0001193125-20-192510.txt : 20200714 0001193125-20-192510.hdr.sgml : 20200714 20200714141600 ACCESSION NUMBER: 0001193125-20-192510 CONFORMED SUBMISSION TYPE: DEF 14A PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20200831 FILED AS OF DATE: 20200714 DATE AS OF CHANGE: 20200714 EFFECTIVENESS DATE: 20200714 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WASATCH FUNDS TRUST CENTRAL INDEX KEY: 0000806633 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: DEF 14A SEC ACT: 1934 Act SEC FILE NUMBER: 811-04920 FILM NUMBER: 201026963 BUSINESS ADDRESS: STREET 1: 505 WAKARA WAY STREET 2: SUITE 300 CITY: SALT LAKE CITY STATE: UT ZIP: 84108 BUSINESS PHONE: 8015330777 MAIL ADDRESS: STREET 1: 505 WAKARA WAY STREET 2: SUITE 300 CITY: SALT LAKE CITY STATE: UT ZIP: 84108 FORMER COMPANY: FORMER CONFORMED NAME: WASATCH FUNDS INC DATE OF NAME CHANGE: 19990714 FORMER COMPANY: FORMER CONFORMED NAME: WASATCH ADVISORS FUNDS INC DATE OF NAME CHANGE: 19920703 0000806633 S000018772 Wasatch Emerging Markets Small Cap Fund C000051938 Investor Class shares WAEMX C000166039 Institutional Class Shares WIEMX 0000806633 S000031426 Wasatch Emerging India Fund C000097757 Investor Class shares WAINX C000166041 Institutional Class Shares WIINX 0000806633 S000035891 Wasatch Frontier Emerging Small Countries Fund C000110019 Investor Class Shares WAFMX C000166042 Institutional Class Shares WIFMX 0000806633 S000038937 Wasatch Emerging Markets Select Fund C000119725 Investor Class shares WAESX C000119726 Institutional Class shares WIESX DEF 14A 1 d947649ddef14a.htm WASATCH FUNDS TRUST Wasatch Funds Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON D.C. 20549

SCHEDULE 14A

(Rule 14a-101)

INFORMATION REQUIRED IN PROXY STATEMENT

SCHEDULE 14A INFORMATION

Proxy Statement Pursuant to Section 14(a) of the Securities

Exchange Act of 1934 (Amendment No. [    ] )

Filed by the Registrant [X]

Filed by a Party other than the Registrant [   ]

Check the appropriate box:

[   ] Preliminary Proxy Statement

[   ] Confidential, For Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

[X] Definitive Proxy Statement

[   ] Definitive Additional Materials

[   ] Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12

WASATCH FUNDS TRUST

 

 

(Name of Registrant as Specified In Its Charter)

 

 

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

[X] No fee required

[   ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.

(1) Title of each class of securities to which transaction applies:

 

 

 

(2) Aggregate number of securities to which transaction applies:

 

 

 

(3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it was determined):

 

 

 

(4) Proposed maximum aggregate value of transaction:

 

 

 

(5) Total fee paid:

 

 

 

 

[   ] Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.

(1) Amount Previously Paid:

 

 

 

(2) Form, Schedule or Registration Statement No.:

 

 

 

(3) Filing Party:

 

 

 

(4) Date Filed:

 

 

 

 


WASATCH FUNDS TRUST

 

    

Investor

Class

     Institutional
Class

Wasatch Emerging India Fund ®

   WAINX      WIINX

Wasatch Emerging Markets Select Fund®

   WAESX      WIESX

Wasatch Emerging Markets Small Cap Fund®

   WAEMX      WIEMX

Wasatch Frontier Emerging Small Countries Fund®

   WAFMX      WIFMX

(each, a “Fund”, collectively, the “Funds”)

505 Wakara Way, 3rd Floor

Salt Lake City, Utah 84108

July 14, 2020

Dear Wasatch Funds Shareholder:

Please take note that a Joint Special Meeting of Shareholders of Wasatch Emerging India Fund, Wasatch Emerging Markets Select Fund, Wasatch Emerging Markets Small Cap Fund and Wasatch Frontier Emerging Small Countries Fund, each a separate series of Wasatch Funds Trust (the “Trust”), will be held on Monday, August 31, 2020, at the offices of Wasatch Funds Trust, 505 Wakara Way, 3rd Floor, Salt Lake City, Utah 84108 at 10:00 a.m., Mountain time (the “Meeting”). However, as we are concerned about your health and safety during the current coronavirus (COVID-19) pandemic, we intend to monitor the recommendations of public health officials and governmental restrictions as the situation continues to evolve. If we decide to hold a meeting at a different time, in a different location, or partially or entirely by means of remote communication (i.e., a virtual meeting), we will announce any such updates by means of a press release, which will be posted on our website at wasatchglobal.com. We encourage you to check the website prior to the Meeting if you plan to attend the Meeting. An announcement of any change will also be filed with the Securities and Exchange Commission via its EDGAR system.

The purpose of the Meeting is to ask shareholders to consider and vote upon the proposal(s) applicable to their Fund(s):

 

     Proposal(s)    Fund(s) Affected
1.    To change the classification of the Wasatch Emerging India Fund from a “diversified” company to a “non-diversified” company;    Wasatch Emerging India Fund
2.    To change the classification of the Wasatch Emerging Markets Select Fund from a “diversified” company to a “non-diversified” company;    Wasatch Emerging Markets Select Fund

 

1


     Proposal(s)    Fund(s) Affected
3.    To change the classification of the Wasatch Emerging Markets Small Cap Fund from a “diversified” company to a “non-diversified” company;    Wasatch Emerging Markets Small Cap Fund
4.    To change the classification of the Wasatch Frontier Emerging Small Countries Fund from a “diversified” company to a “non-diversified” company; and    Wasatch Frontier Emerging Small Countries Fund
5.    To transact such other business as may properly come before the Meeting and any adjournments or postponements thereof.    Wasatch Emerging India Fund, Wasatch Emerging Markets Select Fund, Wasatch Emerging Markets Small Cap Fund and Wasatch Frontier Emerging Small Countries Fund

The Board of Trustees of the Trust (referred to as the “Board”) has unanimously approved each Proposal to change the respective Fund’s classification to non-diversified and determined that each Proposal is in the best interests of the applicable Fund and their respective shareholders. Accordingly, the Board of Trustees recommends that shareholders vote “FOR” Proposal 1, Proposal 2, Proposal 3 and Proposal 4, as applicable.

We strongly invite your participation by asking you to review these materials and complete and return your proxy card as soon as possible.

Detailed information about each proposal is contained in the enclosed materials. Please exercise your right to vote by completing, dating and signing the enclosed proxy card. A self-addressed, postage-paid envelope has been enclosed for your convenience. Alternatively, you may vote by telephone or via the internet following the instructions on the proxy card. It is very important that you vote and that your voting instructions be received no later than 8:00 a.m. Mountain time on August 31, 2020.

NOTE: You may receive more than one proxy package if you hold shares in more than one account. You must return separate proxy cards for separate holdings. We have provided postage-paid return envelopes for each, which require no postage if mailed in the United States.

If you have any questions after considering the enclosed materials, please call 800.769.4414.

Sincerely,

/s/ Russell L. Biles

Russell L. Biles

Secretary

Wasatch Funds Trust

 

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WASATCH FUNDS TRUST

 

    

Investor

Class

     Institutional
Class

Wasatch Emerging India Fund ®

   WAINX      WIINX

Wasatch Emerging Markets Select Fund®

   WAESX      WIESX

Wasatch Emerging Markets Small Cap Fund®

   WAEMX      WIEMX

Wasatch Frontier Emerging Small Countries Fund®

   WAFMX      WIFMX

(each, a “Fund”, collectively, the “Funds”)

505 Wakara Way, 3rd Floor

Salt Lake City, Utah 84108

NOTICE OF JOINT SPECIAL MEETING OF SHAREHOLDERS

TO BE HELD AUGUST 31, 2020

To the Shareholders:

Wasatch Funds Trust (the “Trust”), on behalf of Wasatch Emerging India Fund, Wasatch Emerging Markets Select Fund, Wasatch Emerging Markets Small Cap Fund, and Wasatch Frontier Emerging Small Countries Fund, each a series of the Trust, will be held on Monday, August 31, 2020, at the offices of Wasatch Funds Trust, 505 Wakara Way, 3rd Floor, Salt Lake City, Utah 84108 at 10:00 a.m., Mountain time (the “Meeting”) for the following purposes:

 

     Proposal(s)    Fund(s) Affected
1.    To change the classification of the Wasatch Emerging India Fund from a “diversified” company to a “non-diversified” company;    Wasatch Emerging India Fund
2.    To change the classification of the Wasatch Emerging Markets Select Fund from a “diversified” company to a “non-diversified” company;    Wasatch Emerging Markets Select Fund
3.    To change the classification of the Wasatch Emerging Markets Small Cap Fund from a “diversified” company to a “non-diversified” company;    Wasatch Emerging Markets Small Cap Fund
4.    To change the classification of the Wasatch Frontier Emerging Small Countries Fund from a “diversified” company to a “non-diversified” company; and    Wasatch Frontier Emerging Small Countries Fund

 

1


     Proposal(s)    Fund(s) Affected
5.    To transact such other business as may properly come before the Meeting and any adjournments or postponements thereof.    Wasatch Emerging India Fund, Wasatch Emerging Markets Select Fund, Wasatch Emerging Markets Small Cap Fund and Wasatch Frontier Emerging Small Countries Fund

However, as we are concerned about your health and safety during the current coronavirus (COVID-19) pandemic, we intend to monitor the recommendations of public health officials and governmental restrictions as the situation continues to evolve. If we decide to hold a meeting at a different time, in a different location, or partially or entirely by means of remote communication (i.e., a virtual meeting), we will announce any such updates by means of a press release, which will be posted on our website at wasatchglobal.com. We encourage you to check the website prior to the Meeting if you plan to attend the Meeting. An announcement of any change will also be filed with the Securities and Exchange Commission via its EDGAR system.

