https://www.sec.gov/Archives/edgar/data/1141819/000089418924003393/terrafirmasticker.htm
497 1 terrafirmasticker.htm TERRA FIRMA 497E
Filed pursuant to Rule 497(e)
Registration Nos. 333-62298; 811-10401
Terra Firma US Concentrated Realty Equity Fund
A series of Trust for Professional Managers
Supplement dated May 24, 2024
to the
Prospectus, Summary Prospectus and Statement of Additional Information (“SAI”)
dated April 29, 2024
The Board of Trustees (the “Board”) of the Trust, based upon the recommendation of Terra Firma Asset Management, LLC (the “Adviser”), the investment adviser to the Terra Firma US Concentrated Realty Equity Fund (the “Fund”), determined to close and liquidate the Fund. The Board concluded that it would be in the best interests of the Fund and its shareholders that the Fund be closed to new purchases, except for purchases made through an automatic investment program or the reinvestment of any distributions, as of the close of business on May 28, 2024 (the “Closing Date”) and liquidated as a series of the Trust effective as of the close of business on June 28, 2024 (the “Liquidation Date”).
The Board approved a Plan of Liquidation (the “Plan”) that determines the manner in which the Fund will be liquidated. Pursuant to the Plan and in anticipation of the Fund’s liquidation, the Fund will be closed to new purchases, except for purchases made through an automatic investment program or a purchase exception that is approved by Trust officers, effective as of the close of business on the Closing Date, after which the Fund’s assets may be entirely invested in money market instruments or held in cash. Accordingly, the Fund will no longer pursue its investment objective and principal investment strategy. However, any distributions declared to shareholders of the Fund after the Closing Date and until the close of trading on the New York Stock Exchange on the Liquidation Date will be automatically reinvested in additional shares of the Fund unless a shareholder specifically requests that such distributions be paid in cash. Although the Fund will be closed to new purchases as of the Closing Date, you may continue to redeem your shares of the Fund until the Liquidation Date, as described in “How to Redeem Shares” in the Fund’s Prospectus.
Pursuant to the Plan, if the Fund has not received your redemption request or other instruction prior to the close of business on the Liquidation Date, your shares will be redeemed and you will receive proceeds representing your proportionate interest in the net assets of the Fund as of the Liquidation Date, subject to any required withholdings. As is the case with any redemption of Fund shares, the liquidation proceeds will generally be subject to federal and, as applicable, state and local income taxes if the redeemed shares are held in a taxable account and the liquidation proceeds exceed your adjusted basis in the shares redeemed.
If the redeemed shares are held in a qualified retirement account such as an IRA, the redemption proceeds may not be subject to current income taxation. If you hold your shares in an IRA account, you have 60 days from the date you receive your proceeds to reinvest or “rollover” your proceeds into another IRA and maintain their tax-deferred status. If your IRA account is held directly with the Fund, you must notify the Fund’s transfer agent by telephone at 844-40TERRA (1-844-408-3772) prior to June 28, 2024, of your intent to rollover your IRA account to avoid withholding deductions from your proceeds. If the Fund does not receive a response prior to June 28, 2024, your investment in the Fund will be liquidated as an age-based distribution with 10% federal withholding on June 28, 2024. Please also note that state withholding may also apply. You should consult with your tax advisor on the consequences of the redemption to you.
The Adviser will bear all of the expenses incurred in carrying out the Plan.
Shareholder inquiries should be directed to the Fund at 844-40TERRA (1-844-408-3772).
Please retain this Supplement with your Summary Prospectus,
Prospectus, and SAI for reference.

I d

Investing in SC or anywhere else is your choice.
When someone lags the most famous index in the world, the SP500, they pull out the DIVERSIFICATION card.
Buffett said the following: "Diversification is a protection against ignorance".
[snip]
A fund manager is good as his last 6-12 months of performance.
[snip]

There you go again - quoting Buffett out of context!
Warren Buffett talking to MBA students:

"If you are not a professional investor; if your goal is not to manage in such a way that you
get a significantly better return than the world, then I believe in extreme diversification.
I believe that 98 or 99 percent —maybe more than 99 percent—
of people who invest should extensively diversify and not trade.
That leads them to an index fund with very low costs.
All they’re going to do is own a part of America.
They’ve made a decision that owning a part of America is worthwhile.
I don’t quarrel with that at all. That is the way they should approach it."
financinglife.org/learn-how-to-invest/warren-buffett-on-diversification/
S&P 500 index funds have proven to be good long-term investments.
However, it's ridiculous to benchmark all funds against the S&P 500 regardless of investment styles
and objectives. It's interesting when someone who invests in a way which is diametrically opposed
to Mr. Buffett's approach periodically "quotes" Buffett nonetheless.
I strongly disagree that "A fund manager is good as his last 6-12 months of performance."
Even the very best fund managers will underperform from time to time.
Should investors move in/out of funds based on short-term performance?
These actions often lead to excessive trading and inferior returns¹.
Numerous studies have indicated frequent trading is hazardous to one's wealth.
¹ Skilled traders can generate excellent returns. They are few and far in between.

I don't need to mention the whole thing each time. I have said hundreds of times seen that that Buffet said "Diversification is a protection against ignorance" and his second choice is the SP500.
It is not ridiculous to compare every stock fund to the SP500 or VTI which is the standard and most held. Your portfolio lags and why you don't agree.
Since 2010, I have posted on several sites why LC tilting growth (SP500 is an easy choice) is where you want to be. Every year you hear from many experts and posters why not EM, SC, value? valuation is great...and almost every year their portfolio lags.
And why a manager is as good as his/her last 6-12 months? this is how you avoid funds that lag for years and what I have done now since 2000.

Sold SCHD out of the taxable today. Realized a tax loss of about $7.50 after several purchases since November 2021. Yippee yai kai yea, get along little doggies.
The money will be reinvested in FDVV. The D/E ratio for SCHD is 3.36 and 1.50 for FDVV.
The taxable has been slightly under-invested by my lights, so I will be starting a position in SPHQ, and buffing up some other positions. The D/E ratio for SPHQ is .83.
Yes, there is a theme here. :).
Selling today. Shopping next week.

What do other absolute return funds use for benchmarks?

Since no one answered in 12 hours, I will venture - from memory I think it is 3 mo T-Bills index. Basically, cash.
The fund's own use of benchmark was in JD's post from yesterday. That is what any investor not engaging in discussion at MFO would use, and it is not the benchmark used by Absolute Return funds.

Thanks BaluBalu.

Investing in SC or anywhere else is your choice.
When someone lags the most famous index in the world, the SP500, they pull out the DIVERSIFICATION card.
Buffett said the following: "Diversification is a protection against ignorance".
[snip]
A fund manager is good as his last 6-12 months of performance.
[snip]

There you go again - quoting Buffett out of context!
Warren Buffett talking to MBA students:
"If you are not a professional investor; if your goal is not to manage in such a way that you
get a significantly better return than the world, then I believe in extreme diversification.
I believe that 98 or 99 percent —maybe more than 99 percent—
of people who invest should extensively diversify and not trade.
That leads them to an index fund with very low costs.
All they’re going to do is own a part of America.
They’ve made a decision that owning a part of America is worthwhile.
I don’t quarrel with that at all. That is the way they should approach it."
financinglife.org/learn-how-to-invest/warren-buffett-on-diversification/
S&P 500 index funds have proven to be good long-term investments.
However, it's ridiculous to benchmark all funds against the S&P 500 regardless of investment styles
and objectives. It's interesting when someone who invests in a way which is diametrically opposed
to Mr. Buffett's approach periodically "quotes" Buffett nonetheless.
I strongly disagree that "A fund manager is good as his last 6-12 months of performance."
Even the very best fund managers will underperform from time to time.
Should investors move in/out of funds based on short-term performance?
These actions often lead to excessive trading and inferior returns¹.
Numerous studies have indicated frequent trading is hazardous to one's wealth.
¹ Skilled traders can generate excellent returns. They are few and far in between.

I have a BoA card that pays 5.25% for all online purchases and 3.5% for groceries. Costco Citi membership card which I also use for travel pays back 5% on gas and travel. For everything else (tax payment, health insurance, P&C insurance, etc.) have another BoA card that pays 2.62%. They all are Visa. I will not be getting another card (or an Apple card) unless it is better benefits than the 2.62% BoA card and potentially a master card. I do not have a mental bandwidth for more than 3 cards!

