N-CSRS 1 d835454dncsrs.htm BARROW HANLEY Barrow Hanley

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSRS

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number 811-22920

 

 

The Advisors’ Inner Circle Fund III

(Exact name of registrant as specified in charter)

 

 

SEI Investments

One Freedom Valley Drive

Oaks, PA 19456

(Address of principal executive offices) (Zip code)

 

 

SEI Investments

One Freedom Valley Drive

Oaks, PA 19456

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: (877) 446-3863

Date of fiscal year end: October 31, 2024

Date of reporting period: April 30, 2024

 

 

 

Item 1. Reports to Stockholders.

(a) A copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “Act”) (17 CFR § 270.30e-1), is attached hereto.

LOGO

The Advisors’ Inner Circle Fund III

 

LOGO

Semi-Annual Report April 30, 2024

 

 

Barrow Hanley Concentrated Emerging Markets ESG Opportunities Fund

Barrow Hanley Credit Opportunities Fund

Barrow Hanley Emerging Markets Value Fund

Barrow Hanley Floating Rate Fund

Barrow Hanley International Value Fund

Barrow Hanley Total Return Bond Fund

Barrow Hanley US Value Opportunities Fund

Investment Adviser: Perpetual US Services LLC, Doing Business As PGIA

Sub-Adviser: Barrow, Hanley, Mewhinney & Strauss, LLC

The Advisors’ Inner Circle Fund III

    April 30, 2024 

 

TABLE OF CONTENTS

 

 

 

Schedules of Investments

      1      

Statements of Assets and Liabilities

      26    

Statements of Operations

      28    

Statements of Changes in Net Assets

      30    

Financial Highlights

      34    

Notes to Financial Statements

      35    

Disclosure of Fund Expenses

      51    

Approval of Investment Advisory Agreement

      53    

Review of Liquidity Risk Management Program

      55    

The Funds file their complete schedules of investments with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Funds’ Form N-PORT reports are available on the SEC’s website at https://www.sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to fund securities, as well as information relating to how the Fund voted proxies relating to fund securities during the most recent 12-month period ended June 30, is available (i) without charge, upon request, by calling 1-866-778-6397; and (ii) on the SEC’s website at https://www.sec.gov.

 

LOGO

 

  
  

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Concentrated Emerging Markets ESG Opportunities Fund
     April 30, 2024 (Unaudited)

 

 SECTOR WEIGHTINGS †

 

LOGO

† Percentages are based on total investments.

 

 SCHEDULE OF INVESTMENTS

 

 COMMON STOCK — 93.5%

 

 

       Shares         Value 

BRAZIL — 1.8%

 

Dexco

      375,339       $ 521,886   
     

 

 

 

CHINA — 25.3%

      

COMMUNICATION SERVICES — 2.4%

 

   

Baidu, Cl A *

      55,142        714,397  
     

 

 

 

CONSUMER DISCRETIONARY — 10.5%

 

   

Great Wall Motor, Cl H

      707,712        1,069,454  

Haier Smart Home, Cl A

      312,857        1,158,830  

JD.com, Cl A

      61,026        879,285  
     

 

 

 

          3,107,569  
     

 

 

 

CONSUMER STAPLES — 4.6%

 

   

China Mengniu Dairy

      316,253        655,111  

Tingyi Cayman Islands Holding

      647,701        714,866  
     

 

 

 

        1,369,977  
     

 

 

 

FINANCIALS — 5.1%

      

China International Capital, Cl H

      478,203        576,640  

Ping An Insurance Group of China, Cl H

      203,828        923,765  
     

 

 

 

        1,500,405  
     

 

 

 

INDUSTRIALS — 2.7%

      

Xinyi Glass Holdings

      746,089        797,275  
     

 

 

 

        7,489,623  
     

 

 

 

COLOMBIA — 2.2%

      

Bancolombia ADR

      20,264        663,038  
     

 

 

 

HONG KONG — 7.3%

      

ASMPT

      63,057        783,653  

Hang Lung Properties

      759,976        838,795  

Sino Biopharmaceutical

      1,587,545        542,462  
     

 

 

 

        2,164,910  
     

 

 

 

 COMMON STOCK — (continued)

 

       Shares         Value 

INDIA — 5.2%

      

IndusInd Bank

      44,374       $ 804,520  

UPL

      122,899        745,877   
     

 

 

 

        1,550,397  
     

 

 

 

MALAYSIA — 3.7%

      

Petronas Chemicals Group

      376,537        534,331  

Public Bank

      639,835        551,863  
     

 

 

 

        1,086,194  
     

 

 

 

MEXICO — 1.6%

      

Fibra Uno Administracion ‡

      330,471        473,018  
     

 

 

 

SAUDI ARABIA — 2.2%

      

Saudi National Bank

      65,222        652,902  
     

 

 

 

SOUTH AFRICA — 4.5%

      

Absa Group

      64,693        498,852  

Sibanye Stillwater

      732,143        835,632  
     

 

 

 

          1,334,484  
     

 

 

 

SOUTH KOREA — 18.4%

      

Amorepacific

      10,237        1,247,740  

HL Mando

      23,778        670,590  

Korea Investment Holdings

      12,857        621,425  

Shinhan Financial Group

      26,435        888,145  

SK Hynix

      10,442        1,288,602  

SK Telecom

      19,922        736,751  
     

 

 

 

        5,453,253  
     

 

 

 

TAIWAN — 12.6%

      

Bizlink Holding

      112,281        791,006  

Hiwin Technologies

      132,420        936,404  

Largan Precision

      10,830        721,906  

MediaTek

      43,116        1,299,999  
     

 

 

 

        3,749,315  
     

 

 

 

THAILAND — 6.6%

      

Kasikornbank

      217,627        763,936  

Siam Cement

      57,400        384,542  

Thai Union Group, Cl F

      2,060,704        825,828  
     

 

 

 

        1,974,306  
     

 

 

 

VIETNAM — 2.1%

      

Vietnam Dairy Products JSC

      243,907        624,670  
     

 

 

 

TOTAL COMMON STOCK

      

(Cost $28,621,841)

     27,737,996  
     

 

 

 

             

 PREFERRED STOCK — 2.7%

      

BRAZIL — 2.7%

      

Banco Bradesco (A)

      292,785        791,082  
     

 

 

 

TOTAL PREFERRED STOCK

      

(Cost $802,651)

     791,082  
     

 

 

 

TOTAL INVESTMENTS— 96.2%

 

   

(Cost $29,424,492)

 

     $ 28,529,078  
     

 

 

 

 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   1

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Concentrated Emerging Markets ESG Opportunities Fund
     April 30, 2024 (Unaudited)

 

 

Percentages are based on Net Assets of $29,647,580.

*

Non-income producing security.

‡

Real Estate Investment Trust.

 

(A)

There is currently no rate available.

ADR — American Depositary Receipt

Cl — Class

JSC — Joint Stock Company

The following is a summary of the inputs used as of April 30, 2024 in valuing the Fund’s investments carried at value:

 

Investments in
Securities		    Level 1     Level 2     Level 3     Total 

Common Stock

        

Brazil

    $ 521,886      $ –      $ –      $ 521,886  

China

     –        7,489,623        –        7,489,623   

Colombia

     663,038       –       –       663,038  

Hong Kong

     –       2,164,910       –       2,164,910  

India

     –       1,550,397       –       1,550,397  

Malaysia

     –       1,086,194       –       1,086,194  

Mexico

     473,018       –       –       473,018  

Saudi Arabia

     –       652,902       –       652,902  

South Africa

     –       1,334,484       –       1,334,484  

South Korea

     –       5,453,253       –       5,453,253  

Taiwan

     –       3,749,315       –       3,749,315  

Thailand

     –       1,974,306       –       1,974,306  

Vietnam

     –       624,670       –       624,670  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total Common Stock

     1,657,942       26,080,054       –       27,737,996  

Preferred Stock

        

Brazil

     791,082       –       –       791,082  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total Investments in Securities

    $ 2,449,024      $ 26,080,054      $    –      $ 28,529,078  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Amounts designated as “—” are $0.

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   2

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Credit Opportunities Fund
     April 30, 2024 (Unaudited)

 

 SECTOR WEIGHTINGS †

 

LOGO

† Percentages are based on total investments.

 

 SCHEDULE OF INVESTMENTS

 

 CORPORATE OBLIGATIONS — 74.3%

 

 

       Face Amount        Value  

COMMUNICATION SERVICES — 4.3%

 

CCO Holdings

      

7.375%, 03/01/2031 (A)

     $    750,000       $ 711,702  

4.750%, 03/01/2030 (A)

      1,000,000        830,945  

CSC Holdings

      

11.750%, 01/31/2029 (A)

      250,000        222,106  

4.625%, 12/01/2030 (A)

      1,000,000        434,033  

4.125%, 12/01/2030 (A)

      750,000        476,417   

LCPR Senior Secured Financing DAC

      

5.125%, 07/15/2029 (A)

      1,000,000        835,206  
     

 

 

 

          3,510,409  
     

 

 

 

CONSUMER DISCRETIONARY — 9.1%

 

Adient Global Holdings

      

8.250%, 04/15/2031 (A)

      1,000,000        1,038,445  

Allied Universal Holdco

      

7.875%, 02/15/2031 (A)

      640,000        641,414  

4.625%, 06/01/2028 (A)

      125,000        112,128  

Boost Newco Borrower

      

7.500%, 01/15/2031 (A)

      250,000        258,023  

Caesars Entertainment

      

6.500%, 02/15/2032 (A)

      500,000        492,622  

Goodyear Tire & Rubber

      

5.625%, 04/30/2033

      1,000,000        880,130  

Ken Garff Automotive

      

4.875%, 09/15/2028 (A)

      600,000        554,313  

 CORPORATE OBLIGATIONS — (continued)

 

       Face Amount        Value  

CONSUMER DISCRETIONARY — (continued)

 

Lithia Motors

      

4.375%, 01/15/2031 (A)

     $   500,000       $ 437,753  

3.875%, 06/01/2029 (A)

      250,000        220,809  

PetSmart

      

7.750%, 02/15/2029 (A)

      500,000        475,242  

Raising Cane’s Restaurants

      

9.375%, 05/01/2029 (A)

      250,000        268,127  

Tenneco

      

8.000%, 11/17/2028 (A)

      1,250,000        1,167,955  

Upbound Group

      

6.375%, 02/15/2029 (A)

      1,000,000        959,980   
     

 

 

 

        7,506,941  
     

 

 

 

CONSUMER STAPLES — 4.4%

 

   

Ashton Woods USA

      

6.625%, 01/15/2028 (A)

      250,000        249,193  

4.625%, 04/01/2030 (A)

      500,000        446,807  

Champions Financing

      

8.750%, 02/15/2029 (A)

      32,000        32,702  

Darling Ingredients

      

6.000%, 06/15/2030 (A)

      1,000,000        971,442  

Energizer Holdings

      

6.500%, 12/31/2027 (A)

      50,000        49,392  

STL Holding

      

8.750%, 02/15/2029 (A)

      320,000        328,820  

United Natural Foods

      

6.750%, 10/15/2028 (A)

      2,000,000        1,534,870  
     

 

 

 

          3,613,226  
     

 

 

 

ENERGY — 3.0%

      

CQP Holdco

      

5.500%, 06/15/2031 (A)

      1,073,000        986,019  

Genesis Energy

      

8.875%, 04/15/2030

      250,000        258,700  

Global Partners

      

8.250%, 01/15/2032 (A)

      500,000        512,209  

7.000%, 08/01/2027

      750,000        744,067  
     

 

 

 

        2,500,995  
     

 

 

 

 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   3

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Credit Opportunities Fund
     April 30, 2024 (Unaudited)

 

 CORPORATE OBLIGATIONS — (continued)

 

       Face Amount        Value  

FINANCIALS — 12.7%

      

Aretec Group

      

10.000%, 08/15/2030 (A)

     $    750,000       $ 814,656  

Bread Financial Holdings

      

9.750%, 03/15/2029 (A)

      750,000        779,957  

Burford Capital Global Finance

      

9.250%, 07/01/2031 (A)

      1,790,000        1,864,569  

Freedom Mortgage

      

12.000%, 10/01/2028 (A)

      500,000        535,125  

6.625%, 01/15/2027 (A)

      500,000        481,258  

Nationstar Mortgage Holdings

      

5.750%, 11/15/2031 (A)

      750,000        681,664  

5.500%, 08/15/2028 (A)

      250,000        235,094  

OneMain Finance

      

9.000%, 01/15/2029

      500,000        524,185  

PROG Holdings

      

6.000%, 11/15/2029 (A)

      2,000,000        1,842,806  

Rithm Capital

      

8.000%, 04/01/2029 (A)

      1,000,000        977,863  

6.250%, 10/15/2025 (A)

      1,750,000        1,733,277  
     

 

 

 

        10,470,454  
     

 

 

 

HEALTH CARE — 2.5%

      

Bausch Health

      

6.125%, 02/01/2027 (A)

      250,000        183,125  

5.250%, 01/30/2030 (A)

      750,000        322,500  

4.875%, 06/01/2028 (A)

      250,000        161,495  

Bausch Health Americas

      

8.500%, 01/31/2027 (A)

      446,000        288,776  

LifePoint Health

      

11.000%, 10/15/2030 (A)

      125,000        133,049  

Pediatrix Medical Group

      

5.375%, 02/15/2030 (A)

      500,000        437,495  

Star Parent

      

9.000%, 10/01/2030 (A)

      250,000        261,512  

Tenet Healthcare

      

6.750%, 05/15/2031 (A)

      250,000        250,496  
     

 

 

 

          2,038,448   
     

 

 

 

 CORPORATE OBLIGATIONS — (continued)

 

      Face Amount       Value  

INDUSTRIALS — 13.4%

    

American Airlines

    

5.500%, 04/20/2026 (A)

    $    500,000      $ 494,200   

Ardagh Metal Packaging Finance USA

    

6.000%, 06/15/2027 (A)

     125,000       121,170  

BWX Technologies

    

4.125%, 06/30/2028 (A)

     500,000       456,750  

Clean Harbors

    

6.375%, 02/01/2031 (A)

     125,000       123,837  

Covanta Holding

    

4.875%, 12/01/2029 (A)

     1,125,000       986,181  

Dycom Industries

    

4.500%, 04/15/2029 (A)

     800,000       736,794  

Enviri

    

5.750%, 07/31/2027 (A)

     757,000       707,993  

GFL Environmental

    

4.375%, 08/15/2029 (A)

     250,000       225,649  

ILFC E-Capital Trust I

    

7.145%, TSFR3M + 1.812%, 12/21/2065 (A)(B)

     2,455,000       1,937,852  

ILFC E-Capital Trust II

    

7.395%, TSFR3M + 2.062%, 12/21/2065 (A)(B)

     1,000,000       804,179  

Interface

    

5.500%, 12/01/2028 (A)

     1,324,000       1,241,700  

ITT Holdings

    

6.500%, 08/01/2029 (A)

     1,000,000       903,218  

SPX FLOW

    

8.750%, 04/01/2030 (A)

     250,000       255,896  

Waste Pro USA

    

5.500%, 02/15/2026 (A)

     750,000       733,627  

WESCO Distribution

    

6.625%, 03/15/2032 (A)

     640,000       637,005  

6.375%, 03/15/2029 (A)

     640,000       635,776  
   

 

 

 

        11,001,827  
   

 

 

 

INFORMATION TECHNOLOGY — 1.6%

 

Entegris

    

5.950%, 06/15/2030 (A)

     500,000       486,872  

Total Play Telecomunicaciones

    

6.375%, 09/20/2028 (A)

     1,500,000       800,731  
   

 

 

 

      1,287,603  
   

 

 

 

MATERIALS — 14.2%

    

Ardagh Metal Packaging Finance USA

    

4.000%, 09/01/2029 (A)

     1,000,000       824,319  

Arsenal AIC Parent

    

8.000%, 10/01/2030 (A)

     250,000       260,291  
 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   4

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Credit Opportunities Fund
     April 30, 2024 (Unaudited)

 

 CORPORATE OBLIGATIONS — (continued)

 

       Face Amount       Value  

MATERIALS — (continued)

 

  

Avient

     

7.125%, 08/01/2030 (A)

     $    500,000      $ 505,889  

Axalta Coating Systems

     

3.375%, 02/15/2029 (A)

      500,000       436,822  

Chemours

     

4.625%, 11/15/2029 (A)

      1,500,000       1,285,306  

Graham Packaging

     

7.125%, 08/15/2028 (A)

      500,000       451,639  

Graphic Packaging International

     

3.750%, 02/01/2030 (A)

      750,000       652,559  

INEOS Finance

     

7.500%, 04/15/2029 (A)

      640,000       642,977  

Kaiser Aluminum

     

4.500%, 06/01/2031 (A)

      500,000       437,941  

LABL

     

9.500%, 11/01/2028 (A)

      375,000       375,140  

8.250%, 11/01/2029 (A)

      750,000       634,737   

5.875%, 11/01/2028 (A)

      250,000       222,338  

Mativ Holdings

     

6.875%, 10/01/2026 (A)

      1,500,000       1,478,682  

Mauser Packaging Solutions Holding

     

7.875%, 04/15/2027 (A)

      1,050,000       1,069,688  

Panther Escrow Issuer

     

7.125%, 06/01/2031 (A)

      500,000       502,593  

Polar US Borrower

     

6.750%, 05/15/2026 (A)

      2,000,000       520,000  

TMS International

     

6.250%, 04/15/2029 (A)

      1,000,000       921,563  

WR Grace Holdings

     

5.625%, 08/15/2029 (A)

      500,000        447,750  
    

 

 

 

         11,670,234   
    

 

 

 

 CORPORATE OBLIGATIONS — (continued)

 

       Face Amount       Value  

REAL ESTATE — 7.9%

     

Cushman & Wakefield US Borrower

     

8.875%, 09/01/2031 (A)

     $    1,000,000      $ 1,037,653  

Greystar Real Estate Partners

     

7.750%, 09/01/2030 (A)

      1,000,000       1,029,982  

Howard Hughes

     

4.375%, 02/01/2031 (A)

      2,000,000       1,695,889  

Iron Mountain

     

5.625%, 07/15/2032 (A)

      250,000       231,395  

5.250%, 07/15/2030 (A)

      500,000       464,070  

4.875%, 09/15/2029 (A)

      250,000       230,692  

Newmark Group

     

7.500%, 01/12/2029 (A)

      655,000       661,312  

Service Properties Trust

     

8.625%, 11/15/2031 (A)

      375,000       393,840  

7.500%, 09/15/2025

      750,000       755,535  
    

 

 

 

         6,500,368  
    

 

 

 

UTILITIES — 1.2%

     

Vistra

     

7.000%, H15T5Y + 5.740%(A)(B)(C)

      1,000,000       987,778   
    

 

 

 

TOTAL CORPORATE OBLIGATIONS

     

(Cost $64,625,066)

        61,088,283  
    

 

 

 

    

 REGISTERED INVESTMENT COMPANY — 22.8%

 

     Shares    

Barrow Hanley Floating Rate Fund †

      1,899,605        18,749,860  
    

 

 

 

TOTAL REGISTERED INVESTMENT COMPANY

     

(Cost $18,750,741)

        18,749,860  
    

 

 

 

 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   5

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Credit Opportunities Fund
     April 30, 2024 (Unaudited)

 

 ASSET-BACKED SECURITIES — 0.9%

 

      Face Amount       Value  

OTHER ASSET-BACKED SECURITIES — 0.9%

 

Empower CLO, Ser 2023-2A, Cl D

      

10.729%, TSFR3M + 5.400%, 07/15/2036 (A)(B)

    $   500,000      $ 511,035  

Katayma CLO II, Ser 2024-2A, Cl E

      

12.618%, TSFR3M + 7.330%, 04/20/2037 (A)(B)

      250,000        250,564  
     

 

 

 

        761,599  
     

 

 

 

TOTAL ASSET-BACKED SECURITIES

      

(Cost $747,468)

         761,599  
     

 

 

 

TOTAL INVESTMENTS— 98.0%

 

(Cost $84,123,275)

 

     $  80,599,742   
     

 

 

 

 

 

Percentages are based on Net Assets of $82,228,372.

†

Investment in Affiliated Security.

(A)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration normally to qualified institutions. On April 30, 2024, the value of these securities amounted to $58,687,265, representing 71.4% of the Net Assets of the Fund.

(B)

Variable or floating rate security. The rate shown is the effective interest rate as of period end. The rates on certain securities are not based on published reference rates and spreads and are either determined by the issuer or agent based on current market conditions; by using a formula based on the rates of underlying loans; or by adjusting periodically based on prevailing interest rates.

(C)

Perpetual security with no stated maturity date.

Cl — Class

CLO — Collateralized Loan Obligation

TSFR3M — Term Secured Overnight Financing Rate 3 Months

H15T5Y — U.S. Treasury Yield Curve Rate T Note Constant Maturity 5 Year

Ser — Series

SPX — Standard & Poor’s 500 Index

The following is a summary of the inputs used as of April 30, 2024 in valuing the Fund’s investments carried at value:

 

Investments in
Securities		   Level 1      Level 2      Level 3      Total   

Corporate Obligations

    $ —      $ 61,088,283      $ —       $  61,088,283   

Registered Investment Company

     18,749,860        —        —        18,749,860   

Asset-Backed Securities

     —        761,599        —        761,599   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Investments in Securities

   $ 18,749,860      $ 61,849,882       $   —       $ 80,599,742   
 

 

 

    

 

 

    

 

 

    

 

 

  

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

 

 

The following is a summary of the Fund’s transactions with affiliates for the period ended April 30, 2024:

 

               
Security Description  

Value

10/31/2023

     Purchases at Cost     Proceeds from
Sales		     Realized
Gain (Loss)		     Net Unrealized
Appreciation		     Value 4/30/2024     Income     Capital
Gains		  
Barrow Hanley Floating Rate Fund   $  24,237,159     $ 997,101     $  (7,000,000 )    $  (29,570 )    $  545,170     $  18,749,860     $ 997,100     $  —  
       

Amounts designated as “–” are $0.

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   6

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Emerging Markets Value Fund
     April 30, 2024 (Unaudited)

 

 SECTOR WEIGHTINGS †

 

LOGO

† Percentages are based on total investments.