You are entitled to vote at the Meeting and any adjournment(s) or postponement(s) thereof if you owned shares of a Fund at the close of business on June 22, 2020.

All shareholders are cordially invited to attend the Meeting. Whether or not you plan to attend the Meeting, please vote your shares. In order that your shares may be represented at the Meeting, please vote your proxy as soon as possible either by mail, telephone, or via the internet as indicated on the enclosed proxy card. If voting by mail, you are requested to:

 

   

indicate your instructions on the proxy card;

   

date and sign the proxy card;

   

mail the proxy card promptly in the enclosed envelope which requires no postage if mailed in the continental United States; and

   

allow sufficient time for the proxy card to be received by 8:00 a.m. Mountain Time on the date of the shareholder meeting.

In addition to voting by mail, you may also vote by either telephone or via the internet, as follows:

 

To vote by telephone:    To vote by internet:

(1)   Read the Proxy Statement and have your proxy card at hand.

  

(1)   Read the Proxy Statement and have your proxy card at hand.

(2)   Call the toll-free number that appears on your proxy card.

  

(2)   Go to the website that appears on your proxy card.

(3)   Enter the control number set forth on the proxy card and follow the simple instructions.

  

(3)   Enter the control number set forth on the proxy card and follow the simple instructions.

 

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We encourage you to vote by telephone or via the internet using the control number that appears on your enclosed proxy card. Use of telephone or internet voting will reduce the time and costs associated with this proxy solicitation. Whichever method you choose, please read the enclosed proxy statement carefully before you vote.

IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE SPECIAL SHAREHOLDER MEETING TO BE HELD ON AUGUST 31, 2020. The Proxy Statement is available on the internet at:

https://vote.proxyonline.com/wasatch/docs/proxy2020.pdf

PLEASE NOTE: If the Funds decide to hold the Meeting at a different time, in a different location, or partially or entirely by means of remote communication (i.e., a virtual meeting), an announcement of any such updates will be provided by means of a press release, which will be posted on our website at wasatchglobal.com. We encourage you to check the website prior to the Meeting if you plan to attend the Meeting. An announcement of any change will also be filed with the Securities and Exchange Commission via its EDGAR system. You do not need to attend the Meeting if you submit your votes on the proposals by proxy promptly.

PLEASE RESPOND — WE ASK THAT YOU VOTE PROMPTLY IN ORDER TO AVOID THE ADDITIONAL EXPENSE OF FURTHER SOLICITATION. YOUR VOTE IS IMPORTANT.

By Order of the Board of Trustees,

/s/ Russell L. Biles

Russell L. Biles

Secretary

July 14, 2020

 

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WASATCH FUNDS TRUST

 

    

Investor

Class

    

Institutional

Class

Wasatch Emerging India Fund ®

   WAINX      WIINX

Wasatch Emerging Markets Select Fund®

   WAESX      WIESX

Wasatch Emerging Markets Small Cap Fund®

   WAEMX      WIEMX

Wasatch Frontier Emerging Small Countries Fund®

   WAFMX      WIFMX

(each, a “Fund”, collectively, the “Funds”)

505 Wakara Way, 3rd Floor

Salt Lake City, Utah 84108

Proxy Statement

Joint Special Meeting of Shareholders

to be held on August 31, 2020

This Proxy Statement is being furnished to you in connection with the solicitation of proxies by the Board of Trustees (the “Board” or “Trustees”) of Wasatch Funds Trust (the “Trust”), on behalf of each of the Funds named above, each a series of the Trust, to be voted at a Joint Special Meeting of Shareholders to be held on Monday, August 31, 2020, at the offices of Wasatch Funds Trust, 505 Wakara Way, 3rd Floor, Salt Lake City, Utah 84108 at 10:00 a.m., Mountain time (the “Meeting”) and at any and all adjournments, postponements or delays thereof, for the purposes set forth below and described in greater detail in this Proxy Statement. The date of the first mailing of proxy cards and this Proxy Statement to shareholders will be on or about July 16, 2020.

At the Meeting, shareholders of a Fund will be asked to consider and vote upon the proposals applicable to their Fund. The table below shows each proposal and the Fund whose shareholders are entitled to vote on it. The proposals are discussed in detail in the Proxy Statement.

 

     Proposal(s)   

Fund(s) Affected

(Institutional Class and Investor

Class for each Fund)

1.    To change the classification of the Wasatch Emerging India Fund from a “diversified” company to a “non-diversified” company;    Wasatch Emerging India Fund
2.    To change the classification of the Wasatch Emerging Markets Select Fund from a “diversified” company to a “non-diversified” company;    Wasatch Emerging Markets Select Fund

 

1


     Proposal(s)   

Fund(s) Affected

(Institutional Class and Investor

Class for each Fund)

3.    To change the classification of the Wasatch Emerging Markets Small Cap Fund from a “diversified” company to a “non-diversified” company;    Wasatch Emerging Markets Small Cap Fund
4.    To change the classification of the Wasatch Frontier Emerging Small Countries Fund from a “diversified” company to a “non-diversified” company; and    Wasatch Frontier Emerging Small Countries Fund
5.    To transact such other business as may properly come before the Meeting and any adjournments or postponements thereof.    Wasatch Emerging India Fund, Wasatch Emerging Markets Select Fund, Wasatch Emerging Markets Small Cap Fund and Wasatch Frontier Emerging Small Countries Fund

Proposal 1, Proposal 2, Proposal 3 and Proposal 4 are each considered a “Proposal” and collectively, the “Proposals”.

You are entitled to vote at the Meeting and any adjournment(s) or postponement(s) if you owned shares of the applicable Fund at the close of business on June 22, 2020 (the “Record Date”). Each shareholder is entitled to one vote for each whole share owned on the Record Date and proportionate fractional vote for any fraction of a share owned.

Only shareholders of record at the close of business on the Record Date will be entitled to notice of, and to vote at, the Meeting. Shares represented by proxies, unless previously revoked, will be voted at the Meeting in accordance with the instructions of the shareholders. If no instructions are given, the proxies will be voted in favor of the Proposal for the respective Fund. To revoke a proxy, the shareholder giving such proxy must either (1) submit to the respective Fund a subsequently dated proxy, (2) deliver to the respective Fund a written notice of revocation, or (3) attend the Meeting or adjournment or postponement thereof and vote his or her shares in person, in all cases prior to the exercise of the authority granted in the proxy. A subsequently dated proxy or written notice of revocation shall be submitted to the Secretary of the Trust, 505 Wakara Way, 3rd Floor, Salt Lake City, Utah 84108.

For each Proposal, the holders of outstanding shares entitled to vote and present in person or by proxy representing thirty percent (30%) of the voting power of the respective Fund at the Meeting shall constitute a quorum for purposes of voting upon the Proposal at the Meeting for that Fund. A quorum of shareholders is necessary to take action at the Meeting for such Fund.

If a quorum is not present either in person or by proxy for a matter to be considered at the Meeting for a respective Fund, the Chair of the Board or her designee

 

2


presiding at the Meeting or if the Chair is not present at the Meeting and there is no such designee, the most senior officer of the Trust present at the Meeting shall preside at the Meeting and may adjourn the Meeting with respect to one or more matters for a Fund to a date that may be more than 120 days after the date set for the original Meeting. The Meeting for a Fund may, by motion of the presiding Trustee or officer of the Trust thereat, be adjourned with respect to one or more matters to be considered at such Meeting for such Fund, even if a quorum is present with respect to such matters, when such adjournment is approved by the vote of holders of shares representing a majority of the voting power of the shares present and entitled to vote of the respective Fund with respect to the matter or matters adjourned. Unless a proxy is otherwise limited in this regard, any shares present and entitled to vote at a meeting that are represented by broker non-votes may, at the discretion of the proxies named therein, be voted in favor of such adjournment.

If a shareholder wishes to participate in the Meeting, but does not wish to authorize the execution of a proxy by telephone or through the internet, the shareholder may still submit the proxy form included with this Proxy Statement by mail or attend the Meeting in person.