Each person's needs, spending patterns, and mental acuity differ.
Your Costco card may have been a special offer that lasted for just a short time. Bach when Costco launched its Visa card in 2016 and and also now, it offers only 4% on gas and 3% on travel. The travel category is fairly restrictive: "you will only earn 1%, not 3%, for purchases made at timeshares, campgrounds, bed & breakfasts and for purchases of train and commuter travel." The Costco card also doesn't seem to include travel benefits like CDW (car rental) coverage, let alone travel protection (baggage delay, medvac, etc.) On the plus side, no foreign exchange fee.
Costco+BofA works for you. For me, paying up ($95) for a "better" BofA card lets me skip the Costco card. It gives me a higher 3.5% back on travel which it defines much more broadly, including '"timeshares, trailer parks, motor home and recreational vehicle rentals, campgrounds, ... real estate agents, operators of passenger trains, buses, taxis, limousines, ferries, boat rentals, parking lots and garages, tolls and bridge fees, tourist attractions and exhibits like art galleries, amusement parks, carnivals, circuses, aquariums, zoos and the like."
Since I do a fair amount of traveling (greetings from Germany!), use public transit extensively, and pay HOA fees (3.5% back as "travel" charges), this is a nearly perfect card for me. It also provides fairly good travel benefits, including limited cancellation and delay reimbursements and medical coverage. Unlike BofA's basic credit card, this card has no foreign transaction fees, so I get the full benefit of 2.625% (or 3.5%) worldwide.
Other cards are gravy. If I can remember the categories for the quarter (Discover), that's just a bonus. Driving just 1,000 miles/year, I can live without a card that is good for gas purchases. Figuratively and literally, YMMV.

Some old articles I am yet to read. I am using this post as a place holder to come back and read later. In the meantime, feel free to read the articles and discuss.
https://www.bisnow.com/national/news/capital-markets/blackstones-new-york-office-tower-loss-a-siren-for-troubles-in-safest-cmbs-traunches-124405
https://www.bis.org/publ/qtrpdf/r_qt1412w.htm
https://www.actuary.org/sites/default/files/2022-12/C1_Presentation_CLOs.pdf
https://statmodeling.stat.columbia.edu/2018/10/16/aaa-tranche-subprime-science-revisited/
https://www.schwabassetmanagement.com/content/clos-are-not-cdos-why-they-arent-likely-to-topple-banking-system
https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/leveraged-loan-news/those-700b-in-us-clos-who-holds-them-what-risk-they-pose
https://www.oaktreecapital.com/docs/default-source/default-document-library/clo-myth-busting.pdf?sfvrsn=42f25b66_16
https://www.janushenderson.com/en-us/advisor/article/how-a-hawkish-fed-may-impact-aaa-clo-returns/
https://www.pgim.com/press-release/pgim-launches-aaa-clo-etf-paaa-and-short-duration-multi-sector-etf-psdm

Thanks, @rforno
@Level5,
All good. I only buy new issue Agencies, which are available at Fidelity. Yes, Vanguard does not offer those. I do not buy secondaries in Agencies because I get enough entertainment from equities, not to mention the transaction fees for secondaries. I try my fixed income to be as boring as possible, unless home runs are available on rare occasions. I try to strike a balance by not buying anything that can be called in six months (also, I try not to buy continuously callable) - a matter of time allocation. My prior batch all got called. I restarted buying.
If the Agencies are AAA with similar terms, we should not expect a lot of spread over Treasuries. (Some States may exempt interest from some Agencies. I can shoot for 15% QDI Fed tax rate + 10% state tax or 25% Fed rate + 0% State rate. I just assume efficient market in evaluating all alternatives and pick the ones that best suit for my portfolio at any particular time.)

Vanguard dropped personal reps (for those not paying for PAS) years ago. Here's a 2021 Bogleheads thread discussing this.
There may be the oddball Flagship customer or two (see "Gill" in the thread) who continues to have a personal rep for unknown reasons. But generally the free service is long gone.
https://www.bogleheads.org/forum/viewtopic.php?t=363122

What do other absolute return funds use for benchmarks?

Since no one answered in 12 hours, I will venture - from memory I think it is 3 mo T-Bills index. Basically, cash.
The fund's own use of benchmark was in JD's post from yesterday. That is what any investor not engaging in discussion at MFO would use, and it is not the benchmark used by Absolute Return funds.

