Registration Statement Under The Securities Act Of 1933
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Pre-Effective Amendment No.
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Post-Effective Amendment No. 127
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[X]
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Registration Statement Under The Investment Company Act Of 1940
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Amendment No. 127
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[X]
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[X]
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immediately upon filing pursuant to paragraph (b); |
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on __________, pursuant to paragraph (b);
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60 days after filing pursuant to paragraph (a)(1);
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on , pursuant to paragraph (a)(1);
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75 days after filing pursuant to paragraph (a)(2);
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on , pursuant to paragraph (a)(2) of Rule 485
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this post-effective amendment designates a new effective date for a previously filed post-effective amendment
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Equity Funds
All American Equity Fund (GBTFX)
Holmes Macro Trends Fund (MEGAX)
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Emerging Markets Funds
Emerging Europe Fund (EUROX)
China Region Fund (USCOX)
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Gold and Natural Resources Funds
Gold and Precious Metals Fund (USERX)
World Precious Minerals Fund (UNWPX)
Global Resources Fund (PSPFX)
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Bond Funds
Near-Term Tax Free Fund (NEARX)
U.S. Government Securities Ultra-Short Bond Fund (UGSDX)
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Summary Section Equity Funds
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All American Equity Fund
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1
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Holmes Macro Trends Fund
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5
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Summary Section Gold and Natural Resources Funds
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Gold and Precious Metals Fund
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9
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World Precious Minerals Fund
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14
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Global Resources Fund
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19
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Summary Section Emerging Markets Funds
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Emerging Europe Fund
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24
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China Region Fund
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30
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Summary Section Bond Funds | |
Near-Term Tax Free Fund
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35
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U.S. Government Securities Ultra-Short Bond Fund
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39
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Investment Objectives, Principal Investment Strategies and Related Risks
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All American Equity Fund
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42
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Holmes Macro Trends Fund
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42
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Gold and Precious Metals Fund
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46
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World Precious Minerals Fund
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46
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Global Resources Fund
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46
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Emerging Europe Fund
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52
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China Region Fund
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52
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Near-Term Tax Free Fund
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60
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U.S. Government Securities Ultra-Short Bond Fund
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62
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Common Investment Practices and Related Risks
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63
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Portfolio Holdings
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65
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Fund Management
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66
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Shareholder Information
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68
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Pricing of Fund Shares
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68
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Opening an Account
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68
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Funding an Account
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69
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Minimum Investments
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69
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How to Purchase, Redeem and Exchange Shares
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69
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Important Shareholder Information
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71
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Distributions and Taxes
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74
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Financial Highlights
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77
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Shareholder Fees
(fees paid directly from your investment) |
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Maximum sales charge
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None
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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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Management fee
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0.58%
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Distribution and/or service (12b-1) fees
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0.25%
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Other expenses
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0.92%
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Acquired fund fees and expenses
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0.01%
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Total annual fund operating expenses
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1.76%
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1 Year
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3 Years
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5 Years
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10 Years
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$179
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$554
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$954
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$2,073
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1.
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companies offering stock registered on a United States stock exchange;
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2.
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companies offering stock traded on Nasdaq or the domestic over-the-counter markets;
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3.
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companies deriving more than 50% of their revenue from operations in the United States at the time of the fund’s investment;
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4.
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companies incorporated in the United States; or
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5.
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companies having their principal place of business or corporate headquarters located in the United States.
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Main Risk.
As with all mutual funds, loss of money is a risk of investing in the fund.
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Market Risk.
The value of the fund’s shares will go up and down based on the performance of the companies whose securities it owns and other factors affecting the securities market generally.
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Portfolio Management Risk.
The skill of the Adviser will play a significant role in the fund’s ability to achieve its investment objectives.
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Portfolio Turnover Risk.
The fund’s portfolio turnover rates vary from year to year according to market conditions and may exceed 100%. The length of time the fund has held a particular security is not generally a consideration in investment decisions. It is the policy of the fund to effect portfolio transactions without regard to a holding period if, in the judgment of the portfolio managers, such transactions are advisable. Portfolio turnover generally involves some expense, including brokerage commissions, dealer mark-ups, or other transaction costs on the sale of securities and reinvestment in other securities. Such sales may result in realization of taxable capital gains for shareholders.
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Growth Stock Risk.
Growth stocks generally experience share price fluctuations as the market reacts to changing perceptions of the underlying companies’ growth potentials and broader economic activities.
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●
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Sector Risk.
The fund may invest a significant amount of its assets in certain sectors, which exposes the fund to greater market risk than if the fund diversified its assets among various sectors.
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Options Risk.
Investing in options, long-term equity anticipation securities (i.e., LEAPS, an option that has an expiration date of up to two and one half years), and other instruments with option-type elements may increase the volatility and/or transaction expenses of the fund. An option may expire without value, resulting in a loss of the fund’s initial investment and may be less liquid and more volatile than an investment in the underlying securities. As the writer of an option, the fund may have no control over when the underlying instruments must be sold (in the case of a call option) or purchased (in the case of a put option) because the option purchaser may notify the fund of exercise at any time prior to the expiration of the option.
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Illiquidity Risk.
Illiquid securities are those securities that cannot be disposed of in seven days or less at approximately the value at which a fund carries them on its balance sheet. These investments may involve a high degree of business and financial risk.
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Warrants Risk.
Warrants can provide a greater potential for profit or loss than an equivalent investment in the underlying security. Prices of warrants do not necessarily move, however, in tandem with prices of the underlying securities, particularly for shorter periods of time, and, therefore, may be considered speculative investments. If a warrant held by the fund were not exercised by the date of its expiration, the fund would incur a loss in the amount of the cost of the warrant.
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Depositary Receipts Risk.
ADR and GDR risks include, but are not limited to, fluctuations in foreign currencies and foreign investment risks, such
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Convertible Securities Risk.
Convertible securities entail interest rate and credit risks. While fixed-income securities generally have a priority claim on a corporation’s assets over that of common stock, convertible securities held by the fund that are rated below investment grade (i.e., “junk bonds”) are subject to special risks, including the risk of default in interest or principal payments, which could result in a loss of income to the fund or a decline in the market value of the securities.
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Over-the-Counter Risk.
Securities traded in the over-the-counter markets may trade in smaller volumes, and their prices may be more volatile, than securities principally traded on securities exchanges. Such securities may be less liquid than more widely traded securities. In addition, the prices of such securities may include an undisclosed dealer markup, which the fund pays as part of the purchase price.
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Average Annual Total Returns (for the periods ended December 31, 2016)
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1 Year
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5 Years
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10 Years
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All American Equity Fund Return Before Taxes
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(0.14)%
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8.12%
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4.10%
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Return After Taxes on Distributions
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(0.21)%
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5.98%
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2.70%
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Return After Taxes on Distributions and Sale of Fund Shares
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(0.08)%
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6.01%
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2.93%
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S&P 500 Index (reflects no deduction for fees, expenses or taxes)
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11.96%
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14.66%
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6.95%
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●
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$5,000
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$100 minimum per transaction
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$1,000 initial investment, which must be made by check or wire.
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Shareholder Fees
(fees paid directly from your investment) |
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Maximum sales charge
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None
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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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Management fee
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0.80%
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Distribution and/or service (12b-1) fees
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0.25%
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Other expenses
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0.62%
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Acquired fund fees and expenses
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0.01%
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Total annual fund operating expenses
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1.68%
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1 Year
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3 Years
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5 Years
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10 Years
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$171
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$530
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$913
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$1,987
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●
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Main Risk.
As with all mutual funds, loss of money is a risk of investing in the fund.
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Market Risk.
The value of the fund’s shares will go up and down based on the performance of the companies whose securities it owns and other factors affecting the securities market generally.
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●
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Portfolio Management Risk.
The skill of the Adviser will play a significant role in the fund’s ability to achieve its investment objectives. The Adviser could be incorrect in its analysis of industries, companies and the relative attractiveness of growth and value stocks and other matters.
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Portfolio Turnover Risk.
The fund’s portfolio turnover rates vary from year to year according to market conditions and may exceed 100%. The length of time the fund has held a particular security is not generally a consideration in investment decisions. It is the policy of the fund to effect portfolio transactions without regard to a holding period if, in the judgment of the portfolio managers, such transactions are advisable. Portfolio turnover generally involves some expense, including brokerage commissions, dealer mark-ups, or other transaction costs on the sale of securities and reinvestment in other securities. Such sales may result in realization of taxable capital gains for shareholders.
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●
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Growth Stock Risk.
Growth stocks generally experience share price fluctuations as the market reacts to changing perceptions of the underlying companies’ growth potentials and broader economic activities.
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●
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Sector Risk.
The fund may invest a significant amount of its assets in certain sectors, which exposes the fund to greater market risk than if the fund diversified its assets among various sectors.
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●
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Foreign Securities Risk/Emerging Markets Risk.
The fund’s returns and share prices may be affected to a large degree by several factors, including fluctuations in currency exchange rates; political, social or economic instability; the rule of law with respect to the recognition and protection of property rights; and less stringent accounting, disclosure and financial reporting requirements in a particular country. These risks are generally intensified in emerging markets. The fund’s share prices will reflect the movements of the different stock markets in which it is invested and the currencies in which its investments are denominated.
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Small- and Mid-Sized Companies Risk.
The fund may invest in small- and mid-sized companies, which involve greater risk than investing in more established companies. This risk includes difficulty in obtaining reliable information and financial data and low liquidity in the market, making it difficult to dispose of shares when it may be otherwise advisable.
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Options Risk.
Investing in options, LEAPS (an option that has an expiration date of up to two and one half years), and other instruments with option-type elements may increase the volatility and/or transaction expenses of the fund. An option may expire without value, resulting in a loss of the fund’s initial investment and may be less liquid and more volatile than an investment in the underlying securities. As the writer of an option, the fund may have no control over when the underlying instruments must be sold (in the case of a call option) or purchased (in the case of a put option) because the option purchaser may notify the fund of exercise at any time prior to the expiration of the option.
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Illiquidity Risk.
Illiquid securities are those securities that cannot be disposed of in seven days or less at approximately the value at which a fund carries them on its balance sheet. These investments may involve a high degree of business and financial risk.
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●
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Warrants Risk.
Warrants can provide a greater potential for profit or loss than an equivalent investment in the underlying security. Prices of warrants do not necessarily move, however, in tandem with prices of the underlying securities, particularly for shorter periods of time, and, therefore, may be considered speculative investments. If a warrant held by the fund were not exercised by the date of its expiration, the fund would incur a loss in the amount of the cost of the warrant.
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●
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Depositary Receipts Risk.
ADR and GDR risks include, but are not limited to, fluctuations in foreign currencies and foreign investment risks, such as political and financial instability, less liquidity and greater volatility, lack of uniform accounting, auditing and financial reporting standards and increased price volatility. In addition, ADRs and GDRs may not track the price of the underlying foreign securities, and their value may change materially at times when the U.S. markets are not open for trading. Investments in unsponsored depositary receipts may be subject to additional risks.
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Convertible Securities Risk.
Convertible securities entail interest rate and credit risks. While fixed-income securities generally have a priority claim on a corporation’s assets over that of common stock, convertible securities held by the fund that are rated below investment grade (i.e., “junk bonds”) are subject to special risks, including the risk of default in interest or principal payments, which could result in a loss of income to the fund or a decline in the market value of the securities.
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Average Annual Total Returns (for the periods ended December 31, 2016)
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1 Year
|
5 Years
|
10 Years
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Holmes Macro Trends Fund Return Before Taxes
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8.66%
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8.36%
|
3.70%
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Return After Taxes on Distributions
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6.67%
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6.52%
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2.79%
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Return After Taxes on Distributions and Sale of Fund Shares
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6.55%
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6.39%
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2.82%
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S&P Composite 1500 Index (reflects no deduction for fees, expenses or taxes)
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13.03%
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14.78%
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7.19%
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●
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$5,000
|
●
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$100 minimum per transaction
|
●
|
$1,000 initial investment, which must be made by check or wire.
|
Shareholder Fees
(fees paid directly from your investment) |
|
Maximum sales charge
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment) |
|
Management fee
|
0.91%
|
Distribution and/or service (12b-1) fees
|
0.25%
|
Other expenses
|
0.57%
|
Acquired fund fees and expenses
|
0.13%
|
Total annual fund operating expenses
|
1.86%
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
$189
|
$585
|
$1,006
|
$2,180
|
●
|
Main Risk.
As with all mutual funds, loss of money is a risk of investing in the fund.
|
●
|
Market Risk.
The value of the fund’s shares will go up and down based on the performance of the companies whose securities it owns and other factors affecting the securities market generally.
|
●
|
Portfolio Management Risk.
The skill of the Adviser will play a significant role in the fund’s ability to achieve its investment objectives. There is a risk that the investment strategy does not achieve the fund’s objectives or that the Adviser does not implement the strategy properly.
|
●
|
Foreign Securities Risk/Emerging Markets Risk.
The fund’s investments in foreign securities are subject to special risks. The fund’s returns and share price may be affected to a large degree by several factors, including fluctuations in currency exchange rates; political, social or economic instability; the rule of law with respect to the recognition and protection of property rights; and less stringent accounting, disclosure and financial reporting requirements in a particular country. These risks are generally intensified in emerging markets. The fund’s share prices will reflect the movements of the different stock markets in which it is invested and the currencies in which its investments are denominated.
|
●
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Industry Concentration Risk.
The fund concentrates its investments in gold and other precious metals. The fund may be subject to greater risks and market fluctuations than a portfolio representing a broader range of industries. The fund invests in securities that typically respond to
|
●
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Junior and Intermediate Mining Companies Risk.
The securities of junior and intermediate exploration gold companies, which are often more speculative in nature, tend to be less liquid and more volatile in price than securities of larger companies.
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●
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Non-Diversification Risk.
The fund is non-diversified and may invest a significant portion of its total assets in a small number of companies. This may cause the performance of the fund to be dependent upon the performance of one or more selected companies, which may increase the volatility of the fund.
|
●
|
Price Volatility Risk.
The value of the fund’s shares may fluctuate significantly.
|
●
|
Growth Stock Risk.
Growth stocks generally experience share price fluctuations as the market reacts to changing perceptions of the underlying companies’ growth potentials and broader economic activities.
|
●
|
Options Risk.
Investing in options, LEAPS (an option that has an expiration date of up to two and one half years), and other instruments with option-type elements may increase the volatility and/or transaction expenses of the fund. An option may expire without value, resulting in a loss of the fund’s initial investment and may be less liquid and more volatile than an investment in the underlying securities. As the writer of an option, the fund may have no control over when the underlying instruments must be sold (in the case of a call option) or purchased (in the case of a put option) because the option purchaser may notify the fund of exercise at any time prior to the expiration of the option.
|
●
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Warrants Risk.
Warrants can provide a greater potential for profit or loss than an equivalent investment in the underlying security. Prices of warrants do not necessarily move, however, in tandem with prices of the underlying securities, particularly for shorter periods of time, and, therefore, may be considered speculative investments. If a warrant held by the fund were not exercised by the date of its expiration, the fund would incur a loss in the amount of the cost of the warrant.
|
●
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Depositary Receipts Risk.
ADR and GDR risks include, but are not limited to, fluctuations in foreign currencies and foreign investment risks, such as political and financial instability, less liquidity and greater volatility, lack of uniform accounting, auditing and financial reporting standards and increased price volatility. In addition, ADRs and GDRs may not track the price of the underlying foreign securities, and their value may change materially at times when the U.S. markets are not open for trading. Investments in unsponsored depositary receipts may be subject to additional risks.
|
●
|
Convertible Securities Risk.