THE MOST RECENT ANNUAL REPORT OF THE TRUST, INCLUDING FINANCIAL STATEMENTS, FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2019 AND THE MOST RECENT SEMI-ANNUAL REPORT OF THE TRUST, INCLUDING FINANCIAL STATEMENTS, FOR THE PERIOD ENDED MARCH 31, 2020 HAVE BEEN MAILED PREVIOUSLY TO SHAREHOLDERS. IF YOU WOULD LIKE TO RECEIVE ADDITIONAL COPIES OF THESE SHAREHOLDER REPORTS FREE OF CHARGE, OR COPIES OF ANY SUBSEQUENT SHAREHOLDER REPORT, PLEASE CONTACT THE TRUST BY WRITING TO THE ADDRESS SET FORTH ON THE FIRST PAGE OF THIS PROXY STATEMENT OR BY CALLING 800.551.1700 OR WRITING TO WASATCH FUNDS AT P.O. BOX 2172, MILWAUKEE, WISCONSIN 53201-2172. REQUESTED SHAREHOLDER REPORTS WILL BE SENT BY FIRST CLASS MAIL WITHIN THREE BUSINESS DAYS OF THE RECEIPT OF THE REQUEST.

IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE SHAREHOLDER MEETING TO BE HELD ON AUGUST 31, 2020. This Proxy Statement is available on the internet at: https://vote.proxyonline.com/wasatch/docs/proxy2020.pdf. The Trust’s most recent annual and semi-annual reports are also available on the internet at: wasatchglobal.com by selecting the tab labeled “Resources-Mutual Funds Literature.”

PLEASE NOTE: We are concerned about your health and safety during the current coronavirus (COVID-19) pandemic, we intend to monitor the recommendations of public health officials and governmental restrictions as the situation continues to evolve. If we decide to hold a meeting at a different time, in a different location, or partially or entirely by means of remote communication (i.e., a virtual meeting), we will

 

3


announce any such updates by means of a press release, which will be posted on our website at wasatchglobal.com. We encourage you to check the website prior to the Meeting if you plan to attend the Meeting. An announcement of any change will also be filed with the Securities and Exchange Commission via its EDGAR system.

PROPOSAL 1, PROPOSAL 2, PROPOSAL 3 AND PROPOSAL 4

Change in Classification from

“Diversified” Company to “Non-Diversified” Company

Discussion of the Proposals

Q.               What are shareholders of the Funds being asked to approve?

A.               Shareholders of each Fund are being asked to approve a change in the classification of their respective Fund from a “diversified” Fund to a “non-diversified” Fund under the securities laws as described in the table above. Each Fund’s shareholders will only be voting on the Proposal affecting their respective Fund.

Q.               What is the difference between a “diversified” and a “non-diversified” fund?

A.               Under the Investment Company Act of 1940, as amended (the “1940 Act”), every mutual fund must be classified as either a “diversified” fund or a “non-diversified” fund” within the meaning of the 1940 Act. A diversified fund is limited as to the amount of assets it may invest in any single issuer. Under the 1940 Act, a diversified fund may not, with respect to 75% of its total assets, invest in securities of any issuer if, as a result of such investment, (i) more than 5% of the value of the fund’s total assets would be invested in securities of any one issuer, or (ii) the fund would hold more than 10% of the outstanding voting securities of any one issuer. These percentages do not apply to securities issued or guaranteed by the U.S. government, its agencies or instrumentalities, or to repurchase agreements fully collateralized by U.S. government obligations. These limits apply at the time a diversified fund purchases a security; a diversified fund may exceed these limits if positions it already holds increase in value relative to the rest of the fund’s holdings. In contrast, a non-diversified fund is not subject to the limits of a diversified fund; it may invest a greater percentage of its assets in a single issuer or a fewer number of issuers than a diversified fund.

Each Fund is currently classified as a diversified fund, and the 1940 Act requires shareholders to approve a change in a fund’s classification from a diversified fund to a non-diversified fund. If shareholders of a Fund approve the reclassification for their Fund, such Fund will no longer be subject to the investment restrictions for a diversified fund under the 1940 Act.

Q.               Why are shareholders being asked to approve changing the classification of their Fund to “non-diversified”?

A.               Wasatch Advisors, Inc. (the “Advisor”) and the Board seek shareholder approval to reclassify their Fund as “non-diversified” under the securities laws.

 

4


When each Fund commenced operations, the respective Fund was originally classified as a non-diversified fund. However, each Fund has operated as diversified for more than three consecutive years. According to the rules under the 1940 Act, a non-diversified fund that operates as a diversified fund for three consecutive years will automatically become diversified notwithstanding its original classification as a non-diversified fund. In such case, shareholder approval is required to change a fund’s classification from diversified to non-diversified.

The Advisor believes, based on its review of its investment process, that each Fund and its shareholders may benefit if the Fund is operated as a “non-diversified” Fund. Based on its experience and investment analysis, the Advisor believes that generally the ability for a Fund to invest more significantly in fewer securities may enhance the probability of improved performance over the long term. As a result, the Advisor has noted that it has over the past few years generally trended toward investing a larger percentage of a Fund’s assets in the securities of fewer companies in which the Advisor has the most conviction (subject to exception for the Wasatch Emerging Markets Select Fund which generally maintained a similar number of holdings in its portfolio). In developing its recommendation, the Advisor considered, among other things, the decreasing number of holdings in each Fund’s portfolios (except the Wasatch Emerging Markets Select Fund) from December 1, 2010 through April 1, 2020 (or such shorter period to the extent the Fund was not in existence during such period)(the “Review Period”); the relative weight allocated to the top 30 names in the Fund’s portfolio over the Review Period; the relative percentage of performance that was derived from the top 10 securities held in the respective Fund for each of the calendar years since 2011 (or such shorter periods to the extent the respective Fund was not in existence); the performance of the top 30 securities held in the Fund’s portfolio compared to the performance of the entire Fund for certain periods; and certain data reflecting the current weights of any securities representing over 5% of a Fund’s portfolio as of June 1, 2020. The Advisor also has recognized that as a result of market appreciation, the Advisor at times has reduced the size of certain Funds’ holdings in particular securities to maintain compliance with the investment limitations imposed on diversified funds by the 1940 Act when it would not otherwise have reduced these holdings.

If shareholders approve the reclassification of their respective Fund, the Advisor will be able to focus the respective Fund’s investments more heavily in the securities of fewer issuers. The Advisor believes that the non-diversification classification may benefit the respective Fund over time because it may provide more opportunities for the Advisor to seek to enhance the applicable Fund’s performance by allowing the Advisor to direct more assets to investments it considers more advantageous or desirable for the respective Fund.

The Advisor considers the ability at times to invest a large portion of a Fund’s assets in a relatively few companies as an important strategy in pursuing a Fund’s investment objective. The Advisor intends to take larger positions in the securities of fewer issuers and operate as non-diversified when it believes doing so will benefit the respective Fund in pursuing its investment objective. In pursuing the Fund’s investment

 

5


objective, the Advisor may at times take or maintain smaller positions in portfolio companies, but it is the Advisor’s intention to maintain each Fund’s classification as a non-diversified fund even if at times a Fund may satisfy the requirements of being a diversified fund. However, if the Advisor does not operate the respective Fund as non-diversified within three years of the approval of the Fund’s reclassification to non-diversified, such Fund will revert back to diversified per the rules under the 1940 Act, and the Advisor will be required to again seek shareholder approval to reserve the freedom to operate the Fund as non-diversified in the future. No assurance can be given that operating a Fund as non-diversified will improve its investment performance.

Q.               Will being classified as “non-diversified” affect my Fund’s investment objectives or strategy?

A.               Other than operating as a non-diversified Fund, there are no changes to each Fund’s investment objective or other investment strategies. As noted above, the change in classification to “non-diversified” will eliminate the Fund’s obligation to comply with the investment limitations that are applicable to diversified funds under the 1940 Act. The change in classification will permit the Advisor to invest a larger percentage of the Fund’s assets in a smaller number of issuers than a diversified fund. The Advisor may invest more of the respective Fund’s assets in issuers in which the Advisor has the most conviction or it otherwise considers beneficial for the Fund. The Advisor also will not be required to reduce the size of certain Funds’ holdings in particular securities if necessary to maintain compliance with the investment limitations imposed on diversified funds by the 1940 Act. If shareholders approve the Proposal for their Fund, the following disclosure will be added as part of its investment strategy disclosure in its prospectus:

 

Current Disclosure applicable to Non-Diversification    Proposed Disclosure applicable to Non-Diversification
None.    The Fund is classified as a non-diversified mutual fund, which means that the Fund may invest a larger percentage of its assets in the securities of a small number of issuers than a diversified fund.

Q.               What are the benefits and risks of the change of the Fund’s classification from a “diversified” fund to a “non-diversified” fund?

The Advisor believes that the change in classification to a non-diversified Fund may benefit the respective Fund over time because it may provide more opportunities for the Advisor to seek to enhance the applicable Fund’s performance by allowing the Advisor to direct more assets to investments it considers more advantageous or desirable for the respective Fund. There is, however, no guarantee that operating as a non-diversified fund will improve performance.

