Form N-CSRS Investment Managers Seri For: Mar 31

 UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number 811-21719

 

INVESTMENT MANAGERS SERIES TRUST
(Exact name of registrant as specified in charter)

 

235 W. Galena Street

Milwaukee, WI 53212
(Address of principal executive offices) (Zip code)

 

Constance Dye Shannon

UMB Fund Services, Inc.

235 W. Galena Street

Milwaukee, WI 53212
(Name and address of agent for service)

 

(414) 299-2295

Registrant's telephone number, including area code

 

Date of fiscal year end: September 30

 

Date of reporting period: March 31, 2018

 

Item 1. Report to Stockholders.

 

The registrant’s semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “Investment Company Act”), is as follows:

 

Ironclad Managed Risk Fund

(Ticker Symbol: IRONX)

 

SEMI-ANNUAL REPORT

MARCH 31, 2018

 

Ironclad Managed Risk Fund

A series of Investment Managers Series Trust

 

Table of Contents
Schedule of Investments	1
Statement of Assets and Liabilities	3
Statement of Operations	4
Statements of Changes in Net Assets	5
Financial Highlights	6
Notes to Financial Statements	7
Supplemental Information	14
Expense Example	16

 

This report and the financial statements contained herein are provided for the general information of the shareholders of the Ironclad Managed Risk Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.

www.IroncladFunds.com

 

Ironclad Managed Risk Fund

SCHEDULE OF INVESTMENTS

As of March 31, 2018 (Unaudited)

 

Number of Contracts						Value
				Purchased Options Contracts  – 0.0%
				Call Options  – 0.0%
				S&P 500 INDEX
	260			Exercise Price: $2,750.00, Notional Amount: $71,500,000, Expiration Date: April 6, 2018		$	36,400
				Total Call Options (Cost $363,108)			36,400
				Total Purchased Options Contracts (Cost $363,108)			36,400

 

Principal Amount
				U.S. Treasury Notes  – 57.6%
$	50,000,000			United States Treasury Note, 0.75%, 10/31/20182			49,651,350
				Total U.S. Treasury Notes (Cost $49,927,766)			49,651,350

 

Number of Shares
				Short-Term Investments  – 43.3%
	37,318,511			Fidelity Investments Money Market Funds Government Portfolio – Institutional Class, 1.47%1			37,318,511
				Total Short-Term Investments (Cost $37,318,511)			37,318,511
				Total Investments – 100.9% (Cost $87,609,385)			87,006,261
				Liabilities in Excess of Other Assets – (0.9)%			(795,098	)
				Total Net Assets –100.0%		$	86,211,163

 

Number of Contracts
				WRITTEN Options Contracts  – (1.1)%
				Put Options  – (1.1)%
				S&P 500 INDEX
	(198	)		Exercise Price: $2,655.00, Notional Amount: $(52,569,000), Expiration Date: April 20, 2018		$	(993,960	)
				Total Put Options (Proceeds $619,586)			(993,960	)
				Total WRITTEN Options Contracts (Proceeds $619,586)		$	(993,960	)

 

1

The rate is the annualized seven-day yield at period end.

2

Security segregated as cover for open written option contracts.

 

See accompanying Notes to Financial Statements.    

 

Ironclad Managed Risk Fund

SUMMARY OF INVESTMENTS

As of March 31, 2018 (Unaudited)

 

Security Type	Percent of Total Net Assets
U.S. Treasury Securities	57.6%
Short-Term Investments	43.3%
Purchased Options Contracts	0.0%
Total Investments	100.9%
Liabilities in Excess of Other Assets	(0.9)%
Total Net Assets	100.0%

 

See accompanying Notes to Financial Statements.

 

Ironclad Managed Risk Fund

STATEMENT OF ASSETS AND LIABILITIES

As of March 31, 2018 (Unaudited)    

 

Assets:
Investments, at value (cost $87,246,277)		$	86,969,861
Purchased options contracts, at value (cost $363,108)			36,400
Cash deposited with broker for written options contracts			187,500
Receivables:
Fund shares sold			19,677
Interest			199,390
Prepaid expenses			13,758
Total assets			87,426,586
Liabilities:
Written options contracts, at value (proceeds $619,586)			993,960
Payables:
Fund shares redeemed			2,500
Investment securities purchased			118,690
Advisory fees			69,609
Administration fees			10,414
Auditing fees			8,552
Fund accounting fees			5,241
Custody fees			2,518
Trustees' Deferred compensation (Note 3)			959
Transfer agent fees and expenses			631
Trustees' fees and expenses			299
Chief compliance officer fees			294
Accrued other expenses			1,756
Total liabilities			1,215,423
Net Assets		$	86,211,163
Components of Net Assets:
Paid-in capital (par value of $0.01 per share with an unlimited number of shares authorized)		$	85,367,068
Accumulated net investment loss			(290,149	)
Accumulated net realized gain on purchased options contracts and written options contracts			2,111,742
Net unrealized depreciation on:
Investments			(276,416	)
Purchased options contracts			(326,708	)
Written options contracts			(374,374	)
Net Assets		$	86,211,163
Shares of beneficial interest issued and outstanding			8,360,134
Net asset value per share		$	10.31

 

See accompanying Notes to Financial Statements.

