming the S&P 500 when you look at the entire period. (1989-present0
In that same vain, when we look at this shortened period, WTI crude has kept pace with inflation, unlike the chart yesterday that showed crude failing to keep up with inflation - it just goes to show how so much data is period specific.

http://acrinv.com/oil-and-energy-stocks/