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Schneider Small Cap Value Fund to be liquidated

edited May 15 in Fund Discussions
https://www.sec.gov/Archives/edgar/data/831114/000139834420010669/fp0053971_497.htm


497 1 fp0053971_497.htm

THE RBB FUND, INC.

Schneider Small Cap Value Fund
(the “Fund”)
_____________________________________________________________________________________

Supplement dated May 15, 2020
to the Prospectus and Statement of Additional Information,
each dated December 31, 2019
_____________________________________________________________________________________

At a meeting held on May 13-14, 2020, the Board of Directors (the “Board”) of The RBB Fund, Inc. (the “Company”), based upon the recommendation of Schneider Capital Management Company, the investment adviser to the Fund (the “Adviser”), approved a Plan of Liquidation and Termination for the Fund (the “Plan”). The Board concluded that it is in the best interest of the Fund and its shareholders that the Fund be closed and liquidated as a series of the Company effective as of the close of business on July 15, 2020.

The Adviser has determined to waive any applicable redemption fees for shares of the Fund redeemed on or after May 15, 2020.

Effective as of the close of business on May 25, 2020, in anticipation of the liquidation, the Fund will no longer accept purchases into the Fund. In addition, the Adviser is in the process of transitioning the Fund’s portfolio securities to cash and/or cash equivalents and the Fund will no longer be pursuing its stated investment objective.

Shareholders of the Fund may redeem their investments as described in the Fund’s Prospectus. The redemption of shares will generally be considered a taxable event.

If you hold shares of the Fund in an IRA account, you have 60 days from the date you receive your proceeds from the liquidation of the Fund (the “Proceeds”) to reinvest or “rollover” your Proceeds into another IRA and maintain their tax-deferred status. You must notify the Fund’s transfer agent by telephone at 1-888-520-3277 (toll free) prior to July 15, 2020, of your intent to rollover your IRA account to avoid withholding deductions from your Proceeds.

Pursuant to the Plan, if the Fund has not received your redemption request or other instruction prior to July 15, 2020, your shares will be automatically redeemed on July 15, 2020 at the closing net asset value per share, and you will receive your Proceeds from the Fund, subject to any required withholding. These Proceeds will generally be subject to federal and possibly state and local income taxes if the redeemed Fund shares are held in a taxable account, and the Proceeds exceed your adjusted basis in the Fund shares redeemed.

If the redeemed Fund shares are held in a qualified retirement account, such as an IRA, the redemption Proceeds may not be subject to current income taxation. You should consult with your tax advisor on the consequences of this redemption to you.

Shareholder inquiries should be directed to the Fund at 1-888-520-3277 (toll free).

* * * * *

Please retain this supplement for your reference.


(Disclosure: I have small positions in the this fund)

Comments

  • edited May 16
    A Three Alarm Fund.

    Over its 21.6 year life through April, it returned 7.9% per year, about 2.1% per year less than its peers.

    It incurred a 71.4 drawdown in 2009.

    It's a bottom quintile fund by every risk adjusted return measure.

    It currently has just $18M AUM.

    It started strong and performed fairly well in full cycle from 9/2000 to 10/2007.

    Then, lost its way.

    RIP.

    Hopefully, not precursor for the whole category!
  • This fund absolutley killed in from inception 2007. A $10,000 investment in 1998 was worth over $86,000 in 2007. Crazy!
  • edited May 20
    Here is a registration statement from 12/29/06 for RBB Funds:


    https://www.sec.gov/Archives/edgar/data/831114/000119312506261753/d485bpos.htm


    In 2003, Schnieder reported a return of 106.05%.
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