 

Ironclad Managed Risk Fund

STATEMENT OF OPERATIONS

For the Six Months Ended March 31, 2018 (Unaudited)  

 

Investment Income:
Interest		$	293,562
Total investment income			293,562
Expenses:
Advisory fees			513,665
Administration fees			47,358
Fund accounting fees			20,360
Transfer agent fees			14,648
Auditing fees			8,776
Registration fees			7,484
Chief compliance officer fees			7,320
Legal fees			6,494
Custody fees			4,728
Trustees' fees and expenses			3,496
Miscellaneous			2,611
Shareholder reporting fees			2,024
Total expenses			638,964
Advisory fees waived			(55,253	)
Net expenses			583,711
Net investment loss			(290,149	)
Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Purchased options contracts			4,926,127
Written options contracts			(2,814,278	)
Net realized gain			2,111,849
Net change in unrealized appreciation/depreciation on:
Investments			(76,372	)
Purchased options contracts			(326,708	)
Written options contracts			(374,374	)
Net change in unrealized appreciation/depreciation			(777,454	)
Net realized and unrealized gain			1,334,395
Net Increase in Net Assets from Operations		$	1,044,246

 

See accompanying Notes to Financial Statements.

 

Ironclad Managed Risk Fund

STATEMENTS OF CHANGES IN NET ASSETS

 

		For the Six Months Ended March 31, 2018 (Unaudited)				For the Year Ended September 30, 2017
Increase (Decrease) in Net Assets from:
Operations:
Net investment loss		$	(290,149	)		$	(1,330,057	)
Net realized gain on investments, purchased options contracts and
written options contracts			2,111,849				9,132,523
Net change in unrealized appreciation/depreciation on investments,
purchased options contracts and written options contracts			(777,454	)			193,769
Net increase in net assets resulting from operations			1,044,246				7,996,235
Distributions to Shareholders:
From net realized gains			(8,205,244	)			(3,075,094	)
Total distributions to shareholders			(8,205,244	)			(3,075,094	)
Capital Transactions:
Net proceeds from shares sold			8,594,173				21,533,361
Reinvestment of distributions			8,062,966				3,048,389
Cost of shares redeemed1			(48,695,192	)			(150,591,975	)
Net decrease in net assets from capital transactions			(32,038,053	)			(126,010,225	)
Total decrease in net assets			(39,199,051	)			(121,089,084	)
Net Assets:
Beginning of period			125,410,214				246,499,298
End of period		$	86,211,163			$	125,410,214
Accumulated net investment loss		$	(290,149	)		$	-
Capital Share Transactions:
Shares sold			824,746				1,952,350
Shares reinvested			789,713				281,476
Shares redeemed			(4,450,633	)			(13,752,267	)
Net decrease from capital share transactions			(2,836,174	)			(11,518,441	)

 

1

Net of redemption fee proceeds of $1,192 and $2,787, respectively.

 

See accompanying Notes to Financial Statements.

 

Ironclad Managed Risk Fund

FINANCIAL HIGHLIGHTS        

 

Per share operating performance.

For a capital share outstanding throughout each period.

 

		For the Six Months				For the Year Ended September 30,
		Ended March 31, 2018 (Unaudited)				2017				2016				2015				2014				2013
Net asset value, beginning of period		$	11.20			$	10.85			$	10.85			$	11.54			$	11.10			$	11.59
Income from Investment Operations:
Net investment loss1			(0.03	)			(0.09	)			(0.13	)			(0.14	)			(0.14	)			(0.13	)
Net realized and unrealized gain on investments			0.15				0.59				0.36				0.23				1.17				0.55
Total from investment operations			0.12				0.50				0.23				0.09				1.03				0.42
Less Distributions:
From net realized gain			(1.01	)			(0.15	)			(0.23	)			(0.78	)			(0.59	)			(0.91	)
Total distributions			(1.01	)			(0.15	)			(0.23	)			(0.78	)			(0.59	)			(0.91	)
Redemption fee proceeds1			-	2			-	2			-	2			-	2			-	2			-	2
Net asset value, end of period		$	10.31			$	11.20			$	10.85			$	10.85			$	11.54			$	11.10
Total return3			1.18	%4			4.69	%			2.13	%			0.89	%			9.62	%			3.95	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	86,211			$	125,410			$	246,499			$	316,147			$	335,265			$	307,107
Ratio of expenses to average net assets:
Before fees waived			1.37	%5			1.34	%			1.29	%			1.28	%			1.26	%			1.25	%
After fees waived			1.25	%5			1.25	%			1.25	%			1.25	%			1.25	%			1.25	%
Ratio of net investment loss to average net assets:
Before fees waived			(0.74	)%5			(0.89	)%			(1.22	)%			(1.27	)%			(1.25	)%			(1.22	)%
After fees waived			(0.62	)%5			(0.80	)%			(1.18	)%			(1.24	)%			(1.24	)%			(1.22	)%
Portfolio turnover rate			-	%4			47	%			-	%			-	%			-	%			-	%

 

1

Based on average daily shares outstanding for the period.