Convertible securities entail interest rate and credit risks. While fixed-income securities generally have a priority claim on a corporation’s assets over that of common stock, convertible securities held by the fund that are rated below investment grade (i.e., “junk bonds”) are subject to special risks, including the risk of default in interest or principal payments, which could result in a loss of income to the fund or a decline in the market value of the securities.
|
●
|
Restricted Security Risk.
The fund may make direct equity investments in securities that are subject to contractual and regulatory restrictions on transfer. These investments may involve a high degree of business and financial risk. The restrictions on transfer may cause the fund to hold a security at a time when it may be beneficial to liquidate the security, and the security could decline significantly in value before the fund could liquidate the security.
|
●
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Gold and Precious Metals/Minerals Risk.
The fund may invest in gold and precious metals directly and/or in equity and equity-related securities, such as ETFs that represent interests in, or related to, these precious metals and, therefore, is subject to the risk that it could fail to qualify as a regulated investment company under the Internal Revenue Code if the fund derives more than 10% of its gross income from these investments in gold and
|
●
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Illiquidity Risk.
Illiquid securities are those securities that cannot be disposed of in seven days or less at approximately the value at which a fund carries them on its balance sheet. These investments may involve a high degree of business and financial risk.
|
●
|
Initial Public Offering Risk.
The fund may purchase securities in an initial public offering (“IPO”), which may be illiquid; thus the fund may not be able to dispose of them promptly at the price at which they are valued.
|
●
|
Exchange-Traded Funds Risk.
The risks of investment in these securities typically reflect the risks of types of instruments in which the ETFs invest. By investing in an ETF, the fund becomes a shareholder of that ETF and bears its proportionate share of the fees and expenses of the ETF. In addition, an ETF’s shares may trade above or below its net asset value.
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Average Annual Total Returns (for the periods ended December 31, 2016)
|
1 Year
|
5 Years
|
10 Years
|
Gold and Precious Metals Fund Return Before Taxes
|
45.36%
|
(10.72)%
|
(3.22)%
|
Return After Taxes on Distributions
|
45.01%
|
(10.80)%
|
(3.95)%
|
Return After Taxes on Distributions and Sale of Fund Shares
|
25.88%
|
(7.71)%
|
(1.54)%
|
S&P 500 Index (reflects no deduction for fees, expenses or taxes)
|
11.96%
|
14.66%
|
6.95%
|
FTSE Gold Mines Index (reflects no deduction for fees, expenses or taxes)
|
60.72%
|
(14.75)%
|
(4.38)%
|
●
|
$5,000
|
●
|
$100 minimum per transaction
|
●
|
$1,000 initial investment, which must be made by check or wire.
|
Shareholder Fees
(fees paid directly from your investment) |
|
Maximum sales charge
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment) |
|
Management fee
|
1.18%
|
Distribution and/or service (12b-1) fees
|
0.25%
|
Other expenses
|
0.56%
|
Acquired fund fees and expenses
|
0.11%
|
Total annual fund operating expenses
|
2.10%
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
$213
|
$658
|
$1,129
|
$2,431
|
●
|
Main Risk.
As with all mutual funds, loss of money is a risk of investing in the fund.
|
●
|
Market Risk.
The value of the fund’s shares will go up and down based on the performance of the companies whose securities it owns and other factors affecting the securities market generally.
|
●
|
Portfolio Management Risk.
The skill of the Adviser will play a significant role in the fund’s ability to achieve its investment objectives. There is a risk that the investment strategy does not achieve the fund’s objectives or that the Adviser does not implement the strategy properly.
|
●
|
Foreign Securities Risk/Emerging Markets Risk.
The fund’s investments in foreign securities are subject to special risks. The fund’s returns and share price may be affected to a large degree by several factors, including fluctuations in currency exchange rates; political, social or economic instability; the rule of law with respect to the recognition and protection of property rights; and less stringent accounting, disclosure and financial reporting requirements in a particular country. These risks are generally intensified in emerging markets. The fund’s share prices will reflect the
|
●
|
Industry Concentration Risk.
The fund concentrates its investments in precious minerals. The fund may be subject to greater risks and market fluctuations than a portfolio representing a broader range of industries. The fund invests in securities that typically respond to changes in the price of gold and other precious minerals, which can be influenced by a variety of global economic, financial and political factors; increased environmental and labor costs in mining; and changes in laws relating to mining or gold production or sales; and the price may fluctuate substantially over short periods of time. Therefore, the fund may be more volatile than other types of investments.
|
●
|
Junior and Intermediate Mining Companies Risk.
The fund focuses its investments in junior and intermediate exploration companies. The securities of junior and intermediate exploration gold companies, which are often more speculative in nature, tend to be less liquid and more volatile in price than securities of larger companies.
|
●
|
Non-Diversification Risk.
The fund is non-diversified and may invest a significant portion of its total assets in a small number of companies. This may cause the performance of the fund to be dependent upon the performance of one or more selected companies, which may increase the volatility of the fund.
|
●
|
Price Volatility Risk.
The value of the fund’s shares may fluctuate significantly.
|
●
|
Growth Stock Risk.
Growth stocks generally experience share price fluctuations as the market reacts to changing perceptions of the underlying companies’ growth potentials and broader economic activities.
|
●
|
Options Risk.
Investing in options, LEAPS (an option that has an expiration date of up to two and one half years), and other instruments with option-type elements may increase the volatility and/or transaction expenses of the fund. An option may expire without value, resulting in a loss of the fund’s initial investment and may be less liquid and more volatile than an investment in the underlying securities. As the writer of an option, the fund may have no control over when the underlying instruments must be sold (in the case of a call option) or purchased (in the case of a put option) because the option purchaser may notify the fund of exercise at any time prior to the expiration of the option.
|
●
|
Warrants Risk.
Warrants can provide a greater potential for profit or loss than an equivalent investment in the underlying security. Prices of warrants do not necessarily move, however, in tandem with prices of the underlying securities, particularly for shorter periods of time, and, therefore, may be considered speculative investments. If a warrant held by the fund were not exercised by the date of its expiration, the fund would incur a loss in the amount of the cost of the warrant.
|
●
|
Depositary Receipts Risk.
ADR and GDR risks include, but are not limited to, fluctuations in foreign currencies and foreign investment risks, such as political and financial instability, less liquidity and greater volatility, lack of uniform accounting, auditing and financial reporting standards and increased price volatility. In addition, ADRs and GDRs may not track the price of the underlying foreign securities, and their value may change materially at times when the U.S. markets are not open for trading. Investments in unsponsored depositary receipts may be subject to additional risks.
|
●
|
Convertible Securities Risk.
Convertible securities entail interest rate and credit risks. While fixed-income securities generally have a priority claim on a corporation’s assets over that of common stock, convertible securities held by the fund that are rated below investment grade (i.e., “junk bonds”) are subject to special risks, including the risk of default in interest or principal payments, which could result in a loss of income to the fund or a decline in the market value of the securities.
|
●
|
Restricted Security Risk.
The fund may make direct equity investments in securities that are subject to contractual and regulatory restrictions on transfer. These investments may involve a high degree of business and financial risk. The restrictions on transfer may cause the fund to hold a security at a time when it may be beneficial to liquidate the security, and the security could decline significantly in value before the fund could liquidate the security.
|
●
|
Gold and Precious Metals/Minerals Risk.
The fund may invest in gold and precious metals directly and/or in equity and equity-related securities, ETFs that represent interests in, or related to, these precious metals and, therefore, is subject to the risk that it could fail to qualify as a regulated investment company under the Internal Revenue Code if the fund derives more than 10% of its gross income from these investments in gold and precious metals. Failure to qualify as a regulated investment company would result in adverse tax consequences to the fund and its shareholders.
|
●
|
Illiquidity Risk.
Illiquid securities are those securities that cannot be disposed of in seven days or less at approximately the value at which a fund carries them on its balance sheet. These investments may involve a high degree of business and financial risk.
|
●
|
Initial Public Offering Risk.
The fund may purchase securities in an initial public offering (“IPO”), which may be illiquid; thus the fund may not be able to dispose of them promptly at the price at which they are valued.
|
●
|
Exchange-Traded Funds Risk.
The risks of investment in these securities typically reflect the risks of types of instruments in which the ETFs invest. By investing in an ETF, the fund becomes a shareholder of that ETF and bears its proportionate share of the fees and expenses of the ETF. In addition, an ETF’s shares may trade above or below its net asset value.
|
●
|
Private Placement Risk.
Privately issued securities, including those which may be sold only in accordance with Rule 144A under the Securities Act of 1933, as amended, are restricted securities that are not registered with the U.S. Securities and Exchange Commission. The liquidity of the market for specific privately issued securities may vary. Accordingly, the fund may not be able to redeem or resell its interests in a privately issued security at an advantageous time or at an advantageous price, which may result in a loss to the fund. Privately issued securities that the Adviser determines to be “illiquid” are subject to the fund’s policy of not investing more than 15% of its net assets in illiquid securities.
|
Average Annual Total Returns (for the periods ended December 31, 2016)
|
1 Year
|
5 Years
|
10 Years
|
World Precious Minerals Fund Return Before Taxes
|
75.08%
|
(11.85)%
|
(5.45)%
|
Return After Taxes on Distributions
|
74.90%
|
(12.55)%
|
(7.63)%
|
Return After Taxes on Distributions and Sale of Fund Shares
|
42.57%
|
(8.78)%
|
(3.54)%
|
S&P 500 Index (reflects no deduction for fees, expenses or taxes)
|
11.96%
|
14.66%
|
6.95%
|
NYSE Arca Gold Miners Index
(reflects no deduction for fees, expenses or taxes) |
53.26%
|
(16.36)%
|
(5.98)%
|
●
|
$5,000
|
●
|
$100 minimum per transaction
|
●
|
$1,000 initial investment, which must be made by check or wire.
|
Shareholder Fees
(fees paid directly from your investment) |
|
Maximum sales charge
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment) |
|
Management fee
|
0.98%
|
Distribution and/or service (12b-1) fees
|
0.25%
|
Other expenses
|
0.62%
|
Total annual fund operating expenses
|
1.85%
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
$188
|
$582
|
$1,001
|
$2,169
|
●
|
Main Risk.
As with all mutual funds, loss of money is a risk of investing in the fund.
|
●
|
Market Risk.
The value of the fund’s shares will go up and down based on the performance of the companies whose securities it owns and other factors affecting the securities market generally.
|
●
|
Portfolio Management Risk.
The skill of the Adviser will play a significant role in the fund’s ability to achieve its investment objectives. There is a risk that the investment strategy does not achieve the fund’s objectives or that the Adviser does not implement the strategy properly.
|
●
|
Portfolio Turnover Risk.
The fund’s portfolio turnover rates vary from year to year according to market conditions and may exceed 100%. The length of time the fund has held a particular security is not generally a consideration in investment decisions. It is the policy of the fund to effect portfolio transactions without regard to a holding period if, in the judgment of the portfolio managers, such transactions are advisable. Portfolio turnover generally involves some expense, including brokerage commissions, dealer mark-ups, or other transaction costs on the sale of securities and reinvestment in other securities. Such sales may result in realization of taxable capital gains for shareholders.
|
●
|
Foreign Securities Risk/Emerging Markets Risk.
The fund’s investments in foreign securities are subject to special risks. The fund’s returns and share price may be affected to a large degree by several factors, including fluctuations in currency exchange rates; political, social or economic instability; the rule of law with respect to the recognition and protection of property rights; and less stringent accounting, disclosure and financial reporting requirements in a particular country. These risks are generally intensified in emerging markets. The fund’s share prices will reflect the movements of the different stock markets in which it is invested and the currencies in which its investments are denominated.
|
●
|
Industry Concentration Risk.
The fund concentrates its investments in the natural resources industries and may be subject to greater risks and market fluctuations than a portfolio representing a broader range of industries. The
|
●
|
Non-Diversification Risk.
The fund is non-diversified and may invest a significant portion of its total assets in a small number of companies. This may cause the performance of the fund to be dependent upon the performance of one or more selected companies, which may increase the volatility of the fund.
|
●
|
Price Volatility Risk.
The value of the fund’s shares may fluctuate significantly.
|
●
|
Growth Stock Risk.
Growth stocks generally experience share price fluctuations as the market reacts to changing perceptions of the underlying companies’ growth potentials and broader economic activities.
|
●
|
Options Risk.
Investing in options, LEAPS (an option that has an expiration date of up to two and one half years), and other instruments with option-type elements may increase the volatility and/or transaction expenses of the fund. An option may expire without value, resulting in a loss of the fund’s initial investment and may be less liquid and more volatile than an investment in the underlying securities. As the writer of an option, the fund may have no control over when the underlying instruments must be sold (in the case of a call option) or purchased (in the case of a put option) because the option purchaser may notify the fund of exercise at any time prior to the expiration of the option.
|
●
|
Warrants Risk.
Warrants can provide a greater potential for profit or loss than an equivalent investment in the underlying security. Prices of warrants do not necessarily move, however, in tandem with prices of the underlying securities, particularly for shorter periods of time, and, therefore, may be considered speculative investments. If a warrant held by the fund were not exercised by the date of its expiration, the fund would incur a loss in the amount of the cost of the warrant, if any.
|
●
|
Depositary Receipts Risk.
ADR and GDR risks include, but are not limited to, fluctuations in foreign currencies and foreign investment risks, such as political and financial instability, less liquidity and greater volatility, lack of uniform accounting, auditing and financial reporting standards and increased price volatility. In addition, ADRs and GDRs may not track the price of the underlying foreign securities, and their value may change materially at times when the U.S. markets are not open for trading. Investments in unsponsored depositary receipts may be subject to additional risks.
|
●
|
Convertible Securities Risk.
Convertible securities entail interest rate and credit risks. While fixed-income securities generally have a priority claim on a corporation’s assets over that of common stock, convertible securities held by the fund that are rated below investment grade (i.e., “junk bonds”) are subject to special risks, including the risk of default in interest or principal payments, which could result in a loss of income to the fund or a decline in the market value of the securities.
|
●
|
Restricted Security Risk.
The fund may make direct equity investments in securities that are subject to contractual and regulatory restrictions on transfer. These investments may involve a high degree of business and financial risk. The restrictions on transfer may cause the fund to hold a security at a time when it may be beneficial to liquidate the security, and the security could decline significantly in value before the fund could liquidate the security.
|
●
|
Illiquidity Risk.
Illiquid securities are those securities that cannot be disposed of in seven days or less at approximately the value at which
|
●
|
Initial Public Offering Risk.
The fund may purchase securities in an initial public offering (“IPO”), which may be illiquid; thus the fund may not be able to dispose of them promptly at the price at which they are valued.
|
●
|
Private Placement Risk.