 

 SCHEDULE OF INVESTMENTS

 

 COMMON STOCK — 96.8%

 

       Shares       Value  

BRAZIL — 3.0%

 

Dexco

      36,241      $ 50,391  

TIM

      11,233       38,247  
    

 

 

 

          88,638   
    

 

 

 

CHINA — 27.4%

     

COMMUNICATION SERVICES — 4.6%

 

Autohome ADR

      2,195       56,411  

Baidu, Cl A *

      6,105       79,094  
    

 

 

 

       135,505  
    

 

 

 

CONSUMER DISCRETIONARY — 6.2%

 

Great Wall Motor, Cl H

      41,934       63,368  

Haier Smart Home, Cl A

      14,996       55,546  

JD.com, Cl A

      4,193       60,414  
    

 

 

 

       179,328  
    

 

 

 

CONSUMER STAPLES — 3.1%

     

China Mengniu Dairy

      22,751       47,128  

Tingyi Cayman Islands Holding

      39,830       43,960  
    

 

 

 

       91,088  
    

 

 

 

ENERGY — 2.6%

     

China Oilfield Services, Cl H

      26,000       27,802  

China Petroleum & Chemical, Cl H

      80,179       47,859  
    

 

 

 

       75,661  
    

 

 

 

FINANCIALS — 6.2%

     

China International Capital, Cl H

      34,193       41,232  

China Merchants Bank, Cl H

      17,976       77,851  

Ping An Insurance Group of China, Cl H

      13,268       60,132  
    

 

 

 

       179,215  
    

 

 

 

INDUSTRIALS — 1.7%

     

Xinyi Glass Holdings

      46,418        49,603  
    

 

 

 

 COMMON STOCK — (continued)

 

  
       Shares       Value  

CHINA — (continued)

 

INFORMATION TECHNOLOGY — 1.1%

 

Xinyi Solar Holdings

      44,698      $ 30,755  
    

 

 

 

UTILITIES — 1.9%

     

ENN Energy Holdings

      6,339       54,011  
    

 

 

 

       795,166  
    

 

 

 

COLOMBIA — 1.6%

     

Bancolombia ADR

      1,406       46,004  
    

 

 

 

HONG KONG — 4.5%

     

ASMPT

      3,631       45,125  

Hang Lung Properties

      36,565       40,357  

Sino Biopharmaceutical

      129,986       44,416  
    

 

 

 

       129,898  
    

 

 

 

HUNGARY — 1.1%

     

OTP Bank Nyrt

      621          30,780   
    

 

 

 

INDIA — 7.0%

     

Axis Bank

      5,078       70,879  

IndusInd Bank

      3,944       71,507  

UPL

      10,058       61,042  
    

 

 

 

       203,428  
    

 

 

 

INDONESIA — 1.9%

     

Astra International

      180,030       56,810  
    

 

 

 

MACAO — 1.5%

     

Sands China *

      18,656       44,003  
    

 

 

 

MALAYSIA — 2.6%

     

Petronas Chemicals Group

      27,089       38,441  

Public Bank

      44,154       38,083  
    

 

 

 

       76,524  
    

 

 

 

MEXICO — 2.6%

     

Fibra Uno Administracion ‡

      19,920       28,512  

Grupo Financiero Banorte, Cl O

      4,731       46,927  
    

 

 

 

       75,439  
    

 

 

 

PHILIPPINES — 1.5%

     

BDO Unibank

      16,655       42,727  
    

 

 

 

RUSSIA — 0.0%

     

Alrosa PJSC (A)

      12,058       –  

Moscow Exchange MICEX-RTS PJSC (A)

      8,812       –  
    

 

 

 

       –  
    

 

 

 

SOUTH AFRICA — 3.5%

     

Absa Group

      3,725       28,723  

Gold Fields

      1,716       27,761  

Sibanye Stillwater

      39,142        44,675  
    

 

 

 

       101,159  
    

 

 

 

 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   7

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Emerging Markets Value Fund
     April 30, 2024 (Unaudited)

 

 COMMON STOCK — (continued)

 

       Shares      Value 

SOUTH KOREA — 18.2%

     

Amorepacific

      541      $ 65,940  

HL Mando

      2,047       57,730  

Korea Electric Power *

      1,975       30,151  

Korea Investment Holdings

      1,316       63,607  

Samsung Electro-Mechanics

      257       28,667  

Shinhan Financial Group

      1,711       57,485  

SK Hynix

      1,082       133,525  

SK Telecom

      1,364       50,443   

S-Oil

      775       40,462  
    

 

 

 

       528,010  
    

 

 

 

TAIWAN — 10.8%

     

Bizlink Holding

      13,154       92,668  

Hiwin Technologies

      8,425       59,577  

Largan Precision

      928       61,859  

MediaTek

      3,334       100,524  
    

 

 

 

       314,628  
    

 

 

 

THAILAND — 8.3%

     

Kasikornbank

      12,456       43,724  

PTT Exploration & Production PCL

      19,935       83,394  

Siam Cement

      4,469       29,940  

Thai Beverage PCL

      116,570       42,212  

Thai Union Group, Cl F

      102,191        40,953  
    

 

 

 

       240,223  
    

 

 

 

UNITED ARAB EMIRATES — 1.3%

 

  

First Abu Dhabi Bank PJSC

      11,511       39,135  
    

 

 

 

TOTAL COMMON STOCK

     

(Cost $2,942,778)

    2,812,572  
    

 

 

 

 PREFERRED STOCK — 1.8%

 

BRAZIL — 1.8%

     

Banco Bradesco (B)

      19,192       51,855  
    

 

 

 

TOTAL PREFERRED STOCK

     

(Cost $52,518)

    51,855  
    

 

 

 

TOTAL INVESTMENTS— 98.6%

     

(Cost $2,995,296)

 

    $   2,864,427  
    

 

 

 

 

 

Percentages are based on Net Assets of $2,904,975.

*

Non-income producing security.

‡

Real Estate Investment Trust.

(A)

Level 3 security in accordance with fair value hierarchy.

(B)

There is currently no rate available.

ADR — American Depositary Receipt

Cl — Class

PCL — Public Company Limited

PJSC — Public Joint Stock Company

The following is a summary of the inputs used as of April 30, 2024 in valuing the Fund’s investments carried at value:

 

Investments in

Securities

   Level 1     Level 2     Level 3(1)     Total  

Common Stock

        

Brazil

    $ 88,638       $ –      $ –      $ 88,638   

China

     56,411        738,755        –        795,166   

Colombia

     46,004        –        –        46,004   

Hong Kong

     –        129,898        –        129,898   

Hungary

     –        30,780        –        30,780   

India

     –        203,428        –        203,428   

Indonesia

     –        56,810        –        56,810   

Macao

     –        44,003        –        44,003   

Malaysia

     –        76,524        –        76,524   

Mexico

     75,439        –        –        75,439   

Philippines

     42,727        –        –        42,727   

Russia

     –        –        –^        –   

South Africa

     –        101,159        –        101,159   

South Korea

     –        528,010        –        528,010   

Taiwan

     –        314,628        –        314,628   

Thailand

     –        240,223        –        240,223   

United Arab Emirates

     –        39,135        –        39,135   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Common Stock

     309,219        2,503,353        –        2,812,572   

Preferred Stock

                    

Brazil

     51,855        –        –        51,855   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Investments in Securities

    $  361,074       $  2,503,353      $    –      $  2,864,427   
 

 

 

    

 

 

    

 

 

    

 

 

  

 

(1)

A reconciliation of Level 3 investments is presented when the fund has a significant amount of Level 3 investments at the end of the period in relation to net assets. Management has concluded that Level 3 investments are not material in relation to net assets.

 

^

Includes securities in which the fair value is $0 or has been rounded to $0.

Amounts designated as “—” are $0.

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   8

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Floating Rate Fund
     April 30, 2024 (Unaudited)

 

 SECTOR WEIGHTINGS †

 

LOGO

† Percentages are based on total investments.

 

 SCHEDULE OF INVESTMENTS

 

 BANK LOAN OBLIGATIONS — 86.8%

 

      Face Amount     Value 

AEROSPACE AND DEFENSE — 1.8%

 

Cobham Ultra SeniorCo S.a r.l., Facility B (USD), 1st Lien

     

9.012%, CME Term SOFR + 3.500%, 08/03/2029(A)

     $   778,224       $ 762,659   

Peraton Corp., Term B Loan, 1st Lien

     

9.166%, CME Term SOFR + 3.750%, 02/01/2028(A)

      937,942       937,774  
    

 

 

 

         1,700,433  
    

 

 

 

BANK LOAN OBLIGATIONS — (continued)

 

      Face Amount     Value 

AUTOMOBILE — 3.5%

     

Adient US LLC Term B-2 Loan

     

8.066%, CME Term SOFR + 2.750%, 01/31/2031(A)

     $   1,123,063      $ 1,126,399  

Champions Holdco, Inc., Initial Term Loan, 1st Lien

     

10.072%, CME Term SOFR + 4.750%, 02/06/2029(A)

      390,000       391,139  

Clarios Global LP, 2024 Refinancing Term Loan, 1st Lien

     

8.316%, CME Term SOFR + 3.000%, 05/06/2030(A)

      788,025       789,995  

Tenneco Inc., Term B Loan, 1st Lien

     

10.419%, CME Term SOFR + 5.000%, 11/17/2028(A)

      1,000,000       978,380  
    

 

 

 

         3,285,913   
    

 

 

 

BANKING — 1.7%

     

Nexus Buyer LLC, Amendment No. 5 Term Loan, 1st Lien

     

9.816%, CME Term SOFR + 4.500%, 12/13/2028(A)

      1,000,000       993,330  

Nexus Buyer LLC, Term Loan, 1st Lien

     

9.166%, CME Term SOFR + 3.750%, 11/09/2026(A)

      654,595        653,325  
    

 

 

 

       1,646,655  
    

 

 

 

BEVERAGE, FOOD AND TOBACCO — 0.5%

 

Woof Holdings, Inc., Initial Term Loan, 1st Lien

     

9.321%, CME Term SOFR + 3.750%, 12/21/2027(A)

      383,569       297,507  

Woof Holdings, Inc., Term Loan, 2nd Lien

     

12.673%, CME Term SOFR + 7.250%, 12/21/2028(A)

      395,000       156,025  
    

 

 

 

       453,532  
    

 

 

 

BROADCASTING AND ENTERTAINMENT — 1.5%

 

CSC Holdings, LLC, 2022 Refinancing Term Loan, 1st Lien

     

9.821%, CME Term SOFR + 4.500%, 01/18/2028(A)

      780,125       751,565  
 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   9

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Floating Rate Fund
     April 30, 2024 (Unaudited)

 

BANK LOAN OBLIGATIONS — (continued)

 

      Face Amount      Value 
BROADCASTING AND ENTERTAINMENT — (continued)

 

   

CSC Holdings, LLC, September 2019 Initial Term Loan, 1st Lien

      

7.936%, Syn LIBOR + 2.500%, 04/15/2027(A)

     $   777,815       $ 653,854  
     

 

 

 

          1,405,419  
     

 

 

 

BUILDING AND DEVELOPMENT — 3.2%

 

Aegion Corporation, 2024 Replacement Term Loan, 1st Lien

      

9.566%, CME Term SOFR + 4.250%, 05/17/2028(A)

      770,841        774,511  

Crown Subsea Communications Holdings, Inc Initial Term

      

10.080%, CME Term SOFR + 4.750%, 01/30/2031(A)

      650,000        654,062  

Potters Industries, LLC 2024 Incremental Term Loan

      

9.047%, CME Term SOFR + 3.750%, 12/14/2027(A)

      1,149,721        1,156,194  

Walker & Dunlop, Inc., Incremental Term B Loan

      

8.416%, CME Term SOFR + 3.000%, 12/17/2029(A)

      391,050        391,050   
     

 

 

 

          2,975,817  
     

 

 

 

BUILDINGS AND REAL ESTATE — 0.7%

 

   

WireCo WorldGroup Inc., 2023 Refinancing Term Loan, 1st Lien

      

9.075%, CME Term SOFR + 3.750%, 10/27/2028(A)

      668,777        670,449  
     

 

 

 

BUSINESS EQUIPMENT & SERVICES — 2.0%

 

BIFM CA Buyer Inc. 2024 Term Loan (First Lien)

      

9.566%, CME Term SOFR + 4.250%, 05/31/2028(A)

      752,651        756,414  

Cotiviti, Inc. Initial Floating Rate Term Loan

      

8.563%, CME Term SOFR + 3.250%, 05/01/2031(A)(B)

      567,935        568,407  

Emerald X Inc., Initial Term Loan

      

10.416%, CME Term SOFR + 5.000%, 06/02/2026(A)

      392,038        393,100  

 

BANK LOAN OBLIGATIONS — (continued)

 

 

      Face Amount      Value 
BUSINESS EQUIPMENT & SERVICES — (continued)

 

   

KUEHG Corp. Amendment No. 2 Term Loan

      

9.823%, CME Term SOFR + 4.500%, 06/12/2030(A)

     $   197,006       $ 197,437  
     

 

 

 

          1,915,358  
     

 

 

 

CHEMICALS, PLASTICS AND RUBBER — 7.5%

 

Chemours Company, The, Tranche B-3 US$ Term Loan, 1st Lien

      

8.816%, CME Term SOFR + 3.500%, 08/18/2028(A)

      1,492,500        1,489,709  

DCG Acquisition Corp., Term Loan B, 1st Lien

      

9.916%, CME Term SOFR + 4.500%, 09/30/2026(A)

      383,569        383,331  

Koppers Inc., Term Loam B

      

8.830%, CME Term SOFR + 3.500%, 04/10/2030(A)

      1,176,127        1,177,597  

Momentive Performance Materials Inc. Initial Term Loan

      

9.816%, CME Term SOFR + 4.500%, 03/22/2028(A)

      782,100        774,772  

Nouryon Finance B.V., Extended Dollar Term Loan, 1st Lien

      

9.419%, CME Term SOFR + 4.000%, 04/03/2028(A)

      1,008,457        1,010,353  

Schenectady International Group, Inc., Initial Term Loan, 1st Lien

      

10.178%, CME Term SOFR + 4.750%, 10/15/2025(A)

      1,209,360        902,654  

W. R. Grace Holdings LLC, Initial Term Loan, 1st Lien

      

9.321%, CME Term SOFR + 3.750%, 09/22/2028(A)

      772,644        772,644   

Windsor Holdings III, LLC, 2024 Dollar Refinancing Term B Loan, 1st Lien

      

9.319%, CME Term SOFR + 4.000%, 08/01/2030(A)

      555,121        559,285  
     

 

 

 

          7,070,345  
     

 

 

 

 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   10

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Floating Rate Fund
     April 30, 2024 (Unaudited)

 

 

 BANK LOAN OBLIGATIONS — (continued)

 

 

     Face Amount     Value 

CONTAINERS & GLASS PRODUCTS — 0.7%

 

Graham Packaging Company Inc., Initial Term Loan (2021), 1st Lien

    

8.430%, CME Term SOFR + 3.000%, 08/04/2027(A)

    $   620,774      $ 621,892  
   

 

 

 

CONTAINERS, PACKAGING AND GLASS — 1.0%

 

Pregis TopCo LLC, Initial Term Loan, 1st Lien

    

9.066%, CME Term SOFR + 3.750%, 07/31/2026(A)

     438,854       439,881  

ProAmpac PG Borrower LLC, 2024-1 Refinancing Term Loan, 1st Lien

    

9.321%, CME Term SOFR + 4.000%, 09/15/2028(A)

     498,750       501,658  
   

 

 

 

      941,539  
   

 

 

 

CONTAINERS, PACKAGING AND GLASS PRODUCTS — 0.9%

 

  

Five Star Lower Holding LLC, Initial Term Loan, 1st Lien

    

9.575%, CME Term SOFR + 4.250%, 05/05/2029(A)

     389,075       371,566  

Mauser Packaging Solutions Holding Company, Initial Term Loan, 1st Lien

    

9.329%, CME Term SOFR + 4.000%, 08/14/2026(A)

     281,578       281,674  

Pregis TopCo LLC, Third Amendment Refinancing Term Loan, 1st Lien

    

9.180%, CME Term SOFR + 3.750%, 07/31/2026(A)

     192,538       192,659  
   

 

 

 

      845,899  
   

 

 

 

DIVERSIFIED NATURAL RESOURCES, PRECIOUS METALS AND MINERALS — 1.1%

 

  

Mativ Holdings, Inc., Term B Loan, 1st Lien

    

9.180%, CME Term SOFR + 3.750%, 04/20/2028(A)

     1,025,116        1,022,553   
   

 

 

 

DIVERSIFIED/CONGLOMERATE MANUFACTURING — 1.2%

 

  

TK Elevator Midco GmbH, Facility B2 (USD), 1st Lien

    

8.791%, CME Term SOFR + 3.500%, 04/30/2030(A)

     1,147,590       1,151,916  
   

 

 

 

DIVERSIFIED/CONGLOMERATE SERVICE — 8.3%

 

Ascensus Group Holdings, Inc., Initial Term Loan, 1st Lien

    

8.930%, CME Term SOFR + 3.500%, 08/02/2028(A)

     1,569,434       1,565,510   

 

 BANK LOAN OBLIGATIONS — (continued)

 

 

      Face Amount      Value 
DIVERSIFIED/CONGLOMERATE SERVICE — (continued)

 

   

DXP Enterprises, Inc., 2023 Refinancing-Incremental Term Loan, 1st Lien

      

10.164%, CME Term SOFR + 4.750%, 10/11/2030(A)

     $   786,050       $ 788,998  

Medline Borrower, LP, Refinancing Term Loan, 1st Lien

      

8.068%, CME Term SOFR + 2.750%, 10/23/2028(A)

      705,159        706,717  

Service Logic Acquisition, Inc., Closing Date Initial Term Loan, 1st Lien

      

9.591%, CME Term SOFR + 4.000%, 10/29/2027(A)

      767,586        768,545  

Sharp Services, LLC, Tranche C Term Loan, 1st Lien

      

9.052%, CME Term SOFR + 3.750%, 12/31/2028(A)

      774,151        776,086   

TMS International Corporation, Term B-5 Loan, 1st Lien

      

9.593%, CME Term SOFR + 4.250%, 03/02/2030(A)

      2,168,986        2,175,319  

Verscend Holding Corp., Term B-1 Loan, 1st Lien

      

11.500%, PRIME + 3.000%, 08/27/2025(A)

      566,479        566,621  

VT Topco, Inc., Incremental Term Loan, 1st Lien

      

8.816%, CME Term SOFR + 3.500%, 08/09/2030(A)

      498,750        499,997  
     

 

 

 

         7,847,793  
     

 

 

 

ECOLOGICAL SERVICES & EQUIPMENT — 0.4%

 

TMF Sapphire Bidco B.V. New Facility B2 Loan (First Lien)

      

9.306%, CME Term SOFR + 4.000%, 05/03/2028(A)

      394,013        394,671   
     

 

 

 

ELECTRONICS — 5.5%

 

Aretec Group, Inc. (fka RCS Capital Corporation), Term B-1 Loan, 1st Lien

      

9.916%, CME Term SOFR + 4.500%, 08/09/2023(A)

      497,494        499,758  

Ingram Micro Inc., Term Loan B

      

8.571%, CME Term SOFR + 3.000%, 06/30/2028(A)

      287,943        288,663  

MH Sub I, LLC (Micro Holding Corp.), 2023 May Incremental Term Loan, 1st Lien

      

9.566%, CME Term SOFR + 4.250%, 05/03/2028(A)

      2,552,935        2,542,493  
 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   11

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Floating Rate Fund
     April 30, 2024 (Unaudited)

 

 

 BANK LOAN OBLIGATIONS — (continued)

 

 

      Face Amount      Value 

ELECTRONICS — (continued)

 

Proofpoint, Inc., Initial Term Loan, 1st Lien

      

8.680%, CME Term SOFR + 3.250%, 08/31/2028(A)

     $ 775,352       $ 778,500  

Ultra Clean Holdings, Inc. Sixth Amendment Term Loan

      

8.816%, CME Term SOFR + 3.500%, 02/28/2028(A)

      88,000        88,110   

Ultra Clean, Term Loan, 1st Lien

      

9.192%, CME Term SOFR + 3.750%, 08/27/2025(A)

        949,830        951,017  
     

 

 

 

          5,148,541  
     

 

 

 

FINANCE (INCLUDING STRUCTURED PRODUCTS) — 7.7%

 

   

Apple Bidco, LLC, Amendment No. 3 Term Loan, 1st Lien

      

8.816%, CME Term SOFR + 3.500%, 09/22/2028(A)

      781,132        782,695   

Brown Group Holding, LLC, Incremental Term B-2 Facility, 1st Lien

      

8.343%, CME Term SOFR + 3.000%, 07/02/2029(A)

      390,063        390,308  

Chariot Buyer LLC, Initial Term Loan, 1st Lien

      

8.666%, CME Term SOFR + 3.250%, 11/03/2028(A)

      780,025        778,699  

Dermatology Intermediate Holdings III, Inc., Closing Date Term Loan, 1st Lien

      

9.580%, CME Term SOFR + 4.250%, 03/30/2029(A)

      393,000        381,949  

Fiserv Investment Solutions, Inc., Initial Term Loan, 1st Lien

      

9.319%, CME Term SOFR + 4.000%, 02/18/2027(A)

      925,218        881,270  

Fleetpride, Inc., 2023 Incremental Term Loan, 1st Lien

      

9.816%, CME Term SOFR + 4.500%, 09/29/2028(A)

      497,500        498,744  

 

 BANK LOAN OBLIGATIONS — (continued)

 

 

      Face Amount        Value 
FINANCE (INCLUDING STRUCTURED PRODUCTS) — (continued)

 

   

Global IID Parent LLC, Term B Loan, 1st Lien

      

10.064%, CME Term SOFR + 4.500%, 12/16/2028(A)

     $  1,544,302       $ 1,505,695  

Greystone Select, Term Loan, 1st Lien

      

10.588%, CME Term SOFR + 5.000%, 06/16/2028(A)

      380,476        377,622  

MSP Law PLLC, Term Loan, 1st Lien

      

17.500% 04/09/2025(C)

      612,857        612,857  

Osmosis Buyer Limited, 2022 Refinancing Term B Loan, 1st Lien

      

9.324%, CME Term SOFR + 4.000%, 07/31/2028(A)

      1,003,250        1,006,160  
     

 

 

 

        7,215,999  
     

 

 

 

FINANCIAL INTERMEDIARIES — 1.5%

 

Russell Investments US Institutional Holdco, Inc. 2027 Rem Loan

      

10.330%, CME Term SOFR + 5.000%, 05/30/2027(A)

      1,555,287          1,391,982   
     

 

 

 

FOOD SERVICE — 0.4%

 

Aspire Bakeries Holdings, LLC, Initial Term Loan

      

9.565%, CME Term SOFR + 4.250%, 12/13/2030(A)

      336,147        336,708  
     

 

 

 

FOOD/DRUG RETAILERS — 1.3%

 

United Natural Foods, Inc. 2024 Term Loan

      

10.063%, CME Term SOFR + 4.750%, 05/01/2031(A)(B)

      1,212,041        1,195,375  
     

 

 

 

HEALTHCARE, EDUCATION AND CHILDCARE — 6.7%

 

   

Bella Holding Company, LLC, Initial Term Loan, 1st Lien

      

9.166%, CME Term SOFR + 3.750%, 05/10/2028(A)

      770,152        769,512  

Charlotte Buyer, Inc., Initial Term Loan B, 1st Lien

      

10.571%, CME Term SOFR + 5.250%, 02/11/2028(A)

      783,073        786,056  
 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   12

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Floating Rate Fund
     April 30, 2024 (Unaudited)

 

 

BANK LOAN OBLIGATIONS — (continued)

 

 

     Face Amount       Value 
HEALTHCARE, EDUCATION AND CHILDCARE — (continued)

 

LifePoint Health, Inc. 2024 Refinancing Term Loan (First Lien)

    

10.056%, CMR Term SOFR + 4.750%, 11/16/2028(A)

    $  1,493,297      $ 1,497,881  

MED ParentCo, LP, Eigth Amendment Refinancing Term Loan, 1st Lien

    

9.316%, CME Term SOFR + 4.000%, 08/31/2026(A)

     777,784       777,963  

9.316%, CME Term SOFR + 4.000%, 04/15/2031

     264,788       264,849  

Star Parent, Inc., Term Loan, 1st Lien

    

9.309%, CME Term SOFR + 4.000%, 09/27/2030(A)

     500,000       499,690  

Summit Behavioral Healthcare, LLC, Initial Term Loan, 1st Lien

    

10.355%, CME Term SOFR + 4.750%, 11/24/2028(A)

     774,151       774,344  

WCG Purchaser Corp., Initial Term Loan, 1st Lien

    

9.430%, CME Term SOFR + 4.000%, 01/08/2027(A)

     640,122       641,729  

Zest Acquisition Corp., Term B-1 Loan, 1st Lien

    

10.830%, CME Term SOFR + 5.500%, 02/08/2028(A)

     350,563       348,810  
   

 

 

 

       6,360,834   
   

 

 

 

HOME AND OFFICE FURNISHINGS, HOUSEWARES AND DURABLE CONSUMER PRODUCTS — 0.8%

 

  

Pactiv Evergreen Inc., Tranche B-3 U.S. Term Loan, 1st Lien

    

8.680%, CME Term SOFR + 3.250%, 09/24/2028(A)

     769,167       772,882   
   

 

 

 

HOTELS, MOTELS, INNS AND GAMING — 0.9%

 

BRE/Everbright M6 Borrower LLC, Initial Term Loan, 1st Lien

    

10.424%, CME Term SOFR + 5.000%, 09/09/2026(A)

     619,706       620,790  

Scientific Games Holdings LP , Initial Dollar Term Loan, 1st Lien

    

8.556%, CME Term SOFR + 3.250%, 04/04/2029(A)

     194,045       194,014  
   

 

 

 

      814,804  
   

 

 

 

 

BANK LOAN OBLIGATIONS — (continued)

 

 

     Face Amount     Value 

INDUSTRIAL EQUIPTMENT — 1.3%

 

DS Parent, Inc., Term Loan B, 1st Lien

    

10.798%, CME Term SOFR + 5.500%, 01/31/2031

    $  1,000,000      $  988,440  

Triton Water Holdings, Inc., Initial Term Loan, 1st Lien

    

8.814%, CME Term SOFR + 3.250%, 03/31/2028(A)

     284,517       283,192  
   

 

 

 

      1,271,632  
   

 

 