If shareholders of a Fund approve the respective Proposal to reclassify their Fund to non-diversified, such Fund will no longer be subject to the investment restrictions outlined above for diversified funds under the 1940 Act. As a result, a Fund

 

6


may take larger positions in fewer issuers than if it were diversified. Investing in a non-diversified fund could involve more risk than investing in a fund that holds a broader range of securities because a Fund’s net asset value may be more vulnerable to changes in the market value of a single issuer or group of issuers and may be relatively more susceptible to adverse effects from any single corporate, industry, economic, market, political or regulatory occurrence. To the extent a Fund invests its assets in a smaller number of issuers, such Fund will be more susceptible to negative events affecting those issuers than a diversified fund. Investing a larger percentage of a Fund’s assets in any one issuer could increase such Fund’s risk of loss and its share price volatility because the value of its shares would be more susceptible to adverse events affecting that issuer. If a Fund takes a larger position in an issuer that subsequently has an adverse return, the Fund may have a greater loss than it would have had if it had more diversified investments.

Although a Fund will not be limited by the 1940 Act with respect to the proportion of its assets that may be invested in the obligations of a single issuer if the proposal to change such Fund’s classification to non-diversified is approved by its shareholders, the respective Fund will continue to be subject to the separate diversification requirements under the Internal Revenue Code of 1986, as amended (the “Code”). In order to qualify as a “regulated investment company” under Subchapter M of the Code, the respective Fund, with respect to 50% of its total assets, may not invest more than 5% of its total assets in securities of any one issuer and may not purchase more than 10% of the outstanding voting securities of any one issuer, except obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities and except securities of other investment companies. The remaining 50% of the applicable Fund’s total assets are not required to be “diversified” as just described. However, in no event may more than 25% of a Fund’s total assets be invested in the securities of any one issuer (other than U.S. Government securities; the securities of other regulated investment companies; securities of any two or more issuers controlled by the Fund which, pursuant to regulations of the Code, may be deemed to be engaged in the same, similar or related trades or businesses; or the securities of one or more qualified publicly traded partnerships as defined in the Code). These limits apply as of the end of each quarter of the respective Fund’s fiscal year so a Fund may actually have a higher level of investment in an issuer during periods between the ends of its fiscal quarters. Each Fund intends to continue to qualify as a “regulated investment company” under the Code and therefore intends to comply with the diversification requirements to qualify as such.

If shareholders approve the Proposal for its Fund to change its classification to non-diversified, such Fund will add the following statement as part of the Fund’s principal risk disclosure:

 

7


Current Risk Disclosure for Non-Diversification    Proposed Risk Disclosure for Non-Diversification
None.    Non-Diversification Risk. The Fund can invest a larger portion of its assets in the stocks of a limited number of companies than a diversified fund, which means it may have more exposure to the price movements of a single security or small group of securities than funds that diversify their investments among many companies.

Q.               When will the change in classification to “non-diversified” be effective?

A.               The “non-diversified” classification will become effective with respect to a Fund upon approval by its shareholders. In such case, a Fund may operate as a non-diversified fund depending on the investment opportunities available to the Fund at that point in time. The ability to take larger positions in the securities of a single issuer may be used immediately upon shareholder approval or may be implemented over time depending on market conditions. Nevertheless, the Advisor may take smaller positions in portfolio holdings when it believes it is in the best interests of shareholders to do so. However, if the Advisor does not operate the respective Fund as non-diversified within three years of the approval of the Fund’s reclassification to non-diversified, such Fund will revert back to diversified per the rules under the 1940 Act, and the Advisor will be required to again seek shareholder approval to reserve the freedom to operate the Fund as non-diversified in the future. If the Proposal is not approved by the Fund’s shareholders, such Fund’s current investment company classification will remain unchanged and the Fund would continue to operate as a diversified Fund. If the Proposal for the Fund is approved by such Fund’s shareholders to operate as a non-diversified Fund, any future change by such Fund from a “non-diversified” to a “diversified” classification would not require shareholder approval under the 1940 Act.

Q.               What happens if a Proposal is not approved or if not all the Proposals are approved?

A.               The Proposals are separate and not contingent upon each other. If shareholders approve the Proposal for their Fund, the change in classification will be effective for such Fund even if the shareholders of the other Funds do not approve the Proposal applicable to their Funds. If the Proposal is not approved for a Fund, such Fund will continue to operate as a diversified Fund under its current classification.

Q.               Has the Board of Trustees approved each Fund’s change in classification from “diversified” to “non-diversified” and how does the Board of Trustees recommend that I vote?

 

8


A.               Yes. The Advisor has recommended and the Board has unanimously approved each Proposal to change the respective Fund’s classification to non-diversified and determined that each Proposal is in the best interests of each Fund and each Fund’s respective shareholders. Accordingly, the Board of Trustees recommends that shareholders vote “FOR” Proposal 1, Proposal 2, Proposal 3 and Proposal 4, as applicable.

At a special meeting held on June 10, 2020, the Board approved the change of classification of each Fund from diversified to non-diversified and recommended that shareholders of each Fund approve the change of classification for their Fund. Leading up to the meeting, the disinterested Trustees met in executive session on June 5, 2020 to consider the Proposal for each Fund. In approving the Proposals, the Trustees considered, among other things: (a) that each Fund had commenced operations as a non-diversified fund but became diversified over time in accordance with the rules of the 1940 Act; (b) the Advisor’s recommendation for the change in classification; (c) the Advisor’s belief that the change may provide additional opportunities to enhance the applicable Fund’s performance by allowing the Advisor to direct more assets to investments it considers more advantageous or desirable for the respective Fund; (d) an analysis by the Advisor generally reflecting, in relevant part, its trend of investing the Funds’ assets in the securities of fewer companies (although the number of holdings in the Emerging Markets Select Fund generally had been consistent) and the relative weight of the Funds’ top 30 securities in their portfolios over time as well as certain performance data of a Fund reflecting the performance attributed to a Fund’s top 30 and top 10 holdings over specified time periods; (e) the additional risk associated with non-diversified Funds as they invest a larger percentage of their assets in a smaller number issuers and therefore are more susceptible to negative events affecting those issuers; (f) the Advisor’s representation that due to market appreciation, it has had to reduce the size of certain Funds’ holdings in particular securities at times to maintain compliance with the investment limitations imposed on diversified funds by the 1940 Act; (g) the liquidity profile of each Fund was not anticipated to change as a result of the change in classification; (h) the costs of the proxy solicitation and the allocation of such costs; and (i) the Advisor’s belief that taking larger positions in the securities of companies in which the Advisor has the most conviction may potentially increase the probability of better performance over the long term; however, there is no guarantee that operating as a non-diversified Fund would improve performance. Based on their review, the Trustees approved the Proposals for each Fund, determined that the change of classification of each Fund from diversified to non-diversified is in the best interests of each Fund and each Fund’s respective shareholders, and recommended that shareholders approve the Proposal applicable to their respective Fund.

GENERAL INFORMATION ABOUT THE FUNDS

Management and Other Service Providers

Set forth below is a description of the current service providers of the Trust.

Advisor. The investment advisor for the Trust is Wasatch Advisors, Inc. doing business as Wasatch Global Investors. The Advisor is located at 505 Wakara Way, 3rd Floor, Salt Lake City, Utah 84108.

 

9


Distributor. Shares of the Funds are offered on a continuous basis through ALPS Distributors, Inc. (“ADI”), 1290 Broadway, Suite 1100, Denver, Colorado 80203, as distributor of the Funds pursuant to a Distribution Agreement between the Trust and ADI. ADI also serves as distributor for other mutual funds. As distributor, ADI acts as the Trust’s agent to underwrite, sell and distribute shares in a continuous offering, pursuant to a best efforts arrangement.

Administrator. The Trust has entered into an administration agreement with State Street Bank and Trust Company (“State Street”), 801 Pennsylvania Avenue, Kansas City, Missouri 64105, pursuant to which State Street provides administrative services to the Funds.

OTHER BUSINESS

The Board does not intend to present any other business at the Meeting. If, however, any other matters are properly brought before the Meeting, the persons named in the accompanying form of proxy will vote thereon in accordance with their judgment.

SUBMISSION OF CERTAIN SHAREHOLDER PROPOSALS

The Trust does not hold annual shareholder meetings. Any shareholder proposal intended to be presented at any future meeting of shareholders must be received by the Trust at its principal office a reasonable time before the solicitation of proxies for such meeting in order for such proposal to be considered for inclusion in the proxy statement relating to such meeting. Shareholders wishing to submit proposals for inclusion in a proxy statement for a subsequent shareholder meeting should send their written proposals to the Secretary of the Wasatch Funds Trust, 505 Wakara Way, 3rd Floor, Salt Lake City, Utah 84108.

