Jan. 23, 2025 |
| 13D Activist Fund
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| FUND
SUMMARY
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| Investment
Objective:
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The Funds investment objective is capital appreciation.
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| Fees
and Expenses of the Fund:
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This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund.
You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables
and examples below. You may qualify for sales charge discounts on purchases of Class A shares if you and your family invest, or agree
to invest in the future, at least $50,000 in the Fund. More information about these and other discounts is available from your financial
intermediary and in How to Purchase Shares on page 10 of the Funds Prospectus.
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| Shareholder Fees (fees paid directly from your investment)
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| Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
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| Example:
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This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.
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| The
Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those
periods. The Example also assumes that your investment has a 5% return each year and that the Funds operating expenses remain
the same. Although your actual costs may be higher or lower, based upon these assumptions your costs would be:
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Expense Example - 13D Activist Fund - USD ($)
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Expense Example, with Redemption, 1 Year |
Expense Example, with Redemption, 3 Years |
Expense Example, with Redemption, 5 Years |
Expense Example, with Redemption, 10 Years |
| 13D Activist Fund Class A |
744
|
1,097
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1,474
|
2,529
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| 13D Activist Fund Class C |
254
|
782
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1,335
|
2,846
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| 13D Activist Fund Class I |
154
|
477
|
824
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1,802
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| Portfolio
Turnover:
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The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over
its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Funds
performance. During the most recent fiscal year, the Funds portfolio turnover rate was 104% of the average value of its portfolio.
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| Principal
Investment Strategies:
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13D Management LLC (the Adviser), seeks to achieve the Funds investment objective by
investing primarily in common stocks of U.S. companies of any market capitalization that are the target of shareholder activism. The
Adviser defines an activist as an investor who holds or takes a long position in a companys shares and either (A) has a history
of activist investing and/or (B) has publicly disclosed a catalyst for change such as seeking board seats, improving operations and/or
corporate governance practices, spinning-off an operating division or selling a significant amount of company assets (such an investor
being referred to herein as an activist). The Adviser reviews all material activist situations and makes investment decisions
based on its knowledge of the activist investor involved, the industry, the shareholder base, the activists average cost, its
strategy and the Advisers determination of the chance of success and potential impact on share price. The Adviser only selects
situations where the shareholder will be improving or participating in corporate governance or otherwise influencing management. Accordingly,
approximately 75% of the Funds portfolio positions has historically had a shareholder representative on the board of directors
who advocates for best-in-class corporate governance practices and a shareholder focused mentality. The Adviser does not only select
companies with good corporate governance, because it believes there is more of a social and economic benefit in identifying poor corporate
governance companies and supporting a transition to good corporate governance. Implementing best corporate governance practices can range
from completely changing corporate culture to replacing entrenched, conflicted and self-dealing management teams. It is the Advisers
experience that it is the governance element that also leads to environmental and social improvements in the business practices of the
Funds portfolio companies. Every portfolio position contains an engaged investor and most contain a shareholder representative
on the board of directors.
The
Adviser uses the following selection guidelines to create and manage the Funds investment portfolio:
| Selecting
Investment Universe: |
|
Identify
companies where an activist investor is involved. |
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| Weighting
Investments: |
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Different
weights will be given to each investment depending on the (i) type of activist intent stated, (ii) the activist involved, (iii) the
industry involved, and (iv) the Advisers determination as to the chance of activist success. |
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| Exiting
Investments: |
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Exiting
an investment is an integral part of the investment strategy. The Adviser will exit a position when the activist indicates that it
is exiting the investment, the activist becomes a passive investor, or in the Advisers opinion, the activist catalyst has
changed or weakened. |
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While
these guidelines will define the trading horizon, this horizon may change based on other events. For example, an early exit may be warranted
after the activist has attained most of its goals, there has been a sufficient return on the investment, and there are other activist
opportunities that the Adviser believes offer a better return. The Fund is non-diversified, which means that it may invest in fewer issuers
than a diversified fund. The Adviser may engage in frequent buying and selling of securities in managing the Funds portfolio.
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| Principal
Investment Risks:
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As with all mutual funds, there is the risk that you could lose money through your investment in the Fund. Many
factors affect the Funds net asset value and performance.