2

Amount represents less than $0.01 per share.

3

Total returns would have been lower had expenses not been waived or absorbed by the Advisor. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

4

Not annualized.

5

Annualized.

 

See accompanying Notes to Financial Statements.

 

Ironclad Managed Risk Fund

NOTES TO FINANCIAL STATEMENTS

March 31, 2018 (Unaudited)

 

Note 1 – Organization

Ironclad Managed Risk Fund (the ‘‘Fund’’) was organized as a diversified series of Investment Managers Series Trust, a Delaware statutory trust (the “Trust”) which is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund’s primary investment objective is to achieve current income and gains. The Fund commenced investment operations on October 14, 2010.

 

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 “Financial Services—Investment Companies”.

 

Note 2 – Accounting Policies

The following is a summary of the significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates.

 

(a) Valuation of Investments

The Fund values equity securities at the last reported sale price on the principal exchange or in the principal over the counter (“OTC”) market in which such securities are traded, as of the close of regular trading on the NYSE on the day the securities are being valued or, if the last-quoted sales price is not readily available, the securities will be valued at the last bid or the mean between the last available bid and ask price. Securities traded on the NASDAQ are valued at the NASDAQ Official Closing Price (“NOCP”). Investments in open-end investment companies are valued at the daily closing net asset value of the respective investment company. Debt securities are valued by utilizing a price supplied by independent pricing service providers. The independent pricing service providers may use various valuation methodologies including matrix pricing and other analytical pricing models as well as market transactions and dealer quotations. These models generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings and general market conditions. If a price is not readily available for a portfolio security, the security will be valued at fair value (the amount which the Fund might reasonably expect to receive for the security upon its current sale) as determined in good faith by the Fund’s advisor, subject to review and approval by the Valuation Committee, pursuant to procedures adopted by the Board of Trustees. The actions of the Valuation Committee are subsequently reviewed by the Board at its next regularly scheduled board meeting. The Valuation Committee meets as needed. The Valuation Committee is comprised of all the Trustees, but action may be taken by any one of the Trustees.

 

(b) Options

The Fund utilizes options in an attempt to generate gains from option premiums or to reduce overall portfolio risk. When the Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. Premiums received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If a call option is exercised, the premium received is added to the proceeds from the sale in determining whether the Fund has realized a gain or a loss on investment transactions. If a put option is exercised, the premium received is subtracted from the proceeds of the sale in determining whether the Fund has realized a gain or a loss on investment transactions. The Fund, as a writer of an option, may have no control over whether the underlying securities may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option.

 

Ironclad Managed Risk Fund

NOTES TO FINANCIAL STATEMENTS – Continued

March 31, 2018 (Unaudited)

 

Under normal circumstances, the Fund’s primary strategy consists of purchasing and selling put and call options on equity indexes and exchange traded funds (“ETFs”). The sale of put options generates income for the Fund, but exposes it to the risk of declines in the value of the underlying assets. The Fund’s investment advisor seeks to reduce the overall volatility of returns of the Fund by managing a portfolio of options. For defensive purposes, or if the options expire, the Fund may invest up to 100% of its assets in cash, cash equivalents or debt instruments issued by entities that carry an investment-grade rating by a national ratings agency. When the Fund takes a defensive position, the Fund may not achieve its investment objective.

 

(c) Investment Transactions, Investment Income and Expenses

Investment transactions are accounted for on the trade date. Realized gains and losses on investments are determined on the identified cost basis. Dividend income is recorded net of applicable withholding taxes on the ex-dividend date and interest income is recorded on an accrual basis. Withholding taxes on foreign dividends, if applicable, are paid (a portion of which may be reclaimable) or provided for in accordance with the applicable country's tax rules and rates and are disclosed in the Statement of Operations. Withholding tax reclaims are filed in certain countries to recover a portion of the amounts previously withheld. The Fund records a reclaim receivable based on a number of factors, including a jurisdiction's legal obligation to pay reclaims as well as payment history and market convention. Discounts or premiums on debt securities are accreted or amortized to interest income over the lives of the respective securities using the effective interest method. Expenses incurred by the Trust with respect to more than one fund are allocated in proportion to the net assets of each fund except where allocation of direct expenses to each Fund or an alternative allocation method can be more appropriately made.