 

INSURANCE — 1.2%

    

Asurion, LLC, New B-11 Term Loan, 1st Lien

    

9.666%, CME Term SOFR + 4.250%, 08/19/2028(A)(B)

     438,892       427,441  

Asurion, LLC, New B-4 Term Loan, 2nd Lien

    

10.680%, CME Term SOFR + 5.250%, 01/20/2029(A)

     790,000       709,246  
   

 

 

 

        1,136,687  
   

 

 

 

MACHINERY (NON-AGRICULTURE, NON-CONSTRUCTION AND NON-ELECTRONIC) — 7.9%

 

  

Alliance Laundry Systems LLC, Initial Term B Loan, 1st Lien

    

8.899%, CME Term SOFR + 3.500%, 10/08/2027(A)

     1,029,456       1,032,287  

AZZ Inc., Initial Term Loan, 1st Lien

    

8.566%, CME Term SOFR + 3.250%, 05/13/2029(A)

     865,786        869,647  

Crosby US Acquisition Corp., Amendment No. 3 Replacement Term Loan, 1st Lien

    

9.316%, CME Term SOFR + 4.000%, 08/16/2029(A)

     438,900       441,459   

Engineered Machinery Holdings, Inc., Incremental Amendment No. 3 Term Loan, 2nd Lien

    

11.571%, CME Term SOFR + 6.000%, 05/21/2029(A)

     395,000       392,286   

Engineered Machinery Holdings, Inc., Incremental Amendment No. 5 Term Loan, 1st Lien

    

9.321%, CME Term SOFR + 3.750%, 05/19/2028(A)

     648,342       648,069  
 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   13

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Floating Rate Fund
     April 30, 2024 (Unaudited)

 

 

 BANK LOAN OBLIGATIONS — (continued)

 

 

      Face Amount        Value 
MACHINERY (NON-AGRICULTURE, NON-CONSTRUCTION AND NON-ELECTRONIC) — (continued)

 

   

Filtration Group Corporation, 2021 Incremental Term Loan, 1st Lien

      

8.930%, CME Term SOFR + 3.500%, 10/21/2028(A)(B)

    $  847,765       $ 849,181  

Filtration Group Corporation, 2023 Extended Dollar Term Loan, 1st Lien

      

9.680%, CME Term SOFR + 4.250%, 10/21/2028(A)

      195,525        196,137  

Gates Global LLC, Initial B-4 Dollar Term Loan, 1st Lien

      

8.316%, CME Term SOFR + 3.000%, 11/16/2029(A)

      778,150        780,399  

Indicor, LLC, Tranche B Dollar Term Loan, 1st Lien

      

9.302%, CME Term SOFR + 4.000%, 11/22/2029(A)

      782,120        787,986  

Pro Mach Group, Inc., Amendment No. 3 Refinancing Term Loan, 1st Lien

      

9.066%, CME Term SOFR + 3.750%, 08/31/2028(A)

      773,911        776,736  

SPX Flow, Inc., Term Loan, 1st Lien

      

9.916%, CME Term SOFR + 4.500%, 04/05/2029(A)

      688,416        691,893  
     

 

 

 

         7,466,080   
     

 

 

 

MINING, STEEL, IRON AND NONPRECIOUS METALS — 0.5%

 

   

Arsenal AIC Parent LLC, 2024 Term B Loan, 1st Lien

      

9.066%, CME Term SOFR + 3.750%, 08/18/2030(A)

      497,503        500,613  
     

 

 

 

PERSONAL AND NON-DURABLE CONSUMER PRODUCTS (MANUFACTURING ONLY) — 1.7%

 

   

ABG Intermediate Holdings 2 LLC, Tranche TLB-1 Term Loan, 1st Lien

      

8.918%, CME Term SOFR + 3.500%, 12/21/2028(A)

      776,643        779,944  

Hanesbrands Inc., Initial Tranche B Term Loan, 1st Lien

      

9.066%, CME Term SOFR + 3.750%, 03/08/2030(A)

      782,100        781,771  
     

 

 

 

        1,561,715  
     

 

 

 

 

 BANK LOAN OBLIGATIONS — (continued)

 

 

     Face Amount       Value 

PERSONAL TRANSPORTATION — 1.6%

 

AAdvantage Loyality IP Ltd. (American Airlines, Inc.), Initial Term Loan, 1st Lien

    

10.336%, CME Term SOFR + 4.750%, 04/20/2028(A)

   $ 948,000      $ 985,029   

Mileage Plus Holdings, LLC (Mileage Plus Intellectual Property Assets, Ltd.), Initial Term Loan, 1st Lien

    

10.733%, CME Term SOFR + 5.250%, 06/21/2027(A)

     513,158       526,254  
   

 

 

 

        1,511,283  
   

 

 

 

PRINTING, PUBLISHING AND BROADCASTING — 4.2%

 

  

Fleet Midco I Limited, Facility B, 1st Lien

    

8.566%, CME Term SOFR + 3.250%, 02/21/2031(A)

     770,800       772,727  

LABL, Inc., Initial Dollar Term Loan, 1st Lien

    

10.416%, CME Term SOFR + 5.000%, 10/29/2028(A)

     772,644       755,452  

Magnite, Inc. Initial Term Loan

    

9.791%, CME Term SOFR + 4.500%, 02/06/2031(A)

     222,603       223,091  

9.596%, CME Term SOFR + 4.500%, 02/06/2031(A)

     222,603       223,090  

Magnite, Inc., Term Loan B

    

9.822%, CME Term SOFR + 4.500%, 02/06/2031(A)

     1,179,795       1,182,378  

Taboola, Inc., Tranche B Term Loan

    

9.430%, CME Term SOFR + 4.000%, 09/01/2028(A)

     759,999       759,049  
   

 

 

 

        3,915,787   
   

 

 

 

RETAIL STORES — 6.1%

 

Allied Universal Holdco LLC (f/k/a USAGM Holdco, LLC), Initial U.S. Dollar Term Loan, 1st Lien

    

9.166%, CME Term SOFR + 3.750%, 05/12/2028(A)

     749,242       749,384  

BCPE Empire Holdings, Inc., Amendment No. 5 Refinancing Term Loan, 1st Lien

    

9.316%, CME Term SOFR + 4.000%, 12/11/2028(A)

     2,063,701       2,068,716  

Chefs’ Warehouse, Inc., The, 2022 Term Loan, 1st Lien

    

9.316%, CME Term SOFR + 4.000%, 08/23/2029(A)

     354,842       354,732  

Pet IQ, Term Loan, 1st Lien

    

9.680%, CME Term SOFR + 4.250%, 04/07/2028(A)

     768,644       759,036  
 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   14

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Floating Rate Fund
     April 30, 2024 (Unaudited)

 

 

BANK LOAN OBLIGATIONS — (continued)

 

 

      Face Amount        Value 

RETAIL STORES — (continued)

 

PetSmart LLC, Initial Term Loan, 1st Lien

      

9.166%, CME Term SOFR + 3.750%, 02/11/2028(A)

    $ 770,621      $ 758,677  

Upbound Group, Inc., Initial Term Loan (2021), 1st Lien

      

8.680%, CME Term SOFR + 3.250%, 02/17/2028(A)

      728,517        728,823   

Victoria’s Secret & Co., Initial Term Loan, 1st Lien

      

8.838%, CME Term SOFR + 3.250%, 08/02/2028(A)

      385,076        379,943  
     

 

 

 

        5,799,311  
     

 

 

 

SURFACE TRANSPORT — 0.4%

 

Kenan Advantage Group, Inc., The, U.S. Term B-3 Loan, 1st Lien

      

9.066%, CME Term SOFR + 3.750%, 01/25/2029(A)

      380,873        380,058   
     

 

 

 

TELECOMMUNICATIONS — 0.8%

 

Frontier Communications Holdings, LLC, TLB, 1st Lien

      

9.180%, CME Term SOFR + 3.750%, 10/08/2027(A)

      766,152        763,141  
     

 

 

 

UTILITIES — 0.3%

 

Del Monte Foods, Inc., Initial Term Loan, 1st Lien

      

9.668%, CME Term SOFR + 4.250%, 05/16/2029(A)

      351,441        296,968  
     

 

 

 

TOTAL BANK LOAN OBLIGATIONS

 

(Cost $81,516,788)

           81,790,584  
     

 

 

 

     

 

CORPORATE OBLIGATIONS — 10.5%

 

 

COMMUNICATION SERVICES — 1.7%

 

CCO Holdings

      

4.750%, 03/01/2030 (D)

      685,000        569,198  

CSC Holdings

      

4.125%, 12/01/2030 (D)

      1,580,000        1,003,650  
     

 

 

 

        1,572,848  
     

 

 

 

FINANCIALS — 2.6%

      

Burford Capital Global Finance

      

9.250%, 07/01/2031 (D)

      1,185,000        1,234,365  

Ken Garff Automotive

      

4.875%, 09/15/2028 (D)

      395,000        364,923  

Rithm Capital

      

8.000%, 04/01/2029 (D)

      880,000        860,520  
     

 

 

 

        2,459,808  
     

 

 

 

CORPORATE OBLIGATIONS — (continued)

 

      Face Amount        Value 

HEALTH CARE — 0.4%

      

Bausch Health

      

5.250%, 01/30/2030 (D)

     $   790,000       $ 339,700  

Bausch Health Americas

      

8.500%, 01/31/2027 (D)

      115,000        74,460  
     

 

 

 

        414,160  
     

 

 

 

INDUSTRIALS — 3.3%

      

AerCap Global Aviation Trust

      

6.500%, TSFR3M + 4.562%, 06/15/2045 (A)(D)

      790,000        785,427  

ILFC E-Capital Trust I

      

7.145%, TSFR3M + 1.812%, 12/21/2065 (A)(D)

      1,343,000        1,060,096  

ILFC E-Capital Trust II

      

7.395%, TSFR3M + 2.062%, 12/21/2065 (A)(D)

      1,102,000        886,205  

Waste Pro USA

      

5.500%, 02/15/2026 (D)

      395,000        386,377  
     

 

 

 

        3,118,105  
     

 

 

 

MATERIALS — 2.5%

      

Ardagh Metal Packaging Finance USA

      

4.000%, 09/01/2029 (D)

      500,000        412,160  

Chemours

      

4.625%, 11/15/2029 (D)

      1,185,000        1,015,391  

Graham Packaging

      

7.125%, 08/15/2028 (D)

      500,000        451,639  

Mauser Packaging Solutions Holding

      

7.875%, 04/15/2027 (D)

      319,000        324,981  

TMS International

      

6.250%, 04/15/2029 (D)

      115,000        105,980  
     

 

 

 

        2,310,151  
     

 

 

 

TOTAL CORPORATE OBLIGATIONS

 

(Cost $10,448,748)

           9,875,072   
     

 

 

 

     

ASSET-BACKED SECURITIES — 1.0%

 

OTHER ASSET-BACKED SECURITIES — 1.0%

 

Empower CLO, Ser 2023-2A, Cl D

      

10.729%, TSFR3M + 5.400%, 07/15/2036 (A)(D)

      500,000        511,035  

Katayma CLO II, Ser 2024-2A, Cl E

      

12.618%, TSFR3M + 7.330%, 04/20/2037 (A)(D)

      500,000        501,128  
     

 

 

 

        1,012,163  
     

 

 

 

TOTAL ASSET-BACKED SECURITIES

 

(Cost $994,937)

         1,012,163  
     

 

 

 

 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   15

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Floating Rate Fund
     April 30, 2024 (Unaudited)

 

WARRANT — 0.0%

 

      Number of 
Warrants		      Value

Service King#(C)

      

Strike Price $–

      2,554       $ –  
     

 

 

 

TOTAL WARRANT

      

(Cost $—)

         –  
     

 

 

 

TOTAL INVESTMENTS— 98.3%

      

(Cost $92,960,473)

 

     $  92,677,819  
     

 

 

 

 

 

Percentages are based on Net Assets of $94,238,363.

#

Expiration date not available.

(A)

Variable or floating rate security. The rate shown is the effective interest rate as of period end. The rates on certain securities are not based on published reference rates and spreads and are either determined by the issuer or agent based on current market conditions; by using a formula based on the rates of underlying loans; or by adjusting periodically based on prevailing interest rates.

(B)

Unsettled bank loan. Interest rate may not be available.

(C)

Level 3 security in accordance with fair value hierarchy.

(D)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration normally to qualified institutions. On April 30, 2024, the value of these securities amounted to $10,887,235, representing 11.6% of the Net Assets of the Fund.

Cl — Class

CLO — Collateralized Loan Obligation

CME — Chicago Mercantile Exchange

LLC — Limited Liability Company

LP — Limited Partnership

Ltd.

— Limited

Ser

— Series

SOFR

— Secured Overnight Financing Rate

SPX

— Standard & Poor’s 500 Index

TSFR3M

— Term Secured Overnight Financing Rate 3 Months

USD

— U.S. Dollar

 

The following is a summary of the inputs used as of April 30, 2024 in valuing the Fund’s investments carried at value:

 

Investments in
Securities		     Level 1        Level 2        Level 3(1)        Total   

Bank Loan Obligations

   $ —      $ 81,177,727      $ 612,857      $ 81,790,584   

Corporate Obligations

     —       9,875,072       —        9,875,072  

Asset-Backed Securities

     —        1,012,163        —        1,012,163   

Warrant

     —        —        —^        —   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Investments in Securities

   $    —      $  92,064,962      $  612,857      $  92,677,819   
 

 

 

    

 

 

    

 

 

    

 

 

  

 

(1)

A reconciliation of Level 3 investments is presented when the fund has a significant amount of Level 3 investments at the end of the period in relation to net assets. Management has concluded that Level 3 investments are not material in relation to net assets.

 

^

Includes securities in which the fair value is $0 or has been rounded to $0.

Amounts designated as “—” are $0.

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

 

 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   16

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   International Value Fund
     April 30, 2024 (Unaudited)

 

 SECTOR WEIGHTINGS †

 

LOGO

† Percentages are based on total investments.

 

 SCHEDULE OF INVESTMENTS

 

 COMMON STOCK — 93.3%

 

       Shares      Value 

AUSTRIA — 1.0%

 

Mondi

      29,192      $   553,228   
    

 

 

 

CANADA — 3.9%

     

Enbridge

      34,200       1,216,061  

Suncor Energy

      23,480       895,946  
    

 

 

 

       2,112,007  
    

 

 

 

CHINA — 1.9%

     

BOC Hong Kong Holdings

      346,000       1,060,522  
    

 

 

 

FINLAND — 3.4%

     

Fortum

      47,763       629,393  

Stora Enso, Cl R

      51,508       686,120  

Valmet

      20,745       517,610  
    

 

 

 

       1,833,123  
    

 

 

 

FRANCE — 6.3%

     

Accor

      13,217       579,245  

Arkema

      9,101       939,104  

BNP Paribas

      13,930       1,002,430  

Thales

      5,336       896,809  
    

 

 

 

       3,417,588  
    

 

 

 

GERMANY — 8.8%

     

BASF

      24,290       1,272,714  

Continental

      12,745       826,021  

Deutsche Post

      16,328       683,653  

GEA Group

      17,887       721,920  

Rheinmetall

      2,308       1,271,814  
    

 

 

 

       4,776,122  
    

 

 

 

HONG KONG — 4.0%

     

AIA Group

      95,400       698,744  

CLP Holdings

      114,000       896,731  

Link REIT ‡

      138,747        594,502  
    

 

 

 

       2,189,977  
    

 

 

 

 COMMON STOCK — (continued)

 

       Shares      Value 

ITALY — 4.3%

     

Azimut Holding

      25,950      $ 683,847  

Enel

      148,885       978,539  

Saipem *

      291,416       668,722  
    

 

 

 

         2,331,108   
    

 

 

 

JAPAN — 19.2%

     

Asahi Group Holdings

      25,700       879,171  

Honda Motor

      85,600       973,921  

Komatsu

      33,500       1,000,181  

Makita

      43,400       1,256,469  

MINEBEA MITSUMI

      56,100       1,050,773  

Mitsubishi Electric

      36,000       627,478  

Nabtesco

      46,367       764,682  

NSK

      157,000       863,403  

Olympus

      62,000       863,643  

Tosoh

      49,900       687,927  

TOTO

      36,400       985,148  

Welcia Holdings

      31,400       461,668  
    

 

 

 

       10,414,464  
    

 

 

 

NETHERLANDS — 4.6%

     

Akzo Nobel

      13,603        897,554  

Euronext

      9,454       851,341  

Randstad

      14,593       731,854  
    

 

 

 

       2,480,749  
    

 

 

 

NORWAY — 3.6%

     

Aker BP

      45,717       1,108,782  

Equinor

      32,569       866,608  
    

 

 

 

       1,975,390  
    

 

 

 

SINGAPORE — 2.1%

     

United Overseas Bank

      52,400       1,162,798  
    

 

 

 

SOUTH AFRICA — 1.1%

     

Sibanye Stillwater

      512,054       584,433  
    

 

 

 

SOUTH KOREA — 1.5%

     

SK Hynix

      6,806       839,899  
    

 

 

 

SWEDEN — 7.5%

     

Boliden

      27,720       911,009  

Electrolux, Cl B *

      77,356       672,629  

Elekta, Cl B

      105,081       748,264  

Getinge, Cl B

      46,109       970,707  

SKF, Cl B

      37,644       773,888  
    

 

 

 

       4,076,497  
    

 

 

 

SWITZERLAND — 3.7%

     

Barry Callebaut

      393       635,077  

Julius Baer Group

      25,786       1,383,635  
    

 

 

 

       2,018,712  
    

 

 

 

UNITED KINGDOM — 14.0%

     

Associated British Foods PLC

      34,256       1,133,792  

BAE Systems PLC

      52,342       870,561  

Centrica PLC

      406,504       648,890  
 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   17

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   International Value Fund
     April 30, 2024 (Unaudited)

 

 COMMON STOCK — (continued)

 

       Shares        Value 

UNITED KINGDOM — (continued)

 

CK Hutchison Holdings PLC

      180,500      $   876,648  

Entain PLC

      54,419       530,922  

Legal & General Group PLC

      429,570       1,261,000  

Persimmon PLC

      52,003       842,084  

Smith & Nephew PLC

      76,617       928,263  

St. James’s Place PLC

      96,833       523,991  
    

 

 

 

         7,616,151  
    

 

 

 

UNITED STATES — 2.4%

     

Sanofi

      13,139       1,298,044   
    

 

 

 

TOTAL COMMON STOCK

     

(Cost $49,363,410)

    50,740,812  
    

 

 

 

 PREFERRED STOCK — 4.7%

 

  

GERMANY — 4.7%

     

Dr Ing hc F Porsche (A)

      12,914       1,149,690  

Henkel & KGaA (A)

      17,551        1,394,284  
    

 

 

 

       2,543,974  
    

 

 

 

TOTAL PREFERRED STOCK

     

(Cost $2,475,330)

    2,543,974  
    

 

 

 

TOTAL INVESTMENTS—98.0%

     

(Cost $51,838,740)

 

    $ 53,284,786  
    

 

 

 

 

 

Percentages are based on Net Assets of $54,375,355.

*

Non-income producing security.

‡

Real Estate Investment Trust.

(A)

There is currently no rate available.

Cl — Class

PLC — Public Limited Company

The following is a summary of the inputs used as of April 30, 2024 in valuing the Fund’s investments carried at value:

 

Investments in
Securities		    Level 1       Level 2       Level 3       Total   

Common Stock

        

Austria

    $ –       $ 553,228      $ –       $ 553,228   

Canada

     2,112,007        –        –        2,112,007   

China

     –        1,060,522        –        1,060,522   

Finland

     –        1,833,123        –        1,833,123   

France

     –        3,417,588        –        3,417,588   

Germany

     –        4,776,122        –        4,776,122   

Hong Kong

     –        2,189,977        –        2,189,977   

Italy

     –        2,331,108        –        2,331,108   

Japan

     –        10,414,464        –        10,414,464   

Netherlands

     –        2,480,749        –        2,480,749   

Norway

     –        1,975,390        –        1,975,390   

Singapore

     –        1,162,798        –        1,162,798   

South Africa

     –        584,433        –        584,433   

South Korea

     –        839,899        –        839,899   

Sweden

     –        4,076,497        –        4,076,497   

Switzerland

     –        2,018,712        –        2,018,712   

United Kingdom

     –        7,616,151        –        7,616,151   

United States

     –        1,298,044        –        1,298,044   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Common Stock

     2,112,007        48,628,805        –        50,740,812   

Preferred Stock

                    

Germany

     –        2,543,974        –        2,543,974   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Investments in Securities

   $ 2,112,007       $ 51,172,779      $     –       $  53,284,786   
 

 

 

    

 

 

    

 

 

    

 

 

  

Amounts designated as “—” are $0.

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   18

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Total Return Bond Fund
     April 30, 2024 (Unaudited)

 

 SECTOR WEIGHTINGS †

 

LOGO

† Percentages are based on total investments.