Privately issued securities, including those which may be sold only in accordance with Rule 144A under the Securities Act of 1933, as amended, are restricted securities that are not registered with the U.S. Securities and Exchange Commission. The liquidity of the market for specific privately issued securities may vary. Accordingly, the fund may not be able to redeem or resell its interests in a privately issued security at an advantageous time or at an advantageous price, which may result in a loss to the fund. Privately issued securities that the Adviser determines to be “illiquid” are subject to the fund’s policy of not investing more than 15% of its net assets in illiquid securities.
|
Average Annual Total Returns (for the periods ended December 31, 2016)
|
1 Year
|
5 Years
|
10 Years
|
Global Resources Fund Return Before Taxes
|
14.99%
|
(9.04)%
|
(4.62)%
|
Return After Taxes on Distributions
|
13.89%
|
(9.63)%
|
(5.77)%
|
Return After Taxes on Distributions and Sale of Fund Shares
|
8.99%
|
(6.58)%
|
(2.98)%
|
S&P 500 Index (reflects no deduction for fees, expenses or taxes)
|
11.96%
|
14.66%
|
6.95%
|
S&P Global Natural Resources Index (Net Total Return)
(reflects no deduction for fees or expenses) |
31.45%
|
(0.82)%
|
(0.60)%
|
●
|
$5,000
|
●
|
$100 minimum per transaction
|
●
|
$1,000 initial investment, which must be made by check or wire.
|
Shareholder Fees
(fees paid directly from your investment) |
|
Maximum sales charge
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment) |
|
Management fee
|
1.13%
|
Distribution and/or service (12b-1) fees
|
0.25%
|
Other expenses
|
0.93%
|
Acquired fund fees and expenses
|
0.02%
|
Total annual fund operating expenses
|
2.33%
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
$236
|
$727
|
$1, 245
|
$2,666
|
1.
|
securities of issuers that are organized under the laws of any Eastern European country or have a principal office in an Eastern European country;
|
2.
|
securities of issuers that derive a majority of their revenues from business in Eastern European countries, or have a majority of their assets in Eastern European countries at the time of the fund’s investment; or
|
3.
|
securities that are traded principally on a securities exchange in an Eastern European country. (For this purpose, investment companies that invest principally in securities of companies located in one or more Eastern European countries will also be considered to be located in an Eastern European country, as will American Depository Receipts (ADRs) and Global Depository Receipts (GDRs) with respect to the securities of companies located in Eastern European countries.)
|
●
|
Main Risk.
As with all mutual funds, loss of money is a risk of investing in the fund.
|
●
|
Market Risk.
The value of the fund’s shares will go up and down based on the performance of the companies whose securities it owns and other factors affecting the securities market generally.
|
●
|
Portfolio Management Risk.
The skill of the Adviser will play a significant role in the fund’s ability to achieve its investment objectives. There is a risk that the investment strategy does not achieve the fund’s objectives or that the Adviser does not implement the strategy properly.
|
●
|
Foreign Securities Risk/Emerging Markets Risk.
The fund’s investments in foreign securities are subject to special risks. The fund’s returns and share price may be affected to a large degree by several factors, including fluctuations in currency
|
●
|
Eastern European Securities Risk.
Political and economic structures in many Eastern European countries are in their infancy and developing rapidly, and such countries may lack the social, political and economic stability characteristic of many more developed countries. In addition, unanticipated political or social developments may affect the value of the fund’s investment in Eastern European countries. As a result, the risks normally associated with investing in any foreign country may be heightened in Eastern European countries. For example, the small size and inexperience of the securities markets in Eastern European countries and the limited volume of trading in securities in those markets may make the fund’s investments in such countries illiquid and more volatile than investments in more developed countries and may make obtaining prices on portfolio securities from independent sources more difficult than in other more developed markets.
|
●
|
Geographic Concentration Risk.
The fund concentrates its investments in companies located in Eastern Europe. Because of this, companies in the fund’s portfolio may react similarly to political, social, and economic developments in any of the Eastern European countries. For example, many companies in the same region may be dependent on related government fiscal policies. Companies may be adversely affected by new or unanticipated legislative changes that could affect the value of such companies and, therefore, the fund’s share price. The fund’s return and share price may be more volatile than those of a less concentrated portfolio.
|
●
|
Industry Concentration Risk.
The fund invests more than 25% of its investments in companies principally engaged in the oil, gas or banking industries. Oil & gas companies are a large part of the Russian economy and banks typically are a significant component of emerging market economies, such as those in Russia and other Eastern European countries. The risk of concentrating investments in this group of industries will make the fund more susceptible to risk in these industries than funds which do not concentrate their investments in an industry and may make the fund’s performance more volatile. To the extent that the fund’s assets are invested in the oil & gas industry, the fund would be particularly vulnerable to factors affecting the industry, such as increased governmental regulation of the environment. Increased environmental regulation may, among other things, increase compliance costs and affect business opportunities for companies in which the fund invests. The fund would also be affected by changing commodity prices, which can be highly volatile and are subject to risk of over supply and decreased demand. To the extent that the fund’s assets are invested in companies operating in the banking industry, the fund is subject to legislative or regulatory changes, adverse market conditions, and/or increased competition affecting banking companies. The prices of securities of banking companies also may fluctuate widely due to general economic conditions that could create exposure to credit losses. In determining whether a company is involved in oil, gas or banking, the fund will use the Bloomberg Sector Classification System.
|
●
|
Sector Risk.
The fund may invest a significant amount of its total assets in certain sectors, which may be subject to specific risks. These risks include governmental regulation of the sector and governmental monetary and fiscal policies which may negatively affect a particular sector. In addition, governmental policies towards international trade and tariffs may affect particular sectors.
|
●
|
Growth Stock Risk.
Growth stocks generally experience share price fluctuations as the market reacts to changing perceptions of the underlying companies’ growth potentials and broader economic activities.
|
●
|
Non-Diversification Risk
. The fund is non-diversified and may invest a significant portion of its total assets in a small number of companies. This may cause the performance of the fund to be dependent upon the performance of one or more selected companies, which may increase the volatility of the fund.
|
●
|
Options Risk.
Investing in options, LEAPS (an option that has an expiration date of up to two and one half years), and other instruments with option-type elements may increase the volatility and/or transaction expenses of the fund. An option may expire without value, resulting in a loss of the fund’s initial investment and may be less liquid and more volatile than an investment in the underlying securities. As the writer of an option, the fund may have no control over when the underlying instruments must be sold (in the case of a call option) or purchased (in the case of a put option) because the option purchaser may notify the fund of exercise at any time prior to the expiration of the option.
|
●
|
Illiquidity Risk.
Illiquid securities are those securities that cannot be disposed of in seven days or less at approximately the value at which a fund carries them on its balance sheet. These investments may involve a high degree of business and financial risk.
|
●
|
Warrants Risk.
Warrants can provide a greater potential for profit or loss than an equivalent investment in the underlying security. Prices of warrants do not necessarily move, however, in tandem with prices of the underlying securities, particularly for shorter periods of time, and, therefore, may be considered speculative investments. If a warrant held by the fund were not exercised by the date of its expiration, the fund would incur a loss in the amount of the cost of the warrant.
|
●
|
Depositary Receipts Risk.
ADR and GDR risks include, but are not limited to, fluctuations in foreign currencies and foreign investment risks, such as political and financial instability, less liquidity and greater volatility, lack of uniform accounting, auditing and financial reporting standards and increased price volatility. In addition, ADRs and GDRs may not track the price of the underlying foreign securities, and their value may change materially at times when the U.S. markets are not open for trading. Investments in unsponsored depositary receipts may be subject to additional risks.
|
●
|
Convertible Securities Risk.
Convertible securities entail interest rate and credit risks. While fixed-income securities generally have a priority claim on a corporation’s assets over that of common stock, convertible securities held by the fund that are rated below investment grade (i.e., “junk bonds”) are subject to special risks, including the risk of default in interest or principal payments, which could result in a loss of income to the fund or a decline in the market value of the securities.
|
●
|
Restricted Securities Risk.
The fund may make direct equity investments in securities that are subject to contractual and regulatory restrictions on transfer. These investments may involve a high degree of business and financial risk. The restrictions on transfer may cause the fund to hold a security at a time when it may be beneficial to liquidate the security, and the security could decline significantly in value before the fund could liquidate the security.
|
●
|
Brexit Investment Risk.
The risk of investing in Europe may be heightened due to the recent referendum in which the United Kingdom voted to withdraw from membership in the European Union. In addition, if one or more additional countries were to exit the European Union or abandon the use of the Euro as a currency, the value of investments tied to those countries or the Euro could decline significantly and unpredictably. Any such event could have a material adverse impact on the value and risk profile of the fund’s portfolio.
|
Average Annual Total Returns (for the periods ended December 31, 2016)
|
1 Year
|
5 Years
|
10 Years
|
Emerging Europe Fund Return Before Taxes
|
14.23%
|
(4.25)%
|
(6.67)%
|
Return After Taxes on Distributions
|
14.23%
|
(4.35)%
|
(6.96)%
|
Return After Taxes on Distributions and Sale of Fund Shares
|
8.05%
|
(3.00)%
|
(4.06)%
|
S&P 500 Index (reflects no deduction for fees, expenses or taxes)
|
11.96%
|
14.66%
|
6.95%
|
MSCI Emerging Markets Europe 10/40 Index (Net Total Return)
(reflects no deduction for fees or expenses) |
25.70%
|
(1.64)%
|
(3.59)%
|
●
|
$5,000
|
●
|
$100 minimum per transaction
|
●
|
$1,000 initial investment, which must be made by check or wire.
|
Shareholder Fees
(fees paid directly from your investment) |
|
Maximum sales charge
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment) |
|
Management fee
|
1.25%
|
Distribution and/or service (12b-1) fees
|
0.25%
|
Other expenses
|
1.24%
|
Acquired fund fees and expenses
|
0.02%
|
Total annual fund operating expenses
|
2.76%
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
$279
|
$856
|
$1,459
|
$3,090
|
1.
|
securities of issuers organized under the laws of the countries within the China region;
|
2.
|
securities of issuers that have at least 50% of their assets in one or more China region countries;
|
3.
|
securities of issuers that derive at least 50% of their gross revenues or profits from providing goods or services to or from one or more China region countries at the time of the fund’s investment; or
|
4.
|
securities of issuers that are primarily traded on the China, Taiwan or Hong Kong exchanges.
|
●
|
Main Risk.
As with all mutual funds, loss of money is a risk of investing in the fund.
|
●
|
Market Risk.
The value of the fund’s shares will go up and down based on the performance of the companies whose securities it owns and other factors affecting the securities market generally.
|
●
|
Portfolio Management Risk.
The skill of the Adviser will play a significant role in the fund’s ability to achieve its investment objectives. There is a risk that the investment strategy does not achieve the fund’s objectives or that the Adviser does not implement the strategy properly.
|
●
|
Portfolio Turnover Risk.
The fund’s portfolio turnover rates vary from year to year according to market conditions and may exceed 100%. The length of time the fund has held a particular security is not generally a consideration in investment decisions. It is the policy of the fund to effect portfolio transactions without regard to a holding period if, in the judgment of the portfolio managers, such transactions are advisable. Portfolio turnover generally involves some expense, including brokerage commissions, dealer mark-ups, or other transaction costs on the sale of securities and reinvestment in other securities. Such sales may result in realization of taxable capital gains for shareholders.
|
●
|
Foreign Securities Risk/Emerging Markets Risk.
The fund’s investments in foreign securities are subject to special risks. The fund’s returns and share price may be affected to a large degree by several factors including, fluctuations in currency exchange rates; political, social or economic instability; the rule of law with respect to the recognition and protection of property rights; and less stringent accounting, disclosure and financial reporting requirements in a particular country. These risks are generally intensified in emerging markets, which include those countries in which the fund invests. The fund’s share prices will reflect the movements of the different stock markets in which it is invested and the currencies in which its investments are denominated.
|
●
|
Geographic Concentration Risk.
The fund concentrates its investments in companies located in the China region. Because of this, companies in the fund’s portfolio may react similarly to political,
|
●
|
Government Relationship Risk.
While companies in China may be subject to limitations on their business relationships under Chinese law, these laws may not be consistent with certain political and security concerns of the U.S. As a result, Chinese companies may have material direct or indirect business relationships with governments that are considered state sponsors of terrorism by the U.S. government, or governments that otherwise have policies in conflict with the U.S. government (an “Adverse Government”). If the China Region Fund invests in companies that have or develop a material business relationship with an Adverse Government, then the fund will be subject to the risk that these companies’ reputation and price in the market will be adversely or negatively affected.
|
●
|
Sector Risk.
The fund may invest a significant amount of its total assets in certain sectors, which may be subject to specific risks. These risks include governmental regulation of the sector and governmental monetary and fiscal policies which may negatively affect a particular sector. In addition, governmental policies towards international trade and tariffs may affect particular sectors.
|
●
|
Growth Stock Risk.
Growth stocks generally experience share price fluctuations as the market reacts to changing perceptions of the underlying companies’ growth potentials and broader economic activities.
|
●
|
Non-Diversification Risk
. The fund is non-diversified and may invest a significant portion of its total assets in a small number of companies. This may cause the performance of the fund to be dependent upon the performance of one or more selected companies, which may increase the volatility of the fund.
|
●
|
Options Risk.
Investing in options, LEAPS (an option that has an expiration date of up to two and one half years), and other instruments with option-type elements may increase the volatility and/or transaction expenses of the fund. An option may expire without value, resulting in a loss of the fund’s initial investment and may be less liquid and more volatile than an investment in the underlying securities. As the writer of an option, the fund may have no control over when the underlying instruments must be sold (in the case of a call option) or purchased (in the case of a put option) because the option purchaser may notify the fund of exercise at any time prior to the expiration of the option.
|
●
|
Illiquidity Risk.
Illiquid securities are those securities that cannot be disposed of in seven days or less at approximately the value at which a fund carries them on its balance sheet. These investments may involve a high degree of business and financial risk.
|
●
|
Warrants Risk
. Warrants can provide a greater potential for profit or loss than an equivalent investment in the underlying security. Prices of warrants do not necessarily move, however, in tandem with prices of the underlying securities, particularly for shorter periods of time, and, therefore, may be considered speculative investments. If a warrant held by the fund were not exercised by the date of its expiration, the fund would incur a loss in the amount of the cost of the warrant.
|
●
|
Depositary Receipts Risk.
ADR and GDR risks include, but are not limited to, fluctuations in foreign currencies and foreign investment risks, such as political and financial instability, less liquidity
|
●
|
Convertible Securities Risk.
Convertible securities entail interest rate and credit risks. While fixed-income securities generally have a priority claim on a corporation’s assets over that of common stock, convertible securities held by the fund that are rated below investment grade (i.e., “junk bonds”) are subject to special risks, including the risk of default in interest or principal payments, which could result in a loss of income to the fund or a decline in the market value of the securities.
|
●
|
Restricted Securities Risk.
The fund may make direct equity investments in securities that are subject to contractual and regulatory restrictions on transfer. These investments may involve a high degree of business and financial risk. The restrictions on transfer may cause the fund to hold a security at a time when it may be beneficial to liquidate the security, and the security could decline significantly in value before the fund could liquidate the security.
|
●
|
Small- and Mid-Sized Companies Risk.
The fund may invest in small- and mid-sized companies, which involve greater risk than investing in more established companies. This risk includes difficulty in obtaining reliable information and financial data and low liquidity in the market, making it difficult to dispose of shares when it may be otherwise advisable.
|
Average Annual Total Returns (for the periods ended December 31, 2016)
|
1 Year
|
5 Years
|
10 Years
|
China Region Fund Return Before Taxes
|
(1.05)%
|
1.82%
|
(1.09)%
|
Return After Taxes on Distributions
|
(0.84)%
|
1.72%
|
(1.85)%
|
Return After Taxes on Distributions and Sale of Fund Shares
|
(0.31)%
|
1.39%
|
(0.82)%
|
Hang Seng Composite Index (reflects no deduction for fees, expenses or taxes)
|
2.73%
|
6.94%
|
4.00%
|
MSCI All Country Far East Free ex Japan Index
(reflects no deduction for fees, expenses or taxes) |
6.57%
|
4.98%
|
4.16%
|
●
|
$5,000
|
●
|
$100 minimum per transaction
|
●
|
$1,000 initial investment, which must be made by check or wire.
|
Shareholder Fees
(fees paid directly from your investment) |
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment) |
|
Management fee
|
0.50%
|
Distribution and/or service (12b-1) fees
|
None
|
Other expenses
|
0.47%
|
Total annual fund operating expenses
|
0.97%
|
Expense waiver*
|
(0.52)%
|
Total annual expenses after reimbursements
|
0.45%
|
*
|
The Adviser has contractually limited the total fund operating expenses (exclusive of acquired fund fees and expenses, extraordinary expenses, taxes, brokerage commissions and interest) to not exceed 0.45% for the Near-Term Tax Free Fund on an annualized basis through April 30, 2018. This arrangement may not be changed or terminated during this period without approval of the fund’s Board of Trustees and may be changed or terminated by the Adviser at any time after April 30, 2018.