 

(d) Federal Income Taxes

The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its net investment income and any net realized gains to its shareholders. Therefore, no provision is made for federal income or excise taxes. Due to the timing of dividend distributions and the differences in accounting for income and realized gains and losses for financial statement and federal income tax purposes, the fiscal year in which amounts are distributed may differ from the year in which the income and realized gains and losses are recorded by the Fund.

 

Accounting for Uncertainty in Income Taxes (the “Income Tax Statement”) requires an evaluation of tax positions taken (or expected to be taken) in the course of preparing a Fund’s tax returns to determine whether these positions meet a “more-likely-than-not” standard that, based on the technical merits, have a more than fifty percent likelihood of being sustained by a taxing authority upon examination. A tax position that meets the “more-likely-than-not” recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations.

 

The Income Tax Statement requires management of the Fund to analyze tax positions taken in the prior three open tax years, if any, and tax positions expected to be taken in the Fund’s current tax year, as defined by IRS stature of limitations for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of and during the open years ended September 30, 2014-2017, and as of and during the six months ended March 31, 2018, the Fund did not have a liability for any unrecognized tax benefits. The Fund has no examination in progress and is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

 

Ironclad Managed Risk Fund

NOTES TO FINANCIAL STATEMENTS – Continued

March 31, 2018 (Unaudited)

 

(e) Distributions to Shareholders

The Fund will make distributions of net investment income and net capital gains, if any, at least annually. Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.

 

The character of distributions made during the year from net investment loss or net realized gain may differ from the character for federal income tax purposes due to differences in the recognition of income expense and gain items for financial statement and tax purposes. Where appropriate, reclassifications between capital accounts are made for such differences that are permanent in nature.

 

Note 3 – Investment Advisory and Other Agreements

The Trust, on behalf of the Fund, entered into an Investment Advisory Agreement (the “Agreement”) with Ironclad Investments LLC (the “Advisor”). Under the terms of the Agreement, the Advisor is entitled to receive from the Fund an annual management fee that decreases as assets increase, as follows: 1.10% on the first $1 billion, 1.05% on the next $2 billion, and 1.00% on assets in excess of $3 billion, calculated daily and payable monthly, of the Fund’s average daily net assets. The Advisor has contractually agreed to waive its fee and/or pay for operating expenses to ensure that total annual operating expenses (excluding any taxes, leverage interest, brokerage commissions, acquired fund fees and expenses (as determined in accordance with Form N-1A), expenses incurred in connection with any merger or reorganization, or extraordinary expenses such as litigation expenses) do not exceed 1.25% of the average daily net assets of the Fund. This agreement is in effect as long as the Investment Advisory Agreement for the Fund is in effect, and it may be terminated before that date only by the Trust’s Board of Trustees.

 

For the six months ended March 31, 2018, the Advisor waived its advisory fees totaling $55,523. The Advisor may recover from the Fund fees and/or expenses previously waived and/or absorbed, if the Fund’s expense ratio, including the recovered expenses, falls below the expense limit at which they were waived. The Fund’s advisor is permitted to seek reimbursement from the Fund, subject to certain limitations, of fees waived or payments made to the Fund for a period ending three full fiscal years after the date of the waiver or payment. This reimbursement may be requested from the Fund if the reimbursement will not cause the Fund’s annual expense ratio to exceed the lesser of (a) the expense limitation amount in effect at the time such fees were waived or payments made, or (b) the expense limitation amount in effect at the time of the reimbursement. At March 31, 2018, the amount of these potentially recoverable expenses was $432,088.

 

The Advisor may recapture all or a portion of this amount no later than September 30, of the years stated below:

 

2018		$	111,991
2019			122,913
2020			141,661
2021			55,523
Total:		$	432,088

 

IMST Distributors, LLC serves as the Fund’s distributor; UMB Fund Services, Inc. (“UMBFS”), serves as the Fund’s fund accountant, transfer agent and co-administrator; and Mutual Fund Administration, LLC (“MFAC”) serves as the Fund’s other co-administrator. UMB Bank, n.a., an affiliate of UMBFS, serves as the Fund’s custodian.

 

Certain trustees and officers of the Trust are employees of UMBFS or MFAC. The Fund does not compensate trustees and officers affiliated with the Fund’s co-administrators. For the six months ended March 31, 2018, the Fund’s allocated fees incurred to Trustees who are not affiliated with the Fund’s co-administrators are reported on the Statement of Operations.

 

Ironclad Managed Risk Fund

NOTES TO FINANCIAL STATEMENTS – Continued

March 31, 2018 (Unaudited)

 

The Fund’s Board of Trustees has adopted a Deferred Compensation Plan (the “Plan”) for the Independent Trustees that enables Trustees to elect to receive payment in cash or the option to select various Fund(s) in the Trust in which their deferred accounts shall be deemed to be invested. If a trustee elects to defer payment, the Plan provides for the creation of a deferred payment account. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Plan. The Trustees Deferred compensation liability under the Plan constitutes a general unsecured obligation of each Fund and is disclosed in the Statement of Assets and Liabilities. Contributions made under the plan and the change in unrealized appreciation/depreciation and income are included in the Trustees' fees and expenses in the Statement of Operations.