DELIVERY OF ANNUAL REPORTS AND OTHER DOCUMENTS

Please note that only one annual or semi-annual report, proxy statement, or notice of internet availability of proxy materials, as applicable, may be delivered to two or more shareholders of a Fund who share an address, unless such Fund has received instructions to the contrary. To request a separate copy of an annual or semi-annual report, proxy statement, or notice of internet availability of proxy materials, as applicable, or for instructions as to how to request a separate copy of such documents or as to how to request a single copy if multiple copies of such documents are received, shareholders should contact the applicable Fund at the following address: Wasatch Funds, P.O. Box 2172, Milwaukee, Wisconsin 53201-2172 or call 800-551-1700. Pursuant to a request, a separate copy will be delivered promptly free of charge.

VOTING INFORMATION

This Proxy Statement is furnished in connection with a solicitation of proxies by the Board to be used at the Meeting. This Proxy Statement, along with a Notice of the

 

10


Meeting and proxy card, is first being mailed to shareholders of the Funds on or about July 16, 2020. Only shareholders of record as of the close of business on the Record Date, June 22, 2020, will be entitled to notice of, and to vote at, the Meeting. If the enclosed form of proxy card is properly executed and returned in time to be voted at the Meeting, the proxies named therein will vote the shares represented by the proxy in accordance with the instructions marked thereon. Unmarked but properly executed proxy cards will be voted FOR the applicable Proposal and at the discretion of the named proxies on any other matters deemed appropriate.

Revocation of Proxies

A proxy may be revoked by either (1) submitting to the respective Fund a subsequently dated proxy, (2) delivering to the respective Fund a written notice of revocation or (3) attending the Meeting or the adjournment or postponement thereof and voting his or her shares in person, in all cases prior to the exercise of the authority granted in the proxy. A subsequently dated proxy or written notice of revocation shall be submitted to the Secretary of the Trust, 505 Wakara Way, 3rd Floor, Salt Lake City, Utah 84108.

Quorum

With respect to a Fund, the holders of outstanding shares entitled to vote and present in person or by proxy representing thirty percent (30%) of the voting power of the respective Fund at the Meeting shall constitute a quorum for purposes of voting upon the Proposal at the Meeting for that Fund.

Voting Requirement

The favorable vote of holders of a “majority of the outstanding voting securities” (as defined in the 1940 Act) of the respective Fund is required for the approval of the Proposal for such Fund.

Under the 1940 Act, the vote of the holder of a “majority of the outstanding voting securities” of a Fund means the vote of the holders of the lesser of (1) 67% or more of its voting shares present at the Meeting if the holders of 50% or more of its outstanding voting shares are so present or represented by proxy; or (2) more than 50% of its outstanding voting shares. Shares of each Fund are currently held in two classes (Investor Class and Institutional Class). For purposes of each vote for a Fund, all shares of the respective Fund will vote together as one class.

All shares represented by properly submitted proxies will be counted as present for the purposes of determining a quorum. Before the Meeting, brokers holding shares of a Fund in “street name” for the benefit of their customers should request their customers’ instructions on how to vote their shares on a Proposal. Under applicable New York Stock Exchange rules, brokers are not permitted to vote on a Proposal with respect to shares for which no instructions have been received from customers. If a shareholder abstains from voting as to any matter, or if a broker returns a “non-vote” proxy, indicating a lack of authority to vote on a matter, then the shares represented by such abstention or non-vote will be considered to be present at the Meeting for purposes of determining the existence of a quorum and will have the effect of a vote “AGAINST” the Proposal.

 

11


PROXY SOLICITATION

Proxies are solicited primarily by mail. Additional solicitations may be made by telephone, e-mail, or other personal contact by officers or employees of the Advisor and its affiliates or by proxy soliciting firms retained by the Funds. The Funds have retained AST Fund Solutions (the “Solicitor”) to provide proxy solicitation services in connection with the Meeting at an estimated cost of $150,000. Including proxy solicitation expenses and associated legal and other expenses, the total costs of the proxy solicitation are estimated at $200,000. The costs of the proxy solicitation may be higher or lower, depending on how long it takes and the efforts required for the Solicitor to contact shareholders. In addition, the Funds may reimburse persons holding shares in their names or names of their nominees for expenses incurred in forwarding solicitation material to their beneficial owners. With respect to the costs of the proxy solicitation of the Proposals herein, such costs shall be allocated among the Funds pro rata based on the number of shareholder accounts. To the extent the expenses of a Fund exceed the current expense caps applicable to the classes of the Fund, the Advisor will bear the portion of the solicitation expenses necessary for such classes to operate within the current expense cap. Under the expense limitation agreement of each Fund, the Advisor may recoup certain amounts previously paid in a prior or current fiscal year. A Fund, however, may only make repayments to the Advisor for amounts reimbursed if such repayment does not cause the respective expense ratio applicable to the Fund’s classes after the repayment is taken into account to exceed (i) the expense cap in place at the time such amount was waived and (ii) the current expense cap applicable to the classes.

As the Meeting date approaches, shareholders of the Funds may receive a call from a representative of the Solicitor if the Funds have not yet received their vote. Authorization to permit the Solicitor to execute proxies may be obtained by telephonic or electronically transmitted instructions from Fund shareholders. Proxies that are obtained telephonically will be recorded in accordance with the procedures set forth below. Management of the Funds believes that these procedures are reasonably designed to ensure that the identity of the shareholder casting the vote is accurately determined and that the voting instructions of the shareholder are accurately determined. In all cases where a telephonic proxy is solicited, the Solicitor’s representative is required to ask the shareholder for the shareholder’s full name, address, social security number or employer identification number, title (if the person giving the proxy is authorized to act on behalf of an entity, such as a corporation), the number of shares owned and to confirm that the shareholder has received this Proxy Statement in the mail.

If the shareholder information solicited agrees with the information provided to the Solicitor by the Funds, the Solicitor representative has the responsibility to explain the process, read the Proposals listed on the proxy card, and ask for the shareholder’s instructions on the applicable Proposal. The Solicitor representative, although permitted to answer questions about the process, is not permitted to recommend to the shareholder how to vote, other than to read any recommendation set forth in this Proxy Statement. The Solicitor will record the shareholder’s instructions on the card. Within 72 hours, the Solicitor will send the shareholder a letter or mailgram to confirm the shareholder’s vote and asking the shareholder to call the Solicitor immediately if the shareholder’s instructions are not correctly reflected in the confirmation.

 

12


ADJOURNMENTS

If a quorum is not present at the Meeting with respect to a Fund, the Chair of the Board or her designee presiding at the Meeting or if the Chair is not present at the Meeting and there is no such designee, the most senior officer of the Trust present at the Meeting shall preside at the Meeting and may adjourn the Meeting with respect to one or more matters for a Fund to a date that may be more than 120 days after the date set forth for the original meeting. If a quorum is present with respect to such matters, the Trustee or officer of the Trust presiding at the Meeting may adjourn the Meeting with respect to one or more matters when such adjournment is approved by shareholders of such Fund representing a majority of the voting power of the shares present and entitled to vote with respect to the matter or matters adjourned. For the purposes of establishing whether a quorum is present, all shares present and entitled to vote, including abstentions, will be counted. Unless a proxy is otherwise limited in this regard, any shares present and entitled to vote at the Meeting that are represented by broker non-votes, may, at the discretion of the proxies named therein, be voted in favor of such an adjournment. The persons named as proxies will vote upon such adjournment in their discretion after consideration of the best interests of the shareholders. Unless otherwise specifically limited by their terms, proxies shall entitle the holder thereof to vote at any postponement or adjournment of the Meeting.

SHARE INFORMATION

The chart below lists the number of shares of the Funds that are outstanding as of the close of business on the Record Date. With respect to each class of shares, shareholders of record on the Record Date are entitled to one vote for each whole share of a Fund that the shareholder owns and proportionate fractional vote for any fraction of a share owned.

 

     Number of Shares Outstanding  
Name of Fund   

Investor

Class

     Institutional
Class
 

Wasatch Emerging India Fund

     33,637,305.42        31,377,895.594  

Wasatch Emerging Markets Select Fund

     977,897.459        2,972,564.011  

Wasatch Emerging Markets Small Cap Fund

     67,077,776.689        57,536,748.604  

Wasatch Frontier Emerging Small Countries Fund

     13,922,245.107        4,000,776.172  

FUND SHARES OWNED BY CERTAIN BENEFICIAL OWNERS

For a list of persons or entities that owned beneficially or of record 5% or more of the outstanding shares of a class of each of the Funds and management’s beneficial ownership of Funds, please refer to Exhibit A.

 

13


EXHIBIT A

As of the Record Date, each of the Trustees and executive officers of the Trust beneficially owned individually and collectively as a group (the “Group”) owned less than 1% of the outstanding shares of each Fund, except as follows:

 

    

Amount and Nature of Beneficial

Ownership*

          

Fund/

Name of Beneficial Owner

   Institutional Class    Investor Class     

Percent of

Shares

Outstanding

    

Wasatch Emerging India Fund

            

Eric Bergeson

   2,301,914.160 shares    77,041.140 shares      7.57%  

Group

   2,356,080.147 shares    182,531.415 shares      8.06%  
Wasatch Emerging Markets Select Fund             

Eric Bergeson

   325,742.450 shares    28,105.040 shares      13.83%  

Group

   332,952.118 shares    54,360.693 shares      16.76%  
Wasatch Emerging Markets Small Cap Fund             

Eric Bergeson

   722,717.830 shares    6,558.600 shares      1.27%  

Group

   782,936.912 shares    6,558.600 shares      1.37%  

 

*Each beneficial owner holds sole voting and investment power with respect to all amounts shown.