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
$46
|
$257
|
$486
|
$1,142
|
●
|
Main Risk.
The fund is designed for investors who primarily seek current income that is substantially free from federal income tax. As with all mutual funds, loss of money is a risk of investing in the fund. Although the fund’s policy is to invest in securities whose interest is free from federal income tax, the fund may invest up to 20% of its assets in securities that pay taxable interest. For the fiscal year ended December 31, 2016, 100% of the fund’s distributions was from ordinary income. From year to year, this number may vary and there is no assurance that these distributions will continue.
|
●
|
Interest Rate Risk.
Because the fund invests primarily in municipal securities, there is a risk that the value of these securities will fall if interest rates rise. Ordinarily, when interest rates go up, municipal security prices fall. The opposite is also true: municipal security prices usually go up when interest rates fall. The longer a fund’s weighted-average maturity, the more sensitive it is to changes in interest rates. Interest rates have been and are currently at historical lows due to, among other things, governmental intervention, including quantitative easing. There may be less governmental intervention in the near future to maintain low interest rates. If so, it could cause an increase in interest rates, which would have a negative impact on the value of fixed income securities and could negatively affect the fund’s net asset value.
|
●
|
Call Risk.
A municipal security may be prepaid (called) before its maturity. An issuer is more likely to call its securities when interest rates are falling, because the issuer can issue new securities with lower interest payments. If a security is called, a fund may have to replace it with a lower-yielding security.
|
●
|
Credit Risk.
There is a possibility that an issuer of a municipal security cannot make timely interest and principal payments on its debt securities. With municipal securities, state or local law may limit the sources of funds for the payment of principal and interest.
|
●
|
Income Risk.
The fund is subject to income risk, which is the risk that a fund’s dividends (income) will decline due to falling interest rates.
|
●
|
Municipal Bond Risk.
There is generally more public information available for corporate equities or bonds than is available for municipal bonds.
|
●
|
Liquidity Risk.
The secondary market for municipal bonds may be less liquid than other securities markets. A less liquid market may make it difficult for the funds to sell the security at an attractive price, and the value of the security may fall, even during periods of declining interest rates.
|
●
|
Insured Municipal Bonds.
The fund may invest in municipal bonds covered by an insurance policy that guarantees timely payment of principal and interest. The insurance policies do not guarantee the value of the bonds. A downgrade of the bond insurer’s credit rating or a default by the insurer may result in a downgrade of the bond rating and could have a negative effect on the value of the bond.
|
●
|
Lower Rated Municipal Bonds.
A portion of the fund’s investments may be in high risk, lower rated municipal bonds as the result of a downgrade of an investment grade bond subsequent to the fund’s purchase of the bond. Investments in lower rated bonds carry greater credit rate risk, market risk and interest rate risk than an investment in a higher rated bond.
|
●
|
Recent Market Events.
Recent unprecedented turbulence in the financial markets and reduced liquidity in the credit and fixed income market could have an adverse effect on the value of the fund.
|
●
|
Industry Concentration Risk
. The fund concentrates its investments in general obligation bonds, single state bonds, or in securities issued by states or municipalities in connection with the financing of projects with similar characteristics, such as hospital revenue bonds, housing revenue bonds, electric power project bonds, industry revenue bonds of similar type projects. The fund may be subject to greater risks and market fluctuations than a portfolio representing a broader range of industries. The fund invests in securities that typically respond to adverse tax, legislative or political changes, changes in the financial condition of the obligors of municipal securities, general economic downturns, and the reallocation of governmental cost burdens among federal, state and local governments. Therefore, the fund may be more volatile than other types of investments.
|
●
|
Non-Diversification Risk.
The fund is non-diversified and may invest a significant portion of its total assets in a small number of companies. This may cause the performance of the fund to be dependent upon the performance of one or more selected companies, which may increase the volatility of the fund.
|
Average Annual Total Returns (for the periods ended December 31, 2016)
|
1 Year
|
5 Years
|
10 Years
|
Near-Term Tax Free Fund Return Before Taxes
|
(0.45)%
|
1.40%
|
2.69%
|
Return After Taxes on Distributions
|
(0.46)%
|
1.38%
|
2.62%
|
Return After Taxes on Distributions and Sale of Fund Shares
|
0.32%
|
1.48%
|
2.56%
|
Bloomberg 3-Year Municipal Bond Index
(reflects no deduction for fees, expenses or taxes) |
0.08%
|
1.13%
|
2.71%
|
●
|
$5,000
|
●
|
$100 minimum per transaction
|
●
|
$1,000 initial investment, which must be made by check or wire.
|
Shareholder Fees
(fees paid directly from your investment) |
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment) |
|
Management fee
|
0.50%
|
Distribution and/or service (12b-1) fees
|
None
|
Other expenses
|
0.50%
|
Total annual fund operating expenses
|
1.00%
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
$102
|
$318
|
$552
|
$1,225
|
●
|
Main Risk.
The fund is designed for investors who primarily seek current income. The fund is not intended to be a complete investment program, and there is no assurance that its investment objectives can be achieved. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to manage the magnitude of NAV fluctuations by limiting the fund’s dollar-weighted average effective maturity to two years or less, it is possible to lose money by investing in the fund.
|
●
|
Risk of Investing In Government Agencies.
The Government Securities Ultra-Short Bond Fund invests in various United States government agencies, which, while chartered or sponsored by Acts of Congress, are neither issued nor guaranteed by the United States Treasury. Each of these agencies, which include the Federal Home Loan Bank, the Federal Farm Credit Bank and the Tennessee Valley Authority, is supported by its own credit. However, the Federal Home Loan
|
●
|
Income Risk.
The fund is subject to income risk, which is the risk that a fund’s dividends (income) will decline due to falling interest rates.
|
●
|
Inflation Risk.
The fund’s yields will vary as the short-term securities in their portfolios mature and the proceeds are reinvested in securities with different interest rates. Over time, the real value of a fund’s yield may be eroded by inflation.
|
●
|
Issuer Risk.
There is a possibility that an issuer of a security could be unable to make interest payments or repay principal. Changes in an issuer’s financial strength or in a security’s credit rating may affect a security’s value.
|
●
|
Interest Rate Risk.
Debt securities may fluctuate in value due to changes in interest rates. Typically, investments subject to interest rate risk will decrease in value when interest rates rise and increase in value when interest rates decline. The value of securities with relatively longer maturities may fluctuate more in response to interest rate changes than securities with shorter maturities. Interest rates have been and are currently at historical lows due to, among other things, governmental intervention, including quantitative easing. There may be less governmental intervention in the near future to maintain low interest rates. If so, it could cause an increase in interest rates, which would have a negative impact on the value of fixed income securities and could negatively affect the fund’s net asset value.
|
Average Annual Total Returns (for the periods ended December 31, 2016)
|
1 Year
|
5 Years
|
10 Years
|
Government Securities Ultra-Short Bond Fund Return Before Taxes
|
0.47%
|
0.24%
|
0.78%
|
Return After Taxes on Distributions
|
0.46%
|
0.20%
|
0.53%
|
Return After Taxes on Distributions and Sale of Fund Shares
|
0.46%
|
0.20%
|
0.53%
|
Bloomberg U.S. Treasury Bills 6-9 Months Total Return Index
(reflects no deduction for fees, expenses or taxes) |
0.49%
|
0.20%
|
0.40%
|
●
|
$5,000
|
●
|
$100 minimum per transaction
|
●
|
$1,000 initial investment, which must be made by check or wire.
|
1.
|
companies offering stock registered on a United States stock exchange;
|
2.
|
companies offering stock traded on Nasdaq or the domestic over-the-counter markets;
|
3.
|
companies deriving more than 50% of their revenue from operations in the United States at the time of the fund’s investment;
|
4.
|
companies incorporated in the United States; or
|
5.
|
companies having their principal place of business or corporate headquarters located in the United States.
|
Energy
|
Basic Materials
|
Natural gas
Integrated oil companies
Oil and gas drilling
Oil and gas exploration and production
Oil and gas refining
Oilfield equipment/services
|
Aluminum
Chemicals
Diversified metals and coal mining
Gold and precious metals
Iron and steel
Paper and forest products
Uranium
|
1.
|
securities of issuers that are organized under the laws of any Eastern European country or have a principal office in an Eastern European country;
|
2.
|
securities of issuers that derive a majority of their revenues from business in Eastern European countries or have a majority of their assets in Eastern European countries at the time of the fund’s investment; or
|
3.
|
securities that are traded principally on a securities exchange in an Eastern European country. (For this purpose, investment companies that invest principally in securities of companies located in one or more Eastern European countries will also be considered to be located in an Eastern European country, as will American Depository Receipts (ADRs) and Global Depository Receipts (GDRs) with respect to the securities of companies located in Eastern European countries.)
|
1.
|
securities of issuers organized under the laws of the countries within the China region;
|
2.
|
securities of issuers that have at least 50% of their assets in one or more China region countries;
|
3.
|
securities of issuers that derive at least 50% of their gross revenues or profits from providing goods or services to or from one or more China region countries at the time of the fund’s investment; or
|
4.
|
securities of issuers that are primarily traded on the China, Taiwan or Hong Kong exchanges.
|
Base
Advisory Fee |
Benchmark
|
Hurdle
Rate |
Base Advisory
Fee Range With Performance Fee Adjustment |
|
All American Equity Fund
|
0.80%
|
S&P 500 Index
|
+/- 5%
|
0.55%-1.05%
|
Holmes Macro Trends Fund
|
1.00%
|
S&P Composite 1500 Index
|
+/- 5%
|
0.75%-1.25%
|
Gold and Precious Metals Fund
|
0.90%
|
FTSE Gold Mines Index
|
+/- 5%
|
0.65%-1.15%
|
World Precious Minerals Fund
|
1.00%
|
NYSE Arca Gold Miners Index
|
+/- 5%
|
0.75%-1.25%
|
Global Resources Fund
|
0.95%
|
S&P Global Natural Resources Index (Net Total Return)
|
+/- 5%
|
0.70%-1.20%
|
Emerging Europe Fund
|
1.25%
|
MSCI Emerging Markets Europe 10/40 Index (Net Total Return)
|
+/- 5%
|
1.00%-1.50%
|
China Region Fund
|
1.25%
|
Hang Seng Composite Index
|
+/- 5%
|
1.00%-1.50%
|
Near-Term Tax Free Fund
|
0.50%
|
n/a
|
||
Government Securities Ultra-Short
Bond Fund |
0.50%
|
n/a
|
For the rolling
12-month period |
Fund’s investment performance
|
Index’s cumulative change
|
Fund’s performance relative to the index
|
January 1
|
$50.00
|
$100.00
|
|
December 31
|
$57.60
|
$110.20
|
|
Absolute change
|
+$7.60
|
+$10.20
|
|
Actual change
|
+15.20%
|
+10.20%
|
+5.00%
|
●
|
The portion of the annual basic fee rate of 1.00% applicable to that month is multiplied by the fund’s average daily net assets for the month. This results in the dollar amount of the base fee.
|
●
|
The 0.25% rate (adjusted for the number of days in the month) is multiplied by the fund’s average daily net assets for the performance period. This results in the dollar amount of the performance adjustment.
|
●
|
The dollar amount of the performance adjustment is added to the dollar amount of the basic fee, producing the adjusted management fee.
|
All American Equity Fund
|
Gold and
Precious Metals Fund |
World
Precious Minerals Fund |
Global Resources
Fund |
China
Region Fund |
Government Securities
Ultra-Short Bond Fund |
|
Total annual fund operating expenses*
|
1.75%
|
1.73%
|
1.99%
|
1.85%
|
2.74%
|
1.00%
|
Voluntary expense waiver
|
(0.02)%
|
(0.02)%
|
(0.04)%
|
(0.01)%
|
(0.38)%
|
(0.55)%
|
Total annual expenses after reimbursement
|
1.73%
|
1.71%
|
1.95%
|
1.84%
|
2.36%
|
0.45%
|
*
|
Excluding acquired fund fees and expenses, if any.
|
●
|
$5,000
|
●
|
$100 minimum per transaction, per fund account
|
●
|
$1,000 initial investment, which must be made by check or wire.
|
●
|
For all redemptions in excess of $50,000 from any shareholder account;
|
●
|
When redemption proceeds are payable or sent to any person, address or bank account not on record;
|
●
|
If a change of address was received by the transfer agent within the last 15 calendar days; and
|
●
|
If ownership is being changed on your account.
|
●
|
Overnight Mail
Atlantic Fund Services c/o U.S. Global Investors Funds Three Canal Plaza, Portland, ME 04101 |
●
|
Reject or restrict purchase, redemption or exchange orders when in the best interest of a fund;
|
●
|
Limit or discontinue the offering of shares of a fund without notice to the shareholders;
|
●
|
Calculate the NAV per share and accept purchases, exchange and redemption orders on a business day that the NYSE is closed;
|
●
|
Require a signature guarantee, from either a Medallion program member or a non-Medallion program member, for transactions or changes in account information;
|
●
|
Redeem an account with less than the required fund account minimum;
|
●
|
Restrict or liquidate an account when necessary or appropriate to comply with federal law;
|
●
|
Charge a fee for any historical information request regarding your fund account. Please call an Investor Representative at 800-873-8637 for more information regarding this fee;
|
●
|
Accept purchase orders for fund shares; and
|
●
|
To restrict, or charge fees for, check writing privileges.
|
●
|
It may lower overall fund performance;
|
●
|
It may create increased transaction costs to the fund, which are passed along to long-term shareholders;
|
●
|
Frequent redemptions by market timers may increase taxable capital gains; and
|
●
|
It may disrupt a portfolio manager’s ability to effectively manage fund assets.