 

 SCHEDULE OF INVESTMENTS

 

 MORTGAGE-BACKED SECURITIES — 48.2%

 

      Face Amount        Value 
AGENCY COLLATERALIZED MORTGAGE OBLIGATION — 0.4%

 

   

GNMA, Ser 2023-111, Cl PH

      

5.000%, 05/20/2053

    $   684,693       $ 668,679  
     

 

 

 

AGENCY MORTGAGE BACKED SECURITIES — 46.1%

 

FHLMC

      

6.000%, 03/01/2053 to 04/01/2054

      4,935,314          4,911,963  

5.500%, 09/01/2053 to 04/01/2054

      4,602,945        4,479,148  

5.000%, 11/01/2052

      3,161,255        2,997,541  

4.500%, 05/01/2053

      2,210,921        2,038,201   

4.000%, 06/01/2042 to 04/01/2048

      1,384,234        1,262,744  

3.500%, 09/01/2028 to 01/01/2048

      478,445        427,566  

3.000%, 11/01/2032 to 04/01/2047

      395,361        336,655  

2.500%, 06/01/2035 to 05/01/2052

      2,488,901        2,065,518  

2.000%, 09/01/2050 to 03/01/2052

      2,105,163        1,598,811  

FNMA

      

6.000%, 01/01/2054

      1,677,202        1,667,996  

5.500%, 12/01/2035 to 02/01/2054

      4,495,128        4,371,177  

5.000%, 05/01/2040 to 06/01/2053

      4,230,468        4,033,548  

4.500%, 04/01/2034 to 06/01/2053

      3,397,803        3,172,556  

4.000%, 11/01/2044 to 09/01/2052

      5,414,465        4,865,908  

3.500%, 06/01/2037 to 05/01/2052

      2,529,470        2,224,096  

 MORTGAGE-BACKED SECURITIES — (continued)

 

      Face Amount        Value 
AGENCY MORTGAGE BACKED SECURITIES — (continued)

 

   

3.000%, 10/01/2034 to 07/01/2052

    $  5,693,369       $ 4,768,239  

2.500%, 11/01/2041 to 02/01/2052

      8,151,049          6,516,405  

2.000%, 11/01/2035 to 01/01/2052

      7,335,595        5,648,400  

GNMA

      

5.500%, 07/20/2053

      2,661,690        2,611,926  

5.000%, 10/15/2039 to 04/20/2053

      2,819,096        2,705,681  

4.500%, 02/20/2050 to 09/20/2052

      804,367        750,500  

4.000%, 12/20/2047 to 03/20/2052

      1,786,410        1,620,300  

3.500%, 09/15/2041 to 01/20/2052

      373,769        333,174  

3.000%, 06/20/2051 to 06/20/2053

      6,663,174        5,679,785  

2.500%, 04/20/2050 to 04/20/2052

      2,975,731        2,442,563  
     

 

 

 

        73,530,401   
     

 

 

 

COMMERCIAL MORTGAGE-BACKED SECURITIES — 1.6%

 

   

BX Commercial Mortgage Trust, Ser VOLT, Cl A

      

6.136%, TSFR1M + 0.814%, 09/15/2036 (A)(B)

      550,000        544,500  

Cold Storage Trust, Ser ICE5, Cl A

      

6.334%, TSFR1M + 1.014%, 11/15/2037 (A)(B)

      398,111        397,240  

New Economy Assets Phase 1 Sponsor, Ser 2021-1, Cl A1

      

1.910%, 10/20/2061 (A)

      235,000        204,758  

NRTH 2024-PARK Mortgage Trust, Ser PARK, Cl A

      

6.962%, TSFR1M + 1.641%, 03/15/2041 (A)(B)

      1,450,000        1,450,907  
     

 

 

 

        2,597,405  
     

 

 

 

NON-AGENCY MORTGAGE-BACKED SECURITY — 0.1%

 

   

Seasoned Loans Structured Transaction Trust, Ser 2020-3, Cl A1C

      

2.000%, 11/25/2030

      128,623        112,792  
     

 

 

 

TOTAL MORTGAGE-BACKED SECURITIES

      

(Cost $79,513,385)

         76,909,277  
     

 

 

 

 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   19

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Total Return Bond Fund
     April 30, 2024 (Unaudited)

 

 CORPORATE OBLIGATIONS — 35.2%

 

      Face Amount        Value 

COMMUNICATION SERVICES — 4.2%

 

   

AT&T

      

3.800%, 12/01/2057

    $ 500,000       $ 337,344  

3.650%, 09/15/2059

      935,000        606,573  

Charter Communications Operating

      

6.484%, 10/23/2045

      1,886,000        1,669,649  

5.750%, 04/01/2048

      370,000        298,202  

Paramount Global

      

4.600%, 01/15/2045

      3,000,000        2,010,130   

Rogers Communications

      

4.300%, 02/15/2048

      1,058,000        814,388  

Warnermedia Holdings

      

5.050%, 03/15/2042

       1,185,000        948,607  
     

 

 

 

          6,684,893  
     

 

 

 

CONSUMER DISCRETIONARY — 4.5%

 

BAT Capital

      

6.000%, 02/20/2034

      245,000        243,486  

4.540%, 08/15/2047

      1,395,000        1,043,884  

Bayer US Finance

      

6.500%, 11/21/2033 (A)

      1,155,000        1,151,152  

6.125%, 11/21/2026 (A)

      585,000        585,920  

Bayer US Finance II

      

4.250%, 12/15/2025 (A)

      645,000        626,672  

3.950%, 04/15/2045 (A)

      1,770,000        1,188,729  

Ford Motor Credit

      

5.125%, 06/16/2025

      460,000        455,140  

4.134%, 08/04/2025

      460,000        448,643  

3.375%, 11/13/2025

      405,000        388,806  

Nissan Motor

      

4.810%, 09/17/2030 (A)

      400,000        363,819  

Whirlpool MTN

      

5.150%, 03/01/2043

      900,000        767,329  
     

 

 

 

        7,263,580  
     

 

 

 

CONSUMER STAPLES — 0.1%

 

   

Reynolds American

      

5.700%, 08/15/2035

      150,000        144,033  
     

 

 

 

ENERGY — 1.8%

      

BP Capital Markets

      

6.450%, H15T5Y + 2.153%(B)(C)

      1,080,000        1,089,591  

Energy Transfer

      

8.000%, H15T5Y + 4.020%, 05/15/2054 (B)

      500,000        514,899  

7.500%, 07/01/2038

      280,000        308,731  

6.000%, 06/15/2048

      745,000        706,590  

Kinder Morgan Energy Partners

      

5.400%, 09/01/2044

      75,000        67,144  

ONEOK Partners

      

6.850%, 10/15/2037

      110,000        115,487  
     

 

 

 

        2,802,442  
     

 

 

 

 CORPORATE OBLIGATIONS — (continued)

 

      Face Amount        Value 

FINANCIALS — 12.1%

      

Barclays PLC

      

9.625%, USISSO05 + 5.775%(B)(C)

    $  2,000,000       $   2,090,258  

7.119%, SOFRRATE + 3.570%, 06/27/2034 (B)

      855,000        881,606  

6.224%, SOFRRATE + 2.980%, 05/09/2034 (B)

      505,000        506,351  

2.894%, H15T1Y + 1.300%, 11/24/2032 (B)

      1,610,000        1,305,141  

Citigroup

      

1.281%, SOFRRATE + 0.528%, 11/03/2025 (B)

      225,000        219,610  

Deutsche Bank NY

      

7.146%, SOFRRATE + 2.520%, 07/13/2027 (B)

      190,000        193,968  

3.729%, SOFRRATE + 2.757%, 01/14/2032 (B)

      260,000        214,064  

3.035%, SOFRRATE + 1.718%, 05/28/2032 (B)

      315,000        258,288  

2.552%, SOFRRATE + 1.318%, 01/07/2028 (B)

      220,000        200,896  

2.311%, SOFRRATE + 1.219%, 11/16/2027 (B)

      925,000        841,474  

Fairfax Financial Holdings

      

6.350%, 03/22/2054 (A)

      1,015,000        1,003,432   

Fidelity National Financial

      

3.200%, 09/17/2051

      155,000        94,438  

Intesa Sanpaolo

      

6.625%, 06/20/2033 (A)

      1,435,000        1,445,653  

4.198%, H15T1Y + 2.600%, 06/01/2032 (A)(B)

      460,000        377,037  

JPMorgan Chase

      

1.561%, SOFRRATE + 0.605%, 12/10/2025 (B)

      345,000        335,959  

Macquarie Group MTN

      

2.871%, SOFRRATE + 1.532%, 01/14/2033 (A)(B)

      965,000        780,683  

Markel Group

      

5.000%, 05/20/2049

      765,000        661,165  

3.450%, 05/07/2052

      915,000        597,937  

Mitsubishi UFJ Financial Group

      

2.193%, 02/25/2025

      315,000        306,073  
 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   20

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Total Return Bond Fund
     April 30, 2024 (Unaudited)

 

 CORPORATE OBLIGATIONS — (continued)

 

      Face Amount        Value 

FINANCIALS — (continued)

 

Moody’s

      

2.550%, 08/18/2060

    $  75,000       $   38,384  

Morgan Stanley

      

2.484%, SOFRRATE + 1.360%, 09/16/2036 (B)

      185,000        142,710  

Morgan Stanley MTN

      

0.864%, SOFRRATE + 0.745%, 10/21/2025 (B)

      610,000        595,275  

NatWest Group

      

3.754%, H15T5Y + 2.100%, 11/01/2029 (B)

      1,695,000        1,673,322  

Societe Generale

      

7.132%, H15T1Y + 2.950%, 01/19/2055 (A)(B)

      950,000        907,044  

State Street

      

2.354%, SOFRRATE + 0.940%, 11/01/2025 (B)

      495,000        485,581  

UBS Group

      

9.250%, H15T5Y + 4.745%(A)(B)(C)

      1,000,000        1,067,229  

9.250%, H15T5Y + 4.758%(A)(B)(C)

      1,000,000        1,097,487  

7.750%, USISSO05 + 4.160%(A)(B)(C)

      1,000,000        1,007,916  
     

 

 

 

        19,328,981  
     

 

 

 

INDUSTRIALS — 1.1%

      

AerCap Ireland Capital DAC

      

3.400%, 10/29/2033

      665,000        541,424  

3.300%, 01/30/2032

      1,230,000        1,026,861  

American Airlines 2019-1 Class AA Pass Through Trust

      

3.150%, 02/15/2032

      78,300        68,990  

Quanta Services

      

3.050%, 10/01/2041

      150,000        101,599  
     

 

 

 

        1,738,874   
     

 

 

 

INFORMATION TECHNOLOGY — 0.3%

 

   

Dell International

      

3.450%, 12/15/2051

      60,000        39,489  

Sprint Capital

      

8.750%, 03/15/2032

      400,000        472,296  
     

 

 

 

        511,785  
     

 

 

 

MATERIALS — 0.1%

      

EIDP

      

1.700%, 07/15/2025

      150,000        143,147  
     

 

 

 

REAL ESTATE — 1.0%

      

Alexandria Real Estate Equities

      

1.875%, 02/01/2033

      350,000        257,127  

Crown Castle

      

1.050%, 07/15/2026

      1,445,000        1,307,795  
     

 

 

 

        1,564,922  
     

 

 

 

CORPORATE OBLIGATIONS — (continued)

 

      Face Amount        Value 

UTILITIES — 10.0%

      

Appalachian Power

      

4.500%, 03/01/2049

    $  1,550,000       $   1,201,007  

Arizona Public Service

      

2.650%, 09/15/2050

      90,000        50,785  

Consumers Energy

      

2.500%, 05/01/2060

      67,000        35,493  

DTE Energy

      

5.850%, 06/01/2034

      955,000        949,603  

1.050%, 06/01/2025

      620,000        589,238  

Duke Energy Carolinas

      

6.050%, 04/15/2038

      355,000        361,038  

6.000%, 01/15/2038

      125,000        126,224  

3.200%, 08/15/2049

      305,000        200,833  

Duke Energy Progress

      

4.150%, 12/01/2044

      465,000        367,504  

Duke Energy Progress NC Storm Funding

      

2.387%, 07/01/2037

       1,135,000        888,560  

Electricite de France

      

6.900%, 05/23/2053 (A)

      510,000        534,684  

6.000%, 04/22/2064 (A)

      535,000        489,481  

5.000%, 09/21/2048 (A)

      1,215,000          1,029,097  

4.750%, 10/13/2035 (A)

      670,000        601,427  

Entergy

      

2.800%, 06/15/2030

      295,000        251,619  

Entergy Arkansas

      

3.350%, 06/15/2052

      145,000        94,704  

Entergy Louisiana

      

4.000%, 03/15/2033

      380,000        338,257  

Florida Power & Light

      

3.950%, 03/01/2048

      125,000        96,675  

Kentucky Utilities

      

3.300%, 06/01/2050

      160,000        105,988  

MidAmerican Energy

      

3.650%, 08/01/2048

      290,000        211,423   

National Fuel Gas

      

3.950%, 09/15/2027

      135,000        127,086  

2.950%, 03/01/2031

      680,000        559,028  

National Grid

      

5.809%, 06/12/2033

      1,755,000        1,738,178  

National Rural Utilities Cooperative Finance

      

5.450%, 10/30/2025

      195,000        194,668  

National Rural Utilities Cooperative Finance MTN

      

1.000%, 10/18/2024

      360,000        351,432  

NiSource

      

5.250%, 03/30/2028

      825,000        815,961  

Pacific Gas and Electric

      

5.550%, 05/15/2029

      275,000        271,974  

PacifiCorp

      

5.500%, 05/15/2054

      1,110,000        991,529  

4.150%, 02/15/2050

      890,000        664,060  
 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   21

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Total Return Bond Fund
     April 30, 2024 (Unaudited)

 

CORPORATE OBLIGATIONS — (continued)

 

      Face Amount        Value 

UTILITIES — (continued)

 

Sempra

      

3.300%, 04/01/2025

    $ 630,000       $   615,884  

Sempra Global

      

3.250%, 01/15/2032 (A)

      420,000        338,315  

Vistra Operations

      

5.125%, 05/13/2025 (A)

      805,000        792,927  
     

 

 

 

        15,984,682  
     

 

 

 

TOTAL CORPORATE OBLIGATIONS

      

(Cost $56,222,297)

         56,167,339  
     

 

 

 

 U.S. TREASURY OBLIGATIONS — 9.4%

 

U.S. Treasury Bond

      

3.875%, 02/15/2043

      940,000        821,141  

U.S. Treasury Notes

      

3.625%, 05/31/2028

      720,000        689,316  

3.500%, 02/15/2033

      5,705,000        5,217,178  

1.500%, 01/31/2027

      910,000        831,121  

1.500%, 02/15/2030

       6,005,000        5,035,521  

1.125%, 02/28/2025

      2,475,000        2,391,638  
     

 

 

 

TOTAL U.S. TREASURY OBLIGATIONS

 

   

(Cost $15,114,683)

 

        14,985,915  
     

 

 

 

 ASSET-BACKED SECURITIES — 3.5%

 

AUTOMOTIVE — 2.7%

      

Ally Auto Receivables Trust, Ser 2022-1, Cl A3

      

3.310%, 11/15/2026

      113,034        111,521  

AmeriCredit Automobile Receivables Trust, Ser 2021-2, Cl A3

      

0.340%, 12/18/2026

      14,632        14,592  

AmeriCredit Automobile Receivables Trust, Ser 2022-2, Cl A3

      

4.380%, 04/18/2028

      235,000        232,977   

Americredit Automobile Receivables Trust, Ser 2023-1, Cl A2A

      

5.840%, 10/19/2026

      146,927        146,944  

BMW Vehicle Lease Trust, Ser 2023-2, Cl A3

      

5.990%, 09/25/2026

      940,000        944,182  

BMW Vehicle Owner Trust, Ser 2022-A, Cl A3

      

3.210%, 08/25/2026

      58,879        58,020  

Fifth Third Auto Trust, Ser 2023-1, Cl A2A

      

5.800%, 11/16/2026

      161,707        161,817  

Ford Credit Auto Lease Trust, Ser 2022-A, Cl A3

      

3.230%, 05/15/2025

      13,091        13,080  

 ASSET-BACKED SECURITIES — (continued)

 

      Face Amount        Value 

AUTOMOTIVE — (continued)

 

Ford Credit Auto Owner Trust, Ser 2021-2, Cl A

      

1.530%, 05/15/2034 (A)

    $ 205,000       $ 186,009  

Ford Credit Auto Owner Trust, Ser 2023-A, Cl A3

      

4.650%, 02/15/2028

      260,000        256,731  

GM Financial Automobile Leasing Trust, Ser 2022-1, Cl A3

      

1.900%, 03/20/2025

      1,462        1,459  

GM Financial Automobile Leasing Trust, Ser 2024-1, Cl A3

      

5.090%, 03/22/2027

      860,000        853,899  

GM Financial Revolving Receivables Trust, Ser 2021-1, Cl A

      

1.170%, 06/12/2034 (A)

      155,000          140,155  

Honda Auto Receivables Owner Trust, Ser 2022-1, Cl A3

      

1.880%, 05/15/2026

       462,239        451,935  

Honda Auto Receivables Owner Trust, Ser 2023-2, Cl A3

      

4.930%, 11/15/2027

      270,000        267,657  

Toyota Auto Loan Extended Note Trust, Ser 2020-1A, Cl A

      

1.350%, 05/25/2033 (A)

      215,000        205,461  

Toyota Auto Loan Extended Note Trust, Ser 2023-1A, Cl A

      

4.930%, 06/25/2036 (A)

      100,000        98,378  

Toyota Auto Receivables Owner Trust, Ser 2022-A, Cl A3

      

1.230%, 06/15/2026

      79,111        77,313  

Volkswagen Auto Loan Enhanced Trust, Ser 2021-1, Cl A3

      

1.020%, 06/22/2026

      70,085        68,594  
     

 

 

 

        4,290,724  
     

 

 

 

OTHER ASSET-BACKED SECURITIES — 0.8%

 

   

CNH Equipment Trust, Ser 2021-A, Cl A3

      

0.400%, 12/15/2025

      44,058        43,480   

CNH Equipment Trust, Ser 2023-A, Cl A3

      

4.810%, 08/15/2028

      235,000        231,951  

John Deere Owner Trust, Ser 2022-A, Cl A3

      

2.320%, 09/15/2026

      175,212        171,739  

John Deere Owner Trust, Ser 2022-B, Cl A3

      

3.740%, 02/16/2027

      215,000        211,730  
 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   22

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   Total Return Bond Fund
     April 30, 2024 (Unaudited)

 

 ASSET-BACKED SECURITIES — (continued)

 

      Face Amount        Value 

OTHER ASSET-BACKED SECURITIES — (continued)

 

Taco Bell Funding, Ser 2021-1A, Cl A2II

      

2.294%, 08/25/2051 (A)

    $ 176,850       $ 150,311  

Verizon Master Trust, Ser 2021-1, Cl A

      

0.500%, 05/20/2027

      365,000        364,019  

Wendy’s Funding, Ser 2021-1A, Cl A2I

      

2.370%, 06/15/2051 (A)

      175,017        149,424  
     

 

 

 

        1,322,654  
     

 

 

 

TOTAL ASSET-BACKED SECURITIES

      

(Cost $5,642,360)

         5,613,378  
     

 

 

 

 SOVEREIGN BONDS — 2.3%

 

ISRAEL — 1.1%

      

Israel Government International Bond

      

5.500%, 03/12/2034

      1,435,000        1,357,869  

5.375%, 03/12/2029

      360,000        352,350  
     

 

 

 

          1,710,219  
     

 

 

 

MEXICO — 1.2%

      

Mexico Government International Bond

      

6.400%, 05/07/2054

      1,640,000        1,541,755  

6.000%, 05/07/2036

      435,000        418,811  
     

 

 

 

        1,960,566   
     

 

 

 

TOTAL SOVEREIGN BONDS

      

(Cost $3,790,450)

         3,670,785  
     

 

 

 

TOTAL INVESTMENTS— 98.6%

 

   

(Cost $160,283,175)

 

     $  157,346,694  
     

 

 

 

 

 

Percentages are based on Net Assets of $159,612,534.

 

(A)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration normally to qualified institutions. On April 30, 2024, the value of these securities amounted to $18,915,847, representing 11.9% of the Net Assets of the Fund.

(B)

Variable or floating rate security. The rate shown is the effective interest rate as of period end. The rates on certain securities are not based on published reference rates and spreads and are either determined by the issuer or agent based on current market conditions; by using a formula based on the rates of underlying loans; or by adjusting periodically based on prevailing interest rates.

(C)

Perpetual security with no stated maturity date.

Cl — Class

DAC — Designated Activity Company

FHLMC — Federal Home Loan Mortgage Corporation

FNMA — Federal National Mortgage Association

GNMA — Government National Mortgage Association

H15T5Y — U.S. Treasury Yield Curve Rate T Note Constant Maturity 5 Year

MTN — Medium Term Note

PLC — Public Limited Company

Ser — Series

SOFRRATE —Secured Overnight Financing Rate

TSFR1M — Term Secured Overnight Financing Rate 1 Month

As of April 30, 2024, all of the Fund’s investments were considered Level 2, in accordance with authoritative guidance under U.S. generally on fair value measurements and disclosure accepted accounting principles.

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   23

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   US Value Opportunities Fund
     April 30, 2024 (Unaudited)

 

 

 SECTOR WEIGHTINGS †

 

 

LOGO

† Percentages are based on total investments.

 

 

 SCHEDULE OF INVESTMENTS

 

 COMMON STOCK — 96.3%

 

 

       Shares        Value

COMMUNICATION SERVICES — 5.5%

 

Alphabet, Cl C *

      10,875       $ 1,790,460   

Comcast, Cl A

      27,542        1,049,625  

Electronic Arts

      9,982        1,265,917  

T-Mobile US

      7,127        1,170,040  
     

 

 

 

           5,276,042  
     

 

 

 

CONSUMER DISCRETIONARY — 8.7%

 

Aptiv PLC *

      13,069        927,899  

Aramark

      43,082        1,357,514  

Las Vegas Sands

      29,720        1,318,379  

Lithia Motors, Cl A

      2,993        761,359  

SharkNinja

      23,042        1,481,140  

United Parks & Resorts *

      23,052        1,171,503  

Wynn Resorts

      14,860        1,361,919  
     

 

 

 

        8,379,713  
     

 

 

 

CONSUMER STAPLES — 3.0%

 

Keurig Dr Pepper

      48,579        1,637,112  

Philip Morris International

      13,266        1,259,474  
     

 

 

 

        2,896,586  
     

 

 

 

ENERGY — 8.2%

      

Enbridge

      22,966        816,212  

Halliburton

      34,287        1,284,734  

Hess

      9,721        1,530,960  

Phillips 66

      10,013        1,433,962  

Pioneer Natural Resources

      6,493        1,748,695  

Plains GP Holdings, Cl A

      57,140        1,040,519  
     

 

 

 

        7,855,082  
     

 

 

 

FINANCIALS — 15.2%

      

Allstate

      8,225        1,398,743  

American Express

      4,584        1,072,794  

American International Group

      17,887        1,347,070  

 COMMON STOCK — (continued)

 

 

       Shares        Value

FINANCIALS — (continued)

 

Axis Capital Holdings

      15,077       $ 924,672   

Berkshire Hathaway, Cl B *

      3,304        1,310,796  

Chubb

      4,775        1,187,256  

Fidelity National Information Services

      21,389        1,452,741  

Jefferies Financial Group

      35,887        1,545,294  

M&T Bank

      6,644        959,327  

US Bancorp

      24,279        986,456  

Wells Fargo

      17,069        1,012,533  

Willis Towers Watson PLC

      5,620        1,411,407  
     

 

 

 

           14,609,089  
     

 

 

 

HEALTH CARE — 8.4%

      

Avantor *

      59,809        1,449,172  

Elevance Health

      2,428        1,283,393  

Humana

      1,839        555,544  

LivaNova PLC *

      12,314        686,505  

Medtronic PLC

      13,083        1,049,780  

Merck

      10,542        1,362,237  

Smith & Nephew ADR

      31,870        769,023  

UnitedHealth Group

      1,756        849,377  
     

 

 

 

        8,005,031  
     

 

 

 

INDUSTRIALS — 17.4%

      

AECOM

      14,052        1,297,843  

AerCap Holdings *

      19,462        1,644,344  

BWX Technologies

      19,447        1,862,439  

CACI International, Cl A *

      3,905        1,570,708  

Jacobs Solutions

      8,240        1,182,687  

JB Hunt Transport Services

      5,073        824,718  

Johnson Controls International

      11,350        738,544  

MDU Resources Group

      63,175        1,560,423  

Stanley Black & Decker

      9,856        900,838  

U-Haul Holding, Cl B

      15,174        930,470  

Vertiv Holdings, Cl A

      36,362        3,381,666  

Vestis

      41,367        761,980  
     

 

 

 

        16,656,660  
     

 

 

 

INFORMATION TECHNOLOGY — 11.3%

 

Broadcom

      2,190        2,847,591  

Ciena *

      19,745        912,812  

Cognizant Technology Solutions, Cl A

      17,614        1,156,887  

Microchip Technology

      13,514        1,243,018  

Oracle

      15,476        1,760,395  

QUALCOMM

      10,595        1,757,181  

Skyworks Solutions

      10,756        1,146,482  
     

 

 

 

        10,824,366  
     

 

 

 

 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   24

The Advisors’ Inner Circle Fund III

    Barrow Hanley
   US Value Opportunities Fund
     April 30, 2024 (Unaudited)

 

 

 COMMON STOCK — (continued)

 

 

       Shares        Value

MATERIALS — 9.3%

      

Air Products and Chemicals

      6,124       $    1,447,346   

Axalta Coating Systems *

      44,555        1,400,809  

CRH

      29,931        2,317,258  

DuPont de Nemours

      10,770        780,825  

Element Solutions

      54,823        1,268,056  

Knife River *

      21,386        1,672,152  
     

 

 

 

        8,886,446  
     

 

 

 

REAL ESTATE — 5.4%

      

CubeSmart ‡

      28,174        1,139,357  

Mid-America Apartment Communities ‡

      7,338        953,940  

Public Storage ‡

      4,069        1,055,702  

SBA Communications, Cl A ‡

      2,309        429,751  

VICI Properties, Cl A ‡

      54,542        1,557,174  
     

 

 

 

        5,135,924  
     

 

 

 

UTILITIES — 3.9%

      

CenterPoint Energy

      38,161        1,112,012  

Entergy

      13,023        1,389,163  

Pinnacle West Capital

      16,232        1,195,487   
     

 

 

 

        3,696,662  
     

 

 

 

TOTAL COMMON STOCK

 

   

(Cost $70,102,058)

     92,221,601  
     

 

 

 

TOTAL INVESTMENTS— 96.3%

 

   

(Cost $70,102,058)

 

     $    92,221,601  
     

 

 

 

 

 

Percentages are based on Net Assets of $95,746,577.

*

Non-income producing security.

‡

Real Estate Investment Trust.

ADR — American Depositary Receipt

Cl — Class

PLC — Public Limited Company

As of April 30, 2024, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. generally accepted accounting principles.

