Fund Evaluator:
Aristotle Small/Mid Cap Equity I (ARIHX)
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Fund Details
Aristotle Small/Mid Cap Equity I Overview
Aristotle Small/Mid Cap Equity I (ARIHX) is an actively managed U.S. Equity Small Blend fund. Aristotle Funds launched the fund in 2014.
The investment seeks long-term capital appreciation. The fund invests at least 80% of its assets in equity securities of small-capitalization and mid-capitalization companies. The sub-adviser considers small and medium capitalization companies to be those companies that, at the time of initial purchase, have a market capitalization equal to or less than that of the largest company in the Russell 2500 ® Index.
About Aristotle Small/Mid Cap Equity I (ARIHX)
There are 2 members of the management team with an average tenure of 3.29 years: Jack McPherson (2023), David Adams (2023). 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 2500 TR USD index with a weighting of 100%. Aristotle Small/Mid Cap Equity I has 105 securities in its portfolio. The top 10 holdings constitute 19.1% 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/Mid Cap Equity I is part of the Equity global asset class and is within the U.S. Equity fund group. Aristotle Small/Mid Cap Equity I has 1.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 96.7%. There is 1.7% 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/Mid Cap Equity I has 1.6% of the portfolio in cash.
Assets Under Management
The fund has $1 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.
ARIHX 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/Mid Cap Equity I expense ratio is high compared to funds in the Small Blend category. Aristotle Small/Mid Cap Equity I has an expense ratio of 0.97%, which is 7% lower than its category average, making the fund expense ratio grade a C. 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/Mid Cap Equity I has a portfolio turnover rate of 26%, 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/Mid Cap Equity I returned 1.3%, 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/Mid Cap Equity I has a trailing yield of 0.07%, 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/Mid Cap Equity I Grades
Year to date, the fund has returned 15.1%, 3.1 percentage points worse than the category, which translates into a grade of D. The fund has returned 22.6% over the past year (grade of D), 11.1% over the past three years (grade of D) and 4.1% per year over the past five years (grade of F) and 8.1% per year over the past 10 years (grade of F).
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ARIHX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| ARIHX Return (NAV) | 1.3% | 5.5% | 22.6% | 11.1% | 4.1% | 8.1% |
| ARIHX Grade | A | B | D | D | F | F |
| +/- Category | 4.1% | 0.3% | -5.7% | -2.3% | -3.4% | -2.2% |
| Small Blend Avg | -2.8% | 5.2% | 28.3% | 13.5% | 7.6% | 10.3% |
| ARIHX Tax Cost Ratio | na | na | 4.6% | 4.7% | 4.4% | 2.3% |
ARIHX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| ARIHX Return (NAV) | 15.1% | 3.3% | 13.1% | 11.1% | -20.1% | 19.6% | 9.6% | 23.4% | -11.6% | 17.2% | 14.8% |
| ARIHX Grade | D | F | B | F | D | D | D | D | C | A | F |
| +/- Category | -3.1% | -4.6% | 1.6% | -5.4% | -3.6% | -3.6% | -4.7% | -2.1% | 0.2% | 3.2% | -5.4% |
| Small Blend Avg | 18.2% | 7.9% | 11.6% | 16.5% | -16.5% | 23.2% | 14.4% | 25.5% | -11.8% | 14.1% | 20.2% |
| Risk Measures | |
| Standard Deviation: | 15.7% |
| Total Risk Index: | 1.28 - Above Average |
| Category Risk Index: | 0.85 - Low |
| Category Risk Grade: | A (5% Rank) |
| Beta: | 0.86 |
| R-Squared: | 51% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Small-Cap Blend |
| Bond Investment Style: | na |
| Yield: | 0.1% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $23 Mil |
| Fund Total Assets: | $ 1 Mil |
| Share Class Type: | Inst |
| Portfolio Turnover: | 26% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 3.3 years | |||
| Average Tenure: 3.3 years | |||
| Managers (Year): McPherson Jack (2023), Adams David (2023) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 105 |
| % in Top 10 Holdings: | 19.1% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 1.7% |
Portfolio Allocation |
|
| Domestic Stock: | 96.7% |
| Foreign Stock: | 1.7% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 1.6% |
Purchase Information
| Fund Family: | Aristotle Funds |
| Phone Number: | 844-274-7885 |
| Website: | www.pacificlife.com |
| Status: | Open |
| Inception Date: | December 31, 2014 |
| Min. Initial Purchase: | $500,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.97% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.05% |
| Share Class: | Aristotle Small/Mid Cap Equity I |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