The following table sets forth the name, address and share ownership of the persons or entities known to the Trust to have ownership of a controlling interest (ownership of greater than 25%) or of record 5% or more of the outstanding shares of a Fund as of the Record Date. Shareholders with a controlling interest in a Fund could affect the outcome of proxy voting or the direction of management of the applicable Fund in the Trust. An asterisk below (*) indicates a beneficial owner as well as a shareholder of record.

 

Name of Fund    Name and Address   

Amount of
Shares

Owned

  

Percentage

of Class

Outstanding

(%)

Wasatch Emerging India Fund (“Emerging India Fund”)– Institutional Class   

National Financial Services Corp.

for the Exclusive Benefit of our Customers

One World Financial Center

200 Liberty St, 5th Floor

New York, NY 10281

   9,183,344.664    29.27%

 

A-1


Name of Fund    Name and Address   

Amount of
Shares

Owned

  

Percentage

of Class

Outstanding

(%)

Emerging India Fund – Institutional Class   

Charles Schwab & Co, Inc.

For Exclusive Benefit of our Customers

211 Main Street

San Francisco, CA 94105

   8,070,762.819    25.72%
Emerging India Fund – Institutional Class   

MAC CO

c/o the Bank of New York Mellon

Room 151-1010

Pittsburgh, PA 15258

   4,508,844.869    14.37%
Emerging India Fund – Institutional Class   

Charles Schwab & Co, Inc.

Special Custody A/C FBO Customers

211 Main Street

San Francisco, CA 94105

   2,849,203.154    9.08%
Emerging India Fund – Investor Class   

National Financial Services Corp.

for the Exclusive Benefit of our Customers

One World Financial Center

200 Liberty St, 5th Floor

New York, NY 10281

   12,980,766.005    38.59%
Emerging India Fund – Investor Class   

Charles Schwab & Co, Inc.

211 Main Street

San Francisco, CA 94105

   8,559,486.211    25.45%
Emerging India Fund – Investor Class   

TD Ameritrade Inc.

For the Exclusive Benefit of our Customers

P.O. Box 2226

Omaha, NE 68103

   2,029,473.606    6.03%
Wasatch Emerging Markets Select Fund (“Emerging Markets Select Fund”)– Institutional Class   

National Financial Services Corp.

for the Exclusive Benefit of our Customers

One World Financial Center

200 Liberty St, 5th Floor

New York, NY 10281

   1,597,873.773    53.75%
Emerging Markets Select Fund – Institutional Class   

Charles Schwab & Co, Inc.

211 Main Street

San Francisco, CA 94105

   334,961.063    11.27%
Emerging Markets Select Fund – Institutional Class   

Kauffman Center for the Performing Arts

Paul Schofer CEO

1601 Broadway Blvd.

Kansas City, MO 64108

   329,497.335    11.08%*
Emerging Markets Select Fund – Institutional Class   

MITRA

480 Pilgrim Way

Suite 1000

Green Bay, WI 54304

   189,897.42    6.39%

 

A-2


Name of Fund    Name and Address   

Amount of
Shares

Owned

  

Percentage

of Class

Outstanding

(%)

Emerging Markets Select Fund – Investor Class   

Charles Schwab & Co, Inc.

211 Main Street

San Francisco, CA 94105

   321,240.689    32.85%
Emerging Markets Select Fund – Investor Class   

National Financial Services Corp.

for the Exclusive Benefit of our Customers

One World Financial Center

200 Liberty St, 5th Floor

New York, NY 10281

   251,193.448    25.69%
Emerging Markets Select Fund – Investor Class   

TD Ameritrade Inc.

for the Exclusive Benefit of our Clients

P.O. Box 2226

Omaha, NE 68103

   106,610.099    10.90%
Wasatch Emerging Markets Small Cap Fund (“Emerging Markets Small Cap Fund”) – Institutional Class   

Charles Schwab & Co, Inc.

211 Main Street

San Francisco, CA 94105

   23,540,298.15    40.91%
Emerging Markets Small Cap Fund – Institutional Class   

University of Utah

Investment Management Office

230 Chase Street

Salt Lake City, UT 84113

   9,194,759.728    15.98%*
Emerging Markets Small Cap Fund – Institutional Class   

National Financial Services Corp.

for the Exclusive Benefit of our Customers

One World Financial Center

200 Liberty St, 5th Floor

New York, NY 10281

   6,824,044.533    11.86%
Emerging Markets Small Cap Fund – Institutional Class   

First Clearing LLC

Special Custody Acct for Benefit of its Customers

2801 Market Street

Saint Louis, MO 63103

   3,426,036.989    5.95%
Emerging Markets Small Cap Fund – Institutional Class   

Harvard Management Company

Harvard College

600 Atlantic Avenue

Boston, MA 02210

   3,171,545.133    5.51%
Emerging Markets Small Cap Fund – Institutional Class   

Aventis Pasteur Limited Master Trust

1755 Steeles Avenue West

Toronto, Ontario M2R 8T4

   2,913,637.035    5.06%
Emerging Markets Small Cap Fund – Investor Class   

Charles Schwab & Co, Inc.

211 Main Street

San Francisco, CA 94105

   23,124,751.654    34.47%

 

A-3


Name of Fund    Name and Address   

Amount of
Shares

Owned

  

Percentage

of Class

Outstanding

(%)

Emerging Markets Small Cap Fund – Investor Class   

National Financial Services Corp.

for the Exclusive Benefit of our Customers

One World Financial Center

200 Liberty St, 5th Floor

New York, NY 10281

   16,029,047.67    23.90%
Emerging Markets Small Cap Fund – Investor Class   

TD Ameritrade Inc.

for the Exclusive Benefit of our Clients

P.O. Box 2226

Omaha, NE 68103

   3,813,048.844    5.68%
Emerging Markets Small Cap Fund – Investor Class   

LPL Financial

Attn Mutual Fund Trading

4707 Executive Drive

San Diego, CA 92121

   4,391,14.149    6.55%
Wasatch Frontier Emerging Small Countries Fund (“Frontier Emerging Small Countries Fund”) – Institutional Class   

Charles Schwab & Co, Inc.

211 Main Street

San Francisco, CA 94105

   3,069,885.958    76.73%
Frontier Emerging Small Countries Fund – Investor Class   

MAC CO

c/o the Bank of New York Mellon

Room 151-1010

Pittsburgh, PA 15258

   2,739,258.347    19.68%
Frontier Emerging Small Countries Fund – Investor Class   

Charles Schwab & Co, Inc.

211 Main Street

San Francisco, CA 94105

   2,469,368.228    17.74%
Frontier Emerging Small Countries Fund – Investor Class   

National Financial Services Corp.

for the Exclusive Benefit of our Customers

One World Financial Center

200 Liberty St, 5th Floor

New York, NY 10281

   1,811,448.92    13.01%
Frontier Emerging Small Countries Fund – Investor Class   

TD Ameritrade Inc.

for the Exclusive Benefit of our Clients

P.O. Box 2226

Omaha, NE 68103

   1,123,054.726    8.07%

 

A-4


LOGO

 

YOUR VOTE IS IMPORTANT NO MATTER HOW MANY SHARES YOU OWN. PLEASE CAST YOUR PROXY VOTE TODAY!

 

LOGO

   

PROXY CARD

 

LOGO

Wasatch Emerging India Fund®

WASATCH FUNDS TRUST

PROXY FOR A JOINT SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON AUGUST 31, 2020

The undersigned, revoking previous proxies, hereby appoint(s) Russell L. Biles, David Corbett and Daniel Thurber, or any one of them, as attorneys and proxies for the undersigned, with full power of substitution, to vote all shares of the Wasatch Funds Trust (the “Trust”), on behalf of Wasatch Emerging India Fund® (the “Fund”), a series of the Trust, which the undersigned is entitled to vote at a Joint Special Meeting of Shareholders of the Fund to be held at the offices of Wasatch Funds Trust, 505 Wakara Way, 3rd Floor, Salt Lake City, Utah 84108 on August 31, 2020 at 10:00 a.m., Mountain Time, and at any adjournments or postponements thereof. This proxy shall be voted on the proposal described in the Proxy Statement and as specified on the reverse side. In their discretion, the proxies may vote with respect to all other matters which may properly come before the Joint Special Meeting and any adjournment or postponements thereof. Receipt of the Notice of Joint Special Meeting of Shareholders and the accompanying Proxy Statement is hereby acknowledged.

Do you have questions? If you have any questions about how to vote your proxy or about the Meeting in general, please call toll-free (800) 769-4414. Representatives are available to assist you Monday through Friday 9 a.m. to 9 p.m. Eastern Time.