 

Dziura Compliance Consulting, LLC provides Chief Compliance Officer (“CCO”) services to the Trust. The Fund’s allocated fees incurred for CCO services for the six months ended March 31, 2018, are reported on the Statement of Operations.

 

Note 4 – Federal Income Taxes

At March 31, 2018, gross unrealized appreciation and depreciation of investments owned by the Fund, based on cost for federal income tax purposes were as follows:

 

Cost of investments		$	86,989,799
Gross unrealized appreciation		$	704,813
Gross unrealized depreciation			(1,682,311	)
Net unrealized depreciation		$	(977,498	)

 

As of September 30, 2017, the components of accumulated earnings on a tax basis were as follows:

 

Undistributed ordinary income		$	2,422,388
Undistributed long-term capital gains			5,782,749
Tax accumulated earnings			8,205,137
Accumulated capital and other losses			-
Net unrealized depreciation			(200,044	)
Total accumulated earnings		$	8,005,093

 

The tax character of the distributions paid during the fiscal year ended September 30, 2017 and September 30, 2016 were as follows:

 

Distributions paid from:		2017				2016
Ordinary Income		$	-			$	277,382
Net long-term capital gains			3,075,094				5,968,191
Total distributions paid		$	3,075,094			$	6,245,573

 

Ironclad Managed Risk Fund

NOTES TO FINANCIAL STATEMENTS – Continued

March 31, 2018 (Unaudited)

 

Note 5 – Redemption Fee

The Fund may impose a redemption fee of 2.00% of the total redemption amount on all shares redeemed within 30 days of purchase. For the six months ended March 31, 2018 and the year ended September 30, 2017, the Fund received $1,192 and $2,787, respectively.

 

Note 6 – Investment Transactions

The Fund’s primary strategy consists of purchasing and selling put and call options on equity indexes and exchange traded funds (“ETFs”). The Fund did not have any purchases or sales of investments with maturities of one year or more during the six months ended March 31, 2018.

 

Note 7 – Indemnifications

In the normal course of business, the Fund enters into contracts containing a variety of representations which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund expects the risk of loss to be remote.

 

Note 8 – Fair Value Measurements and Disclosure

Fair Value Measurements and Disclosures defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosure about fair value measurements. It also provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or a liability, when a transaction is not orderly, and how this information must be incorporated into a fair value measurement.

 

Under Fair Value Measurements and Disclosures, various inputs are used in determining the value of the Fund’s investments. These inputs are summarized into three broad Levels as described below:

 

•

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.

 

•

Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

 

•

Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

 

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

 

The inputs used to measure fair value may fall into different Levels of the fair value hierarchy. In such cases, for disclosure purposes, the Level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest Level input significant to the fair value measurement in its entirety.

 

Ironclad Managed Risk Fund

NOTES TO FINANCIAL STATEMENTS – Continued

March 31, 2018 (Unaudited)

 

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the inputs used, as of March 31, 2018, in valuing the Fund’s assets carried at fair value:

 

		Level 1				Level 2				Level 3*				Total
Investments
Purchased Options Contracts		$	36,400			$	-			$	-			$	36,400
U.S. Treasury Note			-				49,651,350				-				49,651,350
Short-Term Investments
Money Market			37,318,511				-				-				37,318,511
Total Investments		$	37,354,911			$	49,651,350			$	-			$	87,006,261
Liabilities
Written Options Contracts		$	993,960			$	-			$	-			$	993,960
Total Liabilities		$	993,960			$	-			$	-			$	993,960

 

*

The Fund did not hold any Level 3 securities at period end.

 

Transfers between Levels 1, 2, or 3 are recognized at the end of the reporting period. There were no transfers between levels at period end.

 

Note 9 – Derivatives and Hedging Disclosures

Derivatives and Hedging requires enhanced disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effects on the Fund’s financial position, performance and cash flows. The Fund invested in options during the six months ended March 31, 2018.

 

The effects of these derivative instruments on the Fund's financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations are presented in the tables below. The fair values of derivative instruments as of March 31, 2018 by risk category are as follows:

 

	Asset Derivatives					Liability Derivatives
Derivatives not designated as hedging instruments	Statement of Asset and Liabilities Location		Value			Statement of Asset and Liabilities Location		Value
Equity contracts	Purchased options contracts, at value		$	36,400		Written options contracts, at value		$	993,960
Total			$	36,400				$	993,960

 

The effects of derivative instruments on the Statement of Operations for the six months ended March 31, 2018 are as follows:

 

Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
Derivatives not designated as hedging instruments		Purchased Options Contracts				Written Options Contracts
Equity contracts		$	4,926,127			$	(2,814,278	)
Total		$	4,926,127			$	(2,814,278	)