|
Investor Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Net asset value, beginning of year
|
$
|
23.60
|
$
|
27.84
|
$
|
32.18
|
$
|
25.40
|
$
|
22.72
|
||||||||||
Investment Activities
|
||||||||||||||||||||
Net investment income (loss)
|
.02
|
.09
|
(.16
|
)
|
(.12
|
)
|
.07
|
|||||||||||||
Net realized and unrealized gain (loss)
|
(.05
|
)
|
(1.23
|
)
|
.84
|
9.08
|
2.61
|
|||||||||||||
Total from investment activities
|
(.03
|
)
|
(1.14
|
)
|
.68
|
8.96
|
2.68
|
|||||||||||||
Distributions
|
||||||||||||||||||||
From net investment income
|
(.04
|
)
|
(.06
|
)
|
—
|
(.07
|
)
|
—
|
||||||||||||
From net realized gains
|
—
|
(3.04
|
)
|
(5.02
|
)
|
(2.11
|
)
|
—
|
||||||||||||
Total distributions
|
(.04
|
)
|
(3.10
|
)
|
(5.02
|
)
|
(2.18
|
)
|
—
|
|||||||||||
Short-Term Trading Fees* (a)
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Net asset value, end of year
|
$
|
23.53
|
$
|
23.60
|
$
|
27.84
|
$
|
32.18
|
$
|
25.40
|
||||||||||
Total Return (b)
|
(.14
|
)%
|
(4.20
|
)%
|
1.94
|
%
|
35.55
|
%
|
11.80
|
%
|
||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Net investment income (loss)
|
.06
|
%
|
.31
|
%
|
(.54
|
)%
|
(.45
|
)%
|
.28
|
%
|
||||||||||
Total expenses
|
1.75
|
%
|
1.94
|
%
|
2.16
|
%
|
2.44
|
%
|
2.72
|
%
|
||||||||||
Expenses waived or reimbursed (c)
|
(.02
|
)%
|
(.02
|
)%
|
(.03
|
)%
|
(.28
|
)%
|
(.52
|
)%
|
||||||||||
Net expenses (d)
|
1.73
|
%
|
1.92
|
%
|
2.13
|
%
|
2.16
|
%
|
2.20
|
%
|
||||||||||
Portfolio turnover rate
|
303
|
%
|
109
|
%(f)
|
253
|
%
|
150
|
%
|
221
|
%
|
||||||||||
Net assets, end of year (in thousands)
|
$
|
17,350
|
$
|
19,117
|
$
|
21,936
|
$
|
23,388
|
$
|
16,846
|
*
|
Based on average monthly shares outstanding.
|
(a)
|
The per share amount does not round to a full penny.
|
(b)
|
Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions and a complete redemption of the investment at the net asset value at the end of the period.
|
(c)
|
Expenses waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements. These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, and decrease total returns had such reductions not occurred.
|
(d)
|
The net expense ratios shown above reflect expenses after waivers and reimbursements but exclude the effect of reductions to total expenses for any expenses offset. Expense offset arrangements reduce total expenses, as discussed in the notes to the financial statements. These amounts would decrease the net investment income (loss) ratio had such reductions not occurred. The effect of expenses offset are as follows:
|
Investor Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Expense offset
|
(.02
|
)%
|
—(e
|
)
|
—(e
|
)
|
—(e
|
)
|
—(e
|
)
|
(e)
|
Effect on the expense ratio was not greater than 0.005%.
|
(f)
|
Excludes option transactions.
|
Investor Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Net asset value, beginning of year
|
$
|
18.59
|
$
|
20.25
|
$
|
24.24
|
$
|
18.51
|
$
|
17.62
|
||||||||||
Investment Activities
|
||||||||||||||||||||
Net investment loss
|
(.06
|
)
|
(.11
|
)
|
(.26
|
)
|
(.18
|
)
|
(.10
|
)
|
||||||||||
Net realized and unrealized gain (loss)
|
1.68
|
(.06
|
)
|
(1.36
|
)
|
7.42
|
1.29
|
|||||||||||||
Total from investment activities
|
1.62
|
(.17
|
)
|
(1.62
|
)
|
7.24
|
1.19
|
|||||||||||||
Distributions from net realized gains
|
(1.56
|
)
|
(1.49
|
)
|
(2.37
|
)
|
(1.51
|
)
|
(.30
|
)
|
||||||||||
Short -Term Trading Fees*(a)
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Net asset value, end of year
|
$
|
18.65
|
$
|
18.59
|
$
|
20.25
|
$
|
24.24
|
$
|
18.51
|
||||||||||
Total Return (b)
|
8.66
|
%
|
(.94
|
)%
|
(6.74
|
)%
|
39.38
|
%
|
6.77
|
%
|
||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Net investment loss
|
(.34
|
)%
|
(.55
|
)%
|
(1.17
|
)%
|
(1.11
|
)%
|
(.51
|
)%
|
||||||||||
Total expenses
|
1.67
|
%
|
1.81
|
%
|
1.94
|
%
|
2.00
|
%
|
1.85
|
%
|
||||||||||
Expenses waived or reimbursed (c)
|
—
|
—
|
—
|
(.04
|
)%
|
—
|
(e)
|
|||||||||||||
Net expenses (d)
|
1.67
|
%
|
1.81
|
%
|
1.94
|
%
|
1.96
|
%
|
1.85
|
%
|
||||||||||
Portfolio turnover rate
|
275
|
%(f)
|
320
|
%(f)
|
183
|
%(f)
|
109
|
%
|
214
|
%
|
||||||||||
Net assets, end of year (in thousands)
|
$
|
40,706
|
$
|
41,135
|
$
|
46,250
|
$
|
55,926
|
$
|
34,639
|
*
|
Based on average monthly shares outstanding.
|
(a)
|
The per share amount does not round to a full penny.
|
(b)
|
Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions and a complete redemption of the investment at the net asset value at the end of the period.
|
(c)
|
Expenses waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements. These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, and decrease total returns had such reductions not occurred.
|
(d)
|
The net expense ratios shown above reflect expenses after waivers and reimbursements but exclude the effect of reductions to total expenses for any expenses offset. Expense offset arrangements reduce total expenses, as discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such reductions not occurred. The effect of expenses offset are as follows:
|
Investor Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Expense offset
|
(.02
|
)%
|
—
|
(e)
|
—
|
(e)
|
—
|
(e)
|
—
|
(e)
|
(e)
|
Effect on the expense ratio was not greater than 0.005%.
|
(f)
|
Excludes option transactions.
|
Investor Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Net asset value, beginning of year
|
$
|
4.89
|
$
|
5.16
|
$
|
6.00
|
$
|
11.78
|
$
|
12.61
|
||||||||||
Investment Activities
|
||||||||||||||||||||
Net investment loss
|
(.07
|
)
|
(.04
|
)
|
(.05
|
)
|
(.06
|
)
|
(.09
|
)
|
||||||||||
Net realized and unrealized gain (loss)
|
2.28
|
(.21
|
)
|
(.79
|
)
|
(5.72
|
)
|
(.72
|
)
|
|||||||||||
Total from investment activities
|
2.21
|
(.25
|
)
|
(.84
|
)
|
(5.78
|
)
|
(.81
|
)
|
|||||||||||
Distributions
|
||||||||||||||||||||
From net investment income
|
(.06
|
)
|
(.02
|
)
|
—
|
—
|
(.02
|
)
|
||||||||||||
Short -Term Trading Fees* (a)
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Net asset value, end of year
|
$
|
7.04
|
$
|
4.89
|
$
|
5.16
|
$
|
6.00
|
$
|
11.78
|
||||||||||
Total Return (b)
|
45.36
|
%
|
(4.78
|
)%
|
(14.00
|
)%
|
(49.07
|
)%
|
(6.44
|
)%
|
||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Net investment loss
|
(1.02
|
)%
|
(.83
|
)%
|
(.67
|
)%
|
(.48
|
)%
|
(.60
|
)%
|
||||||||||
Total expenses
|
1.73
|
%
|
2.13
|
%
|
1.93
|
%
|
2.12
|
%
|
1.61
|
%
|
||||||||||
Expenses waived or reimbursed (c)
|
(.02
|
)%
|
(.08
|
)%
|
(.05
|
)%
|
(.06
|
)%
|
—
|
|||||||||||
Net expenses (d)
|
1.71
|
%
|
2.05
|
%
|
1.88
|
%
|
2.06
|
%
|
1.61
|
%
|
||||||||||
Portfolio turnover rate
|
181
|
%(f)
|
106
|
%(f)
|
99
|
%(f)
|
64
|
%
|
95
|
%
|
||||||||||
Net assets, end of year (in thousands)
|
$
|
93,988
|
$
|
58,298
|
$
|
62,777
|
$
|
74,627
|
$
|
166,524
|
*
|
Based on average monthly shares outstanding.
|
(a)
|
The per share amount does not round to a full penny.
|
(b)
|
Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions and a complete redemption of the investment at the net asset value at the end of the period.
|
(c)
|
Expenses waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements. These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, and decrease total returns had such reductions not occurred.
|
(d)
|
The net expense ratios shown above reflect expenses after waivers and reimbursements but exclude the effect of reductions to total expenses for any expenses offset. Expense offset arrangements reduce total expenses, as discussed in the notes to the financial statements. These amounts would decrease the net investment loss ratio had such reductions not occurred. The effect of expenses offset are as follows:
|
Investor Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Expense offset
|
(.01
|
)%
|
—
|
(e)
|
—
|
(e)
|
—
|
(e)
|
—
|
(e)
|
(e)
|
Effect on the expense ratio was not greater than 0.005%.
|
(f)
|
Excludes option transactions.
|
Investor Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Net asset value, beginning of year
|
$
|
3.64
|
$
|
4.75
|
$
|
5.69
|
$
|
11.70
|
$
|
13.18
|
||||||||||
Investment Activities
|
||||||||||||||||||||
Net investment loss
|
(.09
|
)*
|
(.03
|
)*
|
(.06
|
)*
|
(.07
|
)*
|
(.11
|
)*
|
||||||||||
Net realized and unrealized loss
|
2.82
|
*
|
(.72
|
)*
|
(.88
|
)*
|
(5.94
|
)*
|
(1.37
|
)*
|
||||||||||
Total from investment activities
|
2.73
|
(.75
|
)
|
(.94
|
)
|
(6.01
|
)
|
(1.48
|
)
|
|||||||||||
Distributions from net investment income
|
(.02
|
)
|
(.36
|
)
|
—
|
—
|
—
|
|||||||||||||
Short -Term Trading Fees*(a)
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Net asset value, end of year
|
$
|
6.35
|
$
|
3.64
|
$
|
4.75
|
$
|
5.69
|
$
|
11.70
|
||||||||||
Total Return (b)
|
75.08
|
%
|
(15.64
|
)%
|
(16.52
|
)%
|
(51.37
|
)%
|
(11.23
|
)%
|
||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Net investment loss
|
(1.28
|
)%
|
(.71
|
)%
|
(.91
|
)%
|
(.90
|
)%
|
(.85
|
)%
|
||||||||||
Total expenses
|
1.99
|
%
|
1.96
|
%
|
1.99
|
%
|
1.85
|
%
|
1.45
|
%
|
||||||||||
Expenses waived or reimbursed (c)
|
(.04
|
)%
|
(.15
|
)%
|
(.03
|
)%
|
(.02
|
)%
|
—
|
|||||||||||
Net expenses (d)
|
1.95
|
%
|
1.81
|
%
|
1.96
|
%
|
1.83
|
%
|
1.45
|
%
|
||||||||||
Portfolio turnover rate (f)
|
136
|
%(g)
|
71
|
%(g)
|
61
|
%(g)
|
34
|
%
|
44
|
%
|
||||||||||
Net assets, end of year (in thousands)
|
$
|
137,338
|
$
|
78,150
|
$
|
103,413
|
$
|
134,065
|
$
|
319,052
|
*
|
Based on average monthly shares outstanding.
|
(a)
|
The per share amount does not round to a full penny.
|
(b)
|
Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions and a complete redemption of the investment at the net asset value at the end of the period.
|
(c)
|
Expenses waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements. These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, and decrease total returns had such reductions not occurred.
|
(d)
|
The net expense ratios shown above reflect expenses after waivers and reimbursements but exclude the effect of reductions to total expenses for any expenses offset. Expense offset arrangements reduce total expenses, as discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such reductions not occurred. The effect of expenses offset are as follows:
|
Investor Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Expense offset
|
(.01
|
)%
|
—
|
(e)
|
—
|
(e)
|
—
|
(e)
|
—
|
(e)
|
(e)
|
Effect on the expense ratio was not greater than 0.005%.
|
(f)
|
Portfolio turnover rate is calculated at the fund level.
|
(g)
|
Excludes option transactions.
|
Investor Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Net asset value, beginning of year
|
$
|
4.72
|
$
|
6.67
|
$
|
9.36
|
$
|
9.79
|
$
|
9.36
|
||||||||||
Investment Activities
|
||||||||||||||||||||
Net investment income (loss)
|
.06
|
*
|
.10
|
*
|
.04
|
*
|
.02
|
*
|
.04
|
*
|
||||||||||
Net realized and unrealized gain (loss)
|
.64
|
*
|
(2.00
|
)*
|
(2.73
|
)*
|
(.10
|
)*
|
.61
|
*
|
||||||||||
Total from investment activities
|
.70
|
(1.90
|
)
|
(2.69
|
)
|
(.08
|
)
|
.65
|
||||||||||||
Distributions from net investment income
|
(.17
|
)
|
(.05
|
)
|
—
|
(.35
|
)
|
(.22
|
)
|
|||||||||||
Short -Term Trading Fees*(a)
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Net asset value, end of year
|
$
|
5.25
|
$
|
4.72
|
$
|
6.67
|
$
|
9.36
|
$
|
9.79
|
||||||||||
Total Return (b)
|
14.99
|
%
|
(28.43
|
)%
|
(28.74
|
)%
|
(.72
|
)%
|
6.93
|
%
|
||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Net investment income (loss)
|
1.13
|
%
|
1.72
|
%
|
.44
|
%
|
.16
|
%
|
.44
|
%
|
||||||||||
Total expenses
|
1.85
|
%
|
1.58
|
%
|
1.45
|
%
|
1.59
|
%
|
1.57
|
%
|
||||||||||
Expenses waived or reimbursed (c)
|
(.01
|
)%
|
(.06
|
)%
|
—(e
|
)
|
—
|
—
|
||||||||||||
Net expenses (d)
|
1.84
|
%
|
1.52
|
%
|
1.45
|
%
|
1.59
|
%
|
1.57
|
%
|
||||||||||
Portfolio turnover rate (f)
|
255
|
%(g)
|
445
|
%(g)
|
444
|
%(g)
|
138
|
%
|
117
|
%
|
||||||||||
Net assets, end of year (in thousands)
|
$
|
97,005
|
$
|
98,126
|
$
|
171,673
|
$
|
326,320
|
$
|
438,372
|
*
|
Based on average monthly shares outstanding.
|
(a)
|
The per share amount does not round to a full penny.
|
(b)
|
Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions and a complete redemption of the investment at the net asset value at the end of the period.
|
(c)
|
Expenses waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements. These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, and decrease total returns had such reductions not occurred.
|
(d)
|
The net expense ratios shown above reflect expenses after waivers and reimbursements but exclude the effect of reductions to total expenses for any expenses offset. Expense offset arrangements reduce total expenses, as discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such reductions not occurred. The effect of expenses offset are as follows:
|
Investor Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Expense offset
|
(.01
|
)%
|
—
|
(e)
|
—
|
(e)
|
—
|
(e)
|
—
|
(e)
|
(e)
|
Effect on the expense ratio was not greater than 0.005%.
|
(f)
|
Portfolio turnover is calculated at the fund level.
|
(g)
|
Excludes option transactions.