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   25

The Advisors’ Inner Circle Fund III

    April 30, 2024 (Unaudited)

 

 STATEMENTS OF ASSETS AND LIABILITIES

 

    Barrow Hanley
Concentrated
Emerging Markets
 ESG Opportunities 
Fund		    Barrow Hanley Credit 
Opportunities Fund		   Barrow Hanley
 Emerging Markets 
Value Fund		   Barrow Hanley
 Floating Rate Fund 

Assets:

        

Investments in securities at value†

    $ 28,529,078       $ 61,849,882       $       2,864,427       $ 92,677,819   

Affiliated investments at value††

     –       18,749,860       –       –  

Foreign currency at value†††

     15,334       –       1,832       –  

Cash

     1,039,084       320,826       39,652       2,264,981  

Dividends and interest receivable

     96,267       1,061,337       9,851       545,184  

Receivable for capital shares sold

     23,572       789       804       822  

Tax reclaim receivable

     5,628       –       485       –  

Receivable for investment securities sold

     –       –       –       982,450  

Receivable due from Investment Adviser

     –       285,072       10,016       –  

Unrealized appreciation on spot contracts

     –       –       5       –  

Prepaid expenses

     5,047       16,147       13,439       18,024  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total Assets

          29,714,010            82,283,913       2,940,511            96,489,280  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Liabilities:

        

Payable for investment securities purchased

     –       16       –       2,178,534  

Accrued foreign capital gains tax on appreciated securities

     20,774       –       4,452       –  

Audit fees payable

     13,441       19,903       13,441       19,903  

Printing fees payable

     2,167       8,329       259       9,009  

Custodian fees payable

     5,098       1,708       4,017       813  

Investment Adviser fees payable

     11,318       –       –       17,769  

Payable due to administrator

     3,135       9,547       317       10,143  

Transfer Agent fees payable

     3,065       2,823       6,347       2,762  

Chief Compliance Officer fees payable

     653       2,118       65       2,272  

Shareholder servicing fees payable (Y Shares )

     –       –       121       –  

Accrued expenses

     6,779       11,097       6,517       9,712  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total Liabilities

     66,430       55,541       35,536       2,250,917  

Commitment and Contingencies†

        
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Net Assets

    $ 29,647,580      $ 82,228,372      $ 2,904,975      $ 94,238,363  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

† Cost of securities

    $ 29,424,492      $ 65,372,534      $ 2,995,296      $ 92,960,473  

†† Cost of affiliated investments

     –       18,750,741       –       –  

††† Cost of foreign currency

     15,203       –       855       –  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Net Assets:

        

Paid-in Capital

    $ 30,179,609      $ 90,695,046      $ 3,028,713      $ 94,618,041  

Total Distributable Earnings (Accumulated Loss)

     (532,029 )      (8,466,674 )      (123,738 )      (379,678 ) 
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Net Assets

    $ 29,647,580      $ 82,228,372      $ 2,904,975      $ 94,238,363  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

I Shares:

        

Net Assets

    $ 29,647,580      $ 82,228,372      $ 2,811,125      $ 94,238,363  

Outstanding Shares of Beneficial Interest (unlimited authorization - no par value)

     3,343,333       8,687,078       299,730       9,547,603  

Net Asset Value, Offering and Redemption Price Per Share* (Net Assets ÷ Shares Outstanding)

    $ 8.87      $ 9.47      $ 9.38      $ 9.87  

Y Shares:

        

Net Assets

     N/A       N/A      $ 93,850       N/A  

Outstanding Shares of Beneficial Interest (unlimited authorization - no par value)

     N/A       N/A       10,003       N/A  

Net Asset Value, Offering and Redemption Price Per Share* (Net Assets ÷ Shares Outstanding)

     N/A       N/A      $ 9.38       N/A  

Amounts designated as “—” are $0.

* Redemption price per share may vary depending on the length of time shares are held.

N/A - Not Applicable

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   26

The Advisors’ Inner Circle Fund III

    April 30, 2024 (Unaudited)

 

 STATEMENTS OF ASSETS AND LIABILITIES

 

     Barrow Hanley
International Value
Fund		   Barrow Hanley Total
Return Bond Fund		   Barrow Hanley US
Value Opportunities
Fund

Assets:

       

Investments in securities at value†

     $     53,284,786       $      157,346,694       $      92,221,601   

Foreign currency at value†††

      96,174       –       –  

Cash

      237,545       1,548,322       3,267,011  

Receivable for investment securities sold

      897,954       175,512       103,310  

Dividends and interest receivable

      336,828       1,224,425       73,121  

Tax reclaim receivable

      183,787       –       6,197  

Unrealized appreciation on spot contracts

      1,857       –       –  

Receivable for capital shares sold

      2,291       309,882       181,057  

Prepaid expenses

      25,188       24,932       15,428  
  

 

 

 

  

 

 

 

  

 

 

 

Total Assets

      55,066,410       160,629,767       95,867,725  
  

 

 

 

  

 

 

 

  

 

 

 

Liabilities:

       

Payable for investment securities purchased

      567,256       953,759       42,751  

Payable for capital shares redeemed

      61,774       –       –  

Audit fees payable

      13,441       14,682       12,200  

Transfer Agent fees payable

      6,088       1,983       2,812  

Printing fees payable

      5,506       11,458       8,063  

Custodian fees payable

      4,878       2,032       795  

Investment Adviser fees payable

      16,264       1,802       28,883  

Payable due to administrator

      6,340       17,143       10,343  

Chief Compliance Officer fees payable

      1,416       3,036       2,061  

Payable due to trustees

      –       191       –  

Shareholder servicing fees payable (Y Shares)

      123       –       –  

Accrued expenses

      7,969       11,147       13,240  
  

 

 

 

  

 

 

 

  

 

 

 

Total Liabilities

      691,055       1,017,233       121,148  

Commitment and Contingencies†

       
  

 

 

 

  

 

 

 

  

 

 

 

Net Assets

     $ 54,375,355      $ 159,612,534      $ 95,746,577  
  

 

 

 

  

 

 

 

  

 

 

 

† Cost of securities

     $ 51,838,740      $ 160,283,175      $ 70,102,058  

††† Cost of foreign currency

      96,240       –       –  
  

 

 

 

  

 

 

 

  

 

 

 

Net Assets:

       

Paid-in Capital

     $ 52,562,549      $ 161,880,780      $ 70,721,422  

Total Distributable Earnings (Accumulated Loss)

      1,812,806       (2,268,246 )      25,025,155  
  

 

 

 

  

 

 

 

  

 

 

 

Net Assets

     $ 54,375,355      $ 159,612,534      $ 95,746,577  
  

 

 

 

  

 

 

 

  

 

 

 

I Shares:

       

Net Assets

     $ 54,269,772      $ 159,612,534      $ 95,746,577  

Outstanding Shares of Beneficial Interest
(unlimited authorization - no par value)

      5,139,530       17,587,633       8,398,672  

Net Asset Value, Offering and Redemption Price Per Share*
(Net Assets ÷ Shares Outstanding)

     $ 10.56      $ 9.08      $ 11.40  

Y Shares:

       

Net Assets

     $ 105,583       N/A       N/A  

Outstanding Shares of Beneficial Interest
(unlimited authorization - no par value)

      10,003       N/A       N/A  

Net Asset Value, Offering and Redemption Price Per Share*
(Net Assets ÷ Shares Outstanding)

     $ 10.56       N/A       N/A  

Amounts designated as “—” are $0.

* Redemption price per share may vary depending on the length of time shares are held.

N/A – Not applicable

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   27

The Advisors’ Inner Circle Fund III

    For the period ended April 30, 2024 (Unaudited)

 

 STATEMENTS OF OPERATIONS

 

    Barrow Hanley
Concentrated
Emerging Markets
 ESG Opportunities 
Fund		     Barrow Hanley Credit
Opportunities Fund		     Barrow Hanley
 Emerging Markets 
Value Fund		     Barrow Hanley
 Floating Rate Fund 		  

Investment Income

        

Dividends

    $ 393,843        $ –       $ 42,224       $ –   

Interest

     18,457         2,989,470        1,757        5,054,936   

Income from Affiliated Investments

     –         997,100        –        –   

Less: Foreign Taxes Withheld

     (47,905)         –        (5,558)        –   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Investment Income

     364,395         3,986,570        38,423        5,054,936   
 

 

 

    

 

 

    

 

 

    

 

 

  

Expenses

              

Investment Advisory Fees

     134,751         274,234        12,851        224,456   

Administration Fees

     18,581         58,602        1,895        63,948   

Trustees’ Fees

     2,616         8,496        265        9,263   

Chief Compliance Officer Fees

     896         2,882        93        3,127   

Audit Fees

     13,441         19,903        13,441        19,903   

Transfer Agent Fees

     10,202         11,651        19,168        11,862   

Registration & Filing Fees

     9,442         15,812        15,031        15,917   

Custodian Fees

     8,361         3,272        9,786        3,474   

Legal Fees

     4,015         12,953        408        14,123   

Printing Fees

     2,479         7,301        239        7,888   

Pricing Fees

     544         11,638        911        8,177   

Other Expenses

     8,286         9,741        8,136        9,841   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Expenses

     213,614         436,485        82,224        391,979   
 

 

 

    

 

 

    

 

 

    

 

 

  

Less:

        

Investment Advisory Fees Waiver

     (61,475)         (274,234)        (12,851)        (92,712)   

Reimbursement from Adviser

     –         (119,345)        (54,753)        –   
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Expenses

     152,139         42,906        14,620        299,267   
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Investment Income

     212,256         3,943,664        23,803        4,755,669   
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Realized Gain (Loss) on:

        

Investments

     413,694         (1,207,285)        8,430        243,811   

Affiliated Investments

     –         (29,570)        –        –   

Foreign Currency Transactions

     9,005         –        (1,424)        –   
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Realized Gain (Loss)

     422,699         (1,236,855)        7,006        243,811   
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Unrealized Appreciation (Depreciation) on:

        

Investments

     875,991         5,482,034        90,356        1,916,874   

Affiliated Investments

     –         545,170        –        –   

Foreign Capital Gains Tax on Appreciated Securities

     (8,765)        –        647        –   

Translation of Other Assets and Liabilities Denominated in Foreign Currencies

     (14,695)         –        312        –   
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Unrealized Appreciation (Depreciation)

     852,531         6,027,204        91,315        1,916,874   
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Realized and Unrealized Gain

     1,275,230         4,790,349        98,321        2,160,685   
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Increase in Net Assets from Operations

    $ 1,487,486        $ 8,734,013       $ 122,124       $ 6,916,354   
 

 

 

    

 

 

    

 

 

    

 

 

  

Amounts designated as “—” are $0 or have been rounded to $0.

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   28

The Advisors’ Inner Circle Fund III

    For the period ended April 30, 2024 (Unaudited)

 

 STATEMENTS OF OPERATIONS

 

    Barrow Hanley
 International Value 
Fund		     Barrow Hanley Total
Return Bond Fund		     Barrow Hanley US
 Value Opportunities 
Fund		  

Investment Income

      

Dividends

    $ 1,237,932       $ –       $ 926,708   

Interest

     13,955        4,278,900        46,840   

Income from Affiliated Investments

     –        –        –   

Less: Foreign Taxes Withheld

     (160,459)        –        (4,767)   
 

 

 

    

 

 

    

 

 

  

Total Investment Income

     1,091,428        4,278,900        968,781   
 

 

 

    

 

 

    

 

 

  

Expenses

                  

Investment Advisory Fees

     208,974        282,337        250,863   

Administration Fees

     40,595        103,449        58,531   

Trustees’ Fees

     5,788        12,557        8,176   

Chief Compliance Officer Fees

     1,981        4,826        2,858   

Registration & Filing Fees

     20,812        24,723        15,233   

Transfer Agent Fees

     20,533        12,429        11,508   

Audit Fees

     13,441        14,682        12,200   

Custodian Fees

     12,163        4,373        2,390   

Legal Fees

     8,907        20,352        12,541   

Printing Fees

     5,110        13,024        7,336   

Pricing Fees

     893        15,079        13,180   

Other Expenses

     8,018        9,958        8,367   
 

 

 

    

 

 

    

 

 

  

Total Expenses

     347,215        517,789        403,183   
 

 

 

    

 

 

    

 

 

  

Less:

            

Investment Advisory Fees Waiver

     (74,913)        (235,463)        (79,341)   
 

 

 

    

 

 

    

 

 

  

Net Expenses

     272,302        282,326        323,842   
 

 

 

    

 

 

    

 

 

  

Net Investment Income

     819,126        3,996,574        644,939   
 

 

 

    

 

 

    

 

 

  

Net Realized Gain (Loss) on:

      

Investments

     222,603        1,802,165        4,204,694   

Foreign Currency Transactions

     (15,826)        –        –   
 

 

 

    

 

 

    

 

 

  

Net Realized Gain (Loss)

     206,777        1,802,165        4,204,694   
 

 

 

    

 

 

    

 

 

  

Net Unrealized Appreciation (Depreciation) on:

      

Investments

     5,087,334        3,285,866        11,662,172   

Translation of Other Assets and Liabilities Denominated in Foreign Currencies

     2,431        –        –   
 

 

 

    

 

 

    

 

 

  

Net Unrealized Appreciation (Depreciation)

     5,089,765        3,285,866        11,662,172   
 

 

 

    

 

 

    

 

 

  

Net Realized and Unrealized Gain

     5,296,542        5,088,031        15,866,866   
 

 

 

    

 

 

    

 

 

  

Net Increase in Net Assets from Operations

    $ 6,115,668       $ 9,084,605       $ 16,511,805   
 

 

 

    

 

 

    

 

 

  

Amounts designated as “—” are $0 or have been rounded to $0.

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   29

The Advisors’ Inner Circle Fund III

     

 

 STATEMENTS OF CHANGES IN NET ASSETS

 

    Barrow Hanley Concentrated Emerging
Markets ESG Opportunities Fund		     Barrow Hanley Credit Opportunities Fund  
    Six Months
Ended
 April 30, 2024 
(Unaudited)		     Year Ended
 October 31, 2023 		     Six Months
Ended
 April 30, 2024 
(Unaudited)		     Year Ended
 October 31, 2023 		  

Operations:

        

Net Investment Income

    $ 212,256        $ 717,186        $ 3,943,664        $ 6,847,944    

Net Realized Gain (Loss)

     422,699         760,783         (1,236,855)        (1,121,362)   

Net Unrealized Appreciation (Depreciation)

     852,531         (905,299)        6,027,204         1,688,443    
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Increase in Net Assets Resulting from Operations

     1,487,486         572,670         8,734,013         7,415,025    
 

 

 

    

 

 

    

 

 

    

 

 

  

Distributions:

        

I Shares

     (1,347,558)        (170,927)        (3,721,377)        (7,734,787)   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Distributions

     (1,347,558)        (170,927)        (3,721,377)        (7,734,787)   
 

 

 

    

 

 

    

 

 

    

 

 

  

Capital Share Transactions:

        

I Shares

                    

Issued

     2,615,509         24,845,447         7,568,371         6,639,107    

Reinvestment of Dividends

     1,293,286         165,297         3,720,347         7,732,924    

Redeemed

     (2,510,742)        (2,466,332)        (28,850,930)        (16,576,397)   
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Increase (Decrease) in Net Assets from I Shares Transactions

     1,398,053         22,544,412         (17,562,212)        (2,204,366)   
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Increase (Decrease) in Net Assets from Capital Share Transactions

     1,398,053         22,544,412         (17,562,212)        (2,204,366)   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Increase (Decrease) in Net Assets

     1,537,981         22,946,155         (12,549,576)        (2,524,128)   

Net Assets:

        

Beginning of Year/Period

     28,109,599         5,163,444         94,777,948         97,302,076    
 

 

 

    

 

 

    

 

 

    

 

 

  

End of Year/Period

    $ 29,647,580        $ 28,109,599        $ 82,228,372        $ 94,777,948    
 

 

 

    

 

 

    

 

 

    

 

 

  

Share Transactions:

        

I Shares

              

Issued

     292,890         2,776,954         811,962         708,225    

Reinvestment of Dividends

     138,503         18,026         394,325         848,271    

Redeemed

     (270,570)        (260,283)        (3,060,471)        (1,777,737)   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Increase (Decrease) in I Shares

     160,823         2,534,697         (1,854,184)        (221,241)   
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Increase (Decrease) in Shares Outstanding

     160,823         2,534,697         (1,854,184)        (221,241)   
 

 

 

    

 

 

    

 

 

    

 

 

  

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   30

The Advisors’ Inner Circle Fund III

     

 

 STATEMENTS OF CHANGES IN NET ASSETS

 

    Barrow Hanley Emerging Markets Value
Fund		     Barrow Hanley Floating Rate Fund  
    Six Months
Ended
 April 30, 2024 
(Unaudited)		     Year Ended
 October 31, 2023 		     Six Months
Ended
 April 30, 2024 
(Unaudited)		     Year Ended
 October 31, 2023 		  

Operations:

        

Net Investment Income

    $ 23,803        $ 75,170        $ 4,755,669        $ 9,772,326    

Net Realized Gain (Loss)

     7,006         46,424         243,811         (2,050,705)   

Net Unrealized Appreciation (Depreciation)

     91,315         91,639         1,916,874         4,737,025    
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Increase in Net Assets Resulting from Operations

     122,124         213,233         6,916,354         12,458,646    
 

 

 

    

 

 

    

 

 

    

 

 

  

Distributions:

        

I Shares

     (64,407)        (65,461)        (4,829,334)        (9,385,204)   

Y Shares

     (2,096)        (2,520)        —         —    
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Distributions

     (66,503)        (67,981)        (4,829,334)        (9,385,204)   
 

 

 

    

 

 

    

 

 

    

 

 

  

Capital Share Transactions:

        

I Shares

        

Issued

     324,499         345,305         962,320         16,522,117    

Reinvestment of Dividends

     24,602         14,693         4,528,308         8,861,665    

Redeemed

     (141,448)        (4,647)        (17,827,383)        (33,125,265)(1)  
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Increase (Decrease) in Net Assets from I Shares Transactions

     207,653         355,351         (12,336,755)        (7,741,483)   
 

 

 

    

 

 

    

 

 

    

 

 

  

Y Shares

        

Reinvestment of Dividends

     1         1         —         —    
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Increase in Net Assets from Y Shares Transactions

     1         1         —         —    
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Increase (Decrease) in Net Assets from Capital Share Transactions

     207,654         355,352         (12,336,755)        (7,741,483)   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Increase (Decrease) in Net Assets

     263,275         500,604         (10,249,735)        (4,668,041)   

Net Assets:

        

Beginning of Year/Period

     2,641,700         2,141,096         104,488,098         109,156,139    
 

 

 

    

 

 

    

 

 

    

 

 

  

End of Year/Period

    $ 2,904,975        $ 2,641,700        $ 94,238,363        $ 104,488,098    
 

 

 

    

 

 

    

 

 

    

 

 

  

Share Transactions:

        

I Shares

        

Issued

     33,027         35,069         96,364         1,746,219    

Reinvestment of Dividends

     2,485         1,563         462,603         928,297    

Redeemed

     (14,627)        (480)        (1,804,952)        (3,432,488)   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Increase (Decrease) in I Shares

     20,885         36,152         (1,245,985)        (757,972)   
 

 

 

    

 

 

    

 

 

    

 

 

  

Y Shares

        

Reinvestment of Dividends

     —         —         —         —    
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Increase in Y Shares

     —         —         —         —    
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Increase (Decrease) in Shares Outstanding

     20,885         36,152         (1,245,985)        (757,972)   
 

 

 

    

 

 

    

 

 

    

 

 

  

 

(1)

Includes in-kind transfer of assets. (See Note 9 in Notes to Financial Statements.)

Amounts designated as “—” are $0 or have been rounded to $0.

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   31

The Advisors’ Inner Circle Fund III

     

 

 STATEMENTS OF CHANGES IN NET ASSETS

 

    Barrow Hanley International Value Fund     Barrow Hanley Total Return Bond Fund  
    Six Months
Ended
  April 30, 2024  
(Unaudited)		     Year Ended
 October 31, 2023 		     Six Months
Ended
  April 30, 2024  
(Unaudited)		     Year Ended
 October 31, 2023 		  

Operations:

        

Net Investment Income

    $ 819,126        $ 1,717,856        $ 3,996,574        $ 2,670,351    

Net Realized Gain (Loss)

     206,777         664,504         1,802,165         (2,067,287)   

Net Unrealized Appreciation (Depreciation)

     5,089,765         (3,317,738)        3,285,866         (1,971,182)   
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Increase (Decrease) in Net Assets Resulting from Operations

     6,115,668         (935,378)        9,084,605         (1,368,118)   
 

 

 

    

 

 

    

 

 

    

 

 

  

Distributions:

        

I Shares

     (2,222,424)        (178,254)        (3,437,689)        (2,264,393)   

Y Shares

     (3,583)        (1,193)        —         —   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Distributions

     (2,226,007)        (179,447)        (3,437,689)        (2,264,393)   
 

 

 

    

 

 

    

 

 

    

 

 

  

Capital Share Transactions:

        

I Shares

        

Issued

     2,243,821         61,051,174         11,937,184         119,587,659    

Reinvestment of Dividends

     1,947,790         54,772         3,437,689         2,264,393    

Redeemed

     (15,294,299)        (4,426,128)        (20,259,738)        (355,079)   
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Increase (Decrease) in Net Assets from I Shares Transactions

     (11,102,688)        56,679,818         (4,884,865)        121,496,973    
 

 

 

    

 

 

    

 

 

    

 

 

  

Y Shares

        

Reinvestment of Dividends

     1         —         —         —    
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Increase in Net Assets from Y Shares Transactions

     1         —         —         —    
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Increase (Decrease) in Net Assets from Capital Share Transactions

     (11,102,687)        56,679,818         (4,884,865)        121,496,973    
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Increase (Decrease) in Net Assets

     (7,213,026)        55,564,993         762,051         117,864,462    

Net Assets:

        

Beginning of Year/Period

     61,588,381         6,023,388         158,850,483         40,986,021    
 

 

 

    

 

 

    

 

 

    

 

 

  

End of Year/Period

    $ 54,375,355        $ 61,588,381        $ 159,612,534        $ 158,850,483    
 

 

 

    

 

 

    

 

 

    

 

 

  

Share Transactions:

        

I Shares

        

Issued

     213,441         5,927,661         1,321,274         13,325,774    

Reinvestment of Dividends

     179,184         5,658         366,615         245,369    

Redeemed

     (1,443,165)        (418,917)        (2,171,398)        (37,908)   
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Increase (Decrease) in I Shares

     (1,050,540)        5,514,402         (483,509)        13,533,235    
 

 

 

    

 

 

    

 

 

    

 

 

  

Y Shares

        

Reinvestment of Dividends

     —         —         —         —    
 

 

 

    

 

 

    

 

 

    

 

 

  

Total Increase in Y Shares

     —         —         —         —    
 

 

 

    

 

 

    

 

 

    

 

 

  

Net Increase (Decrease) in Shares Outstanding

     (1,050,540)        5,514,402         (483,509)        13,533,235    
 

 

 

    

 

 

    

 

 

    

 

 

  

Amounts designated as “—” are $0 or have been rounded to $0.

