NOTICE: 2020 Capital Gains Available. View PDF here.

Fund Goal

To pursue its objective, under normal circumstances, the Fund invests at least 80% of its net assets in a diversified portfolio of common stocks of Mid Cap U.S. companies that demonstrate governance diversity and leadership.

Process

Cavanal Hill's Mid Cap Diverse Leadership Fund employs a quantitative approach that utilizes our best ideas for selecting stocks while also keeping a watchful eye on risk management.

Our data-driven research provides us with guidelines for the investment themes which, we believe, have a better chance of success over the long term and which ones work more reliably in a given set of circumstances. This research, combined with constant monitoring of the economic landscape and sophisticated analytics, gives us the ability to build a portfolio that we believe is suited not only to what the market finds important today, but also to what it may value tomorrow.

The portfolio management team's final investment secletion process continues to favor companies with strong governance, diversity and leadership ESG screening criteria rankings relative to industry peers. The risk ratings, combined with qualitative analyses, of key governance, diversity and leadership performance indicators are given more or less relative weight compared to the broader range of potential assessment categories.

This process not only guides us in selecting individual stocks, it is also a key element of managing the funds' overall risk. Further, it provides a broader view of what's going on in the market, where we believe the best ideas are coming from now, and where we should be looking in the future. Overall, having a process that can potentially successfully navigate the market's twists and turns is essential to generating better risk-adjusted outcomes over the long run.

Market Concerns

Loss of money is a risk of investing in the Fund. In addition, the principal risks of investing in the Fund, which could adversely affect the Fund’s net asset value, yield or total return are: The market value of a security may move up and down, sometimes rapidly and unpredictably. The risk that the stocks of mid-capitalization companies often have greater price volatility, lower trading volume, and less liquidity than the stocks of larger, more established companies. The value of a security may decline for a number of reasons which directly relate to the issuer, such as management performance, earnings and sales trends, investor perceptions, financial leverage or reduced demand for the issuer’s goods or services. Small cap companies may be more vulnerable to adverse business or economic developments. They may also be less liquid and/or more volatile than securities of larger companies or the market averages in general. Small cap companies may be adversely affected during periods when investors prefer to hold securities of large capitalization companies. A Fund may engage in active and frequent trading to achieve its principal investment objectives. This may result in the realization and distribution to shareholders of higher capital gains as compared to a fund with less active trading policies, which would increase and investor’s tax liability unless shares are held through a tax deferred or exempt vehicle. Frequent trading also increases transaction costs, which could detract from a Fund’s performance. There is no guarantee that the investment techniques and analyses used by the Fund’s portfolio managers will produce the desired results. In making investment consistent with ESG considerations, the Fund may choose to sell, or not to purchase, investments that are otherwise consistent with its investment objective. The application of ESG criteria will affect he Fund’s exposure to certain issuers, industries, sectors, regions and countries and my impact the relative financial performance of the Fund – positively or negatively – depending on whether such investments are in or out of favor. Investment selected using quantitative methods employ models that are built, developed, and tested using historical data in a predictive fashion. The success of such models depend on a number of factors, including the validity, accuracy and completeness of the model’s development, implementation and maintenance, the model’s assumptions, factors, algorithms and methodologies, and the accuracy and reliability of the historical data. While historical relationships can be measured and quantified, there is no guarantees that such relationships will persist going forward. Data for some companies may be less available, less current or inaccurate and investment selection could be adversely affected if erroneous or outdated data is utilized. The weight placed on a particular data characteristic in the model or changes in the market may cause performance to differ from what the model predicts or the market as a whole. There can be no assurance that quantitative methodologies will enable the Fund to achieve its objective. Higher transaction costs, delayed settlements, currency controls or adverse economic and political developments may affect foreign investments.

To the extent that the Fund makes investments with additional risks, those risks could increase volatility or reduce performance. The Fund may trade securities actively, which could increase its transaction costs (thus lowering performance) and may increase the amount of taxes that you pay.

Morningstar Ratings

Overall Morningstar rating out of 376 US OE Fund Mid-Cap lend (for the overall period ending 12/31/2020, Institutional Shares)

Rating
Overall Morningstar Rating
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Cavanal Hill Mid Cap Core Fund was rated against the following numbers of US OE Fund Mid-Cap Blend over the following time periods: 376 funds in the last three years. Past performance is no guarantee of future results.
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Morningstar Rankings

Category: US OE Fund Mid-Cap Blend (as of 12/31/2020)

RankPercentile
1 Year137/40933
3 Year153/37642

Rankings are for Institutional Class and are based on total return excluding sales charges, independently calculated and not combined to create an overall ranking. For periods not shown, Morningstar does not provide rankings based on synthetic performance.

Morningstar rankings are based on a fund's average annual total return relative to all funds in the same Morningstar category. Fund performance used within the rankings, reflects certain fee waivers, without which, returns and Morningstar rankings would have been lower. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100.

© 2021 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

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Lipper Leaders Designation

  • 5
    Expense
    Lipper Leader
    Expense
    (A and Investor Shares)

Lipper Rankings

Category: Lipper Mid-Cap Core Funds (as of 12/31/2020)

RankPercentile
1 Year83/34025
3 Year97/31431
Rankings are for Institutional Class and are based on average annual total returns, but do not consider sales charges.The Lipper ratings for Expense identify a fund that has successfully managed to keep its expenses low relative to its peers and within its load structure. The Lipper Mutual funds Average is an equally weighted average of the mutual funds within their respective Lipper classification, adjusted for reinvestment of capital gains distributions and income dividends. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperweb.com. Thomson Reuters Copyright 2021, all rights reserved.
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Fund Information as of 1/31/21

Class AClass CInvestorInstitutional
Net Asset Value$11.90$11.59$11.83$11.84
SymbolAAWVXACWVXAPWVXAIWVX
CUSIP14956P48914956P47114956P46314956P455
Inception12/30/1612/30/1612/30/1612/30/16
Gross Expense Ratio13.12%14.02%13.27%13.02%
Net Expense Ratio1.06%1.81%1.06%0.81%

Fund Statistics as of 12/31/20

Total Net Assets$1,114,784
Number of Holdings128
Turnover Ratio112.62%
Trailing 4 Quarters P/E Ratio21.7x
Mean (Average) Market Capitalization$17.8 bil.

Currently, contractual fee waivers are in effect from December 28, 2020 through December 31, 2021.

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