Important Notice Regarding the Availability of Proxy Materials for this Special Meeting of Shareholders to Be Held on August 31, 2020. The Notice of the Joint Special Meeting and Proxy Statement are available at:

https://vote.proxyonline.com/wasatch/docs/proxy2020.pdf

 

 

 

 

[PROXY ID NUMBER HERE]

 

 

 

[BAR CODE HERE]

 

 

 

[CUSIP HERE]

 


Wasatch Emerging India Fund®    PROXY CARD

 

YOUR SIGNATURE IS REQUIRED FOR YOUR VOTE TO BE COUNTED. Your signature(s) on this should be exactly as your name(s) appear on this Proxy (reverse side). If the shares are held jointly, each holder should sign this Proxy. Attorneys-in-fact, executors, administrators, trustees or guardians should indicate the full title and capacity in which they are signing, and where more than one name appears, a majority must sign. If a corporation or another entity, the signature should be that of an authorized officer who should state his or her full title.

               
    SIGNATURE (AND TITLE IF APPLICABLE)   

DATE            

 

   

SIGNATURE (IF HELD JOINTLY)

  

DATE            

 

This proxy is being solicited on behalf of the Board of Trustees of Wasatch Funds Trust

YOUR VOTE IS IMPORTANT NO MATTER HOW MANY SHARES YOU OWN. THE MATTERS WE ARE SUBMITTING FOR YOUR CONSIDERATION ARE SIGNIFICANT TO THE FUND(S) AND TO YOU AS A FUND SHAREHOLDER. PLEASE TAKE THE TIME TO READ THE PROXY STATEMENT AND CAST YOUR VOTE USING ANY OF THE METHODS DESCRIBED.

WHEN THIS PROXY IS PROPERLY EXECUTED, THE SHARES REPRESENTED HEREBY WILL BE VOTED AS SPECIFIED. IF NO SPECIFICATION IS MADE, THIS PROXY WILL BE VOTED FOR THE PROPOSAL SET FORTH BELOW AND IN THE DISCRETION OF THE PROXIES WITH RESPECT TO ALL OTHER MATTERS WHICH MAY PROPERLY COME BEFORE THE SPECIAL MEETING AND ANY ADJOURNMENTS OR POSTPONEMENTS THEREOF. THE UNDERSIGNED ACKNOWLEDGES RECEIPT OF THE ACCOMPANYING NOTICE OF SPECIAL MEETING AND PROXY STATEMENT.

THE BOARD OF TRUSTEES OF THE TRUST RECOMMENDS A VOTE “FOR” THE FOLLOWING PROPOSAL:

TO VOTE, MARK CIRCLES BELOW IN BLUE OR BLACK INK AS FOLLOWS. Example: 🌑

 

 

 PROPOSAL(S)

 

  

 

FOR

 

  

 

AGAINST

 

  

 

ABSTAIN 

 

1.

   To change the classification of the Wasatch Emerging India Fund from a “diversified” company to a “non-diversified” company;         

5.

   To transact such other business as may properly come before the Meeting and any adjournments or postponements thereof.         

PLEASE DATE, SIGN AND RETURN THIS CARD USING THE ENCLOSED, POSTAGE PAID ENVELOPE

THANK YOU FOR VOTING

 

 

[PROXY ID NUMBER HERE]

 

  

 

[BAR CODE HERE]

 

  

 

[CUSIP HERE]

 


LOGO

 

YOUR VOTE IS IMPORTANT NO MATTER HOW MANY SHARES YOU OWN. PLEASE CAST YOUR PROXY VOTE TODAY!

 

LOGO

 

    

 

PROXY CARD

 

LOGO

Wasatch Emerging Markets Select Fund®

WASATCH FUNDS TRUST

PROXY FOR A JOINT SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON AUGUST 31, 2020

The undersigned, revoking previous proxies, hereby appoint(s) Russell L. Biles, David Corbett and Daniel Thurber, or any one of them, as attorneys and proxies for the undersigned, with full power of substitution, to vote all shares of the Wasatch Funds Trust (the “Trust”), on behalf of Wasatch Emerging Markets Select Fund® (the “Fund”), a series of the Trust, which the undersigned is entitled to vote at a Joint Special Meeting of Shareholders of the Fund to be held at the offices of Wasatch Funds Trust, 505 Wakara Way, 3rd Floor, Salt Lake City, Utah 84108 on August 31, 2020 at 10:00 a.m., Mountain Time, and at any adjournments or postponements thereof. This proxy shall be voted on the proposal described in the Proxy Statement and as specified on the reverse side. In their discretion, the proxies may vote with respect to all other matters which may properly come before the Joint Special Meeting and any adjournment or postponements thereof. Receipt of the Notice of Joint Special Meeting of Shareholders and the accompanying Proxy Statement is hereby acknowledged.

Do you have questions? If you have any questions about how to vote your proxy or about the Meeting in general, please call toll-free (800) 769-4414. Representatives are available to assist you Monday through Friday 9 a.m. to 9 p.m. Eastern Time.

Important Notice Regarding the Availability of Proxy Materials for this Special Meeting of Shareholders to Be Held on August 31, 2020. The Notice of the Joint Special Meeting and Proxy Statement are available at:

https://vote.proxyonline.com/wasatch/docs/proxy2020.pdf

 

 

 

 

[PROXY ID NUMBER HERE]

 

  

 

[BAR CODE HERE]

 

  

 

[CUSIP HERE]

 


Wasatch Emerging Markets Select Fund®    PROXY CARD

 

 

YOUR SIGNATURE IS REQUIRED FOR YOUR VOTE TO BE COUNTED. Your signature(s) on this should be exactly as your name(s) appear on this Proxy (reverse side). If the shares are held jointly, each holder should sign this Proxy. Attorneys-in-fact, executors, administrators, trustees or guardians should indicate the full title and capacity in which they are signing, and where more than one name appears, a majority must sign. If a corporation or another entity, the signature should be that of an authorized officer who should state his or her full title.

                
     SIGNATURE (AND TITLE IF APPLICABLE)   

DATE            

 

    

SIGNATURE (IF HELD JOINTLY)

  

DATE            

This proxy is being solicited on behalf of the Board of Trustees of Wasatch Funds Trust

YOUR VOTE IS IMPORTANT NO MATTER HOW MANY SHARES YOU OWN. THE MATTERS WE ARE SUBMITTING FOR YOUR CONSIDERATION ARE SIGNIFICANT TO THE FUND(S) AND TO YOU AS A FUND SHAREHOLDER. PLEASE TAKE THE TIME TO READ THE PROXY STATEMENT AND CAST YOUR VOTE USING ANY OF THE METHODS DESCRIBED.

WHEN THIS PROXY IS PROPERLY EXECUTED, THE SHARES REPRESENTED HEREBY WILL BE VOTED AS SPECIFIED. IF NO SPECIFICATION IS MADE, THIS PROXY WILL BE VOTED FOR THE PROPOSAL SET FORTH BELOW AND IN THE DISCRETION OF THE PROXIES WITH RESPECT TO ALL OTHER MATTERS WHICH MAY PROPERLY COME BEFORE THE SPECIAL MEETING AND ANY ADJOURNMENTS OR POSTPONEMENTS THEREOF. THE UNDERSIGNED ACKNOWLEDGES RECEIPT OF THE ACCOMPANYING NOTICE OF SPECIAL MEETING AND PROXY STATEMENT.

THE BOARD OF TRUSTEES OF THE TRUST RECOMMENDS A VOTE “FOR” THE FOLLOWING PROPOSAL:

TO VOTE, MARK CIRCLES BELOW IN BLUE OR BLACK INK AS FOLLOWS. Example: 🌑

 

 

 PROPOSAL(S)

 

  

 

FOR

 

  

 

AGAINST

 

  

 

ABSTAIN 

 

2.  To change the classification of the Wasatch Emerging Markets Select Fund from a “diversified” company to a “non-diversified” company;

        

5.  To transact such other business as may properly come before the Meeting and any adjournments or postponements thereof.

        

PLEASE DATE, SIGN AND RETURN THIS CARD USING THE ENCLOSED, POSTAGE PAID ENVELOPE

THANK YOU FOR VOTING

 

 

[PROXY ID NUMBER HERE]

 

  

 

[BAR CODE HERE]

 

  

 

[CUSIP HERE]

 


LOGO

 

YOUR VOTE IS IMPORTANT NO MATTER HOW MANY SHARES YOU OWN. PLEASE CAST YOUR PROXY VOTE TODAY!

 

LOGO

 

    

 

PROXY CARD

 

LOGO

Wasatch Emerging Markets Small Cap Fund®

WASATCH FUNDS TRUST

PROXY FOR A JOINT SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON AUGUST 31, 2020

The undersigned, revoking previous proxies, hereby appoint(s) Russell L. Biles, David Corbett and Daniel Thurber, or any one of them, as attorneys and proxies for the undersigned, with full power of substitution, to vote all shares of the Wasatch Funds Trust (the “Trust”), on behalf of Wasatch Emerging Markets Small Cap Fund® (the “Fund”), a series of the Trust, which the undersigned is entitled to vote at a Joint Special Meeting of Shareholders of the Fund to be held at the offices of Wasatch Funds Trust, 505 Wakara Way, 3rd Floor, Salt Lake City, Utah 84108 on August 31, 2020 at 10:00 a.m., Mountain Time, and at any adjournments or postponements thereof. This proxy shall be voted on the proposal described in the Proxy Statement and as specified on the reverse side. In their discretion, the proxies may vote with respect to all other matters which may properly come before the Joint Special Meeting and any adjournment or postponements thereof. Receipt of the Notice of Joint Special Meeting of Shareholders and the accompanying Proxy Statement is hereby acknowledged.

