VELA Funds will reduce its contractual administrative fee from 0.34% to 0.33% of average daily net Assets for Class A and Class I shares across six funds effective October 1, 2026. The change lowers the stated fee used in fund expense disclosures, while updated examples show projected costs under specified Investment assumptions.

Key Highlights

  • The contractual administrative fee will decline from 0.34% to 0.33% of average daily net assets effective October 1, 2026.
  • The fee change applies to Class A and Class I shares across six VELA funds.
  • Updated expense examples for VELA Small Cap Fund show one-year costs of $629 for Class A and $110 for Class I under the stated assumptions.

VELA Funds will cut its contractual administrative fee from 0.34% to 0.33% of average daily net assets for Class A and Class I shares across six funds effective October 1, 2026.

Six Funds Receive Fee Cut

The revised rate covers all six VELA funds named in the updated prospectus materials. The administrative fee is separate from management fees, brokerage and transaction expenses, taxes, borrowing costs, litigation and indemnification expenses, extraordinary expenses, and costs incurred under a Rule 12b-1 Distribution Plan. The updated advisory schedule lists management fees of 0.75% for VELA Small Cap Fund, 0.60% for VELA Large Cap Plus Fund, 0.75% for VELA International Fund, 0.50% for VELA Income Opportunities Fund, 0.30% for VELA Short Duration Fund and 0.70% for VELA Small-Mid Cap Fund. Each fund carries the 0.33% administrative fee from October 1, 2026. The administrative fee applies to average daily net assets for both affected share classes.

Prospectus Expense Tables Replaced

The revised prospectus language describes Shareholder fees and annual fund operating expenses for investors who buy, hold or sell fund shares. Class A shares in the updated VELA Large Cap Plus Fund disclosure carry a maximum purchase sales charge of 0.05% of the offering price, while Class I shares show none. Brokerage commissions and other fees charged by financial intermediaries are identified separately from the expenses shown in the fund tables. The expense examples assume a $10,000 investment, a 5% annual return and unchanged operating expenses. For VELA Small Cap Fund, the projected Class A costs are $629 after 1 year, $900 after 3 years, $1,192 after 5 years and $2,021 after 10 years. Class I costs are $110, $343, $595 and $1,317 over those same periods. For VELA Large Cap Plus Fund, the corresponding Class A costs are $630, $903, $1,197 and $2,032. Class I costs are $111, $347, $601 and $1,329. Actual investor costs may vary from those examples because the projections use the stated assumptions.

New Rate Starts October 1

The revised administrative fee takes effect October 1, 2026, under the updated terms for the six funds.