 

Ironclad Managed Risk Fund

NOTES TO FINANCIAL STATEMENTS – Continued

March 31, 2018 (Unaudited)

 

Change in Unrealized Appreciation/Depreciation on Derivatives Recognized in Income
Derivatives not designated as hedging instruments		Purchased Options Contracts				Written Options Contracts
Equity contracts		$	(326,708	)		$	(374,374	)
Total		$	(326,708	)		$	(374,374	)

 

The quarterly average volumes of derivative instruments as of March 31, 2018 are as follows:

 

Derivatives not designated as hedging instruments
Equity contracts	Purchased options contracts	Number of contracts	240
	Written options contracts	Number of contracts	(219)

 

Note 10 – Events Subsequent to the Fiscal Period End

The Fund has adopted financial reporting rules regarding subsequent events which require an entity to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet. Management has evaluated the Fund’s related events and transactions that occurred through the date of issuance of the Fund’s financial statements.

 

There were no events or transactions that occurred during this period that materially impacted the amounts or disclosures in the Fund’s financial statements.

 

Ironclad Managed Risk Fund

SUPPLEMENTAL INFORMATION (Unaudited)

 

Board Consideration of Investment Advisory Agreement

At an in-person meeting held on March 14-15, 2018, the Board of Trustees (the “Board”) of Investment Managers Series Trust (the “Trust”), including the trustees who are not “interested persons” of the Trust (the “Independent Trustees”) as defined in the Investment Company Act of 1940, as amended (the “1940 Act”), reviewed and unanimously approved the renewal of the Investment Advisory Agreement (the “Advisory Agreement”) between the Trust and Ironclad Investments, LLC (the “Investment Advisor”) with respect to the Ironclad Managed Risk Fund series of the Trust (the “Fund”) for an additional one-year term from when it otherwise would expire. In approving renewal of the Advisory Agreement, the Board, including the Independent Trustees, determined that such renewal was in the best interests of the Fund and its shareholders.

 

Background

In advance of the meeting, the Board received information about the Fund and the Advisory Agreement from the Investment Advisor and from Mutual Fund Administration, LLC and UMB Fund Services, Inc., the Trust’s co-administrators, certain portions of which are discussed below. The materials, among other things, included information about the Investment Advisor’s organization and financial condition; information regarding the background, experience, and compensation structure of relevant personnel providing services to the Fund; information about the Investment Advisor’s compliance policies and procedures, disaster recovery and contingency planning, and policies with respect to portfolio execution and trading; information regarding the profitability of the Investment Advisor’s overall relationship with the Fund; reports comparing the performance of the Fund with returns of the CBOE S&P 500 PutWrite Index, the S&P 500 Index, and a group of comparable funds (the “Peer Group”) selected by Broadridge Financial Solutions, Inc. (“Broadridge”) from its Option Writing fund universe (the “Fund Universe”) for the one-, three-, and five-year periods ended December 31, 2017; and reports comparing the investment advisory fee and total expenses of the Fund with those of its Peer Group and Fund Universe. The Board also received a memorandum from legal counsel to the Trust discussing the legal standards under the 1940 Act and other applicable law for their consideration of the proposed renewal of the Advisory Agreement. In addition, the Board considered information reviewed by the Board during the year at other Board and Board committee meetings. No representatives of the Investment Advisor were present during the Board’s consideration of the Advisory Agreement, and the Independent Trustees were represented by their legal counsel with respect to the matters considered.

 

In renewing the Advisory Agreement, the Board and the Independent Trustees considered a variety of factors, including those discussed below. In their deliberations, the Board and the Independent Trustees did not identify any particular factor that was controlling, and each Trustee may have attributed different weights to the various factors.

 

Nature, Extent and Quality of Services

With respect to the performance results of the Fund, the meeting materials indicated that the Fund’s total return for the one-year period was below the Peer Group median return, the Fund Universe median return, the CBOE S&P 500 PutWrite Index return, and the S&P 500 Index return by 2.27%, 5.33%, 7.52%, and 18.51%, respectively. The Fund’s annualized total return for the three-year period was below the Peer Group and Fund Universe median returns, the CBOE S&P 500 PutWrite Index return, and the S&P 500 Index return by 0.75%, 2.47%, 6.12%, and 9.22%, respectively. The Fund’s annualized total return for the five-year period was below the Peer Group median return by 0.77%, the Fund Universe median return by 2.46%, the CBOE S&P 500 PutWrite Index return by 4.33%, and the S&P 500 Index return by 11.42%. The Trustees noted, however, that in 2011, 2012, 2014, and 2015, the Fund’s return had exceeded the Fund Universe median return. The Trustees also noted Broadridge’s observation that the Fund has maintained a superior risk profile, as measured by its standard deviation, compared to the Fund Universe. The Trustees also considered the Investment Advisor’s explanations that as record levels of central bank asset purchases suppressed market volatility over the prior year, the Fund had limited opportunities to monetize volatility; that the Fund’s recent underperformance is a function of the record low volatility in stocks; and that the Fund underperformed the CBOE S&P 500 PutWrite Index over the one-, three-, and five-year periods because the Index focuses on a different term for its positions, is less responsive than the Fund and has disproportionately benefitted from a collapse in the volatility cycle. Finally, the Trustees noted the Investment Advisor’s observation that the Fund’s opportunities to monetize volatility had increased in 2018, which has allowed the Fund to outperform the Fund Universe median for the current year-to-date period.

