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Phaeacian Accent International Value & Global Value Funds to be liquidated

edited April 12 in Fund Discussions
https://www.sec.gov/Archives/edgar/data/1806095/000119312522101665/d250292d497.htm

(Both funds were previously FPA funds)

497 1 d250292d497.htm 497
DATUM ONE SERIES TRUST

Phaeacian Accent International Value Fund

Phaeacian Global Value Fund

Supplement dated April 11, 2022

to the Prospectus and Statement of Additional Information dated July 29, 2021

The Board of Trustees (the “Board”) of Datum One Series Trust has approved the liquidation and termination of the Phaeacian Accent International Value Fund and the Phaeacian Global Value Fund (each a “Fund” together the “Funds”). The Board approved the liquidation pursuant to the provisions of the Trust’s Amended and Restated Declaration of Trust after making a determination that the continuation of each Fund is not in the best interest of such Fund or in the best interest of the Fund’s respective shareholders.

Effective April 12, 2022, shares of the Funds will no longer be available for purchase by new or existing investors. The liquidation of the Funds is scheduled to take place on or about May 26, 2022 (the “Liquidation Date”).

On or before the Liquidation Date, each Fund will seek to convert substantially all of its respective portfolio securities and other assets to cash or cash equivalents. Therefore, each Fund may depart from its stated investment objectives and policies as it prepares to liquidate its assets and distribute them to shareholders. Any shares of a Fund outstanding on the Liquidation Date will be automatically redeemed on that date. As soon as practicable after the Liquidation Date, each Fund will distribute pro rata to the Fund’s shareholders of record as of the close of business on the Liquidation Date all of the remaining assets of such Fund, after paying, or setting aside the amount to pay, any expenses and liabilities of the Fund. At any time prior to the Liquidation Date shareholders may redeem their shares of a Fund pursuant to the procedures set forth under “How to Redeem Shares” in the Funds’ Prospectus.

The Funds may each make one or more distributions of income and/or net capital gains on or prior to the Liquidation Date in order to eliminate Fund-level taxes. For taxable shareholders, the automatic redemption on the Liquidation Date generally will be treated like other redemptions of shares generally, that is, as a sale by the shareholder that may result in a gain or loss to the shareholder for U.S. federal income tax purposes.

This Supplement and the Prospectus should be retained for future reference.

Comments

  • These used to be FPA funds. 3 managers from FPA split in November 2020 from FPA and took their funds to a new partnership/joint-venture called Phaeacian Partners with the UK's Polar Capital (55% owner). I am surprised about the liquidations so soon.

    https://www.barrons.com/articles/why-a-top-international-value-fund-has-a-new-name-but-same-strategy-51605715976
    https://www.phaeacianpartners.com/
  • Wouldn't have hurt to have a pronounceable name.
  • Actually, I've never known anyone who spoke with a Phaeacian Accent. I don't think it's anything like Gaelic.
  • Sorry to see these two go. International Value still has a strong long-term record--3, 5 and 10 years. Key man risk I imagine. As for a pronounceable name, well, isn't that like an American saying at a shop overseas, "What's this in real money?"
  • https://www.ancient-origins.net/myths-legends/mythic-scheria-and-legendary-phaeacians-001034
    Scheria is a mythical place in ancient Greek mythology that was the home of the legendary and mysterious Phaeacians, who were known to be masters of the seas. The first reference to this place is found in Homer’s Odyssey.

    If we start with the etymology of the word Phaeacians, we will see that the first part ‘Phaios’ means ‘Grey’, probably referring to them as dark skin people. According to Homer, the kings of the Phaeacians where ancestors of the God Poseidon and started with one of his sons, Phaeax.

    Phaeacians were the beloved of the Gods but also friends to humans. Their place of abode was initially mentioned to be far away at the end of the world. They were relatives to the Gods in the same way as Cyclopes and Giants were too. When Cyclopes attacked the Phaeacians then they had to move to Scheria the ‘island of the Phaeacians’, which was probably an island of unknown location (I say probably because Homer doesn’t clarify if it was an island or a place next to the sea).

    The island of the Phaeacians was the last destination of Odysseus before arriving to Ithaca. Therefore, we could assume that it could be a place close to Ithaca. That assumption gave birth to the suggestion that the island of the Phaeacians was the Greek island Corfu. Corfu is one island close to Ithaca and it matches the description of Scheria in the Odyssey. However, no excavations have brought to the surface any evidence for the mythical civilization of the Phaeacians. Furthermore, the island is so close to Ithaca that it wouldn’t have taken one night for Odysseus to arrive, as written in the Odyssey.
    I'm trying to imagine the meeting where someone said

    "I know. We'll call ourselves Phaeacian!"

    And everyone says

    "Yeah. That's a great idea!"
  • I'm trying to imagine the meeting where someone said

    "I know. We'll call ourselves Phaeacian!"

    And everyone says

    "Say what?"
  • LewisBraham, You mentioned key man risk. Did something happen to Pierre Py? Does anyone know why the funds closed out of the blue? Thanks.
  • I haven’t heard anything specifically, but that is a primary risk at small boutique funds where one person is vital to the organization.
  • In its 5/24/21 issue, Barron's noted that value had been down for so long that many older value managers died, retired, quit or became GARP managers. But it identified a handful of the "next generation" of value managers who had at least 10+ years of career ahead of them. Ironically, Pierre Py was among those. May be it is just a business setback for him. https://ybbpersonalfinance.proboards.com/post/140/thread
  • edited April 12
    Here it is mentioned in a SEC filing about "key person" risk:

    https://www.sec.gov/ix?doc=/Archives/edgar/data/1806095/000119312522016075/d279069d497.htm

    They added an additional manager to assist.
  • edited April 13
    I used to own IVA worldwide and that was a tragic ending to DeVaulx the fund manager. The other co-manager left prior to DeVaulx shutting operations down. Very sad. Hopefully that is not what is going on at Phaeacian. However, I sold all my shares and I am moving on. I might be the last person on this earth who wants to give active (mostly value) management a shot despite all the research saying passive is the way to go.
  • ET91 FWIW you may wish to look at POIVX. https://imgpfunds.com/funds/oldfield-international-value-fund/

    M* https://www.morningstar.com/funds/xnas/poivx/quote

    Perhaps others can suggest appropriate passive international value choices.
  • HFQAX is an interesting active one. VTRIX gives you active management for factor-index ETF prices. QUSOX is interesting for small-caps. DFIV for ETFs.
  • edited April 14
    Hi Dennis Baran and LewisBraham, Thank you for the info. I also own ARTKX (Artisan international value), DODFX (Dodge & Cox International) and ARTJX (Artisan international small-mid). PPIVX was my defensive international fund since it owned at times more cash than ARTKX, ARTJX and DODFX. According to Morningstar, Pierre left LA so that triggered fund closure. Apparently terms with Polan called for Pierre to stay in LA. Sounds a little weird in this day of age with zoom,.. Yes, I do own a lot of fund. I invested in PPIVX thinking that fund that are just created (i.e. new funds) have less AUM and thus can be nimble and possibly outperform.
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