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   32

The Advisors’ Inner Circle Fund III

     

 

 STATEMENTS OF CHANGES IN NET ASSETS

 

     Barrow Hanley US Value Opportunities
Fund
     Six Months
Ended
April 30, 2024
(Unaudited)		   Year Ended
October 31, 2023

Operations:

     

Net Investment Income

     $ 644,939       $ 1,207,244   

Net Realized Gain (Loss)

      4,204,694       (82,477 ) 

Net Unrealized Appreciation (Depreciation)

      11,662,172       1,397,486  
  

 

 

 

  

 

 

 

Net Increase in Net Assets Resulting from Operations

      16,511,805       2,522,253  
  

 

 

 

  

 

 

 

Distributions:

     

I Shares

      (1,190,227 )      (1,397,879 ) 
  

 

 

 

  

 

 

 

Total Distributions

      (1,190,227 )      (1,397,879 ) 
  

 

 

 

  

 

 

 

Capital Share Transactions:

     

I Shares

     

Issued

      1,683,412       1,591,890  

Reinvestment of Dividends

      813,744       963,958  

Redeemed

      (4,905,481 )      (25,153,117 ) 
  

 

 

 

  

 

 

 

Net Decrease in Net Assets from I Shares Transactions

      (2,408,325 )      (22,597,269 ) 
  

 

 

 

  

 

 

 

Net Decrease in Net Assets from Capital Share Transactions

      (2,408,325 )      (22,597,269 ) 
  

 

 

 

  

 

 

 

Total Increase (Decrease) in Net Assets

      12,913,253       (21,472,895 ) 

Net Assets:

     

Beginning of Year/Period

      82,833,324         104,306,219  
  

 

 

 

  

 

 

 

End of Year/Period

     $   95,746,577      $ 82,833,324  
  

 

 

 

  

 

 

 

Share Transactions:

     

I Shares

     

Issued

      153,875       164,349  

Reinvestment of Dividends

      75,627       100,363  

Redeemed

      (466,127 )      (2,573,113 ) 
  

 

 

 

  

 

 

 

Total Decrease in I Shares

      (236,625 )      (2,308,401 ) 
  

 

 

 

  

 

 

 

Net Decrease in Shares Outstanding

      (236,625 )      (2,308,401 ) 
  

 

 

 

  

 

 

 

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   33

The Advisors’ Inner Circle Fund III

     

 

 FINANCIAL HIGHLIGHTS

 

Selected Per Share Data & Ratios

For a share outstanding throughout each period

 

   

Net Asset

Value,

Beginning

of Period

   Net
Investment
Income*		   Net Realized
and
Unrealized
Gain (Loss) on
Investments		   Total from
Operations		   Dividends
from Net
Investment
Income		   Distributions
from Net
Realized
Capital Gains		   Total
Distributions		   Net Asset
Value, End
of Period		   Total
Return†		   Net Assets
End of
Period
(000)		    

Ratio of Expenses

to Average Net
Assets (including
waivers and
reimbursements)

   Ratio of Expenses
to Average Net
Assets (excluding
waivers and
reimbursements)		   Ratio of Net
Investment
Income to
Average
Net Assets		   Portfolio
Turnover
Rate†

Barrow Hanley Concentrated Emerging Markets ESG Opportunities Fund

I Shares

2024@

   $8.83   $0.07   $ 0.39   $0.46   $ (0.22)   $ (0.20)   $ (0.42)   $   8.87   4.99%     $29,648     1.05%   1.47%   1.46%   19%

2023

   7.97   0.25     0.68    0.93     (0.07)     –        (0.07)      8.83   11.58        28,110     1.05     1.73     2.68     63  

2022(1)

   10.00   0.19   (2.22)   (2.03)     –        –        –         7.97   (20.30)       5,163     1.05     4.62     3.76     59  

Barrow Hanley Credit Opportunities Fund

I Shares

2024@

   $8.99   $0.40   $ 0.48   $0.88   $ (0.40)   $  –      $ (0.40)   $   9.47   9.80%     $82,228     0.09%††   0.96%   8.63%   16%

2023

   9.04   0.63     0.04    0.67     (0.72)     –       (0.72)      8.99   7.49       94,778     0.78     1.08     6.82     24  

2022(1)

   10.00   0.33   (1.00)   (0.67)     (0.29)     –       (0.29)      9.04   (6.63)        97,302     0.78     1.11     6.19     29  

Barrow Hanley Emerging Markets Value Fund

I Shares

2024@

   $9.15   $0.08   $ 0.36   $0.44   $ (0.21)   $  –      $ (0.21)   $   9.38   4.68%     $2,811     0.99%   5.57%   1.61%   24%

2023

   8.47   0.27     0.68    0.95     (0.27)     –       (0.27)      9.15   11.10       2,550     0.99     6.64     2.83     50  

2022(2)

   10.00   0.29   (1.82)   (1.53)     –        –       –         8.47   (15.30)        2,056     0.99     14.67      3.55     40  

Y Shares

2024@

   $9.15   $0.07   $ 0.37   $0.44   $ (0.21)   $  –      $ (0.21)   $   9.38   4.68%     $ 94     0.99%   5.58%   1.57%   24%

2023

   8.46   0.27     0.67    0.94     (0.25)     –       (0.25)      9.15   11.05         92     0.99     6.68     2.79     50  

2022(2)

   10.00   0.28   (1.82)   (1.54)     –        –       –         8.46   (15.40)          85     1.14     14.82      3.45     40  

Barrow Hanley Floating Rate Fund

I Shares

2024@

   $9.68   $0.47   $ 0.20   $0.67   $ (0.48)   $  –      $ (0.48)   $   9.87   7.02%     $94,238     0.60%   0.79%   9.53%   21%

2023

   9.45   0.89     0.23    1.12     (0.89)     –       (0.89)      9.68   12.32        104,488     0.60     1.01     9.20     35  

2022(1)

   10.00   0.33   (0.61)   (0.28)     (0.27)     –       (0.27)      9.45   (2.81)       109,156     0.60     1.02     6.10     9 

Barrow Hanley International Value Fund

I Shares

2024@

   $9.93   $0.14   $ 0.85   $0.99    $(0.29)   $ (0.07)   $ (0.36)   $  10.56   9.87%     $54,270     0.86%   1.10%   2.59%   20%

2023

   8.78   0.39     0.90   1.29     (0.14)     –        (0.14)      9.93   14.72        61,489     0.86     1.23     3.74     57  

2022(2)

   10.00   0.23   (1.45)   (1.22)     –        –        –         8.78   (12.20)        5,935     0.86     5.16     2.89     105   

Y Shares

                            

2024@

   $9.93   $0.15   $ 0.84   $0.99   $ (0.29)   $ (0.07)   $ (0.36)   $  10.56   9.87%     $ 105     0.86%   1.10%   2.78%   20%

2023

   8.77   0.31     0.97    1.28     (0.12)     –        (0.12)      9.93   14.62           99     0.86     1.48     2.98     57  

2022(2)

   10.00   0.23   (1.46)   (1.23)     –        –        –         8.77   (12.30)           88     1.01     8.99     2.79     105   

Barrow Hanley Total Return Bond Fund

I Shares

2024@

   $8.79   $0.23   $ 0.26   $0.49   $ (0.20)   $  –      $ (0.20)   $  9.08   5.52%     $159,613     0.35%   0.64%   4.95%   85%

2023

   9.03   0.39   (0.33)    0.06     (0.30)     –       (0.30)      8.79   0.49        158,850     0.35     0.90     4.15     125    

2022(1)

   10.00   0.17   (1.00)   (0.83)     (0.14)     –       (0.14)      9.03   (8.38)        40,986     0.35     1.16     3.13     20  

Barrow Hanley US Value Opportunities Fund

I Shares

2024@

   $9.59   $0.08   $ 1.87   $1.95   $ (0.14)   $  –      $ (0.14)   $  11.40   20.44%     $95,747     0.71%   0.88%   1.41%   14%

2023

   9.53   0.13     0.07    0.20     (0.10)   (0.04)     (0.14)      9.59   2.03       82,833     0.71     0.95     1.31     30  

2022(1)

   10.00   0.07   (0.54)   (0.47)     –        –       –         9.53   (4.70)       104,306     0.71     0.99     1.28     47  

 

@

For the six months ended April 30, 2024 (Unaudited). All ratios for the period have been annualized.

*

Per share data calculated using average units method.

†

Total return and portfolio turnover rate are for the period indicated and have not been annualized. Total return would have been lower had the Adviser not waived a portion of its fee. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

††

Due to an error in the calculation of the Fund’s expense limitation agreement, a portion of the current year waiver results to the operations of the Fund in the prior period. If this error had not occurred, the net expense ratio of the fund would have been 0.63% for the fiscal years ended October 31, 2022 and October 31, 2023 and 0.65% for the period ended April 30, 2024.

(1)

Commenced operations on April 12, 2022. All ratios for the period have been annualized.

(2)

Commenced operations on December 29, 2021. All ratios for the period have been annualized.

 

LOGO

   The accompanying notes are an integral part of the financial statements.
   34

The Advisors’ Inner Circle Fund III

   

Perpetual Funds

April 30, 2024

 

 NOTES TO FINANCIAL STATEMENTS (Unaudited)

 

1. Organization:

The Advisors’ Inner Circle Fund III (the “Trust”) is organized as a Delaware statutory trust under an Agreement and Declaration of Trust dated December 4, 2013. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company with 56 funds. The financial statements herein are those of the Barrow Hanley Concentrated Emerging Markets ESG Opportunities Fund (the “Concentrated Emerging Markets ESG Opportunities Fund”), Barrow Hanley Credit Opportunities Fund (the “Credit Opportunities Fund”), Barrow Hanley Emerging Markets Value Fund (the “Emerging Markets Value Fund”), Barrow Hanley Floating Rate Fund (the “Floating Rate Fund”), Barrow Hanley International Value Fund (the “International Value Fund”), Barrow Hanley Total Return Bond Fund (the “Total Return Bond Fund”), and Barrow Hanley US Value Opportunities Fund (the “US Value Opportunities Fund”) (each a “Fund” and collectively, the “Funds”). The investment objective of Concentrated Emerging Markets ESG Opportunities Fund is to seek long term capital appreciation and consistent income. The investment objective of Credit Opportunities Fund and Floating Rate Fund is to seek to maximize total return, consistent with preservation of capital. The investment objective of Emerging Markets Value is to seek long term capital appreciation and consistent income from dividends. The investment objective of International Value Fund is to seek to obtain higher returns compared to the MSCI EAFE Index, while maintaining lower risk. The investment objective of Total Return Bond Fund is to seek to provide maximum long-term total return. The investment objective of US Value Opportunities Fund is to seek to achieve risk-adjusted equity returns in excess of the Fund’s benchmark over multiple year time periods. Each of the Funds is classified as diversified, as that term is defined under the Investment Company Act of 1940, as amended (the “1940 Act”). Perpetual US Services LLC, doing business as PGIA serves as the Funds’ investment adviser (the “Adviser”). The Emerging Markets Value Fund and International Value Fund commenced operations on December 29, 2021 and currently offer I Shares and Y Shares. The Concentrated Emerging Markets ESG Opportunities Fund, Credit Opportunities Fund, Floating Rate Fund, Total Return Bond Fund, and US Value Opportunities Fund commenced operations on April 12, 2022 and currently offer I Shares. Y Shares of each Fund are currently not available for purchases. The financial statements of the remaining funds of the Trust are presented separately. The assets of each fund are segregated and a shareholder’s interest is limited to the fund in which shares are held.

Each Fund is the successor to the fund listed opposite its name in the table below (each a “Predecessor Fund”). Each Predecessor Fund was a private fund managed by the Sub-Adviser using investment objectives, strategies, policies and restrictions that were in all material respects equivalent to those used by the Sub-Adviser to manage the Predecessor Fund’s corresponding Fund. Each Predecessor Fund dissolved and reorganized into the I Shares and Y Shares of each Fund on April 12, 2022. All of the assets of the Predecessor Funds were transferred in-kind to the Funds in connection with the reorganization.

 

Fund

   

Predecessor Fund

Concentrated Emerging Markets ESG Opportunities Fund   

Barrow, Hanley, Mewhinney & Strauss LLC Concentrated Emerging Markets Fund

Credit Opportunities Fund

   

Barrow, Hanley, Mewhinney & Strauss LLC High Yield Fixed Income Fund

Floating Rate Fund

   

Barrow, Hanley, Mewhinney & Strauss LLC Bank Loan Fund

Total Return Bond Fund

   

Barrow, Hanley, Mewhinney & Strauss LLC Core Fixed Income Fund

US Value Opportunities Fund

   

Barrow, Hanley, Mewhinney & Strauss LLC Diversified Large Cap Value Fund1

1 On April 12, 2022, the Barrow, Hanley, Mewhinney & Strauss LLC Large Cap Value Fund, another private fund managed by the sub-adviser, also contributed its assets to the US Value Opportunities Fund and subsequently dissolved.

2. Significant Accounting Policies:

The accompanying financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and are presented in U.S. dollars which is the functional currency of the Funds. The Funds are investment companies and therefore applies the accounting and reporting guidance issued by the U.S. Financial Accounting Standards Board (“FASB”) in Accounting Standards Codification (“ASC”) Topic 946, Financial Services — Investment Companies. The following are significant accounting policies which are consistently followed in the preparation of the financial statements.

 

LOGO

    
   35

The Advisors’ Inner Circle Fund III

   

Perpetual Funds

April 30, 2024

 

Use of Estimates — The preparation of financial statements requires management to make estimates and assumptions that affect the fair value of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates and such differences could be material.

Security Valuation — Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on the NASDAQ Stock Market (the “NASDAQ”)), including securities traded over the counter, are valued at the last quoted sale price on an exchange or market (foreign or domestic) on which they are traded on valuation date (or at approximately 4:00 pm ET if a security’s primary exchange is normally open at that time), or, if there is no such reported sale on the valuation date, at the most recent quoted bid price. For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Such methodologies generally consider such factors as security prices, yields, maturities, call features, ratings and developments relating to specific securities in arriving at valuations. On the first day a new debt security purchase is recorded, if a price is not available on the automated pricing feeds from our primary and secondary pricing vendors nor is it available from an independent broker, the security may be valued at its purchase price. Each day thereafter, the debt security will be valued according to the Trusts’ Fair Value Procedures until an independent source can be secured. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value provided that it is determined the amortized cost continues to approximate fair value. Should existing credit, liquidity or interest rate conditions in the relevant markets and issuer specific circumstances suggest that amortized cost does not approximate fair value, then the amortized cost method may not be used. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates.

Securities for which market prices are not “readily available” are valued in accordance with fair value procedures (the “Fair Value Procedures”) established by the Adviser and approved by the Trust’s Board of Trustees (the “Board”). Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated the Adviser as the “valuation designee” to determine the fair value of securities and other instruments for which no readily available market quotations are available. The Fair Value Procedures are implemented through a Fair Value Committee (the “Committee”) of the Adviser.

Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security’s trading has been halted or suspended; the security has been de-listed from a national exchange; the security’s primary trading market is temporarily closed at a time when under normal conditions it would be open; the security has not been traded for an extended period of time; the security’s primary pricing source is not able or willing to provide a price; or trading of the security is subject to local government imposed restrictions. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration relevant information reasonably available to the Committee.

The Funds use Intercontinental Exchange Data Pricing & reference Data LLC. (“ICE”) as a third party fair valuation vendor. ICE provides a fair value for foreign securities held by the Funds based on certain factors and methodologies (involving, generally, tracking valuation correlations between the U.S. market and each non-U.S. security) applied by ICE in the event that there is a movement in the U.S. market that exceeds a specific threshold that has been established by the Committee. The Committee has also established a “confidence interval” which is used to determine the level of correlation between the value of a foreign security and movements in the U.S. market before a particular security is fair valued when the threshold is exceeded. In the event that the threshold established by the Committee is exceeded on a specific day, the Funds value the non-U.S. securities in their portfolios that exceed the applicable “confidence interval” based upon the fair values provided by ICE. In such event, it is not necessary to hold a Committee meeting. In the event that the Adviser believes that the fair values provided by ICE are not reliable, the Adviser contacts the Funds Administrator and requests that a meeting of the Committee be held.

If a local market in which the Funds own securities is closed for one or more days, the Funds shall value all securities held in the corresponding currency based on the fair value prices provided by ICE using the predetermined confidence interval discussed above.

 

LOGO

    
   36

The Advisors’ Inner Circle Fund III

   

Perpetual Funds

April 30, 2024

 

In accordance with the authoritative guidance on fair value measurements and disclosure under U.S. GAAP, the Funds disclose the fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under ASC 820 are described below:

Level 1 — Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Funds have the ability to access at the measurement date;

Level 2 — Other significant observable inputs (includes quoted prices for similar securities, interest rates, prepayment speeds, credit risk, referenced indices, quoted prices in inactive markets, adjusted quoted prices in active markets, adjusted quoted prices on foreign equity securities that were adjusted in accordance with the Adviser’s pricing procedures, etc.); and

Level 3 — Prices, inputs or exotic modeling techniques which are both significant to the fair value measurement and unobservable (supported by little or no market activity).

Investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3 whose fair value measurement considers several inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement.

The unobservable inputs used to determine fair value of recurring Level 3 assets may have similar or diverging impacts on valuation. Significant increases and decreases in these inputs in isolation and interrelationships between those inputs could result in significantly higher or lower fair value measurement.

Federal Income Taxes — It is each Fund’s intention to continue to qualify as a regulated investment company for Federal income tax purposes by complying with the appropriate provisions of Subchapter M of the Internal Revenue Code of 1986, as amended, and to distribute substantially all of its income to shareholders. Accordingly, no provision for Federal income taxes has been made in the financial statements.

The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is “more likely- than-not” (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions deemed to meet the more-likely-than-not threshold are recorded as a tax benefit in the current period. The Funds did not record any tax provision in the current period. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities (i.e., the open tax year ends, since inception), on-going analysis of and changes to tax laws, regulations and interpretations thereof.

As of and during the period ended April 30, 2024, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the period, the Funds did not incur any interest or penalties.

Security Transactions and Investment Income — Security transactions are accounted for on trade date for financial reporting purposes. Dividend income and expense are recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Funds are informed of the dividend if such information is obtained subsequent to the ex-dividend date. Costs used in determining realized gains and losses on the sales of investment securities are based on specific identification. Interest income is recognized on an accrual basis from settlement date. Discounts and premiums on securities purchased are accreted and amortized using the effective interest method. Realized gains (losses) on paydowns of mortgage-backed and asset-backed securities are recorded as an adjustment to interest income.

 

LOGO

    
   37

The Advisors’ Inner Circle Fund III

   

Perpetual Funds

April 30, 2024

 

Foreign Currency Translation — The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars on the date of valuation. The Funds do not isolate that portion of realized or unrealized gains and losses resulting from changes in the foreign exchange rate from fluctuations arising from changes in the market prices of the securities. These gains and losses are included in net realized and unrealized gains and losses on investments on the Statements of Operations. Net realized and unrealized gains and losses on foreign currency transactions represent net foreign exchange gains or losses from foreign currency exchange contracts, disposition of foreign currencies, currency gains or losses realized between trade and settlement dates on securities transactions and the difference between the amount of the investment income and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent of the amounts actually received or paid.

Cash — Idle cash may be swept into various time deposit accounts and money market sweep accounts and is classified as cash on the Statements of Assets and Liabilities. The Funds maintain cash in bank deposit accounts which, at times, may exceed United States federally insured limits. Amounts invested are available on the same business day.

Expenses — Expenses of the Trust that can be directly attributed to a particular Fund are borne by that Fund. Expenses which cannot be directly attributed to a Fund are apportioned among the Funds of the Trust based on the number of funds and/or relative net assets.

Classes — Class specific expenses are borne by that class of shares. Income, realized and unrealized gains and losses and non-class specific expenses are allocated to the respective class on the basis of relative daily net assets.

Dividends and Distributions to Shareholders — The Funds will distribute substantially all of their net investment income and net realized capital gains, if any, at least annually. All distributions are recorded on ex-dividend date.

Investments in REITs — Dividend income from Real Estate Investment Trusts (“REIT”) is recorded based on the income included in distributions received from the REIT investments using published REIT reclassifications, including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.

Redemption Fees — The Concentrated Emerging Markets ESG Opportunities Fund, Credit Opportunities Fund, Emerging Markets Value Fund, Floating Rate Fund, International Value Fund, Total Return Bond Fund, and US Value Opportunities Fund retain a redemption fee of 1.00% on redemptions of capital shares held for less than thirty days. For the period ended April 30, 2024 and for the year ended October 31, 2023, no redemption fees were charged.

3. Transactions with Affiliates:

Certain officers of the Trust are also employees of SEI Investments Global Funds Services (the “Administrator”), a wholly owned subsidiary of SEI Investments Company, and/or SEI Investments Distribution Co. (the “Distributor”). Such officers are paid no fees by the Trust, other than the Chief Compliance Officer (“CCO”) as described below, for serving as officers of the Trust.

A portion of the services provided by the CCO and his staff, whom are employees of the Administrator, are paid for by the Trust as incurred. The services include regulatory oversight of the Trust’s Advisors and service providers as required by SEC regulations. The CCO’s services and fees have been approved by and are reviewed by the Board.

 

LOGO

    
   38

The Advisors’ Inner Circle Fund III

   

Perpetual Funds

April 30, 2024

 

4. Administration, Distribution, Shareholder Servicing, Transfer Agent and Custody Agreements:

The Funds and SEI Investments Global Fund Services (the “Administrator”) are parties to an Administration Agreement under which the Administrator provides management and administrative services to the Funds. For these services, the Administrator is paid an asset-based fee, which will vary depending on the number of share classes and the average daily net assets of the Funds.

For the period ended April 30, 2024, the Funds were charged the following for these services:

 

     Administration
Fees		  

Concentrated Emerging Markets ESG Opportunities Fund

      $ 18,581  

Credit Opportunities Fund

      58,602  

Emerging Markets Value Fund

      1,895  

Floating Rate Fund

      63,948  

International Value Fund

      40,595  

Total Return Bond Fund

      103,449  

US Value Opportunities Fund

      58,531  

The Trust and the Distribution are parties to a Distribution Agreement. The Distributor receives no fees under the agreement.

The Funds have adopted a shareholder servicing plan that provides that the Funds may pay financial intermediaries for shareholder services in an annual amount not to exceed 0.15% based on the average daily net assets of the Funds’ Y Shares. The Funds do not pay these service fees on shares purchased directly. In addition to payments made directly to financial intermediaries by the Funds, the Adviser or its affiliates may, at their own expense, pay financial intermediaries for these and other services to the Funds’ shareholders.

Atlantic Shareholder Services, LLC serves as the transfer agent (the “Transfer Agent”) and dividend disbursing agent for the Funds under a transfer agency agreement.

Brown Brothers Harriman & Co. serves as custodian (the “Custodian”) for the Funds. The Custodian plays no role in determining the investment policies of the Funds or which securities are to be purchased and sold by the Funds.

5. Investment Advisory Agreements and Sub-Advisory Agreements:

The Trust and the Adviser have entered into an investment advisory agreement (the “Advisory Agreement”) with respect to the Funds. Under the Advisory Agreement, the Adviser serves as the investment adviser and makes investment decisions for each Fund and continuously reviews, supervises and administers the investment program of each Fund, subject to the supervision of, and policies established by, the Board.

 

     Advisory Fee Rate

Concentrated Emerging Markets ESG Opportunities Fund

    0.93%

Credit Opportunities Fund

    0.60%

Emerging Markets Value Fund

    0.87%

Floating Rate Fund

    0.45%

International Value Fund

    0.66%

Total Return Bond Fund

    0.35%

US Value Opportunities Fund

    0.55%

 

LOGO

    
   39

The Advisors’ Inner Circle Fund III

   

Perpetual Funds

April 30, 2024

 

For each Fund, the Adviser has contractually agreed to waive fees and/or reimburse expenses to the extent necessary to keep total annual Fund operating expenses (excluding interest, taxes, brokerage commissions and other costs and expenses relating to the securities that are purchased and sold by the Fund, shareholder servicing fees, other expenditures which are capitalized in accordance with generally accepted accounting principles, other non-routine expenses, such as litigation, and acquired fund fees and expenses in the case of the Concentrated Emerging Markets ESG Opportunities Fund, Emerging Markets Value Fund, Floating Rate Fund, International Value Fund, Total Return Bond Fund, and US Value Opportunities Fund (collectively, “excluded expenses”)) from exceeding certain levels as set forth below until February 28, 2025 (each, a “contractual expense limit”). This agreement will terminate automatically upon the termination of the Funds’ investment advisory agreement and may be terminated: (i) by the Board, for any reason at any time; or (ii) by the Adviser, upon ninety (90) days’ prior written notice to the Trust, effective as of the close of business on February 28, 2025. The Adviser further has agreed contractually to waive its investment advisory fee payable by the Credit Opportunities Fund in the amount of the investment advisory fee the Adviser receives from the Floating Rate Fund attributable to the assets of the Credit Opportunities Fund invested in the Floating Rate Fund until February 28, 2025. This agreement will terminate automatically upon the termination of the Fund’s investment advisory agreement and may be terminated: (i) by the Board for any reason at any time; or (ii) by the Adviser, upon ninety (90) days’ prior written notice to the Trust, effective as of the close of business on February 28, 2025. The Adviser further has agreed contractually to waive its investment advisory fee payable by the Credit Opportunities Fund in the amount of the investment advisory fee the Adviser receives from the Floating Rate Fund attributable to the assets of the Credit Opportunities Fund invested in the Floating Rate Fund until February 28, 2025. This agreement will terminate automatically upon the termination of the Fund’s investment advisory agreement and may be terminated: (i) by the Board for any reason at any time; or (ii) by the Adviser, upon ninety (90) days’ prior written notice to the Trust, effective as of the close of business on February 28, 2025.The contractual expense limitations for the Funds are as follows:

 

     I Shares          Y shares

Concentrated Emerging Markets ESG Opportunities Fund

    1.05%               1.05%

Credit Opportunities Fund

    0.78%      0.78%

Emerging Markets Value Fund

    0.99%      0.99%

Floating Rate Fund

    0.60%      0.60%

International Value Fund

    0.86%      0.86%

Total Return Bond Fund

    0.35%      0.35%

US Value Opportunities Fund

    0.71%      0.71%

In addition, if at any point it becomes unnecessary for the Adviser to reduce fees or make expense reimbursements, the Board may permit the Adviser to retain the difference between the Total Annual Fund Operating Expenses and the expense caps listed above to recapture all or a portion of its prior fee reductions or reimbursements made during the preceding three-year period.

