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Wasatch Heritage Growth Fund to be Liquidated

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Wasatch Heritage Growth Fund to be Liquidated

On February 10, 2015, the Board of Trustees of the Wasatch Funds Trust approved the liquidation of the Wasatch Heritage Growth Fund (WAHGX). The Fund is expected to cease operations at 4:00 p.m. Eastern Time on Thursday, April 30, 2015.

Assets remaining in the Heritage Growth Fund are to be liquidated after the close of business on or about April 30, 2015 (“Liquidation Date”) and the net proceeds distributed to any remaining shareholders. The Fund will not be liquidated prior to April 30, 2015. Non-IRA account shareholders with a direct account at Wasatch Funds will receive a check for the amount of the net asset value of their shares. Proceeds for non-direct shareholders will be sent to their trustee/custodian for their benefit, which the trustee/custodian will process according to its own policies and procedures. These cash distributions are taxable events for non-IRA accounts and shareholders should consult their tax advisors about potential tax consequences.

Frequently asked questions:

Can I sell my shares now?

Yes. Investors can sell their shares any time up until the close of business on the business day before the Liquidation Date (anticipated date April 30, 2015). Shareholders with a direct account at Wasatch Funds can redeem shares in the Fund by a) completing the Exchange/Redemption Form available by clicking here, b) placing a redemption request through your online account, or c) calling us at 800.551.1700. Other shareholders may contact their brokerage firm, bank, or financial advisor to sell or exchange shares any time prior to the Liquidation Date.

What happens if I do not sell my shares before the Liquidation Date?

Assets remaining in the Heritage Growth Fund are expected to be liquidated after the close of business on the Liquidation Date (anticipated date: April 30, 2015) and the net proceeds distributed to any remaining shareholders. Non-IRA account shareholders with a direct account with Wasatch Funds will receive a check for the amount of the net asset value of their shares. Proceeds for non-direct shareholders will be sent to their trustee/custodian for their benefit, which the trustee/custodian will process according to its own policies and procedures. For taxable shareholders, the automatic redemption of shares of the Fund on the Liquidation Date will generally be treated as any other redemption of shares, i.e., as a sale that may result in a gain or loss for federal income tax purposes. Instead of waiting until the Liquidation Date, a shareholder may voluntarily redeem his or her shares prior to the Liquidation Date to the extent that the shareholder wishes to realize any such gains or losses prior to the final liquidation date. These cash distributions are taxable events and shareholders should consult their tax advisors about potential tax consequences.

Can I exchange my shares for shares of another fund?

Yes.  Shareholders with a direct account with Wasatch Funds can exchange shares in the Wasatch Heritage Growth Fund for shares of any other Wasatch fund by a) completing the Exchange/Redemption Form available by clicking here, b) placing an exchange request through your online account, or c) calling Shareholder Services at 800.551.1700.  Please note that Wasatch needs to receive your exchange instructions in good order by 4:00 p.m. Eastern Time the business day prior to the Liquidation Date (anticipated date: April 30, 2015). Fund exchanges and redemptions for non-IRA accounts are taxable events.

What if I hold my shares in an IRA account?

Shareholders with an IRA account at Wasatch Funds who still own shares in the Heritage Growth Fund on the Liquidation Date (anticipated date: April 30, 2015) will have their shares exchanged into the Wasatch-Federated Money Market Account, where the money will remain until Wasatch receives further instructions from the account owner. Proceeds for non-direct shareholders, who hold an IRA account outside of Wasatch Funds, will be sent to their trustee/custodian for their benefit, which the trustee/custodian will process according to its own policies and procedures. If you are a direct shareholder with Wasatch Funds and wish to invest in another fund within the Wasatch family, please make this exchange as previously outlined prior to the Liquidation Date (anticipated date: April 30, 2015).    

Will the Fund continue to pursue its investment objective up until the date of liquidation?

No. The Fund no longer pursues its stated investment objectives. The Fund has sold the securities in its portfolio and intends to invest in cash or cash equivalents, including repurchase agreements or other comparable high quality money market instruments or money market funds until all shares have been redeemed. If this does not meet a shareholder's needs, a shareholder may wish to sell their shares prior to the Liquidation Date (anticipated date: April 30, 2015).

For questions, please contact Shareholder Services at 800.551.1700 between 7:00 a.m. and 7:00 p.m. Central Time, Monday through Friday.

 

Wasatch Funds and ALPS Distributors, Inc. do not offer tax advice.  Please consult a qualified tax professional for information regarding your tax situation.

An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus containing this and other information visit www.WasatchFunds.com or call 800.551.1700. Please read the prospectus carefully before investing.

Wasatch Funds are distributed by ALPS Distributors, Inc.