https://www.sec.gov/Archives/edgar/data/1545440/000158064224003191/westwoodcapappinc_497.htm
497 1 westwoodcapappinc_497.htm 497
June 17, 2024
WESTWOOD CAPITAL APPRECIATION AND INCOME FUND
Class A Shares Ticker Symbol: WWTAX
Class C Shares Ticker Symbol: WTOCX
Institutional Shares Ticker Symbol: WLVIX
A Series of Ultimus Managers Trust
Supplement to the Prospectuses and Statement of Additional Information
dated February 28, 2024, as supplemented
On May 24, 2024, the Fund discontinued all sales of its shares, except shares purchased by existing shareholders through an established automatic investment plan, or shares acquired through the reinvestment of dividends and distributions. Effective July 16, 2024, shares of the Fund are no longer available for purchase and, at the close of business on July 16, 2024, all outstanding shares of the Fund will be redeemed at net asset value (the “Transaction”).
The Board of Trustees of the Trust (the “Board”), in consultation with the Fund’s investment adviser, Westwood Management Corp. (the “Adviser”), determined and approved to discontinue the Fund’s operations based on, among other factors, the Adviser’s belief that it would be in the best interests of the Fund and its shareholders to discontinue the Fund’s operations. Through the date of the Transaction, the Adviser will continue to waive investment advisory fees and reimburse expenses of the Fund, as necessary, in order to maintain the Fund at its current expense limit, as specified in the Fund’s current Prospectus and Summary Prospectus.
In connection with the Transaction, the Board directed that: (i) all of the Fund’s portfolio securities be liquidated in an orderly manner not later than July 16, 2024; and (ii) all outstanding shareholder accounts on July 16, 2024 be closed and the proceeds of each account, less any required withholding, be sent to the shareholder’s address of record or to such other address as directed by the shareholder, including special instructions that may be needed for Individual Retirement Accounts (“IRAs”) and qualified pension and profit sharing accounts. As a result of the Transaction, the Fund’s portfolio holdings will be reduced to cash or cash equivalents. Accordingly, going forward, shareholders should not expect the Fund to achieve its stated investment objective.
Shareholders may redeem all or a portion of their shares of the Fund on any business day prior to July 16, 2024 as specified in the Fund’s Prospectus.
The Transaction will be considered for tax purposes a sale of Fund shares by shareholders, and shareholders should consult with their own tax advisors to ensure its proper treatment on their income tax returns. In addition, shareholders invested through an IRA or other tax-deferred account should consult the rules regarding the reinvestment of these assets. In order to avoid a potential tax issue, shareholders generally have 60 days from the date that proceeds are received to re-invest or “rollover” the proceeds into another IRA or qualified retirement account; otherwise, the proceeds may be required to be included in the shareholder’s taxable income for the current tax year.
If you have any questions regarding the Fund or the Transaction, please call the Fund toll free at 1-877-FUND-WHG (1-877-386-3944).
Investors Should Retain this Supplement for Future Reference.

I was surprised to learn recently that regardless of “tread-wear” tires need to be replaced at a time interval set by the manufacturer - usually about 6 years - a year or so longer with some premium brands. The reason is that the sidewalls deteriorate over time and could cause a blowout. This was pointed out to me when I had my old 2005 pickup in for routine servicing a year or two ago. The mechanic pointed to extensive visible cracks in all of the sidewalls. The tire treads were lightly worn. I drive the old truck only about 1,000 miles a year, but often heavily loaded. The tires were probably 10 years old. Of course I replaced all 4.
Edmunds Commentary: How Old / Dangerous Are Your Tires?
Per @msf’s experience with an oil change - I encountered the same resistance a few years ago when I took the old pickup in for an annual oil change at a local “quick lube.” The guy claimed the oil looked “clean” on the dipstick and at first declined to change it. Eventually, I convinced him to do so. For us old-timers that seems indeed odd. We were taught (I believe correctly) that an oil’s “appearance” is not an accurate way to to access its condition or need to be replaced. And it seems especially peculiar a vehicle service center would voluntarily turn down a chance to make a dollar. I’m wondering if perhaps there’s been some pressure applied by the EPA to encourage or coerce oil change outfits to do this visual inspection with the goal of reducing the amount of waste oil, which presents environmental challenges (though I believe it can be recycled).
”Do I receive compensation for observing that the risk is water condensation?:-)”
As the old expression goes, ”a penny for your thoughts …” :)

It is the same with shoes. You should wear them at least once in a while; otherwise, the soles will just crumble. I stopped working soon after I bought a couple of pairs of formal, expensive shoes. When I took them out after a few years, the soles did not hold together.
After 7 years of buying my tires, once a year, I asked the Costco tire center person for his opinion if I need to change the tires. After 10 years of use, the Costco person said I should change because he noticed weak spots developing on the side of the tires.

