Walthausen Focused Small Cap Value Fund to be liquidated

https://www.sec.gov/Archives/edgar/data/1418191/000141304222000878/walthfocusedsupp.htm

497 1 walthfocusedsupp.htm


WALTHAUSEN FUNDS
Walthausen Focused Small Cap Value Fund (WSVIX)

Supplement dated October 20, 2022 to
the Prospectus dated June 1, 2022

The Board of Trustees of Walthausen Funds (the “Board”) has determined based on the recommendation of the investment adviser of the Walthausen Focused Small Cap Value Fund (the “Fund”), that it is in the best interests of the Fund and its shareholders that the Fund cease operations. The Board has determined to close the Fund and redeem all outstanding shares on or about November 21, 2022.

Effective at the close of business October 20, 2022, the Fund will not accept any purchases and will no longer pursue its stated investment objectives. The Fund may begin liquidating its portfolio and may invest in cash equivalents such as money market funds until all shares have been redeemed. Any capital gains and ordinary income will be distributed as soon as practicable to shareholders. Shares of the Fund are otherwise not available for purchase.

Prior to November 21, 2022, you may redeem your shares, including reinvested distributions, in accordance with the “Instructions For Selling Fund Shares” section in the Prospectus. Unless your investment in the Fund is through a tax-deferred retirement account, a redemption is subject to tax on any taxable gains. Please refer to the “Dividends and Distributions” and “Taxes” sections in the Prospectus for general information. You may wish to consult your tax advisor about your particular situation.

ANY SHAREHOLDERS WHO HAVE NOT REDEEMED THEIR SHARES OF THE FUNDS PRIOR TO NOVEMBER 21, 2022 WILL HAVE THEIR SHARES AUTOMATICALLY REDEEMED AS OF THAT DATE, AND PROCEEDS WILL BE SENT TO THE ADDRESS OF RECORD. IF YOU HAVE QUESTIONS OR NEED ASSISTANCE, PLEASE CONTACT YOUR FINANCIAL ADVISOR DIRECTLY OR THE FUNDS AT 1-888-925-8428.

IMPORTANT INFORMATION FOR RETIREMENT PLAN INVESTORS

If you are a retirement plan investor, you should consult your tax advisor regarding the consequences of a 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 June 1, 2022, provide relevant information for all shareholders and should be retained for future reference. Both the Prospectus and the Statement of Additional Information dated June 1, 2022, have been filed with the Securities and Exchange Commission, are incorporated by reference and can be obtained without charge by calling the calling the Fund at 1-888-925-8428 or by visiting the Fund’s website at www.walthausenfunds.com.