The Focus Fund is classified as a non-diversified portfolio, which means it may hold fewer securities than a diversified fund because it is permitted to invest a greater percentage of its assets in a smaller number of securities. Holding fewer securities increases the risk that the value of the Fund could go down because of the poor performance of a single investment. The Fund and the stocks and markets in which it invests are subject to general risks that include volatility and instability, periods of cyclical change and decline, that investors may at times avoid investments in equity securities, and that the investment adviser may select investments for the Fund that do not perform as anticipated.
Past performance is no guarantee of future results. Recent performance may have been negative.
1 Lipper ranks are based on total return. Lipper Inc., A Reuters Company, is a nationally recognized organization that measures the performance of mutual funds within a universe of funds that have similar investment objectives. Returns are historical with capital gains and dividends reinvested.
2 The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. ©Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
a Restated to reflect current Distribution and Service
(12b-1) Fee rates. As of
June 1, 2018, the Board of Trustees approved a reduction in the 12b-1 Fee accrual rate for the
Fund to a rate of 0% per annum of the average daily net assets of the Fund, and
continuing until such time as the Board authorizes a different rate (not
exceeding 0.25% per annum) as authorized by the Rule 12b-1 Plan. The Fund has
adopted a Rule 12b-1 plan and effective December 1, 2017, the Board of Trustees
approved a Second Amended and Restated Distribution and Service Plan (the
“Plan”). The Plan authorizes payments by the Fund in connection with the
distribution and other fees and costs for the sale and distribution of its
shares and for services provided to shareholders at an annual rate, as
determined from time-to-time by the Board of Trustees, of up to 0.25% of the
Fund's average daily net assets. The Plan, as amended, clarifies that while the
maximum 12b-1 Fee rate remains limited to 0.25% per annum of the Fund's average
daily net assets, the Fund may be charged a lower rate from time to time upon
approval by the Board of Trustees. As these fees are paid out of the Fund's
assets on an ongoing basis, over time these fees will increase the cost of your
investment and reduce your investment returns.
b Restated to reflect
current Fund administration fee rates, which were contractually reduced
effective December 1, 2018, and an increase in transfer agent fees expected to
be incurred by the Fund in the current fiscal year. These
expenses include custodian, transfer agency and administration fees, certain
payments to financial services agents for non-distribution expenses, acquired
fund fees and expenses, and other customary mutual fund expenses. Acquired fund
fees and expenses are those expenses incurred indirectly by the Fund as a
result of acquiring investments in shares of one or more other investment
cThe Adviser has entered into a written expense
limitation and fee waiver agreement under which it has agreed to limit the
total expenses of the Focus Fund (excluding taxes, interest, acquired fund fees
and expenses, litigation, extraordinary expenses, brokerage and other
transaction expenses relating to the purchase or sale of portfolio investments)
to an annual rate of 1.45% of the Fund's average net assets until January 31, 2020. This expense
limitation and fee waiver agreement may be terminated by the Adviser at any
time after January 31, 2020 upon 15 days prior notice to the Fund and its administrator, provided that no
such modification will be made in a manner inconsistent with the terms of the
current prospectus. The Adviser may recoup from the Fund fees previously waived
or expenses previously reimbursed by the Adviser with respect to the Fund pursuant to this
agreement (or a previous expense limitation agreement) if: (1) such
recoupment by the Adviser does not cause the Fund, at the time of recoupment,
to exceed the lesser of (a) the expense limitation in effect at the time the
relevant amount was waived and/or reimbursed, or (b) the expense limitation in
effect at the time of the proposed recoupment, and (2) the recoupment is made
within three years after the fiscal year end date as of which the amount to be
waived or reimbursed was determined and the waiver or reimbursement occurred.
d Total Annual Fund Operating Expenses do not
correlate to the “ratio of expenses to average net assets” provided in the
Financial Highlights. The information in the Financial Highlights does not
include the restatement of the fees described above and reflected in the Distribution and
Service (12b-1) Fees and
Other Expenses line items above for the entire
fiscal year, nor does it include Acquired Fund Fees and Expenses, which are included in the Other Expenses line item above.