As of April 30, 2024, fees previously waived and reimbursed by the Adviser which may be subject to possible future reimbursement are as follows:

 

     Amount Subject to Repayment
     April 30, 2025        April 30, 2026    April 30, 2027   

Total

Concentrated Emerging Markets ESG Opportunities Fund

    $8,347         $187,726    $153,653    $349,726

Credit Opportunities Fund

    13,632      187,267    83,662    284,561

Emerging Markets Value Fund

    205,694      101,012    136,322    443,028

Floating Rate Fund

    15,507      482,644    294,516    792,667

International Value Fund

    100,147      190,986    172,530    463,663

Total Return Bond Fund

    13,765      335,843    422,275    771,883

US Value Opportunities Fund

    11,336      244,023    186,825    442,184

 

LOGO

    
   40

The Advisors’ Inner Circle Fund III

   

Perpetual Funds

April 30, 2024

 

During the period ended April 30, 2024, the Funds did not incur any recoupments.

Barrow, Hanley, Mewhinney & Strauss, LLC, (“Barrow Hanley” or the “Sub-Adviser”), located at 2200 Ross Avenue, 31st Floor, Dallas, TX 75201, serves as a sub-adviser to the Funds. Barrow Hanley, a Delaware limited liability company, is registered as an investment adviser with the SEC and was founded in 1979. Barrow Hanley provides investment advisory services to large institutional clients, mutual funds, employee benefit plans, endowments, foundations, limited liability companies and other institutions and individuals. Barrow Hanley is an indirect subsidiary of Perpetual Limited, a public company listed on the Australian Stock Exchange.

The Sub-Adviser will be responsible for the day-to-day management of each Funds’ investment portfolio in accordance with the investment policies and guidelines of the Funds subject to the general oversight of the Adviser.

The provision of investment advisory services by the Sub-Adviser is governed by an individual investment sub-advisory agreement between the Sub-Adviser and the Adviser (“the Sub-Advisory Agreement”). Under the Sub-Advisory Agreement, the Sub-Adviser is responsible for the day-to-day management of the Funds, makes investment decisions for the Funds and administers the investment program of the Funds, subject to the supervision of, and policies established by, the Adviser and the Board.

After the initial two-year term, the continuance of the Sub-Advisory Agreement must be specifically approved at least annually: (i) by the vote of the Board or by a vote of the majority of the outstanding voting securities of the Fund and (ii) by the vote of a majority of the Board who are not parties to the Sub-Advisory Agreement or “interested persons” of any party thereto, cast in person at a meeting called for the purpose of voting on such approval. The Sub-Advisory Agreement will terminate automatically in the event of its assignment or in the event of the termination of the Advisory Agreement, and is terminable at any time without penalty by the Board.

For the services provided pursuant to the Sub-Advisory Agreement, the Sub-Adviser receives an annual fee from the Adviser at the following annual rates based on 50% of the advisory fee rate for each Fund:

 

       Sub-Adviser Fee rate    

Concentrated Emerging Markets ESG Opportunities Fund

      0.465%  

Credit Opportunities Fund

      0.30%  

Emerging Markets Value

      0.435%  

Floating Rate Fund

      0.225%  

International Value

      0.33%  

Total Return Bond Fund

      0.175%  

US Value Opportunities Fund

      0.275%  

6. Investment Transactions:

For the period ended April 30, 2024, the purchases and sales of investment securities other than short-term investments and in-kinds were as follows:

 

      U.S. Gov’t      Other      Total  

Concentrated Emerging Markets ESG Opportunities Fund

 

Purchases

    $      —       $ 5,770,885       $ 5,770,885   

Sales

      —         5,485,070         5,485,070   

Credit Opportunities Fund

                     

Purchases

    $ —       $   13,729,225       $   13,729,225   

Sales

      —         28,307,373         28,307,373   

Emerging Markets Value Fund

                     

Purchases

    $ —       $ 929,769       $ 929,769   

Sales

      —         697,012         697,012   

 

LOGO

    
   41

The Advisors’ Inner Circle Fund III

   

Perpetual Funds

April 30, 2024

 

      U.S. Gov’t      Other      Total  

Floating Rate Fund

         

Purchases

    $ —       $ 4,341,373       $ 4,341,373   

Sales

      —         11,214,706         11,214,706   

International Value Fund

               

Purchases

    $ —       $ 12,497,163       $ 12,497,163   

Sales

      —         24,402,423         24,402,423   

Total Return Bond Fund

         

Purchases

    $  109,355,297       $ 71,926,218       $  181,281,515   

Sales

      85,346,745         40,897,576         126,244,321   

US Value Opportunities Fund

         

Purchases

    $ —       $  12,810,216       $ 12,810,216   

Sales

      —         17,416,485         17,416,485   

7. Federal Tax Information:

The timing and characterization of certain income and capital gains distributions are determined annually in accordance with federal tax regulations which may differ from U.S. GAAP. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent in nature. Certain permanent differences are charged or credited to distributable earnings or paid in capital as appropriate, in the period that the differences arise.

The tax character of dividends and distributions declared during the fiscal years ended October 31, 2023 and October 31, 2022 were as follows:

 

     Ordinary
Income		      Long-Term
Capital Gain		      Total  

Concentrated Emerging Markets ESG Opportunities Fund

         

2023

    $ 170,927       $ —       $ 170,927   

2022

      —         —         —   

Credit Opportunities Fund

               

2023

    $ 7,734,787       $ —       $ 7,734,787   

2022

      3,544,896         —         3,544,896   

Emerging Markets Value Fund

                     

2023

    $ 67,981       $ —       $ 67,981   

2022

      —         —         —   

Floating Rate Fund

                     

2023

    $ 9,385,204       $ —       $ 9,385,204   

2022

      3,068,871         —         3,068,871   

International Value Fund

                           

2023

    $ 179,447       $ —       $ 179,447   

2022

      —         —         —   

Total Return Bond Fund

                           

2023

    $ 2,264,393       $ —       $ 2,264,393   

2022

      580,835         —         580,835   

US Value Opportunities Fund

                     

2023

    $ 1,029,833       $  368,046       $ 1,397,879   

2022

      —         —         —   

 

LOGO

    
   42

The Advisors’ Inner Circle Fund III

   

Perpetual Funds

April 30, 2024

 

As of October 31, 2023, the components of distributable earnings (accumulated losses) on a tax basis were as follows:

 

    Undistributed 
Ordinary
Income		     Undistributed
Long-Term
Capital Gain		     Capital
Loss
Carryforwards		     Unrealized
Appreciation
(Depreciation)		   Other
Temporary
Differences		   Total
Distributable
Earnings
(Accumulated
Losses)

Concentrated Emerging Markets ESG Opportunities Fund

   $  1,122,734      $  148,465        $      —       $ (1,943,155 )    $ (1 )    $ (671,957 ) 

Credit Opportunities Fund

     475,037        —        (3,449,365)        (10,531,569 )        26,587       (13,479,310 ) 

Emerging Markets Value Fund

     61,490        —        (14,045)        (226,806 )      2       (179,359 ) 

Floating Rate Fund

     991,175        —        (1,188,820)        (2,269,055 )      2       (2,466,698 ) 

International Value Fund

     1,803,574        281,433        —         (4,161,863 )      1       (2,076,855 ) 

Total Return Bond Fund

     394,174        —        (1,500,721)        (6,811,819 )      3,204       (7,915,162 ) 

US Value Opportunities Fund

     845,203        —        (196,602)        9,054,978        (2 )       9,703,577   

For Federal income tax purposes, capital loss carryforwards may be carried forward and applied against future capital gains. The Funds have capital losses carried forward as follows:

 

     Short-Term
Loss		   Long-Term
Loss		   Total

Credit Opportunities Fund

    $ 406,050     $ 3,043,315     $ 3,449,365  

Emerging Markets Value Fund

      14,045       —       14,045  

Floating Rate Fund

      99,233       1,089,587       1,188,820  

Total Return Bond Fund

      92,353       1,408,368       1,500,721  

US Value Opportunities Fund

      196,602        —        196,602   

During the year ended October 31, 2023, the following Funds utilized capital loss carryforwards to offset capital gains amounting to:

 

     Short-Term
Loss		   Long-Term
Loss		   Total

Concentrated Emerging Markets ESG Opportunities Fund

    $ 261,262     $ 57,029     $ 318,291  

Emerging Markets Value Fund

      48,051       —       48,051  

International Value Fund

      322,605        —        322,605   

 

LOGO

    
   43

The Advisors’ Inner Circle Fund III

   

Perpetual Funds

April 30, 2024

 

The Federal tax cost and aggregate gross unrealized appreciation and depreciation for investments held by Funds at April 30, 2024, were as follows:

 

    Federal
Tax
Cost		     Appreciated
Securities		     Depreciated
Securities		     Net
Unrealized
Appreciation/
(Depreciation)		  

Concentrated Emerging Markets ESG Opportunities Fund

   $ 29,424,492     $ 2,695,814     $ (3,591,228 )    $ (895,414 ) 

Credit Opportunities Fund

     84,123,275       1,570,317       (5,093,850 )      (3,523,533 ) 

Emerging Markets Value Fund

     2,995,296       254,049       (384,918 )      (130,869 ) 

Floating Rate Fund

     92,960,473       1,511,311       (1,793,965 )      (282,654 ) 

International Value Fund

     51,838,740       4,699,553       (3,253,507 )      1,446,046  

Total Return Bond Fund

     160,283,175       873,293       (3,809,774 )      (2,936,481 ) 

US Value Opportunities Fund

     70,102,058       24,076,351       (1,956,808 )      22,119,543  

8. Concentration of Risks:

As with all mutual funds, there is no guarantee that the Funds will achieve their investment objectives. You could lose money by investing in the Funds. A Fund share is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any government agency. The principal risk factors affecting shareholders’ investments in the Funds are set forth below.

Credit Risk – The risk that the issuer of a security or the counterparty to a contract will default or otherwise become unable to honor a financial obligation.

Interest Rate Risk – As with most funds that invest in fixed income securities, changes in interest rates could affect the value of your investment. Rising interest rates tend to cause the prices of fixed income securities (especially those with longer maturities and lower credit qualities) and the Fund’s share price to fall. Very low or negative interest rates may prevent the Fund from generating positive returns and may increase the risk that if followed by rising interest rates the Fund’s performance will be negatively impacted.

Fixed Income Securities Risk – The prices of the Fund’s fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments and their agencies. Generally, the Fund’s fixed income securities will decrease in value if interest rates rise and vice versa. In a low interest rate environment, risks associated with rising rates are heightened. Declines in dealer market-making capacity as a result of structural or regulatory changes could decrease liquidity and/or increase volatility in the fixed income markets.

Corporate Fixed Income Securities Risk – The prices of the Fund’s corporate fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness and business prospects of individual issuers.

Commercial Paper Risk – Commercial paper is a short-term obligation with a maturity generally ranging from one to 270 days and is issued by U.S. or foreign companies or other entities in order to finance their current operations. Such investments are unsecured and usually discounted from their value at maturity. The value of commercial paper may be affected by changes in the credit rating or financial condition of the issuing entities and will tend to fall when interest rates rise and rise when interest rates fall. Asset-backed commercial paper may be issued by structured investment vehicles or other conduits that are organized to issue the commercial paper and to purchase trade receivables or other financial assets. The repayment of asset-backed commercial paper depends primarily on the cash collections received from such an issuer’s underlying asset portfolio and the issuer’s ability to issue new asset-backed commercial paper.

 

LOGO

    
   44

The Advisors’ Inner Circle Fund III

   

Perpetual Funds

April 30, 2024

 

Equity Risk – Since it purchases equity securities, the Fund is subject to the risk that stock prices may fall over short or extended periods of time. Historically, the equity market has moved in cycles, and the value of the Fund’s securities may fluctuate from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility. Common stock is generally subordinate to preferred stock and debt securities with respect to the payment of dividends and upon the liquidation or bankruptcy of the issuing company.

Emerging Markets Securities Risk – The Fund’s investments in emerging markets securities are considered speculative and subject to heightened risks in addition to the general risks of investing in foreign securities. Unlike more established markets, emerging markets may have governments that are less stable, markets that are less liquid and economies that are less developed. In addition, the securities markets of emerging market countries may consist of companies with smaller market capitalizations and may suffer periods of relative illiquidity; significant price volatility; restrictions on foreign investment; and possible restrictions on repatriation of investment income and capital. Furthermore, foreign investors may be required to register the proceeds of sales, and future economic or political crises could lead to price controls, forced mergers, expropriation or confiscatory taxation, seizure, nationalization or creation of government monopolies. Due to the differences in the nature and quality of financial information of issuers of emerging market securities, including auditing and financial reporting standards, financial information and disclosures about such issuers may be unavailable or, if made available, may be considerably less reliable than publicly available information about other foreign securities.

Custody Risk – Custody risk refers to the risks inherent in the process of clearing and settling trades and to the holding of securities, cash and other assets by local banks, agents and depositories. Low trading volumes and volatile prices in less developed markets make trades harder to complete and settle, and governments or trade groups may compel local agents to hold securities in designated depositories that may not be subject to independent evaluation. Communications between the U.S. and emerging market countries may be unreliable, increasing the risk of delayed settlements or losses of security certificates. Practices in relation to the settlement of securities transactions in emerging markets involve higher risks than those in developed markets. In addition, the laws of certain countries may put limits on the Fund’s ability to recover its assets if a foreign bank or depository or issuer of a security or an agent of any of the foregoing goes bankrupt. The Fund would absorb any loss resulting from such custody problems and may have no successful claim for compensation.

Foreign Company Risk – Investing in foreign companies, including direct investments and investments through ADRs, poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. These risks will not necessarily affect the U.S. economy or similar issuers located in the United States. Securities of foreign companies may not be registered with the U.S. Securities and Exchange Commission (the “SEC”) and foreign companies are generally not subject to the same level of regulatory controls imposed on U.S. issuers and, as a consequence, there is generally less publicly available information about foreign securities than is available about domestic securities. Income from foreign securities owned by the Fund may be reduced by a withholding tax at the source, which tax would reduce income received from the securities comprising the Fund’s portfolio. Foreign securities may also be more difficult to value than securities of U.S. issuers and foreign markets and securities may be less liquid. In addition, periodic U.S. Government restrictions on investments in issuers from certain foreign countries may require the Fund to sell such investments at inopportune times, which could result in losses to the Fund. In addition, periodic U.S. Government restrictions on investments in issuers from certain foreign countries may require the Fund to sell such investments at inopportune times, which could result in losses to the Fund.

Foreign Currency Risk – Currency risk is the risk that foreign currencies will decline in value relative to the U.S. dollar, in which case the dollar value of the Fund’s investments in securities denominated in, and/or receiving revenues in, foreign currencies, would be adversely affected.

Geographic Focus Risk – To the extent that it focuses its investments in a particular country or geographic region, the Fund may be more susceptible to economic, political, regulatory or other events or conditions affecting issuers and countries within that country or geographic region. As a result, the Fund may be subject to greater price volatility and risk of loss than a fund holding more geographically diverse investments.

 

LOGO

    
   45

The Advisors’ Inner Circle Fund III

   

Perpetual Funds

April 30, 2024

 

Risk of Investing in China – The Chinese economy is generally considered an emerging market and can be significantly affected by economic and political conditions and policy in China and surrounding Asian countries. A relatively small number of Chinese companies represents a large portion of China’s total market and thus may be more sensitive to adverse political or economic circumstances and market movements. The economy of China differs, often unfavorably, from the U.S. economy in such respects as structure, general development, government involvement, wealth distribution, rate of inflation, growth rate, allocation of resources and capital reinvestment, among others. Under China’s political and economic system, the central government has historically exercised substantial control over virtually every sector of the Chinese economy through administrative regulation and/or state ownership. In addition, expropriation, including nationalization, confiscatory taxation, political, economic or social instability or other developments could adversely affect and significantly diminish the values of the Chinese companies in which the Fund invests. The Fund may invest in shares of Chinese companies traded on stock markets in China or Hong Kong. These stock markets have recently experienced high levels of volatility, which may continue in the future. The Hong Kong stock market may behave differently from the China stock markets and there may be little to no correlation between the performance of the Hong Kong stock market and the China stock markets.

Stock Connect Investing Risk – Trading through Stock Connect is subject to a number of restrictions that may affect the Fund’s investments and returns. For example, trading through Stock Connect is subject to daily quotas that limit the maximum daily net purchases on any particular day, which may restrict or preclude the Fund’s ability to invest in China A Shares through Stock Connect. In addition, investments made through Stock Connect are subject to trading, clearance and settlement procedures that are relatively untested, which could pose risks to the Fund. Moreover, China A Shares purchased through Stock Connect generally may not be sold, purchased or otherwise transferred other than through Stock Connect in accordance with applicable rules. A primary feature of Stock Connect is the application of the home market’s laws and rules applicable to investors in China A Shares. Therefore, the Fund’s investments in China A Shares purchased through Stock Connect are generally subject to Chinese securities regulations and listing rules, among other restrictions. While overseas investors currently are exempt from paying capital gains or value added taxes on income and gains from investments in China A Shares purchased through Stock Connect, these tax rules could be changed, which could result in unexpected tax liabilities for the Fund. Stock Connect will only operate on days when both the China and Hong Kong markets are open for trading and when banks in both markets are open on the corresponding settlement days. There may be occasions when the Fund may be subject to the risk of price fluctuations of China A Shares during the time when Stock Connect is not trading. Stock Connect is a relatively new program. Further developments are likely and there can be no assurance as to the program’s continued existence or whether future developments regarding the program may restrict or adversely affect the Fund’s investments or returns. In addition, the application and interpretation of the laws and regulations of Hong Kong and China, and the rules, policies or guidelines published or applied by relevant regulators and exchanges in respect of Stock Connect are uncertain, and they may have a detrimental effect on the Fund’s investments and returns.

Large Capitalization Risk – The risk that larger, more established companies may be unable to respond quickly to new competitive challenges such as changes in technology and consumer tastes. Larger companies also may not be able to attain the high growth rates of successful smaller companies.

Small and Medium Capitalization Risk – The risk that small and medium capitalization companies in which the Fund may invest may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, small and medium capitalization companies may have limited product lines, markets and financial resources and may depend upon a relatively small management group. Therefore, small capitalization and medium capitalization stocks may be more volatile than those of larger companies. Small capitalization and medium capitalization stocks may be traded OTC. OTC stocks may trade less frequently and in smaller volume than exchange listed stocks and may have more price volatility than that of exchange-listed stocks.

Depositary Receipts Risk – While ADRs provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs continue to be subject to many of the risks associated with investing directly in foreign securities. Investments in ADRs may be less liquid and more volatile than the underlying securities in their primary trading market. If an ADR is denominated in a different currency than its underlying securities, the Fund will be subject to the currency risk of both the investment in the ADR and the underlying security. Holders of ADRs may have limited or no rights to take action with respect to the underlying securities or to compel the issuer of the receipts to take action. The prices of

 

LOGO

    
   46

The Advisors’ Inner Circle Fund III

   

Perpetual Funds

April 30, 2024

 

ADRs may differ from the prices of securities upon which they are based. U.S. Government Securities Risk – The Fund’s investment in U.S. government obligations may include securities issued or guaranteed as to principal and interest by the U.S. government, or its agencies or instrumentalities. Payment of principal and interest on U.S. government obligations may be backed by the full faith and credit of the United States or may be backed solely by the issuing or guaranteeing agency or instrumentality itself. There can be no assurance that the U.S. government would provide financial support to its agencies or instrumentalities (including government-sponsored enterprises) where it is not obligated to do so. In addition, U.S. government securities are not guaranteed against price movements due to changing interest rates.

Inflation Protected Securities Risk – The value of inflation protected securities, including TIPS, will generally fluctuate in response to changes in “real” interest rates, generally decreasing when real interest rates rise and increasing when real interest rates fall. Real interest rates represent nominal (or stated) interest rates reduced by the expected impact of inflation. In addition, interest payments on inflation-indexed securities will generally vary up or down along with the rate of inflation.

Municipal Bonds Risk – The Fund could be impacted by events in the municipal securities market. Negative events, such as severe fiscal difficulties, bankruptcy, an economic downturn, unfavorable legislation, court rulings or political developments could adversely affect the ability of municipal issuers to repay principal and to make interest payments.

Bank Loans Risk – Investments in bank loans (through both assignments and participations) are generally subject to the same risks as investments in other types of debt instruments, including, in many cases, investments in high yield bonds. There may be limited public information available regarding bank loans and bank loans may be difficult to value. If the Fund holds a bank loan through another financial institution, or relies on a financial institution to administer the loan, its receipt of principal and interest on the loan may be subject to the credit risk of that financial institution. It is possible that collateral securing a loan, if any, may be insufficient or unavailable to the Fund, and that the Fund’s rights to collateral may be limited by bankruptcy or insolvency laws. In addition, the secondary market for bank loans may be subject to irregular trading activity and wide bid/ask spreads, which may cause the Fund to be unable to realize the full value of its investment in a bank loan. Bank loans may have extended settlement periods that exceed seven days and, accordingly, may be considered illiquid. Purchases and sales of loans in the secondary market generally are subject to contractual restrictions that may delay the Fund’s ability to make timely redemptions.

Bank loans may not be considered “securities,” and purchasers, such as the Fund, therefore may not be entitled to rely on the anti-fraud protections of the federal securities laws.

Mortgage-Backed Securities Risk – Mortgage-backed securities are affected by, among other things, interest rate changes and the possibility of prepayment of the underlying mortgage loans. Mortgage-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations.

Asset-Backed Securities Risk – Payment of principal and interest on asset-backed securities is dependent largely on the cash flows generated by the assets backing the securities, and asset-backed securities may not have the benefit of any security interest in the related assets.

Convertible Securities Risk – The value of a convertible security is influenced by changes in interest rates (with investment value declining as interest rates increase and increasing as interest rates decline) and the credit standing of the issuer. The price of a convertible security will also normally vary in some proportion to changes in the price of the underlying common stock because of the conversion or exercise feature.

High Yield Bond Risk – High yield, or “junk,” bonds are debt securities rated below investment grade. High yield bonds are speculative, involve greater risks of default, downgrade, or price declines and are more volatile and tend to be less liquid than investment-grade securities. Companies issuing high yield bonds are less financially strong, are more likely to encounter financial difficulties, and are more vulnerable to adverse market events and negative sentiments than companies with higher credit ratings.

 

LOGO

    
   47

The Advisors’ Inner Circle Fund III

   

Perpetual Funds

April 30, 2024

 

Liquidity Risk – Certain securities may be difficult or impossible to sell at the time and the price that the Fund would like. The Fund may have to accept a lower price to sell a security, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative effect on Fund management or performance.

Prepayment Risk – The risk that, in a declining interest rate environment, fixed income securities with stated interest rates may have the principal paid earlier than expected, requiring the Fund to invest the proceeds at generally lower interest rates.

Extension Risk – The risk that rising interest rates may extend the duration of a fixed income security, typically reducing the security’s value.

Active Management Risk – The Fund is subject to the risk that the Adviser’s or the Sub-Adviser’s judgments about the attractiveness, value, or potential appreciation of the Fund’s investments may prove to be incorrect. If the investments selected and strategies employed by the Fund fail to produce the intended results, the Fund could underperform in comparison to its benchmark index or other funds with similar objectives and investment strategies.

New Adviser Risk – The Adviser is a newly registered investment adviser and has not previously managed a mutual fund. As a result, there is no long-term track record against which an investor may judge the Adviser and it is possible the Adviser may not achieve the Fund’s intended investment objective.

New Fund Risk – Because the Fund is new, investors in the Fund bear the risk that the Fund may not be successful in implementing its investment strategy, may not employ a successful investment strategy, or may fail to attract sufficient assets under management to realize economies of scale, any of which could result in the Fund being liquidated at any time without shareholder approval and at a time that may not be favorable for all shareholders. Such liquidation could have negative tax consequences for shareholders and will cause shareholders to incur expenses of liquidation.