That’s a nod to the fact that over time compensation (water) can form inside the engine and contaminate the oil.
Do I receive compensation for observing that the risk is water condensation? :-)
The first time I brought our car in for annual servicing, when I picked up my car they told me they didn't change the oil (even though I had requested it) because it was completely clean. They said they would have felt guilty charging me so much for an unneeded synthetic oil change.
The purity of the oil was no surprise - I drive around 1,000 miles/year. But since that first servicing I always tell them that I don't care how clean the oil is, change it.
An even more tangential question - how often do you replace tires? I used to drive 18,000 miles per year, so it was easy - buy tires when the old ones wear out. But now, there's no wear. I've read that the rubber is only supposed to last six years or so. If I replace tires every six years, at 1K miles/year I won't ever have to rotate them!

I used to be fanatical about oil changes. Up until around 2005 I did my own - crawling around under the pickup or driving my small cars up on ramps to work underneath. A couple things changed. Vehicles got lower and lower to the ground making it very difficult to work underneath. And tolerances (the acceptable degree of harmful “slack” or “play” on internal engine components) got narrower and narrower as better tooling / techniques evolved. This led to greatly reduced wear on internal components, reducing the need to change oil as frequently. At the same time, oils improved and synthetics (even better) came into common use. So the manufacturers gradually extended the oil change intervals from a few thousand miles in the 60s to (a guess here) 10K or more today.
I don’t pay attention to dates or mileage anymore because my 2018 Honda (like most new vehicles today) monitors oil changes and dozens of other service items, alerting me when it’s close to time for service. The system monitors not only miles driven, but things like outdoor temps, total number of days, idling time (hard on engines), speeds driven, number of stops & starts, ad infinitum. Much better ISTM than any prescribed limit based on miles or time. That said - I’ve yet to see a vehicle manual that doesn’t tell you to change the oil at least once a year. That’s in part a nod to the fact that over time compensation condensation (water) can form inside the engine and contaminate the oil.
One note: For “severe service” conditions - things like driving in mountains, pulling a heavy trailer, or driving extensively in high temperatures - the manufacturers do reduce the allowable time / miles between oil changes.

From Bloomberg this evening:
”How the US Mopped Up a Third of Global Capital Flows Since Covid “
(Excerpt) “In the face of calls around the world to diversify out of the dollar in recent years, the US has nabbed almost one-third of all the investment that flowed across borders since Covid struck. An International Monetary Fund analysis sent by request to Bloomberg News shows that the share of global flows has climbed — not fallen — since a shortage of dollars in 2020 spooked global investors and the 2022 freezing of Russian assets stoked questions about respect for free movement of capital. The pre-pandemic US average share was just 18%, according to the IMF. “
Article by Enda Curran and Saleha Mohsin - Bloomberg Media / June 16, 2024

@msf said, ”If China is doing so well, should one be investing more in China, despite the political risks involved?”
That would be a contrarian bet for sure. All my sources (various financial writers / commentators / pundits) are really down on China as an investment, chiefly because of what they see as deterioriating relations with the U.S. However, in Orwell’s 1984 alliances were constantly shifting - sometimes overnight. So one never knows. And TMWOT the pundits as a group are wrong more often than they are correct on the big issues.

Diversification means always having to say you're sorry about some investment in your portfolio!
Thanks @Observant1. I’m quite fond of Love Story with Ali MacGraw and Ryan O’Neil having first seen it around ‘71, a few years after graduating from college.
Agree @Old_Joe / I’d say Brexit played a big part. Humans worldwide appear equally adept at shooting themselves in the foot. (or is it feet?) We enjoy no monopoly in that regard.

https://www.cnn.com/videos/world/2024/06/16/fareeds-take-europe-america-pace-gps-digvid.cnn

Insightful, but does the current US/Euro gap indicate future trend or represent a possible turning point? One thing for sure, the US will not stay this far ahead forever. There is good growth in the US, but possibly better value may be found overseas.

Ya, I ventured overseas years ago. The "old saw" was that Europe was "old money." I was looking for a bargain. And I had some EM holdings, too. These days, Europe is even more complicated: Ukraine war, Right-wing election gains. One currency, but many different national budgets.... I did well investing in EM bonds through the GFC and for a while beyond, and then I got out, following some good advice from someone in here.
Politically, China is uninvestable these days. Authoritarian. Curtailed civil and human rights. They're putting the screws to "special territories" Hong Kong and Macau, too. After having visited there in early 2019, it makes me so sad and angry to see it happening. The Markets have no conscience. But this whole business in China is morally distressing. I'm sworn off of foreign investments in my mutual funds; funds are still the lion's share of what I own. My fund managers have me in UK and Europe, just a tiny bit. I own a Canadian stock with a great dividend; is that "foreign?" Also, a Luxembourg-based maker of oil drilling pipes. Two still very tiny single-stock holdings. In retirement, I like YIELD. My (junk) bond funds provide most of that. Keeping a close eye on them--- a "short leash." Currently, my portfolio provides a 4.05% yield, as calculated by the ever-reliable (LOL) Morningstar.

https://www.cnn.com/videos/world/2024/06/16/fareeds-take-europe-america-pace-gps-digvid.cnn

Insightful, but does the current US/Euro gap indicate future trend or represent a possible turning point? One thing for sure, the US will not stay this far ahead forever. There is good growth in the US, but possibly better value may be found overseas.