Do you have questions? If you have any questions about how to vote your proxy or about the Meeting in general, please call toll-free (800) 769-4414. Representatives are available to assist you Monday through Friday 9 a.m. to 9 p.m. Eastern Time.

Important Notice Regarding the Availability of Proxy Materials for this Special Meeting of Shareholders to Be Held on August 31, 2020. The Notice of the Joint Special Meeting and Proxy Statement are available at:

https://vote.proxyonline.com/wasatch/docs/proxy2020.pdf

 

 

 

 

[PROXY ID NUMBER HERE]

 

  

 

[BAR CODE HERE]

 

  

 

[CUSIP HERE]

 


Wasatch Emerging Markets Small Cap Fund®    PROXY CARD

 

 

YOUR SIGNATURE IS REQUIRED FOR YOUR VOTE TO BE COUNTED. Your signature(s) on this should be exactly as your name(s) appear on this Proxy (reverse side). If the shares are held jointly, each holder should sign this Proxy. Attorneys-in-fact, executors, administrators, trustees or guardians should indicate the full title and capacity in which they are signing, and where more than one name appears, a majority must sign. If a corporation or another entity, the signature should be that of an authorized officer who should state his or her full title.

                
     SIGNATURE (AND TITLE IF APPLICABLE)   

DATE            

 

    

SIGNATURE (IF HELD JOINTLY)

  

DATE            

This proxy is being solicited on behalf of the Board of Trustees of Wasatch Funds Trust

YOUR VOTE IS IMPORTANT NO MATTER HOW MANY SHARES YOU OWN. THE MATTERS WE ARE SUBMITTING FOR YOUR CONSIDERATION ARE SIGNIFICANT TO THE FUND(S) AND TO YOU AS A FUND SHAREHOLDER. PLEASE TAKE THE TIME TO READ THE PROXY STATEMENT AND CAST YOUR VOTE USING ANY OF THE METHODS DESCRIBED.

WHEN THIS PROXY IS PROPERLY EXECUTED, THE SHARES REPRESENTED HEREBY WILL BE VOTED AS SPECIFIED. IF NO SPECIFICATION IS MADE, THIS PROXY WILL BE VOTED FOR THE PROPOSAL SET FORTH BELOW AND IN THE DISCRETION OF THE PROXIES WITH RESPECT TO ALL OTHER MATTERS WHICH MAY PROPERLY COME BEFORE THE SPECIAL MEETING AND ANY ADJOURNMENTS OR POSTPONEMENTS THEREOF. THE UNDERSIGNED ACKNOWLEDGES RECEIPT OF THE ACCOMPANYING NOTICE OF SPECIAL MEETING AND PROXY STATEMENT.

THE BOARD OF TRUSTEES OF THE TRUST RECOMMENDS A VOTE “FOR” THE FOLLOWING PROPOSAL:

TO VOTE, MARK CIRCLES BELOW IN BLUE OR BLACK INK AS FOLLOWS. Example: 🌑

 

 

 PROPOSAL(S)

 

  

 

FOR

 

  

 

AGAINST

 

  

 

ABSTAIN 

 

3.  To change the classification of the Wasatch Emerging Markets Small Cap Fund from a “diversified” company to a “non-diversified” company;

        

5.  To transact such other business as may properly come before the Meeting and any adjournments or postponements thereof.

        

PLEASE DATE, SIGN AND RETURN THIS CARD USING THE ENCLOSED, POSTAGE PAID ENVELOPE

THANK YOU FOR VOTING

 

 

[PROXY ID NUMBER HERE]

 

  

 

[BAR CODE HERE]

 

  

 

[CUSIP HERE]

 


LOGO

 

YOUR VOTE IS IMPORTANT NO MATTER HOW MANY SHARES YOU OWN. PLEASE CAST YOUR PROXY VOTE TODAY!

 

LOGO

     

PROXY CARD

 

LOGO

Wasatch Frontier Emerging Small Countries Fund®

WASATCH FUNDS TRUST

PROXY FOR A JOINT SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON AUGUST 31, 2020

The undersigned, revoking previous proxies, hereby appoint(s) Russell L. Biles, David Corbett and Daniel Thurber, or any one of them, as attorneys and proxies for the undersigned, with full power of substitution, to vote all shares of the Wasatch Funds Trust (the “Trust”), on behalf of Wasatch Frontier Emerging Small Countries Fund® (the “Target Fund”), a series of the Trust, which the undersigned is entitled to vote at a Joint Special Meeting of Shareholders of the Fund to be held at the offices of Wasatch Funds Trust, 505 Wakara Way, 3rd Floor, Salt Lake City, Utah 84108 on August 31, 2020 at 10:00 a.m., Mountain Time, and at any adjournments or postponements thereof. This proxy shall be voted on the proposal described in the Proxy Statement and as specified on the reverse side. In their discretion, the proxies may vote with respect to all other matters which may properly come before the Joint Special Meeting and any adjournment or postponements thereof. Receipt of the Notice of Joint Special Meeting of Shareholders and the accompanying Proxy Statement is hereby acknowledged.

Do you have questions? If you have any questions about how to vote your proxy or about the Meeting in general, please call toll-free (800) 769-4414. Representatives are available to assist you Monday through Friday 9 a.m. to 9 p.m. Eastern Time.

Important Notice Regarding the Availability of Proxy Materials for this Special Meeting of Shareholders to Be Held on August 31, 2020. The Notice of the Joint Special Meeting and Proxy Statement are available at:

https://vote.proxyonline.com/wasatch/docs/proxy2020.pdf

 

 

 

 

[PROXY ID NUMBER HERE]

 

  

 

[BAR CODE HERE]

 

  

 

[CUSIP HERE]

 


Wasatch Frontier Emerging Small Countries Fund®    PROXY CARD

 

 

YOUR SIGNATURE IS REQUIRED FOR YOUR VOTE TO BE COUNTED. Your signature(s) on this should be exactly as your name(s) appear on this Proxy (reverse side). If the shares are held jointly, each holder should sign this Proxy. Attorneys-in-fact, executors, administrators, trustees or guardians should indicate the full title and capacity in which they are signing, and where more than one name appears, a majority must sign. If a corporation or another entity, the signature should be that of an authorized officer who should state his or her full title.

  

    

      
     SIGNATURE (AND TITLE IF APPLICABLE)   

DATE            

 

     SIGNATURE (IF HELD JOINTLY)   

DATE            

This proxy is being solicited on behalf of the Board of Trustees of Wasatch Funds Trust

YOUR VOTE IS IMPORTANT NO MATTER HOW MANY SHARES YOU OWN. THE MATTERS WE ARE SUBMITTING FOR YOUR CONSIDERATION ARE SIGNIFICANT TO THE FUND(S) AND TO YOU AS A FUND SHAREHOLDER. PLEASE TAKE THE TIME TO READ THE PROXY STATEMENT AND CAST YOUR VOTE USING ANY OF THE METHODS DESCRIBED.

WHEN THIS PROXY IS PROPERLY EXECUTED, THE SHARES REPRESENTED HEREBY WILL BE VOTED AS SPECIFIED. IF NO SPECIFICATION IS MADE, THIS PROXY WILL BE VOTED FOR THE PROPOSAL SET FORTH BELOW AND IN THE DISCRETION OF THE PROXIES WITH RESPECT TO ALL OTHER MATTERS WHICH MAY PROPERLY COME BEFORE THE SPECIAL MEETING AND ANY ADJOURNMENTS OR POSTPONEMENTS THEREOF. THE UNDERSIGNED ACKNOWLEDGES RECEIPT OF THE ACCOMPANYING NOTICE OF SPECIAL MEETING AND PROXY STATEMENT.

THE BOARD OF TRUSTEES OF THE TRUST RECOMMENDS A VOTE “FOR” THE FOLLOWING PROPOSAL:

TO VOTE, MARK CIRCLES BELOW IN BLUE OR BLACK INK AS FOLLOWS. Example: 🌑

 

 

 PROPOSAL(S)

 

  

 

FOR

 

  

 

AGAINST

 

  

 

ABSTAIN 

 

4.  To change the classification of the Wasatch Frontier Emerging Small Countries Fund from a “diversified” company to a “non-diversified” company; and

        

5.  To transact such other business as may properly come before the Meeting and any adjournments or postponements thereof.

        

PLEASE DATE, SIGN AND RETURN THIS CARD USING THE ENCLOSED, POSTAGE PAID ENVELOPE

THANK YOU FOR VOTING

 

 

[PROXY ID NUMBER HERE]

 

  

 

[BAR CODE HERE]

 

  

 

[CUSIP HERE]

 

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