Market Risk – The prices of and the income generated by the Fund’s securities may decline in response to, among other things, investor sentiment, general economic and market conditions, regional or global instability, and currency and interest rate fluctuations. In addition, the impact of any epidemic, pandemic or natural disaster, or widespread fear that such events may occur, could negatively affect the global economy, as well as the economies of individual countries, the financial performance of individual companies and sectors, and the markets in general in significant and unforeseen ways. Any such impact could adversely affect the prices and liquidity of the securities and other instruments in which the Fund invests, which in turn could negatively impact the Fund’s performance and cause losses on your investment in the Fund. Market risk may affect a single issuer, an industry, a sector or the equity or bond market as a whole.

LIBOR Replacement Risk – The Fund may be exposed to financial instruments that recently transitioned from, or continue to be tied to, the London Interbank Offered Rate (“LIBOR”) to determine payment obligations, financing terms, hedging strategies or investment value. The United Kingdom’s Financial Conduct Authority (“FCA”), which regulates LIBOR, has ceased publishing all LIBOR settings on a representative basis. In April 2023, however, the FCA announced that some USD LIBOR settings will continue to be published under a synthetic methodology until September 30, 2024 for certain legacy contracts. The Secured Overnight Financing Rate (“SOFR”), which is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement market, has been used increasingly on a voluntary basis in new instruments and transactions. It remains uncertain how such changes would be implemented and the effects such changes would have on the Fund, including any negative effects on the Fund’s liquidity and valuation of the Fund’s investments, issuers of instruments in which the Fund invests and financial markets generally.

Management/Systematic or Quantitative Process Risk – The value of the Fund may decline if the Adviser’s or the Sub-Adviser’s judgments about the attractiveness, relative value or potential appreciation of a particular security or strategy prove to be incorrect. Because the Adviser and the Sub-Adviser each relies, in part, on a systematic, quantitative screening process in selecting securities for the Fund, the Fund is subject to the additional risk that the Adviser’s or the Sub-Adviser’s judgments regarding the investment criteria underlying the screening process may prove to be incorrect.

 

LOGO

    
   48

The Advisors’ Inner Circle Fund III

   

Perpetual Funds

April 30, 2024

 

The foregoing is not intended to be a complete discussion of the risks associated with investing in the Funds. A more complete description of risks associated with the Funds is included in the prospectus and statement of additional information.

9. In-Kind Transactions:

For the period ended April 30, 2024, there were no in-kind transactions for the Funds. During the year ended October 31, 2023, the Floating Rate Fund redeemed shares of beneficial interest in exchange for securities and cash. The securities were redeemed at its current value on the date of the transaction.

 

Fund Name

   

Transaction

Date

     

Shares

Redeemed

     

Securities at
Value

     

Cash

     

Income
Receivable

     

Total

  

Floating Rate Fund

      12/13/2022        2,791,455      $ 23,458,836      $ 3,402,345      $ 48,445      $ 26,909,626  

10. Concentration of Shareholders:

At April 30, 2024, the percentage of total shares outstanding held by shareholders for each Fund, which are comprised of individual shareholders and omnibus accounts that are held on behalf of various individual shareholders was as follows:

 

     No. of Shareholders
I Shares		    %Ownership   No. of Shareholders
Y Shares		    % Ownership

Concentrated Emerging Markets ESG Opportunities Fund

    1    78%   —    —

Credit Opportunities Fund

    2    57%   —    —

Emerging Markets Value Fund

    2    100%   1    100%

Floating Rate Fund

    4    87%   —    —

International Value Fund

    3    90%   1    100%

Total Return Bond Fund

    4    71%   —    —

US Value Opportunities Fund

    4    88%   —    —

11. Indemnifications:

In the normal course of business, the Funds enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is dependent on future claims that may be made against the Funds and, therefore, cannot be established; however, based on experience, the risk of loss from such claims is considered remote.

12. Subsequent Events:

Perpetual US Services LLC, Doing Business As PGIA (“PGIA”), the Funds’ investment adviser, has determined to reorganize the Funds into newly created shell series of Perpetual Americas Funds Trust (the “Acquiring Trust”). Based on PGIA’s recommendation, the Board of Trustees (the “Board”) of the Trust has approved an agreement and plan of reorganization providing for the reorganization (each, a “Reorganization” and together, the “Reorganizations”) of the Funds into the following shell funds of the Acquiring Trust (each, an “Acquiring Fund” and together, the “Acquiring Funds”) to be advised by Perpetual Americas Funds Services, an affiliate of PGIA, and sub-advised by Barrow, Hanley, Mewhinney & Strauss, LLC (“Barrow Hanley”), the Funds’ sub-adviser:

Barrow Hanley Emerging Markets Value Fund

Barrow Hanley International Value Fund

Barrow Hanley Concentrated Emerging Markets ESG Opportunities Fund

Barrow Hanley Total Return Bond Fund

Barrow Hanley Credit Opportunities Fund

Barrow Hanley Floating Rate Fund

Barrow Hanley US Value Opportunities Fund

 

LOGO

    
   49

The Advisors’ Inner Circle Fund III

   

Perpetual Funds

April 30, 2024

 

Following the closing of the Reorganizations, the Acquiring Funds will be managed by the same portfolio management teams at Barrow Hanley that currently manage the Funds, and the investment objectives, investment policies and investment risks of the Acquiring Funds will remain substantially similar to those of the corresponding Funds. The Reorganizations are intended to be tax-free, meaning that the Funds’ shareholders would become shareholders of the Acquiring Funds upon closing of the Reorganizations without realizing any gain or loss for federal income tax purposes.

The Reorganizations are subject to shareholder approval, though no shareholder action is necessary at this time. Shareholders of record of the Funds on or about June 7, 2024 will receive a proxy statement/prospectus that contains important information about their Reorganization(s) and the Acquiring Fund(s) in which they would own shares upon closing of the Reorganization(s), including information about investment strategies and risks, fees and expenses. Prior to the Reorganizations, Fund shareholders may continue to purchase, redeem and exchange their shares subject to the limitations described in the Prospectuses.

The Funds have evaluated the need for additional disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no additional disclosures (other than the preceding paragraphs) and/or adjustments were required to the financial statements as of April 30, 2024.

 

LOGO

    
   50

The Advisors’ Inner Circle Fund III

    Perpetual Funds

 

 DISCLOSURE OF FUND EXPENSES (Unaudited)

All mutual funds have operating expenses. As a shareholder of a mutual fund, your investment is affected by these ongoing costs, which include (among others) costs for Fund management, administrative services, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns.

Operating expenses such as these are deducted from the mutual fund’s gross income and directly reduce your final investment return. These expenses are expressed as a percentage of the mutual fund’s average net assets; this percentage is known as the mutual fund’s expense ratio.

The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period from November 1, 2023 to April 30, 2024.

The table on the next page illustrates your Fund’s costs in two ways:

• Actual Fund Return. This section helps you to estimate the actual expenses after fee waivers that your Fund incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.

You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that period. Simply divide your ending starting account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under “Expenses Paid During Period.”

• Hypothetical 5% Return. This section helps you compare your Fund’s costs with those of other mutual funds. It assumes that the Fund had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expenses Paid During Period” column with those that appear in the same charts in the shareholder reports for other mutual funds.

Note: Because the return is set at 5% for comparison purposes — NOT your Fund’s actual return — the account values shown may not apply to your specific investment.

 

         
      Beginning
Account
Value
11/1/23		      Ending
Account
Value
4/30/24		      Annualized
Expense
Ratios		     Expenses
Paid During
Period*		  

Concentrated Emerging Markets ESG Opportunities Fund

                                   

Actual Fund Return

           

I Shares

    $   1,000.00      $ 1,049.90        1.05 %      $5.35  

Hypothetical 5% Return

           

I Shares

    $ 1,000.00      $   1,019.64        1.05 %      $5.27  
         

Credit Opportunities Fund

                                   

Actual Fund Return

           

I Shares

    $ 1,000.00      $ 1,098.00        0.09 %      $0.47  

Hypothetical 5% Return

           

I Shares

    $ 1,000.00      $ 1,024.42        0.09 %      $0.45  
         

Emerging Markets Value Fund

                                   

Actual Fund Return

           

I Shares

    $ 1,000.00      $ 1,046.80        0.99 %      $5.04  

Y Shares

      1,000.00        1,046.80        0.99 %      5.04  

Hypothetical 5% Return

           

I Shares

    $ 1,000.00      $ 1,019.94        0.99 %      $4.97  

Y Shares

      1,000.00        1,019.94        0.99 %      4.97  

 

LOGO

    
   51

The Advisors’ Inner Circle Fund III

    Perpetual Funds

 

         
      Beginning
Account
Value
11/1/23		      Ending
Account
Value
4/30/24		      Annualized
Expense
Ratios		     Expenses
Paid During
Period*		  

Floating Rate Fund

                                   

Actual Fund Return

           

I Shares

    $   1,000.00      $   1,070.20        0.60 %      $3.09  

Hypothetical 5% Return

           

I Shares

    $ 1,000.00      $ 1,021.88        0.60 %      $3.02  
         

International Value Fund

                                   

Actual Fund Return

           

I Shares

    $ 1,000.00      $ 1,098.70        0.86 %      $4.49  

Y Shares

      1,000.00        1,098.70        0.86 %      4.49  

Hypothetical 5% Return

           

I Shares

    $ 1,000.00      $ 1,020.59        0.86 %      $4.32  

Y Shares

      1,000.00        1,020.59        0.86 %      4.32  
         

Total Return Bond Fund

                                   

Actual Fund Return

           

I Shares

    $ 1,000.00      $ 1,055.20        0.35 %      $1.79  

Hypothetical 5% Return

           

I Shares

    $ 1,000.00      $ 1,023.12        0.35 %      $1.76  
         

US Value Opportunities Fund

                                   

Actual Fund Return

           

I Shares

    $ 1,000.00      $ 1,204.40        0.71 %      $3.89  

Hypothetical 5% Return

           

I Shares

    $ 1,000.00      $ 1,021.33        0.71 %      $3.57  

 

*

Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).

 

LOGO

    
   52

The Advisors’ Inner Circle Fund III

    Perpetual Funds

 

 APPROVAL OF INVESTMENT ADVISORY AGREEMENT (Unaudited)

Barrow Hanley Concentrated Emerging Markets ESG Opportunities Fund

Barrow Hanley Credit Opportunities Fund

Barrow Hanley Emerging Markets Value Fund

Barrow Hanley Floating Rate Fund

Barrow Hanley International Value Fund

Barrow Hanley Total Return Bond Fund

Barrow Hanley US Value Opportunities Fund

Pursuant to Section 15 of the Investment Company Act of 1940 (the “1940 Act”), the Funds’ advisory and sub-advisory agreements (the “Agreements”) must be renewed at least annually after their initial two-year term: (i) by the vote of the Board of Trustees (the “Board” or the “Trustees”) of The Advisors’ Inner Circle Fund III (the “Trust”) or by a vote of a majority of the shareholders of the Funds; and (ii) by the vote of a majority of the Trustees who are not parties to the Agreements or “interested persons” of any party thereto, as defined in the 1940 Act (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such renewal.

A Board meeting was held on December 6-7, 2023 to decide whether to renew the Agreements for additional one-year terms. In preparation for the meeting, the Trustees requested that the Adviser and the Sub-Adviser furnish information necessary to evaluate the terms of the Agreements. Prior to the meeting, the Independent Trustees of the Funds met to review and discuss the information provided and submitted a request for additional information to the Adviser and the Sub-Adviser, and information was provided in response to this request. The Trustees used this information, as well as other information that the Adviser, the Sub-Adviser and other service providers of the Funds presented or submitted to the Board at the meeting and other meetings held during the prior year, to help them decide whether to renew the Agreements for an additional year.

Specifically, the Board requested and received written materials from the Adviser, the Sub-Adviser and other service providers of the Funds regarding: (i) the nature, extent and quality of the Adviser’s and the Sub-Adviser’s services; (ii) the Adviser’s and the Sub-Adviser’s investment management personnel; (iii) the Adviser’s and the Sub-Adviser’s operations and financial condition; (iv) the Adviser’s and the Sub-Adviser’s brokerage practices (including any soft dollar arrangements) and investment strategies; (v) the Funds’ advisory fees paid to the Adviser and the Funds’ overall fees and operating expenses compared with peer groups of mutual funds; (vi) the level of the Adviser’s and the Sub-Adviser’s profitability from their relationships with the Funds, including both direct and indirect benefits accruing to the Adviser and the Sub-Adviser and their affiliates; (vii) the Adviser’s and the Sub-Adviser’s potential economies of scale; (viii) the Adviser’s and the Sub-Adviser’s compliance programs, including a description of material compliance matters and material compliance violations; (ix) the Adviser’s and the Sub-Adviser’s policies on and compliance procedures for personal securities transactions; and (x) the Funds’ performance compared with peer groups of mutual funds and the Funds’ benchmark indices.

Representatives from the Adviser and the Sub-Adviser, along with other Fund service providers, presented additional information and participated in question and answer sessions at the Board meeting to help the Trustees evaluate the Adviser’s and the Sub-Adviser’s services, fees and other aspects of the Agreements. The Independent Trustees received advice from independent counsel and met in executive sessions outside the presence of Fund management, the Adviser and the Sub-Adviser.

At the Board meeting, the Trustees, including all of the Independent Trustees, based on their evaluation of the information provided by the Adviser, the Sub-Adviser and other service providers of the Funds, renewed the Agreements. In considering the renewal of the Agreements, the Board considered various factors that they determined were relevant, including: (i) the nature, extent and quality of the services provided by the Adviser and the Sub-Adviser; (ii) the investment performance of the Funds and the Adviser and the Sub-Adviser; (iii) the costs of the services provided and profits realized by the Adviser and the Sub-Adviser from their relationships with the Funds, including both direct and indirect benefits accruing to the Adviser and the Sub-Adviser and their affiliates; (iv) the extent to which economies of scale are being realized by the Adviser and the Sub-Adviser; and (v) whether fee levels reflect such economies of scale for the benefit of Fund investors, as discussed in further detail below.

Nature, Extent and Quality of Services Provided by the Adviser and the Sub-Adviser

In considering the nature, extent and quality of the services provided by the Adviser and the Sub-Adviser, the Board reviewed the portfolio management services provided by the Adviser and the Sub-Adviser to the Funds, including the quality and continuity of the Adviser’s and the Sub-Adviser’s portfolio management personnel, the resources of the Adviser and the Sub-Adviser, and the Adviser’s and the Sub-Adviser’s compliance histories and compliance programs. The Trustees reviewed the terms of the Agreements. The Trustees also reviewed the Adviser’s and the Sub-Adviser’s investment and risk management approaches for the Funds. The Trustees considered that the Adviser supervises and monitors the performance of the Sub-Adviser. The most recent investment adviser registration forms (“Form ADV”) for the Adviser and the Sub-Adviser were available to the Board, as were the responses of the Adviser and the Sub-Adviser to a detailed series of questions which included, among other things, information about the investment advisory services provided by the Adviser and the Sub-Adviser to the Funds.

 

LOGO

    
   53

The Advisors’ Inner Circle Fund III

    Perpetual Funds

 

The Trustees also considered other services provided to the Funds by the Adviser and the Sub-Adviser such as selecting broker-dealers for executing portfolio transactions, monitoring adherence to the Funds’ investment restrictions, and monitoring compliance with various Fund policies and procedures and with applicable securities laws and regulations. Based on the factors above, as well as those discussed below, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of the services provided to the Funds by the Adviser and the Sub-Adviser were sufficient to support renewal of the Agreements.

Investment Performance of the Funds, the Adviser and the Sub-Adviser

The Board was provided with regular reports regarding the Funds’ performance over various time periods. The Trustees also reviewed reports prepared by the Funds’ administrator comparing the Funds’ performance to their benchmark indices and peer groups of mutual funds as classified by Lipper, an independent provider of investment company data, over various periods of time. Representatives from the Adviser and the Sub-Adviser provided information regarding and led discussions of factors impacting the performance of the Funds, outlining current market conditions and explaining their expectations and strategies for the future. The Trustees determined that the Funds’ performance was satisfactory, or, where the Funds’ performance was materially below their benchmarks and/or peer groups, the Trustees were satisfied by the reasons for the underperformance and/or the steps taken by the Adviser and the Sub-Adviser in an effort to improve the performance of the Funds. Based on this information, the Board concluded, within the context of its full deliberations, that the investment results that the Adviser and the Sub-Adviser had been able to achieve for the Funds were sufficient to support renewal of the Agreements.

Costs of Advisory Services, Profitability and Economies of Scale

In considering the advisory fees payable by the Funds to the Adviser, as well as the fees payable by the Adviser to the Sub-Adviser, the Trustees reviewed, among other things, a report of the advisory fees paid to the Adviser and the Sub-Adviser. The Trustees also reviewed reports prepared by the Funds’ administrator comparing the Funds’ net and gross expense ratios and advisory fees to those paid by peer groups of mutual funds as classified by Lipper. The Trustees reviewed the management fees charged by the Sub-Adviser to other clients with comparable mandates to the Barrow Hanley US Value Opportunities Fund, Barrow Hanley Credit Opportunities Fund and Barrow Hanley International Value Fund. The Trustees considered any differences in management fees and took into account the respective demands, resources and complexity associated with the Funds and other client accounts as well as the extensive regulatory, compliance and tax regimes to which the Funds are subject. The Trustees also considered that the Adviser, not the Funds, paid the Sub-Adviser pursuant to the sub-advisory agreement, and that the fee payable to the Sub-Adviser reflected an arms-length negotiation between the Adviser and the Sub-Adviser. The Trustees evaluated both the fee under the sub-advisory agreement and the portion of the fee under the advisory agreement retained by the Adviser. The Board concluded, within the context of its full deliberations, that the advisory fees were reasonable in light of the nature and quality of the services rendered by the Adviser and the Sub-Adviser.

The Trustees reviewed the costs of services provided by and the profits realized by the Adviser and the Sub-Adviser from their relationship with the Funds, including both direct benefits and indirect benefits, such as research and brokerage services received under soft dollar arrangements, accruing to the Adviser and the Sub-Adviser and their affiliates. The Trustees considered how the Adviser’s and the Sub-Adviser’s profitability was affected by factors such as their organizational structures and methods for allocating expenses. The Trustees concluded that the profit margins of the Adviser and the Sub-Adviser with respect to the management of the Funds were not unreasonable. The Board also considered the Adviser’s and the Sub-Adviser’s commitment to managing the Funds and the Adviser’s willingness to continue its expense limitation and fee waiver arrangements with the Funds.

The Trustees considered the Adviser’s and Sub-Adviser’s views relating to economies of scale in connection with the Funds as Fund assets grow and the extent to which the benefits of any such economies of scale are shared with the Funds and Fund shareholders. The Board considered the existence of any economies of scale and whether those were passed along to the Funds’ shareholders through a graduated advisory fee schedule or other means, including fee waivers. The Trustees recognized that economies of scale are difficult to identify and quantify and are rarely identifiable on a fund-by-fund basis. Based on this evaluation, the Board concluded that the advisory fees were reasonable in light of the information that was provided to the Trustees by the Adviser and the Sub-Adviser with respect to economies of scale.

Renewal of the Agreements

Based on the Board’s deliberations and its evaluation of the information described above and other factors and information it believed relevant in the exercise of its reasonable business judgment, the Board, including all of the Independent Trustees, with the assistance of Fund counsel and Independent Trustees’ counsel, unanimously concluded that the terms of the Agreements, including the fees payable thereunder, were fair and reasonable and agreed to renew the Agreements for another year. In its deliberations, the Board did not identify any absence of information as material to its decision, or any particular factor (or conclusion with respect thereto) or single piece of information that was all-important, controlling or determinative of its decision, but considered all of the factors together, and each Trustee may have attributed different weights to the various factors (and conclusions with respect thereto) and information.

 

LOGO

    
   54

The Advisors’ Inner Circle Fund III

    Perpetual Funds

 

 REVIEW OF LIQUIDITY RISK MANAGEMENT PROGRAM (Unaudited)

Pursuant to Rule 22e-4 under the 1940 Act, the Funds’ investment adviser has adopted, and the Board has approved, a liquidity risk management program (the “Program”) to govern the Funds’ approach to managing liquidity risk. The Program is overseen by the Funds’ Liquidity Risk Management Program Administrator (the “Program Administrator”), and the Program’s principal objectives include assessing, managing and periodically reviewing each Fund’s liquidity risk, based on factors specific to the circumstances of the Funds.

At a meeting of the Board held on March 26, 2024, the Trustees received a report from the Program Administrator addressing the operations of the Program and assessing its adequacy and effectiveness of implementation for the period from January 1, 2023 through December 31, 2023. The Program Administrator’s report noted that:

 

  •  

the Program Administrator had determined that the Program is reasonably designed to assess and manage each Fund’s liquidity risk and has operated adequately and effectively to manage each Fund’s liquidity risk during the period covered by the report.

  •  

during the period covered by the report, there were no liquidity events that impacted the Funds or their ability to timely meet redemptions without dilution to existing shareholders.

  •  

the Board approved a change to the membership of the committee serving as Program Administrator.

  •  

the Program Administrator had determined that the Barrow Hanley Floating Rate Fund’s highly liquid investment minimum remains appropriate.

  •  

material changes had been made to the Program during the period covered by the report relating to certain Funds’ reasonable anticipated trading size.

There can be no assurance that the Program will achieve its objectives in the future. Please refer to the prospectus for more information regarding a Fund’s exposure to liquidity risk and other principal risks to which an investment in the Funds may be subject.

 

LOGO

    
   55

The Advisors’ Inner Circle Fund III

    Perpetual Funds

 

NOTES

 

LOGO

    
   56

The Advisors’ Inner Circle Fund III

    Perpetual Funds

 

NOTES

 

LOGO

    
   57

Perpetual Funds

PO Box 588

Portland, ME 04112

866-778-6397

Investment Adviser:

Perpetual US Services LLC, doing business as PGIA

155 North Wacker Drive, Suite 4250

Chicago, IL 60606

Sub-Adviser

Barrow, Hanley, Mewhinney & Strauss, LLC

2200 Ross Avenue, 31st Floor

Dallas, TX 75201

Administrator:

SEI Investments Global Funds Services

One Freedom Valley Drive

Oaks, PA 19456

Distributor:

SEI Investments Distribution Co.

One Freedom Valley Drive

Oaks, PA 19456

Legal Counsel:

Morgan, Lewis & Bockius LLP

2222 Market Street

Philadelphia, PA 19103

This information must be preceded or accompanied by a current prospectus for the Funds described.

PBH-SA-001-0300

(b) Not applicable.

Item 2. Code of Ethics.

Not applicable for semi-annual report.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual report.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual report.

Item 5. Audit Committee of Listed Registrants.

Not applicable to open-end management investment companies.

Item 6. Schedule of Investments.

Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end management investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to open-end management investment companies.

Item 9. Purchases of Equity Securities by Closed-End Management Company and Affiliated Purchasers.

Not applicable to open-end management investment companies.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees during the period covered by this report.

Item 11. Controls and Procedures.

(a) The Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures, as defined in Rule 30a-3(c) under the Act (17 CFR § 270.30a-3(c)), as of a date within 90 days of the filing date of the report, are effective based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR § 270.30a-3(b)) and Rule 13a-15(b) or Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR § 240.13a-15(b) or 240.15d-15(b)).

(b) There has been no change in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR § 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable to open-end management investment companies.

Item 18. Recovery of Erroneously Awarded Compensation.

(a) Not applicable.

(b) Not applicable.

Item 19. Exhibits.

(a)(1) Not applicable for semi-annual reports.

(a)(2) Not applicable.

(a)(3) A separate certification for the principal executive officer and the principal financial officer of the Registrant, as required by Rule 30a-2(a) under the Act (17 CFR §270.30a-2(a)), are filed herewith.

(b) Officer certifications, as required by Rule 30a-2(b) under the Act (17 CFR § 270.30a-2(b)), also accompany this filing as exhibits.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)       The Advisors’ Inner Circle Fund III
By (Signature and Title)      

/s/ Michael Beattie

      Michael Beattie
      Principal Executive Officer

Date: July 8, 2024

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)      

/s/ Michael Beattie

      Michael Beattie
      Principal Executive Officer
Date: July 8, 2024      
By (Signature and Title)      

/s/ Andrew Metzger

      Andrew Metzger
      Principal Financial Officer
Date: July 8, 2024