Fund Evaluator:

Aristotle Small Cap Equity C Overview

Aristotle Small Cap Equity C (AISBX) is an actively managed U.S. Equity Small Blend fund. Aristotle Funds launched the fund in 2023.

The investment seeks long-term capital appreciation. Under normal circumstances, the fund invests at least 80% of its assets in equity securities of small-capitalization companies. The manager defines a small cap company as one that, at the time of initial purchase, has a market capitalization that falls within the capitalization range of the Russell 2000® Index, which measures the performance of the small-capitalization segment of the U.S. equity universe.

About Aristotle Small Cap Equity C (AISBX)

There are 2 members of the management team with an average tenure of 11.59 years: Jack McPherson (2014), David Adams (2014). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and Russell 2000 TR USD index with a weighting of 100%. Aristotle Small Cap Equity C has 99 securities in its portfolio. The top 10 holdings constitute 20.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Aristotle Small Cap Equity C is part of the Equity global asset class and is within the U.S. Equity fund group. Aristotle Small Cap Equity C has 1.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 95.8%. There is 1.2% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Aristotle Small Cap Equity C has 3.0% of the portfolio in cash.

Assets Under Management

The fund has $610 million in total assets, which is below the $685 million average for the Small Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

AISBX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Aristotle Small Cap Equity C expense ratio is high compared to funds in the Small Blend category. Aristotle Small Cap Equity C has an expense ratio of 1.90%, which is 82% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Aristotle Small Cap Equity C has a portfolio turnover rate of 25%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 66% for the Small Blend category.

Recently, in the month of July 2026, Aristotle Small Cap Equity C returned 0.7%, which earned it a grade of A, as the Small Blend category had an average return of -2.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Aristotle Small Cap Equity C has a trailing yield of 0.00%, which is below the 0.42% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Aristotle Small Cap Equity C Grades

Year to date, the fund has returned 15.7%, 2.5 percentage points worse than the category, which translates into a grade of D. The fund has returned 15.2% over the past year (grade of F), 5.7% over the past three years (grade of F) and 2.6% per year over the past five years (grade of F) and 6.6% per year over the past 10 years (grade of F).

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