North Square Select Small Cap Fund Earns Coveted Morningstar Five-Star Rating for First Time

North Square Select Small Cap Fund Achieves Five-Star Morningstar Rating

In a noteworthy achievement, the North Square Select Small Cap Fund (ADVGX), Class I shares, has secured its inaugural Morningstar Overall Rating of five stars. This ranking was awarded among 591 funds in the Small Blend category, based on the fund’s risk-adjusted performance metrics as of January 31, 2025. The performance of the Select Small Cap Fund has positioned it among the top 6% of its peers in this category, finishing 33rd in the comparative group, a clear testament to the fund's robust performance and sound management practices.

Previously known as the North Square Advisory Research Small Cap Value Fund, this fund underwent a name change on February 28, 2025. This rebranding reflects the strategic shift and the refined focus that North Square Investments is directing towards enhancing its investment methodologies, specifically emphasizing a research-intensive approach.

The distinguished five-star rating is reflective of the fund’s performance over a three-year period ending January 31, 2025, as Class I shares also earned a five-star rating in the same timeframe. Although the fund has yet to receive ratings for five or ten years, the results achieved thus far inspire confidence in investors.

To illustrate the fund's exceptional capabilities further, it’s important to note that the Select Small Cap Fund's unique investment philosophy centers on the pursuit of long-term capital appreciation. According to Mark Goodwin, the CEO and Co-Founder of North Square, the team at Advisory Research employs a private equity-style methodology to exploit market inefficiencies, especially in the small-cap sector, which is often ignored by broader market ETFs. This disciplined approach positions the fund to capitalize on strong businesses that exhibit enduring competitive advantages.

The expertise steering the fund comes from Advisory Research's highly experienced portfolio management team. Led by Chairman Matt Swaim, CFA, alongside his colleagues Christopher Harvey, CFA, and Bruce Zessar, CFA, the trio contributes an impressive average of 24 years of industry experience. They are committed to identifying undervalued businesses, strategically managing risk, and focusing on company-specific actions to maximize shareholder value.

Swaim expressed enthusiasm about the fund's recognition, emphasizing that their focus on individual business metrics and competitive positioning is critical in an environment where many investors chase broad market trends.

For investors seeking more detailed insights, North Square encourages them to examine the latest performance results on their official website, where they provide month-end metrics and additional fund-related materials. It's vital for prospective investors to understand the risks associated with investing in mutual funds, which include equity risk, sector focus risks, and market volatility, among others.

As of January 31, 2025, North Square Investments manages $2.12 billion across 12 mutual funds, a closed-end fund, and an ETF, reflecting a commitment to providing diverse investment strategies and the potential for significant returns. The firm operates under a multi-boutique model, dedicated to delivering differentiated and actively managed investment options.

In conclusion, the North Square Select Small Cap Fund’s five-star rating from Morningstar marks a landmark achievement in its performance journey. For those looking to invest in a cautious yet aggressive market segment, this fund presents a compelling opportunity to harness growth potential while adhering to robust risk management principles.