Added to 10-yr TIPS in our IRA accounts.

Capital and KKR are planning a series of hybrid funds that will invest in both publicly and privately traded assets. The first two strategies, expected to launch next year, will hold about 60% in public bonds picked by Capital managers, and 40% in direct and asset-based loans sourced by KKR.

These are likely the asset allocation or balanced funds. Really have to monitor these funds as they evolve.
TRP has a global allocation fund with 10% in private equity, and the fund is very average in performance for a number of years.

Description reads like a credit fund and not a hybrid allocation fund. May be the hybrid is public- private credit hybrid?

Capital and KKR are planning a series of hybrid funds that will invest in both publicly and privately traded assets. The first two strategies, expected to launch next year, will hold about 60% in public bonds picked by Capital managers, and 40% in direct and asset-based loans sourced by KKR.

These are likely the asset allocation or balanced funds. Really have to monitor these funds as they evolve.
TRP has a global allocation fund with 10% in private equity, and the fund is very average in performance for a number of years.

Yup. I didn't like the (then) 10-15% Blackstone Black Box they were promoting in RPGAX. I was interested in the fund to compliment PRWCX but I like knowing what I own!

As shipwrecked mentioned....If you actually look at Palm Valley's website, it refers to ABSOLUTE RETURN Investing...."Focused on Absolute Returns"....in large letters.

And I already commented that this IS NOT an absolute fund.
Mr C. uses cash, how about communicating better every month the % of stocks, cash, and the rest?
Maybe I missed it, but can you find on the fund page (https://www.palmvalleycapital.com/) the portfolio breakdown?
Just for fun, I read Mr. C comments on 4/1/2023 (https://www.palmvalleycapital.com/_files/ugd/ef2f99_c0d0844318294a93b988e858fd3274da.pdf) Quote "Today, there are numerous signs of an impending recession and an incipient loss of confidence in the financial system, as the higher interest rates required to quash inflation are exposing deep cracks in the economy. "
He is a typical downer and don't like tech...since 4/1 SPY is up about 30% and QQQ about 42%

The following proves that PVCMX is not an absolute return fund, see (https://www.investopedia.com/terms/a/absolutereturn.asp)
Quote "an absolute return fund seeks to make positive returns by employing investment management techniques that differ from traditional mutual funds. Absolute return investment strategies include using short selling, futures, options, derivatives, arbitrage, leverage, and unconventional assets. Absolute returns are examined separately from any other performance measure, so only gains or losses on the investment are considered."
The manager uses his unique strategy which depends mainly on owning cash equivalent positions when he can't find stocks that meet his criteria. I call it timing the markets.
JD, since retirement in 2018, I hardly owned stock funds. I'm mainly a bond OEFs trader. In extreme market risk, I'm at 99+% in MM.

Thanks. That is better than I feared. UI over the evaluation period is much better than StockCharts UI(14) displays over the evaluation period.

Reestablished position in NSRGY / 25 shares @ 101.91 This thing is either deep value or a head-fake. Even received a “buy” wreck rec in Barron’s this week.

yogibearbull,
thx for all the pointers and opinions on these tools.
am trying to estimate which best fits my needs for re-allocating all grouped family holdings with respect to asset-class in a tax efficient manner (without spending hundreds of hours becoming an expert at all).
despite no online help, i really like several tools at elmwealth, and you should check them out :
https://elmwealth.com/tax-calculator/
(no savings\uploads of setting possible for free users)
they have 1 useful white paper also
https://elmwealth.com/our-asset-allocation-methodology/

Capital and KKR are planning a series of hybrid funds that will invest in both publicly and privately traded assets. The first two strategies, expected to launch next year, will hold about 60% in public bonds picked by Capital managers, and 40% in direct and asset-based loans sourced by KKR.

These are likely the asset allocation or balanced funds. Really have to monitor these funds as they evolve.
TRP has a global allocation fund with 10% in private equity, and the fund is very average in performance for a number of years.

PVCMX made about half of the SP500 for 5 years, so it's not alright. :-)
Good established funds don't guarantee anything either, remember that over long time the SP500 beats most funds because it's formula is very efficient.

So are you mainly invested in a S&P 500 index fund then?