| ● | Market and
Geopolitical Risk: The increasing interconnectivity between global economies and financial markets increases the likelihood that
events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial
market. Securities in the Funds portfolio may underperform due to inflation (or expectations for inflation), interest rates,
global demand for particular products or resources, natural disasters, pandemics, epidemics, terrorism, international conflicts,
regulatory events and governmental or quasi-governmental actions. The occurrence of global events similar to those in recent years,
such as worldwide pandemic, terrorist attacks, natural disasters, social and political discord or debt crises and downgrades, among
others, may result in market volatility and may have long term effects on both the U.S. and global financial markets. It is
difficult to predict when similar events affecting the U.S. or global financial markets may occur, the effects that such events may
have and the duration of those effects. Any such event(s) could have a significant adverse impact on the value and risk profile of
the Fund. For example, COVID-19 global pandemic had negative impacts, and in many cases severe negative impacts, on markets
worldwide. It is not known how long the impacts of the significant events described above, will last, but there
could be a prolonged period of global economic slowdown, which may impact your Fund investment. Therefore, the Fund could lose money
over short periods due to short-term market movements and over longer periods during more prolonged market downturns. During a
general market downturn, multiple asset classes may be negatively affected. Changes in market conditions and interest rates can have
the same impact on all types of securities and instruments. In times of severe market disruptions, you could lose your entire
investment. The Advisers specialized research helps to mitigate this risk. In the event, activists have a period of
significant underperformance, the Funds may also experience a period of underperformance. The Adviser endeavors to address this risk
through diversification across several activists, activist styles, and strategies. |
| ● | Equity
Securities Risk: The prices of equity and preferred securities fluctuate based on changes in a companys financial condition
and overall market and economic conditions. The value of equity securities purchased by the Fund could decline if the financial condition
of the companies the Fund invests in decline or if overall market and economic conditions deteriorate. |
| ● | Non-Diversification
Risk: The Fund is a non-diversified investment company, which makes the value of the Funds shares more susceptible to certain
risks than shares of a diversified investment company. The Fund has a greater potential to realize losses upon the occurrence of adverse
events affecting a particular issuer. |
| ● | Small
and Medium Capitalization Company Risk: The value of small or medium capitalization company stocks may be subject to more abrupt
or erratic market movements than those of larger, more established companies or the market averages in general. |
| ● | Conflicts
of Interest Risk: The Adviser have conflicts of interest that could interfere with their management of the Fund. These conflicts,
which are described in more detail in the Funds Statement of Additional Information (SAI). The principal owner of
the Adviser also operates an institutional research firm which is under common control of the Adviser. The Advisers affiliate
publishes reports on all material Fund filings to subscribers. The affiliate is not a registered investment adviser and the information
contained in the reports is not organized or presented in a manner that suggests the holding, purchase or sale of any security. The subscribers
to the reports are a variety of organizations including investment banks and law firms, many long/short hedge funds, large institutional
investors, activist hedge funds, investor relations companies and proxy solicitors. Although the securities of companies described in
the reports may be eligible for the Funds portfolio, the reports do not indicate whether or not securities of such companies will
be bought or sold by the Fund. In addition, subscribers receive no nonpublic information regarding holdings of the Funds portfolio.
However, subscribers may make their own investment decisions using information contained in the reports. If subscribers buy or sell securities
that are described in the reports, this could negatively impact the price of securities bought or sold by the Fund. |
| ● | Management
Risk: The Advisers dependence on its activist strategy and objective judgments about the attractiveness, value and potential
appreciation of particular securities in which the Fund invests may prove to be incorrect as there is no guarantee that the Advisers
investment strategy will produce the desired results. |
| ● | Regulatory
Risk: Legal, tax, and regulatory developments may adversely affect the Fund. The regulatory environment for the Fund is evolving,
and changes in the regulation of investment funds and other financial institutions or products, and their trading activities and capital
markets, or a regulators disagreement with the Funds interpretation of the application of certain regulations, may adversely
affect the ability of the Fund to pursue its investment strategy. |
| ● | Shareholder
Concentration Risk: The Fund is used as an investment in certain model portfolios or other asset allocation programs sponsored
by financial intermediaries and may have a large percentage of its shares held in such programs. The Fund may experience large
redemptions or large purchases if any of these programs reduce or increase their targeted allocations to the Fund. Other large
investors also may have a significant ownership stake in the Fund. Large redemption or purchase activity could have adverse effects
on performance to the extent that the Fund incurs additional costs or is required to sell securities, invest cash, or hold a
relatively large amount of cash at times when it would not otherwise do so. |
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| Performance:
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The bar chart and performance table below show the variability of the Funds returns, which is some indication of the risks
of investing in the Fund. The bar chart shows performance of the Funds Class I shares for each of the last ten full calendar years.
Class A and Class C shares will be similar because they invest in the same portfolio of securities and underlying funds, but their performance
will vary due to differences in fees. The performance table compares the performance of the Funds Class I, Class A and Class C
shares over time to the performance of a broad-based securities market index and a supplement index. You should be aware that the Funds
past performance (before and after taxes) may not be an indication of how the Fund will perform in the future. Updated performance information
is available at no cost by visiting www.13DActivistFund.com or by calling 1-877-413-3228.
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| Class
I Annual Total Return for Calendar Years Ended December 31
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| Best
Quarter |
2nd
Quarter 2020 |
29.98% |
| Worst
Quarter |
1st
Quarter 2020 |
(30.25)% |
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| Performance
Table
Average Annual Total Returns
(For periods ended December 31, 2024)
|
|
|
After-tax
returns were calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state
and local taxes. Actual after-tax returns depend on an investors tax situation and may differ from those shown, and after-tax
returns shown are not relevant to investors who hold shares of the Fund through tax-deferred arrangements, such as 401(k) plans or Individual
Retirement Accounts (IRAs). After tax returns for Class A and Class C shares, which are not shown, will vary from Class I shares.