 

Ironclad Managed Risk Fund

SUPPLEMENTAL INFORMATION (Unaudited) - Continued

 

The Board also considered the overall quality of services provided by the Investment Advisor to the Fund. In doing so, the Board considered the Investment Advisor’s specific responsibilities in day-to-day management and oversight of the Fund, as well as the qualifications, experience, and responsibilities of the personnel involved in the activities of the Fund. The Board also considered the overall quality of the organization and operations of the Investment Advisor, as well as its compliance structure. The Board and the Independent Trustees concluded that based on the various factors they had reviewed, the nature, overall quality, and extent of the management and oversight services provided by the Investment Advisor to the Fund were satisfactory.

 

Advisory Fee and Expense Ratio

With respect to the advisory fee paid by the Fund, the meeting materials indicated that the annual investment advisory fee (gross of fee waivers) was higher than the Peer Group and Fund Universe medians by 0.10% and 0.25%, respectively. The Trustees noted, however, that the Investment Advisor had waived a portion of its advisory fee with respect to the Fund. The Trustees also noted that the Investment Advisor has no advisory clients other than the Fund and therefore they could not compare the Fund’s advisory fee to the fees charged by the Investment Advisor to other clients. The annual total expenses paid by the Fund (net of fee waivers) for the Fund’s most recent fiscal year were slightly higher than the Peer Group median by 0.01%, and higher than the Fund Universe median by 0.11%. The Trustees noted that the Fund’s total expenses were not within the highest quartile of the Peer Group.

 

The Board and the Independent Trustees concluded that based on the factors they had reviewed, the compensation payable to the Investment Advisor under the Advisory Agreement was fair and reasonable in light of the nature and quality of the services the Investment Advisor provides to the Fund.

 

Profitability and Economies of Scale

The Board next considered information prepared by the Investment Advisor relating to its costs and profits with respect to the Fund for the year ended December 31, 2017, noting that the Investment Advisor had waived a portion of its advisory fee. The Board determined that the Investment Advisor’s profit with respect to the Fund was reasonable.

 

The Board also considered the benefits received by the Investment Advisor as a result of the Investment Advisor’s relationship with the Fund, other than the receipt of its investment advisory fee, including the beneficial effects from the review by the Trust’s Chief Compliance Officer of the Investment Advisor’s compliance program, and the intangible benefits of the Investment Advisor’s association with the Fund generally and any favorable publicity arising in connection with the Fund’s performance. The Trustees also noted that the Fund’s advisory fee schedule included fee breakpoints at the $1 billion and $3 billion asset levels, which were designed to pass any benefits of economies of scale to the Fund’s shareholders.

 

Conclusion

Based on these and other factors, the Board and the Independent Trustees concluded that renewal of the Advisory Agreement was in the best interests of the Fund and its shareholders and, accordingly, approved the renewal of the Advisory Agreement.

 

Ironclad Managed Risk Fund

EXPENSE EXAMPLE

For the Six Months Ended March 31, 2018 (Unaudited)

 

Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and redemption fees and (2) ongoing costs, including management fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

 

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2017 to March 31, 2018.

 

Actual Expenses

The information in the row titled “Actual Performance” of the table below provides actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate row under the column entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

 

Hypothetical Example for Comparison Purposes

The information in the row titled “Hypothetical (5% annual return before expenses)” of the table below provides hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

 

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as redemption fees. Therefore, the information in the row titled “Hypothetical (5% annual return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

	Beginning Account Value	Ending Account Value	Expenses Paid During Period*
	10/1/17	3/31/18	10/1/17 – 3/31/18
Actual Performance	$ 1,000.00	$ 1,011.80	$ 6.27
Hypothetical (5% annual return before expenses)	1,000.00	1,018.70	6.29

 

*

Expenses are equal to the Fund’s annualized expense ratio of 1.25% multiplied by the average account value over the period, multiplied by 182/365 (to reflect the six month period). The expense ratios reflect an expense waiver. Assumes all dividends and distributions were reinvested.

 

Ironclad Managed Risk Fund

A series of Investment Managers Series Trust

 

Investment Advisor

Ironclad Investments LLC

1420 Celebration Boulevard, Suite 200

Celebration, Florida 34747

 

Custodian

UMB Bank, n.a.