|
Investor Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Net asset value, beginning of year
|
$
|
5.20
|
$
|
6.56
|
$
|
8.82
|
$
|
9.23
|
$
|
7.79
|
||||||||||
Investment Activities
|
||||||||||||||||||||
Net investment income
|
.07
|
.04
|
.06
|
.19
|
.15
|
|||||||||||||||
Net realized and unrealized gain (loss)
|
.67
|
(1.40
|
)
|
(2.11
|
)
|
(.46
|
)
|
1.35
|
||||||||||||
Total from investment activities
|
.74
|
(1.36
|
)
|
(2.05
|
)
|
(.27
|
)
|
1.50
|
||||||||||||
Distributions from net investment income
|
—
|
—
|
(.21
|
)
|
(.14
|
)
|
(.06
|
)
|
||||||||||||
Short -Term Trading Fees*(a)
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Net asset value, end of year
|
$
|
5.94
|
$
|
5.20
|
$
|
6.56
|
$
|
8.82
|
$
|
9.23
|
||||||||||
Total Return (b)
|
14.23
|
%
|
(20.73
|
)%
|
(23.22
|
)%
|
(2.93
|
)%
|
19.27
|
%
|
||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Net investment income
|
1.19
|
%
|
.63
|
%
|
.23
|
%
|
1.59
|
%
|
1.39
|
%
|
||||||||||
Total expenses
|
2.31
|
%
|
2.60
|
%
|
2.28
|
%
|
2.13
|
%
|
2.15
|
%
|
||||||||||
Expenses waived or reimbursed (c)
|
—
|
(e)
|
—
|
—
|
—
|
—
|
||||||||||||||
Net expenses (d)
|
2.31
|
%
|
2.60
|
%
|
2.28
|
%
|
2.13
|
%
|
2.15
|
%
|
||||||||||
Portfolio turnover rate
|
164
|
%(f)
|
137
|
%(f)
|
93
|
%(f)
|
74
|
%
|
85
|
%
|
||||||||||
Net assets, end of year (in thousands)
|
$
|
42,273
|
$
|
44,666
|
$
|
69,066
|
$
|
122,570
|
$
|
173,687
|
*
|
Based on average monthly shares outstanding.
|
(a)
|
The per share amount does not round to a full penny.
|
(b)
|
Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions and a complete redemption of the investment at the net asset value at the end of the period.
|
(c)
|
Expenses waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements. These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, and decrease total returns had such reductions not occurred.
|
(d)
|
The net expense ratios shown above reflect expenses after waivers and reimbursements but exclude the effect of reductions to total expenses for any expenses offset. Expense offset arrangements reduce total expenses, as discussed in the notes to the financial statements. These amounts would decrease the net investment income (loss) ratio had such reductions not occurred. The effect of expenses offset are as follows:
|
Investor Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Expense offset (e)
|
—
|
—
|
—
|
—
|
—
|
(e)
|
Effect on the expense ratio was not greater than 0.005%.
|
(f)
|
Excludes option transactions.
|
Investor Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Net asset value, beginning of year
|
$
|
7.41
|
$
|
8.20
|
$
|
8.28
|
$
|
7.61
|
$
|
6.81
|
||||||||||
Investment Activities
|
||||||||||||||||||||
Net investment income (loss)
|
.01
|
.02
|
—
|
(a)
|
(.01
|
)
|
.04
|
|||||||||||||
Net realized and unrealized gain (loss)
|
(.09
|
)
|
(.72
|
)
|
(.08
|
)
|
.70
|
.78
|
||||||||||||
Total from investment activities
|
(.08
|
)
|
(.70
|
)
|
(.08
|
)
|
.69
|
.82
|
||||||||||||
Distributions from net investment income
|
(.01
|
)
|
(.09
|
)
|
—
|
(.02
|
)
|
(.02
|
)
|
|||||||||||
Short -Term Trading Fees* (a)
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Net asset value, end of year
|
$
|
7.32
|
$
|
7.41
|
$
|
8.20
|
$
|
8.28
|
$
|
7.61
|
||||||||||
Total Return (b)
|
(1.05
|
)%
|
(8.60
|
)%
|
(.97
|
)%
|
9.07
|
%
|
12.00
|
%
|
||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Net investment income (loss)
|
.12
|
%
|
.24
|
%
|
.08
|
%
|
(.12
|
)%
|
.60
|
%
|
||||||||||
Total expenses
|
2.74
|
%
|
3.03
|
%
|
2.94
|
%
|
2.75
|
%
|
2.64
|
%
|
||||||||||
Expenses waived or reimbursed (c)
|
(.38
|
)%
|
(.51
|
)%
|
(.43
|
)%
|
(.37
|
)%
|
(.39
|
)%
|
||||||||||
Net expenses (d)
|
2.36
|
%
|
2.52
|
%
|
2.51
|
%
|
2.38
|
%
|
2.25
|
%
|
||||||||||
Portfolio turnover rate
|
165
|
%(f)
|
210
|
%(f)
|
235
|
%(f)
|
201
|
%
|
374
|
%
|
||||||||||
Net assets, end of year (in thousands)
|
$
|
16,510
|
$
|
16,183
|
$
|
21,008
|
$
|
26,386
|
$
|
29,160
|
*
|
Based on average monthly shares outstanding.
|
(a)
|
The per share amount does not round to a full penny.
|
(b)
|
Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions and a complete redemption of the investment at the net asset value at the end of the period.
|
(c)
|
Expenses waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements. These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, and decrease total returns had such reductions not occurred.
|
(d)
|
The net expense ratios shown above reflect expenses after waivers and reimbursements but exclude the effect of reductions to total expenses for any expenses offset. Expense offset arrangements reduce total expenses, as discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such reductions not occurred. The effect of expenses offset are as follows:
|
Investor Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Expense offset
|
(.01
|
)%
|
—
|
(e)
|
—
|
(e)
|
—
|
(e)
|
—
|
(e)
|
(e)
|
Effect on the expense ratio was not greater than 0.005%.
|
(f)
|
Excludes option transactions.
|
Investor Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Net asset value, beginning of year
|
$
|
2.25
|
$
|
2.25
|
$
|
2.23
|
$
|
2.27
|
$
|
2.26
|
||||||||||
Investment Activities
|
||||||||||||||||||||
Net investment income
|
.03
|
.03
|
.05
|
.05
|
.05
|
|||||||||||||||
Net realized and unrealized gain (loss)
|
(.04
|
)
|
—(a
|
)
|
.02
|
(.04
|
)
|
.01
|
||||||||||||
Total from investment activities
|
(.01
|
)
|
.03
|
.07
|
.01
|
.06
|
||||||||||||||
Distributions
|
||||||||||||||||||||
From net investment income
|
(.03
|
)
|
(.03
|
)
|
(.05
|
)
|
(.05
|
)
|
(.05
|
)
|
||||||||||
From return of capital
|
—
|
(a)
|
—
|
—
|
—
|
—
|
||||||||||||||
Net asset value, end of year
|
$
|
2.21
|
$
|
2.25
|
$
|
2.25
|
$
|
2.23
|
$
|
2.27
|
||||||||||
Total Return (b)
|
(.45
|
)%
|
1.45
|
%
|
3.07
|
%
|
.31
|
%
|
2.67
|
%
|
||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Net investment income
|
1.25
|
%
|
1.52
|
%
|
2.13
|
%
|
2.08
|
%
|
2.21
|
%
|
||||||||||
Total expenses
|
0.97
|
%
|
1.09
|
%
|
1.08
|
%
|
1.21
|
%
|
1.25
|
%
|
||||||||||
Expenses waived or reimbursed (c)
|
(.52
|
)%
|
(.64
|
)%
|
(.63
|
)%
|
(.76
|
)%
|
(.80
|
)%
|
||||||||||
Net expenses (d)
|
.45
|
%
|
.45
|
%
|
.45
|
%
|
.45
|
%
|
.45
|
%
|
||||||||||
Portfolio turnover rate
|
33
|
%
|
15
|
%
|
12
|
%
|
6
|
%
|
7
|
%
|
||||||||||
Net assets, end of year (in thousands)
|
$
|
95,301
|
$
|
106,769
|
$
|
89,595
|
$
|
61,884
|
$
|
44,509
|
(a)
|
The per share amount does not round to a full penny.
|
(b)
|
Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions and a complete redemption of the investment at the net asset value at the end of the period.
|
(c)
|
Expenses waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements. These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, and decrease total returns had such reductions not occurred.
|
(d)
|
The net expense ratios shown above reflect expenses after waivers and reimbursements but exclude the effect of reductions to total expenses for any expenses offset. Expense offset arrangements reduce total expenses, as discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such reductions not occurred. The effect of expenses offset are as follows:
|
Investor Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Expense offset
|
(.02
|
)%
|
—
|
(e)
|
—
|
(e)
|
—
|
(e)
|
—
|
(e)
|
(e)
|
Effect on the expense ratio was not greater than 0.005%.
|
Investor Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
*
|
2012
|
*
|
||||||||||||||
Net asset value, beginning of year
|
$
|
2.00
|
$
|
2.00
|
$
|
2.00
|
$
|
2.00
|
$
|
2.00
|
||||||||||
Investment Activities
|
||||||||||||||||||||
Net investment income
|
.01
|
.01
|
.01
|
—
|
(a)
|
—
|
(a)
|
|||||||||||||
Net realized and unrealized gain
|
—
|
(a)
|
—
|
(a)
|
—
|
(a)
|
—
|
(a)
|
—
|
|||||||||||
Total from investment activities
|
.01
|
.01
|
.01
|
—
|
—
|
|||||||||||||||
Distributions
|
||||||||||||||||||||
From net investment income
|
(.01
|
)
|
(.01
|
)
|
(.01
|
)
|
—
|
(a)
|
—
|
(a)
|
||||||||||
From return of capital
|
—
|
(a)
|
—
|
—
|
—
|
—
|
||||||||||||||
From net realized gains
|
—
|
(a)
|
—
|
(a)
|
—
|
—
|
—
|
|||||||||||||
Net asset value, end of year
|
$
|
2.00
|
$
|
2.00
|
$
|
2.00
|
$
|
2.00
|
$
|
2.00
|
||||||||||
Total Return (b)
|
.47
|
%
|
.34
|
%
|
.36
|
%
|
.02
|
%
|
.01
|
%
|
||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Net investment income
|
.43
|
%
|
.33
|
%
|
.35
|
%
|
.01
|
%
|
.01
|
%
|
||||||||||
Total expenses
|
1.00
|
%
|
1.13
|
%
|
1.07
|
%
|
.97
|
%
|
.87
|
%
|
||||||||||
Expenses waived or reimbursed (c)
|
(.55
|
)%
|
(.68
|
)%
|
(.74
|
)%
|
(.91
|
)%
|
(.74
|
)%
|
||||||||||
Net expenses (d)
|
.45
|
%
|
.45
|
%
|
.33
|
%
|
.06
|
%
|
.13
|
%
|
||||||||||
Portfolio turnover rate (e)
|
18
|
%
|
60
|
%
|
33
|
%
|
||||||||||||||
Net assets, end of year (in thousands)
|
$
|
56,794
|
$
|
62,562
|
$
|
64,020
|
$
|
75,227
|
$
|
140,425
|
*
|
The per share amounts for the periods have been adjusted to reflect a 1-for-2 reverse stock split, which was effective December 20, 2013. In addition, on December 20, 2013, the Fund changed from a constant $1.00 net asset value per share money market fund to a U.S. Government ultra-short bond fund (that is not a money market fund) with an objective of total return with current income.
|
(a)
|
The per share amount does not round to a full penny.
|
(b)
|
Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions and a complete redemption of the investment at the net asset value at the end of the period.
|
(c)
|
Expenses waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements. These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, and decrease total returns had such reductions not occurred.
|
(d)
|
The net expense ratios shown above reflect expenses after waivers and reimbursements but exclude the effect of reductions to total expenses for any expenses offset. Expense offset arrangements reduce total expenses, as discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such reductions not occurred. The effect of expenses offset are as follows:
|
Investor Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
*
|
2012
|
*
|
||||||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Expense offset (f)
|
—
|
—
|
—
|
—
|
—
|
(e)
|
Portfolio turnover is not shown for periods that the Fund was a money market fund.
|
(f)
|
Effect on the expense ratio was not greater than 0.005%.
|
BY PHONE
|
1-800-873-8637
|
BY MAIL
|
Overnight Mail
Atlantic Fund Services c/o U.S. Global Investors Funds Three Canal Plaza Portland, ME 04101 |
BY INTERNET
|
www.usfunds.com
|
|
U.S. GLOBAL INVESTORS FUNDS
SEC Investment Company Act File No. 811-01800
U.S. GLOBAL INVESTORS, INC.
7900 Callaghan Road, San Antonio, TX 78229-2327 |
|
ATLANTIC FUND ADMINISTRATION, LLC d/b/a Atlantic Fund Services
Three Canal Plaza, Suite 600 Portland, ME 04101 |
|
Fund Services, LLC
PO Box 701 Milwaukee, WI 53201-0701 |
|
Institutional Class Shares
Prospectus
|
May 1, 2017
|
|
These securities have not been approved or disapproved by the Securities and Exchange Commission or any state securities commission nor has the Securities and Exchange Commission or any state securities commission passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.
|
Gold and Natural Resources Funds
World Precious Minerals Fund (UNWIX)
Global Resources Fund (PIPFX)
|
Summary Section Gold and Natural Resources Funds
|
|
World Precious Minerals Fund
|
1
|
Global Resources Fund
|
6
|
Investment Objectives, Principal Investment Strategies and Related Risks
|
|
World Precious Minerals Fund
|
11
|
Global Resources Fund
|
11
|
Common Investment Practices and Related Risks
|
17
|
Portfolio Holdings
|
18
|
Fund Management
|
19
|
Shareholder Information
|
|
Opening an Account
|
20
|
Funding an Account
|
21
|
Minimum Investment
|
21
|
How to Purchase, Redeem and Exchange Shares
|
22
|
Important Shareholder Information
|
23
|
Distributions and Taxes
|
26
|
Financial Highlights
|
29
|
Shareholder Fees
(fees paid directly from your investment) |
|
Maximum sales charge
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment) |
|
Management fee
|
1.07%
|
Distribution and/or service (12b-1) fees
|
None
|
Other expenses
|
1.53%
|
Acquired fund fees and expenses
|
0.11%
|
Total annual fund operating expenses
|
2.71%
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
$274
|
$841
|
$1,435
|
$3,041
|
●
|
Main Risk.
As with all mutual funds, loss of money is a risk of investing in the fund.
|
●
|
Market Risk.
The value of the fund’s shares will go up and down based on the performance of the companies whose securities it owns and other factors affecting the securities market generally.
|
●
|
Portfolio Management Risk.
The skill of the Adviser will play a significant role in the fund’s ability to achieve its investment objectives. There is a risk that the investment strategy does not achieve the fund’s objectives or that the Adviser does not implement the strategy properly.
|
●
|
Foreign Securities Risk/Emerging Markets Risk.
The fund’s investments in foreign securities are subject to special risks. The fund’s returns and share price may be affected to a large degree by several factors, including fluctuations in currency exchange rates; political, social or economic instability; the rule of law with respect to the recognition and protection of property rights; and less stringent accounting, disclosure and financial
|
●
|
Industry Concentration Risk.
The fund concentrates its investments in precious minerals. The fund may be subject to greater risks and market fluctuations than a portfolio representing a broader range of industries. The fund invests in securities that typically respond to changes in the price of gold and other precious minerals, which can be influenced by a variety of global economic, financial and political factors; increased environmental and labor costs in mining; and changes in laws relating to mining or gold production or sales; and the price may fluctuate substantially over short periods of time. Therefore, the fund may be more volatile than other types of investments.
|
●
|
Junior and Intermediate Mining Companies Risk.
The fund focuses its investments in junior and intermediate exploration companies. The securities of junior and intermediate exploration gold companies, which are often more speculative in nature, tend to be less liquid and more volatile in price than securities of larger companies.
|
●
|
Non-Diversification Risk.
