Board of Trustees of Stewart Capital Mutual Funds voted September 27

The Board of Trustees of Stewart Capital Mutual Funds voted September 27, 2016 to cease operations of the Stewart Capital Mid Cap Fund (the “Fund”) and redeem all outstanding shares on or before December 31, 2016. Effective immediately, the Fund will not accept any new investments and will no longer pursue its stated objective.

To protect the interests of Fund shareholders, GVT moved quickly to map over existing assets in the Stewart Mid Cap Fund to the Vanguard Mid Cap Value Fund. This interim move insures that both personal and 401(k) clients stay fully invested in the same asset class while we perform a new manager search.

This fund closing event prevents GVT from further use of Stewart in smaller accounts and in the 401(k) model. Since we prefer managers offering both mutual fund and separately managed account (SMA) access, and with most SMAs having unrealized losses, we initiated a liquidation of the Stewart SMAs, too. Those assets will be bought into the Vanguard Mid Cap Value Fund as a placeholder upon settlement.

This abrupt fund closing is highly unusual, and may signal some yet-to-be-disclosed issue within Stewart Capital. Regardless, we see limited upside, and potentially great downside, to remaining with Stewart. We will now perform a new manager search in an unhurried timeframe, assured clients are protected short-term.