14% developed, 1% emerging markets. Currently reducing exposure by switching out some pure Internationals for 60/40 globals. I think that there is likely more overall potential lurking in foreign markets than in the possibly somewhat over-valued US, but it's important to invest with skillful managers who can find it in this higher risk arena, or at least a very strict and well constructed specific index.

Crash, technology isn't perfect, but the old ways isn't either. Technology has presented us with a lot more choices. Choices = a lot more development and interactions between systems.
I used to pay $1.5 per minute calling abroad, I have used WhatsApp for years paying nothing. Sure, sometimes it's not clear but it's FREE.
Google Maps gives you driving, walking, and public transportation for FREE. Yes, I know Google also gets the info they need to make money, but you have a choice. 40 years ago, you had no choices.
I like choices. Maybe you prefer to drive downtown to city hall, use gas, pay for parking, and pay your bill with cash, and spend 1-2 hours. I prefer paying online in one minute.
Sure, I don't like state/gov bureaucracy, I would fire tomorrow at least 20% of them.
A city near us did just that. They hired private companies to do a lot of stuff and that saved them a lot of money.

Missed my point entirely. You must have tried very hard.

Suppose you have 1 million in Fidelity SP500 (FXAIX) and you want $4K monthly. You can create a sell monthly trade on a specific date to run for years to do it...and you are done.

Only if you have the stomach for it. If you had $1M on Jan 1, 2022, and set up that trade you would be down $283,000 come October with zero guarantee that things were about to improve, and most likely torturing yourself thinking about what a terrible mistake you made.

It's a very old argument that higher distributions are better than lower ones (or none)...and it's a bogus one.
Until the 70s blue chip big companies paid div to prove they are healthier. Then the technology revolution took off and these new companies have been paying nothing to lower distributions which did not hurt their stock TR...but this notion of higher distributions has not gone away and cost these investors a lot of performance and money.
Many retirees fall into it too thinking they must have these higher distributions to survive. No, they don't, the following is an easy example how you can generate monthly distribution.
Suppose you have 1 million in Fidelity SP500 (FXAIX) and you want $4K monthly. You can create a sell monthly trade on a specific date to run for years to do it...and you are done.

Crash, technology isn't perfect, but the old ways isn't either. Technology has presented us with a lot more choices. Choices = a lot more development and interactions between systems.
I used to pay $1.5 per minute calling abroad, I have used WhatsApp for years paying nothing. Sure, sometimes it's not clear but it's FREE.
Google Maps gives you driving, walking, and public transportation for FREE. Yes, I know Google also gets the info they need to make money, but you have a choice. 40 years ago, you had no choices.
I like choices. Maybe you prefer to drive downtown to city hall, use gas, pay for parking, and pay your bill with cash, and spend 1-2 hours. I prefer paying online in one minute.
Sure, I don't like state/gov bureaucracy, I would fire tomorrow at least 20% of them.
A city near us did just that. They hired private companies to do a lot of stuff and that saved them a lot of money.

+1

I never paid attention to MM before 2022 and after that because I'm invested at 99+%, but I was in MM from 01/2022 to the beginning of 11/2022.

Of course you were LOL, Not bad but I moved everything into MM on 1/3/2022 and back into the market on 10/11/2022... SMH You're slipping... you missed the exact top and bottom by a few days.... SMH FD you're laughable... LOL
ADD: so you moved all your money into a MM fund paying ~0.05% at the time-- good move.

I never paid attention to MM before 2022 and after that because I'm invested at 99+%, but I was in MM from 01/2022 to the beginning of 11/2022.
To get the best Schwab MM you need one million. I bought all/most of the options(SNAXX,SUTXX,SCOXX) in our Trad IRA and transferred one share to Roth and Joint accounts. I reduced it to just one share so I can get back in when I need to.
In 2022 I felt more comfortable using Gov MM, when the risk went down, I used SNAXX.

guaranteed-income or lifetime-income ... Old name for these is annuities but that tainted term is now avoided.
Love it. See George Carlin's bit on euphemisms (shell shock)

Defined-benefit (DB) pensions have gone away except for some federal & state employees.
It certainly seems that way, but according to the latest BLS statistics, 15% of private industry workers have access to DB plans. More like an endangered species than extinct.
https://www.bls.gov/opub/ted/2024/15-percent-of-private-industry-workers-had-access-to-a-defined-benefit-retirement-plan.htm