The fund is non-diversified and may invest a significant portion of its total assets in a small number of companies. This may cause the performance of the fund to be dependent upon the performance of one or more selected companies, which may increase the volatility of the fund.
|
●
|
Price Volatility Risk.
The value of the fund’s shares may fluctuate significantly.
|
●
|
Growth Stock Risk.
Growth stocks generally experience share price fluctuations as the market reacts to changing perceptions of the underlying companies’ growth potentials and broader economic activities.
|
●
|
Options Risk.
Investing in options, LEAPS (an option that has an expiration date of up to two and one half years), and other instruments with option-type elements may increase the volatility and/or transaction expenses of the fund. An option may expire without value, resulting in a loss of the fund’s initial investment and may be less liquid and more volatile than an investment in the underlying securities. As the writer of an option, the fund may have no control over when the underlying instruments must be sold (in the case of a call option) or purchased (in the case of a put option) because the option purchaser may notify the fund of exercise at any time prior to the expiration of the option.
|
●
|
Warrants Risk.
Warrants can provide a greater potential for profit or loss than an equivalent investment in the underlying security. Prices of warrants do not necessarily move, however, in tandem with prices of the underlying securities, particularly for shorter periods of time, and, therefore, may be considered speculative investments. If a warrant held by the fund were not exercised by the date of its expiration, the fund would incur a loss in the amount of the cost of the warrant.
|
●
|
Depositary Receipts Risk.
ADR and GDR risks include, but are not limited to, fluctuations in foreign currencies and foreign investment risks, such as political and financial instability, less liquidity and greater volatility, lack of uniform accounting, auditing and financial reporting standards and increased price volatility. In addition, ADRs and GDRs may not track the price of the underlying foreign securities, and their value may change materially at times when the U.S. markets are not open for trading. Investments in unsponsored depositary receipts may be subject to additional risks.
|
●
|
Convertible Securities Risk.
Convertible securities entail interest rate and credit risks. While fixed-income securities generally have a priority claim on a corporation’s assets over that of common stock, convertible securities held by the fund that are rated below investment grade (i.e., “junk bonds”) are subject to special risks, including the risk of default in interest or principal payments, which could result in a loss of income to the fund or a decline in the market value of the securities.
|
●
|
Restricted Security Risk.
The fund may make direct equity investments in securities that are subject to contractual and regulatory restrictions on transfer. These investments may involve a high degree of business and financial risk. The restrictions on transfer may cause the fund to hold a security at a time when it may be beneficial
|
●
|
Gold and Precious Minerals Risk.
The fund may invest in gold and precious minerals directly and/or in equity or equity-related securities, such as ETFs that represent interests in, or related to, these precious metals and, therefore, is subject to the risk that it could fail to qualify as a regulated investment company under the Internal Revenue Code if the fund derives more than 10% of its gross income from these investments in gold and precious metals. Failure to qualify as a regulated investment company would result in adverse tax consequences to the fund and its shareholders.
|
●
|
Illiquidity Risk.
Illiquid securities are those securities that cannot be disposed of in seven days or less at approximately the value at which a fund carries them on its balance sheet. These investments may involve a high degree of business and financial risk.
|
●
|
Initial Public Offering Risk.
The fund may purchase securities in an initial public offering (“IPO”), which may be illiquid; thus the fund may not be able to dispose of them promptly at the price at which they are valued.
|
●
|
Exchange-Traded Funds Risk.
The risks of investment in these securities typically reflect the risks of types of instruments in which the ETFs invest. By investing in an ETF, the fund becomes a shareholder of that ETF and bears its proportionate share of the fees and expenses of the ETF. In addition, an ETF’s shares may trade above or below its net asset value.
|
●
|
Private Placement Risk.
Privately issued securities, including those which may be sold only in accordance with Rule 144A under the Securities Act of 1933, as amended, are restricted securities that are not registered with the U.S. Securities and Exchange Commission. The liquidity of the market for specific privately issued securities may vary. Accordingly, the fund may not be able to redeem or resell its interests in a privately issued security at an advantageous time or at an advantageous price, which may result in a loss to the fund. Privately issued securities that the Adviser determines to be “illiquid” are subject to the fund’s policy of not investing more than 15% of its net assets in illiquid securities.
|
Average Annual Total Returns (for the periods ended December 31, 2016)
|
1 Year
|
5 Years
|
Since
Commencement (3/1/10) |
World Precious Minerals Fund Return Before Taxes
|
75.97%
|
(11.42)%
|
(8.58)%
|
Return After Taxes on Distributions
|
75.59%
|
(12.22)%
|
(10.39)%
|
Return After Taxes on Distributions and Sale of Fund Shares
|
43.10%
|
(8.54)%
|
(6.07)%
|
S&P 500 Index (reflects no deduction for fees, expenses or taxes)
|
11.96%
|
14.66%
|
13.08%
|
NYSE Arca Gold Miners Index
(reflects no deduction for fees, expenses or taxes) |
53.26%
|
(16.36)%
|
(10.33)%
|
●
|
$1 million
|
●
|
None
|
Shareholder Fees
(fees paid directly from your investment) |
|
Maximum sales charge
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment) |
|
Management fee
|
1.01%
|
Distribution and/or service (12b-1) fees
|
None
|
Other expenses
|
4.40%
|
Total annual fund operating expenses
|
5.41%
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
$540
|
$1,613
|
$2,677
|
$5,300
|
●
|
Main Risk.
As with all mutual funds, loss of money is a risk of investing in the fund.
|
●
|
Market Risk.
The value of the fund’s shares will go up and down based on the performance of the companies whose securities it owns and other factors affecting the securities market generally.
|
●
|
Portfolio Management Risk.
The skill of the Adviser will play a significant role in the fund’s ability to achieve its investment objectives. There is a risk that the investment strategy does not achieve the fund’s objectives or that the Adviser does not implement the strategy properly.
|
●
|
Foreign Securities Risk/Emerging Markets Risk.
The fund’s investments in foreign securities are subject to special risks. The fund’s returns and share prices may be affected to a large degree by several factors, including fluctuations in currency exchange rates; political, social or economic instability; the rule of law with respect to the recognition and protection of property rights; and less stringent accounting, disclosure and financial reporting requirements in a particular country. These risks are generally intensified in emerging markets. The fund’s share prices will reflect the movements of the different stock markets in which it is invested and the currencies in which its investments are denominated.
|
●
|
Industry Concentration Risk.
The fund concentrates its investments in the natural resources industries and may be subject to greater risks and market fluctuations than a portfolio representing a broader range of industries. The fund invests in securities vulnerable to factors affecting the natural resources industries, such as increasing regulation of the environment by both U.S. and foreign governments and production and distribution policies of OPEC (Organization of Petroleum Exporting Countries) and other oil producing countries. Increased environmental regulations and limitations on production may, among other things, increase compliance costs and affect business opportunities for the companies in which the fund invests. The value of these companies is also affected by changing commodity prices, which can be highly volatile and are subject to risks of oversupply and reduced demand.
|
●
|
Non-Diversification Risk.
The fund is non-diversified and may invest a significant portion of its total assets in a small number of companies. This may cause the performance of the fund to be dependent upon the performance of one or more selected companies, which may increase the volatility of the fund.
|
●
|
Portfolio Turnover Risk.
The fund’s portfolio turnover rates vary from year to year according to market conditions and may exceed 100%. The length of time the fund has held a particular security is not generally a consideration in investment decisions. It is the policy of the fund to effect portfolio transactions without regard to a holding if, in the judgment of the portfolio managers, such transactions are advisable. Portfolio turnover generally involves some expense, including brokerage commissions, dealer mark-ups, or other transaction costs on the sale of securities and reinvestment in other securities. Such sales may result in realization of taxable capital gains for shareholders.
|
●
|
Price Volatility Risk.
The value of the fund’s shares may fluctuate significantly.
|
●
|
Growth Stock Risk.
Growth stocks generally experience share price fluctuations as the market reacts to changing perceptions of the underlying companies’ growth potentials and broader economic activities.
|
●
|
Options Risk.
Investing in options, LEAPS (an option that has an expiration date of up to two and one half years), and other instruments with option-type elements may increase the volatility and/or transaction expenses of the fund. An option may expire without value, resulting in a loss of the fund’s initial investment and may be less liquid and more volatile than an investment in the underlying securities. As the writer of an option, the fund may have no control over when the underlying instruments must be sold (in the case of a call option) or purchased (in the case of a put option) because the option purchaser may notify the fund of exercise at any time prior to the expiration of the option.
|
●
|
Warrants Risk.
Warrants can provide a greater potential for profit or loss than an equivalent investment in the underlying security. Prices of warrants do not necessarily move, however, in tandem with prices of the underlying securities, particularly for shorter periods of time, and, therefore, may be considered speculative investments. If a warrant held by the fund were not exercised by the date of its expiration, the fund would incur a loss in the amount of the cost of the warrant, if any.
|
●
|
Depositary Receipts Risk.
ADR and GDR risks include, but are not limited to, fluctuations in foreign currencies and foreign investment risks, such as political and financial instability, less liquidity and greater volatility, lack of uniform accounting, auditing and financial reporting standards and increased price volatility. In addition, ADRs and GDRs may not track the price of the underlying foreign securities, and their value may change materially at times when the U.S. markets are not open for trading. Investments in unsponsored depositary receipts may be subject to additional risks.
|
●
|
Convertible Securities Risk.
Convertible securities entail interest rate and credit risks. While fixed-income securities generally have a priority claim on a corporation’s assets over that of common stock, convertible securities held by the fund that are rated below investment grade (i.e., “junk bonds”) are subject to special risks, including the risk of default in interest or principal payments, which could result in a loss of income to the fund or a decline in the market value of the securities.
|
●
|
Restricted Security Risk.
The fund may make direct equity investments in securities that are subject to contractual and regulatory restrictions on transfer. These investments may involve a high degree of business and financial risk. The restrictions on transfer may cause the fund to hold a security at a time when it may be beneficial to liquidate the security, and the security could decline significantly in value before the fund could liquidate the security.
|
●
|
Illiquidity Risk.
Illiquid securities are those securities that cannot be disposed of in seven days or less at approximately the value at which a fund carries them on its balance sheet. These investments may involve a high degree of business and financial risk.
|
●
|
Initial Public Offering Risk.
The fund may purchase securities in an initial public offering (“IPO”), which may be illiquid; thus the fund may not be able to dispose of them promptly at the price at which they are valued.
|
●
|
Private Placement Risk.
Privately issued securities, including those which may be sold only in accordance with Rule 144A under the Securities Act of 1933, as amended, are restricted securities that are not registered with the U.S. Securities and Exchange Commission. The liquidity of the market for specific privately issued securities may vary. Accordingly, the Fund may not be able to redeem or resell its interests in a privately issued security at an advantageous time or at an advantageous price, which may result in a loss to the fund. Privately issued securities that the Adviser determines to be “illiquid” are subject to the fund’s policy of not investing more than 15% of its net assets in illiquid securities.
|
Average Annual Total Returns (for the periods ended December 31, 2016)
|
1 Year
|
5 Years
|
Since
Commencement
(3/1/10)
|
Global Resources Fund Return Before Taxes
|
15.43%
|
(8.49)%
|
(4.56)%
|
Return After Taxes on Distributions
|
14.05%
|
(9.26)%
|
(5.44)%
|
Return After Taxes on Distributions and Sale of Fund Shares
|
9.36%
|
(6.21)%
|
(3.34)%
|
S&P 500 Index (reflects no deduction for fees, expenses or taxes)
|
11.96%
|
14.66%
|
13.08%
|
S&P Global Natural Resources Index (Net Total Return) (reflects no deduction for fees or expenses)
|
31.45%
|
(0.82)%
|
(0.60)%
|
●
|
$1 million
|
●
|
None
|
Energy
|
Basic Materials
|
Natural gas
Integrated oil companies
Oil and gas drilling
Oil and gas exploration and production
Oil and gas refining
Oilfield equipment/services
|
Aluminum
Chemicals
Diversified metals and coal mining
Gold and precious metals
Iron and steel
Paper and forest products
Uranium
|
Base
Advisory Fee |
Benchmark
|
Hurdle
Rate |
Base Advisory
Fee Range With Performance Fee Adjustment |
|
World Precious Minerals Fund
|
1.00%
|
NYSE Arca Gold Miners Index
|
+/- 5%
|
0.75%-1.25%
|
Global Resources Fund
|
0.95%
|
S&P Global Natural Resources Index (Net Total Return)
|
+/- 5%
|
0.70%-1.20%
|
For the rolling
12-month period |
Fund’s investment performance
|
Index’s cumulative change
|
Fund’s performance relative to the index
|
January 1
|
$50.00
|
$100.00
|
|
December 31
|
$57.60
|
$110.20
|
|
Absolute change
|
+$7.60
|
+$10.20
|
|
Actual change
|
+15.20%
|
+10.20%
|
+5.00%
|
●
|
The portion of the annual basic fee rate of 1.00% applicable to that month is multiplied by the fund’s average daily net assets for the month. This results in the dollar amount of the base fee.
|
●
|
The 0.25% rate (adjusted for the number of days in the month) is multiplied by the fund’s average daily net assets for the performance period. This results in the dollar amount of the performance adjustment.
|
●
|
The dollar amount of the performance adjustment is added to the dollar amount of the basic fee, producing the adjusted management fee.
|
World
Precious Minerals Fund |
Global
Resources Fund |
|
Actual total annual operating expenses*
|
2.60%
|
5.41%
|
Voluntary expense waiver
|
(1.33)%
|
(4.05)%
|
Total annual expenses after Reimbursement
|
1.27%
|
1.36%
|
*
|
Excluding acquired fund fees and expenses, if any.
|
●
|
$1,000,000
|
●
|
None
|
●
|
For all redemptions in excess of $50,000 from any shareholder account;
|
●
|
When redemption proceeds are payable or sent to any person, address or bank account not on record;
|
●
|
If a change of address was received by the transfer agent within the last 15 calendar days; and
|
●
|
If ownership is being changed on your account.
|
●
|
Overnight Mail
Atlantic Fund Services c/o U.S. Global Investors Funds Three Canal Plaza Portland, ME 04101 |
●
|
Reject and/or restrict purchase, redemption or exchange orders when in the best interest of a fund;
|
●
|
Limit or discontinue the offering of shares of a fund without notice to the shareholders;
|
●
|
Calculate the NAV per share and accept purchases, exchange and redemption orders on a business day that the NYSE is closed;
|
●
|
Require a signature guarantee, from either a Medallion program member or a non-Medallion program member, for transactions or changes in account information;
|
●
|
Redeem an account with less than the required fund account minimum, with certain limitations;
|
●
|
Restrict or liquidate an account when necessary or appropriate to comply with federal law;
|
●
|
Charge a fee for any historical information request regarding your fund account. Please call an Investor Representative at 800-873-8637 for more information regarding this fee.
|
●
|
It may lower overall fund performance;
|
●
|
It may create increased transaction costs to the fund, which are passed along to long-term shareholders;
|
●
|
Frequent redemptions by market timers may increase taxable capital gains; and
|
●
|
It may disrupt a portfolio manager’s ability to effectively manage fund assets.