928 Grand Boulevard, 5^th Floor

Kansas City, Missouri 64106

 

Fund Co-Administrator

Mutual Fund Administration, LLC

2220 E. Route 66, Suite 226

Glendora, California 91740

 

Fund Co-Administrator, Transfer Agent and Fund Accountant

UMB Fund Services, Inc.

235 W. Galena Street

Milwaukee, Wisconsin 53212

 

Distributor

IMST Distributors, LLC

Three Canal Plaza, Suite 100

Portland, Maine 04101

www.foreside.com

 

FUND INFORMATION

 

	TICKER	CUSIP
Ironclad Managed Risk Fund	IRONX	461418 642

 

Privacy Principles of the Ironclad Managed Risk Fund for Shareholders

The Fund is committed to maintaining the privacy of its shareholders and to safeguarding its non-public personal information. The following information is provided to help you understand what personal information the Fund collects, how we protect that information and why, in certain cases, we may share information with select other parties.

 

Generally, the Fund does not receive any non-public personal information relating to its shareholders, although certain non-public personal information of its shareholders may become available to the Fund. The Fund does not disclose any non-public personal information about its shareholders or former shareholders to anyone, except as permitted by law or as is necessary in order to service shareholder accounts (for example, to a transfer agent or third party administrator).

  

 

This report is sent to shareholders of the Ironclad Managed Risk Fund for their information. It is not a Prospectus, circular or representation intended for use in the purchase or sale of shares of the Fund or of any securities mentioned in this report.

 

Proxy Voting Policies and Procedures

A description of the Fund’s proxy voting policies and procedures related to portfolio securities is available without charge, upon request, by calling the Fund at (888) 979-IRON (4766) or on the U.S. Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

 

Proxy Voting Record

Information regarding how the Fund voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request by calling (888) 979-IRON (4766) or by accessing the Fund’s Form N-PX on the SEC’s website at www.sec.gov.

 

Form N-Q Disclosure

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is available on the SEC website at www.sec.gov or by calling the Fund at (888) 979-IRON (4766). The Fund’s Form N-Q may also be viewed 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 (800) SEC-0330.

 

Householding

The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (888) 979-IRON (4766).

 

Ironclad Managed Risk Fund

P.O. Box 2175

Milwaukee, WI 53201

Toll Free: (888) 979-IRON (4766)

 

Item 2. Code of Ethics.

 

Not applicable for semi-annual reports.

 

Item 3. Audit Committee Financial Expert.

 

Not applicable for semi-annual reports.

 

Item 4. Principal Accountant Fees and Services.

 

Not applicable for semi-annual reports.

 

Item 5. Audit Committee of Listed Registrants.

 

Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).

 

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 investment companies.

 

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

 

Not applicable to open-end investment companies.

 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

 

Not applicable to open-end investment companies.

 

Item 10. Submission of Matters to a Vote of Security Holders.

 

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees.

 

Item 11. Controls and Procedures.

 

(a)

The Registrant’s President and Treasurer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.

 

(b)

There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of 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 investment companies.

 

Item 13. Exhibits.

 

(a)

(1) Any code of ethics or amendment thereto, that is subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Not Applicable

 

(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.

 

(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.

 

(b)

Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith.

 

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)	Investment Managers Series Trust
By (Signature and Title)	/s/ Maureen Quill
	Maureen Quill, President
Date	6/08/18

 

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/ Maureen Quill
	Maureen Quill, President
Date	6/08/18
By (Signature and Title)	/s/ Rita Dam
	Rita Dam, Treasurer
Date	6/08/18

EX.99.CERT

 

CERTIFICATIONS

 

I, Maureen Quill, certify that:

 

1.

I have reviewed this report on Form N-CSR of Ironclad Managed Risk Fund, a series of Investment Managers Series Trust (the “Trust”);

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of 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; and

 

5.

The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Date:	6/08/18		/s/ Maureen Quill
			Maureen Quill
			President

 

CERTIFICATIONS

 

I, Rita Dam, certify that:

 

1.

I have reviewed this report on Form N-CSR of Ironclad Managed Risk Fund, a series of Investment Managers Series Trust (the “Trust”);

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of 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; and

 

5.

The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Date:	6/08/18		/s/ Rita Dam
			Rita Dam
			Treasurer

EX.99.906CERT

 

Certification of CEO and CFO Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

 

In connection with the report on Form N-CSR of Ironclad Managed Risk Fund, a series of Investment Managers Series Trust (the “Trust”), for the six months ended March 31, 2018 (the “Report”), Maureen Quill, as President and Chief Executive Officer of the Trust, and Rita Dam, as Treasurer and Chief Financial Officer of the Trust, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his or her knowledge:

 

(1)

the Report fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities Exchange Act of 1934; and

 

(2)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date	6/08/18
/s/ Maureen Quill
Maureen Quill
President and Chief Executive Officer
/s/ Rita Dam
Rita Dam
Treasurer and Chief Financial Officer

 

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