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| 13D Activist Fund | Market And Geopolitical Risk [Member]
|
| ● | Market and
Geopolitical Risk: The increasing interconnectivity between global economies and financial markets increases the likelihood that
events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial
market. Securities in the Funds portfolio may underperform due to inflation (or expectations for inflation), interest rates,
global demand for particular products or resources, natural disasters, pandemics, epidemics, terrorism, international conflicts,
regulatory events and governmental or quasi-governmental actions. The occurrence of global events similar to those in recent years,
such as worldwide pandemic, terrorist attacks, natural disasters, social and political discord or debt crises and downgrades, among
others, may result in market volatility and may have long term effects on both the U.S. and global financial markets. It is
difficult to predict when similar events affecting the U.S. or global financial markets may occur, the effects that such events may
have and the duration of those effects. Any such event(s) could have a significant adverse impact on the value and risk profile of
the Fund. For example, COVID-19 global pandemic had negative impacts, and in many cases severe negative impacts, on markets
worldwide. It is not known how long the impacts of the significant events described above, will last, but there
could be a prolonged period of global economic slowdown, which may impact your Fund investment. Therefore, the Fund could lose money
over short periods due to short-term market movements and over longer periods during more prolonged market downturns. During a
general market downturn, multiple asset classes may be negatively affected. Changes in market conditions and interest rates can have
the same impact on all types of securities and instruments. In times of severe market disruptions, you could lose your entire
investment. The Advisers specialized research helps to mitigate this risk. In the event, activists have a period of
significant underperformance, the Funds may also experience a period of underperformance. The Adviser endeavors to address this risk
through diversification across several activists, activist styles, and strategies. |
|
| 13D Activist Fund | Equity Securities Risk [Member]
|
| ● | Equity
Securities Risk: The prices of equity and preferred securities fluctuate based on changes in a companys financial condition
and overall market and economic conditions. The value of equity securities purchased by the Fund could decline if the financial condition
of the companies the Fund invests in decline or if overall market and economic conditions deteriorate. |
|
| 13D Activist Fund | Risk Nondiversified Status [Member]
|
| ● | Non-Diversification
Risk: The Fund is a non-diversified investment company, which makes the value of the Funds shares more susceptible to certain
risks than shares of a diversified investment company. The Fund has a greater potential to realize losses upon the occurrence of adverse
events affecting a particular issuer. |
|
| 13D Activist Fund | Small And Medium Capitalization Company Risk [Member]
|
| ● | Small
and Medium Capitalization Company Risk: The value of small or medium capitalization company stocks may be subject to more abrupt
or erratic market movements than those of larger, more established companies or the market averages in general. |
|
| 13D Activist Fund | Conflicts Of Interest Risk [Member]
|
| ● | Conflicts
of Interest Risk: The Adviser have conflicts of interest that could interfere with their management of the Fund. These conflicts,
which are described in more detail in the Funds Statement of Additional Information (SAI). The principal owner of
the Adviser also operates an institutional research firm which is under common control of the Adviser. The Advisers affiliate
publishes reports on all material Fund filings to subscribers. The affiliate is not a registered investment adviser and the information
contained in the reports is not organized or presented in a manner that suggests the holding, purchase or sale of any security. The subscribers
to the reports are a variety of organizations including investment banks and law firms, many long/short hedge funds, large institutional
investors, activist hedge funds, investor relations companies and proxy solicitors. Although the securities of companies described in
the reports may be eligible for the Funds portfolio, the reports do not indicate whether or not securities of such companies will
be bought or sold by the Fund. In addition, subscribers receive no nonpublic information regarding holdings of the Funds portfolio.
However, subscribers may make their own investment decisions using information contained in the reports. If subscribers buy or sell securities
that are described in the reports, this could negatively impact the price of securities bought or sold by the Fund. |
|
| 13D Activist Fund | Management Risk [Member]
|
| ● | Management
Risk: The Advisers dependence on its activist strategy and objective judgments about the attractiveness, value and potential
appreciation of particular securities in which the Fund invests may prove to be incorrect as there is no guarantee that the Advisers
investment strategy will produce the desired results. |
|
| 13D Activist Fund | Regulatory Risk [Member]
|
| ● | Regulatory
Risk: Legal, tax, and regulatory developments may adversely affect the Fund. The regulatory environment for the Fund is evolving,
and changes in the regulation of investment funds and other financial institutions or products, and their trading activities and capital
markets, or a regulators disagreement with the Funds interpretation of the application of certain regulations, may adversely
affect the ability of the Fund to pursue its investment strategy. |
|
| 13D Activist Fund | Shareholder Concentration Risk [Member]
|
| ● | Shareholder
Concentration Risk: The Fund is used as an investment in certain model portfolios or other asset allocation programs sponsored
by financial intermediaries and may have a large percentage of its shares held in such programs. The Fund may experience large
redemptions or large purchases if any of these programs reduce or increase their targeted allocations to the Fund. Other large
investors also may have a significant ownership stake in the Fund. Large redemption or purchase activity could have adverse effects
on performance to the extent that the Fund incurs additional costs or is required to sell securities, invest cash, or hold a
relatively large amount of cash at times when it would not otherwise do so. |
|