|
Institutional Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Net asset value, beginning of year
|
$
|
3.65
|
$
|
4.78
|
$
|
5.72
|
$
|
11.69
|
$
|
13.10
|
||||||||||
Investment Activities
|
||||||||||||||||||||
Net investment loss
|
(.05
|
)*
|
(.01
|
)*
|
(.05
|
)*
|
(.01
|
)*
|
(.04
|
)*
|
||||||||||
Net realized and unrealized loss
|
2.82
|
*
|
(.72
|
)*
|
(.89
|
)*
|
(5.96
|
)*
|
(1.37
|
)*
|
||||||||||
Total from investment activities
|
2.77
|
(.73
|
)
|
(.94
|
)
|
(5.97
|
)
|
(1.41
|
)
|
|||||||||||
Distributions from net investment income
|
(.04
|
)
|
(.40
|
)
|
—
|
—
|
—
|
|||||||||||||
Short -Term Trading Fees*
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Net asset value, end of year
|
$
|
6.38
|
$
|
3.65
|
$
|
4.78
|
$
|
5.72
|
$
|
11.69
|
||||||||||
Total Return (a)
|
75.97
|
%
|
(15.07
|
)%
|
(16.43
|
)%
|
(51.07
|
)%
|
(10.76
|
)%
|
||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Net investment loss
|
(.69
|
)%
|
(.15
|
)%
|
(.71
|
)%
|
(.15
|
)%
|
(.32
|
)%
|
||||||||||
Total expenses
|
2.60
|
%
|
20.51
|
%
|
4.86
|
%
|
3.30
|
%
|
3.56
|
%
|
||||||||||
Expenses waived or reimbursed (b)
|
(1.33
|
)%
|
(19.31
|
)%
|
(3.23
|
)%
|
(1.97
|
)%
|
(2.69
|
)%
|
||||||||||
Net expenses (c)
|
1.27
|
%
|
1.20
|
%
|
1.63
|
%
|
1.33
|
%
|
.87
|
%
|
||||||||||
Portfolio turnover rate (e)
|
136
|
%(f)
|
71
|
%(f)
|
61
|
%(f)
|
34
|
%
|
44
|
%
|
||||||||||
Net assets, end of year (in thousands)
|
$
|
3,821
|
$
|
76
|
$
|
154
|
$
|
3,660
|
$
|
769
|
*
|
Based on average monthly shares outstanding.
|
(a)
|
Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions and a complete redemption of the investment at the net asset value at the end of the period.
|
(b)
|
Expenses waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements. These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, and decrease total returns had such reductions not occurred.
|
(c)
|
The net expense ratios shown above reflect expenses after waivers and reimbursements but exclude the effect of reductions to total expenses for any expenses offset. Expense offset arrangements reduce total expenses, as discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such reductions not occurred. The effect of expenses offset are as follows:
|
Institutional Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Expense offset
|
(.01
|
)%
|
—
|
(d)
|
—
|
(d)
|
—
|
(d)
|
—
|
(d)
|
(d)
|
Effect on the expense ratio was not greater than 0.005%.
|
(e)
|
Portfolio turnover rate is calculated at the fund level.
|
(f)
|
Excludes option transactions.
|
Institutional Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Net asset value, beginning of year
|
$
|
4.74
|
$
|
6.67
|
$
|
9.30
|
$
|
9.74
|
$
|
9.39
|
||||||||||
Investment Activities
|
||||||||||||||||||||
Net investment income (loss)
|
.08
|
*
|
.17
|
*
|
.08
|
*
|
.07
|
*
|
.10
|
*
|
||||||||||
Net realized and unrealized gain (loss)
|
.65
|
*
|
(2.02
|
)*
|
(2.71
|
)*
|
(.10
|
)*
|
.60
|
*
|
||||||||||
Total from investment activities
|
.73
|
(1.85
|
)
|
(2.63
|
)
|
(.03
|
)
|
.70
|
||||||||||||
Distributions from net investment income
|
(.22
|
)
|
(.08
|
)
|
—
|
(.41
|
)
|
(.35
|
)
|
|||||||||||
Short -Term Trading Fees*
|
—
|
—
|
—
|
—
|
(a)
|
—
|
(a)
|
|||||||||||||
Net asset value, end of year
|
$
|
5.25
|
$
|
4.74
|
$
|
6.67
|
$
|
9.30
|
$
|
9.74
|
||||||||||
Total Return (b)
|
15.43
|
%
|
(27.73
|
)%
|
(28.28
|
)%
|
(.15
|
)%
|
7.44
|
%
|
||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Net investment income (loss)
|
1.61
|
%
|
2.92
|
%
|
.85
|
%
|
.68
|
%
|
1.02
|
%
|
||||||||||
Total expenses
|
5.41
|
%
|
1.35
|
%
|
1.13
|
%
|
1.25
|
%
|
1.21
|
%
|
||||||||||
Expenses waived or reimbursed (c)
|
(4.05
|
)%
|
(.61
|
)%
|
(.27
|
)%
|
(.22
|
)%
|
(.14
|
)%
|
||||||||||
Net expenses (d)
|
1.36
|
%
|
.74
|
%
|
.86
|
%
|
1.03
|
%
|
1.07
|
%
|
||||||||||
Portfolio turnover rate (f)
|
255
|
%(g)
|
445
|
%(g)
|
444
|
%(g)
|
138
|
%
|
117
|
%
|
||||||||||
Net assets, end of year (in thousands)
|
$
|
1,021
|
$
|
1,882
|
$
|
9,733
|
$
|
51,122
|
$
|
94,076
|
*
|
Based on average monthly shares outstanding.
|
(a)
|
The per share amount does not round to a full penny.
|
(b)
|
Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions and a complete redemption of the investment at the net asset value at the end of the period.
|
(c)
|
Expenses waived or reimbursed reflect reductions to total expenses, as discussed in the notes to the financial statements. These amounts would increase the net investment loss ratio or decrease the net investment income ratio, as applicable, and decrease total returns had such reductions not occurred.
|
(d)
|
The net expense ratios shown above reflect expenses after waivers and reimbursements but exclude the effect of reductions to total expenses for any expenses offset. Expense offset arrangements reduce total expenses, as discussed in the notes to the financial statements. These amounts would decrease the net investment income (loss) ratio had such reductions not occurred. The effect of expenses offset are as follows:
|
Institutional Class
|
||||||||||||||||||||
Year Ended December 31,
|
||||||||||||||||||||
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Ratios to Average Net Assets:
|
||||||||||||||||||||
Expense offset
|
(.01
|
)%
|
—
|
(e)
|
—
|
(e)
|
—
|
(e)
|
—
|
(e)
|
(e)
|
Effect on the expense ratio was not greater than 0.005%.
|
(f)
|
Portfolio turnover rate is calculated at the fund level.
|
(g)
|
Excludes option transactions.
|
BY PHONE
|
1-800-873-8637
|
BY MAIL
|
Overnight Mail
Atlantic Fund Services c/o U.S. Global Investors Funds Three Canal Plaza Portland, ME 04101 |
BY INTERNET
|
www.usfunds.com
|
|
U.S. GLOBAL INVESTORS FUNDS
SEC Investment Company Act File No. 811-01800
U.S. GLOBAL INVESTORS, INC.
7900 Callaghan Road, San Antonio, TX 78229-2327 |
|
ATLANTIC FUND ADMINISTRATION, LLC d/b/a Atlantic Fund Services
Three Canal Plaza, Suite 600 Portland, ME 04101 |
Page
|
|
GENERAL INFORMATION
|
2
|
FUND POLICIES
|
3
|
FUNDAMENTAL INVESTMENT RESTRICTIONS
|
3
|
NON-FUNDAMENTAL INVESTMENT RESTRICTIONS
|
4
|
VALUATION OF SHARES
|
5
|
INVESTMENT STRATEGIES AND RISKS
|
6
|
COMMON INVESTMENT STRATEGIES AND RELATED RISKS
|
13
|
PORTFOLIO TURNOVER
|
21
|
PORTFOLIO HOLDINGS DISCLOSURE POLICY
|
21
|
MANAGEMENT OF THE TRUST
|
23
|
CODE OF ETHICS
|
27
|
PROXY VOTING POLICIES
|
27
|
PRINCIPAL HOLDERS OF SECURITIES
|
28
|
INVESTMENT ADVISORY AND OTHER SERVICES
|
29
|
DISTRIBUTION AGREEMENT AND DISTRIBUTION PLAN
|
32
|
TRANSFER AGENCY AGREEMENT
|
34
|
ADMINISTRATION AGREEMENT
|
34
|
PORTFOLIO MANAGERS
|
34
|
BROKERAGE ALLOCATION AND OTHER PRACTICES
|
36
|
TRADE AGGREGATION AND ALLOCATION PROCEDURES
|
37
|
PURCHASE, REDEMPTION AND PRICING OF SHARES
|
37
|
FEDERAL INCOME TAXES
|
38
|
FUND ACCOUNTANT AND ADMINISTRATOR
|
49
|
CUSTODIAN
|
49
|
TRANSFER AGENT
|
49
|
DISTRIBUTOR
|
49
|
FINANCIAL STATEMENTS
|
49
|
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM AND LEGAL COUNSEL
|
49
|
1
|
Although not part of the funds’ fundamental investment restriction, for purposes of determining a company’s industry, the funds use the Bloomberg Sector Classification System.
|
Bloomberg-classified industries involving banking
|
|
Regional Banks — Non-U.S.
|
Mortgage Banks
|
Commercial Banks — Non-U.S.
|
Special Purpose Banks
|
Diversified Banking Institutions
|
Super-Regional Banks — U.S.
|
Central Bank
|
Commercial Banks — Central U.S.
|
Cooperative Banks
|
Commercial Banks — Eastern U.S.
|
Fiduciary Banks
|
Commercial Banks — Southern U.S.
|
Money Center Banks
|
Commercial Banks — Western U.S.
|
The portfolio turnover rates for the two most recent fiscal years are as follows:
FUND
|
December 31,
2015 |
December 31,
2016 |
|||
All American Equity Fund
|
109
|
%
|
303
|
%
|
|
Holmes Macro Trends Fund
|
320
|
%
|
275
|
%
|
|
Gold and Precious Metals Fund
|
106
|
%
|
181
|
%
|
|
World Precious Minerals Fund
|
71
|
%
|
136
|
%
|
|
Global Resources Fund
|
445
|
%
|
255
|
%
|
|
Emerging Europe Fund
|
137
|
%
|
164
|
%
|
|
China Region Fund
|
210
|
%
|
165
|
%
|
|
Near-Term Tax Free Fund
|
15
|
%
|
33
|
%
|
|
U.S. Government Securities Ultra-Short Bond Fund
|
60
|
%
|
18
|
%
|
Name and Year
of Birth |
Position with
the Trust |
Length of
Time Served |
Principal
Occupation(s) During Past Five Years |
Number of
Series in Fund Complex Overseen By Trustee |
Other
Directorships Held By Trustee During Past Five Years |
||||||||||||
Independent Trustees
|
|||||||||||||||||
David Tucker
Born: 1958 |
Chairman of the Board; Trustee; Chairman, Nominating Committee and Qualified Legal Compliance Committee
|
Since 2015
|
Director, Blue Sky Experience (a charitable endeavor), since 2008; Senior Vice President & General Counsel, American Century Companies (an investment management firm) 1998-2008.
|
47
|
Trustee, Forum Funds; Trustee, Forum ETF Trust; Trustee, Forum Funds II
|
Mark D. Moyer
Born: 1959 |
Trustee; Chairman Audit Committee
|
Since 2015
|
Chief Financial Officer, Institute of International Education 2008-2011; Chief Financial Officer and Chief Restructuring Officer, Ziff Davis Media Inc. 2005-2008; Adjunct Professor of Accounting, Fairfield University from 2009-2012.
|
23
|
Trustee, Forum ETF Trust;
Trustee, Forum Funds II
|
||||||||||||
Jennifer Brown-Strabley
Born: 1964 |
Trustee
|
Since 2015
|
Principal, Portland Global Advisors 1996-2010.
|
23
|
Trustee, Forum ETF Trust; Trustee, Forum Funds II
|
||||||||||||
Interested Trustees
|
|||||||||||||||||
Stacey E. Hong
Born: 1966 |
Trustee
|
Since 2015
|
President, Atlantic since 2008
|
22
|
Trustee, Forum Funds II
|
||||||||||||
John Y. Keffer
1
Born: 1942 |
Trustee
|
Since 2015
|
Chairman, Atlantic Fund Administration, LLC (a fund services company) since 2008; President, Forum Investment Advisors, LLC since 2011; President, Forum Foundation (a charitable organization) since 2005; President, Forum Holdings Corp. I since 1997.
|
47
|
Trustee, Forum Funds; Trustee, , Forum ETF Trust
; Trustee, Forum Funds II
; Director, Wintergreen Fund, Inc.
|
1 |
Atlantic and Forum Investment Advisors, LLC are subsidiaries of Forum Holdings Corp. I, a Delaware corporation that is wholly owned by Mr. Keffer.
|
Trustees
|
Dollar Range of Beneficial Ownership
in the Funds as of December 31, 2016 |
Aggregate Dollar Range of Ownership
as of December 31, 2016 in all Registered
Investment Companies Overseen by
Trustee in the Fund Complex
|
Independent Trustees
|
||
David Tucker
|
None
|
None
|
Mark D. Moyer
|
None
|
None
|
Jennifer Brown-Strabley
|
None
|
None
|
Interested Trustees
|
||
Stacey E. Hong
|
None
|
None
|
John Y. Keffer
|
None
|
None
|
Name and Year of
Birth |
Position
with the Trust |
Length of Time
Served |
Principal Occupation(s)
During Past 5 Years |
||||||||
Jessica Chase
Born: 1970 |
President; Chief Executive Officer
|
Since 2015
|
Senior Vice President, Atlantic since 2008.
|
||||||||
Karen Shaw
Born: 1972 |
Treasurer; Chief Financial Officer
|
Since 2015
|
Senior Vice President, Atlantic since 2008.
|
||||||||
Zachary Tackett
Born: 1988 |
Vice President; Secretary and Anti-Money Laundering Compliance Officer, and Identity Theft Prevention Officer
|
Since 2015
|
Associate Counsel, Atlantic since 2014; Intern Associate, Coakley & Hyde, PLLC, 2010-2013.
|
Carlyn Edgar
Born: 1963 |
Chief Compliance Officer, Code of Ethics Review Officer
|
Since 2015
|
Senior Vice President, Atlantic since 2008.
|
||||||||
Susan McGee
Born: 1959
|
Vice President
|
Since 2016
|
President and General Counsel of the Adviser. Since September 1992, Ms. McGee has served and continues to serve in various positions with the Adviser, its subsidiaries, and the investment companies it sponsors.
|
Trustee
|
Aggregate Compensation
from the Funds
|
Pension or Retirement Benefits Accrued as part of Fund Expenses
|
Total Compensation
from Fund Complex
|
Independent Trustees
|
|||
David Tucker
|
$20,000
|
N/A
|
$99,000
|
Mark D. Moyer
|
$15,000
|
N/A
|
$31,000
|
Jennifer Brown-Strabley
|
$15,000
|
N/A
|
$31,000
|
Interested Trustees
|
|||
Stacey E. Hong
|
$0
|
N/A
|
$0
|
John Y. Keffer
|
$0
|
N/A
|
$0
|
* |
Each trustee was elected on December 9, 2015. On December 9, 2015, the Board approved new trustee compensation under which Independent Trustees of the Trust each receive an annual fee of $15,000 for service to the Trust. The Chairman of the Board is paid an annual fee of $20,000. The trustees and Chairman may receive additional fees for special Board meetings. Each trustee is also reimbursed for all reasonable out-of-pocket expenses incurred in connection with his duties as a trustee, including travel and related expenses incurred in attending Board meetings. The Trust has no pension or retirement plan. No other entity affiliated with the Trust pays any compensation to the trustees.
|
FUND
|
SHAREHOLDERS
|
PERCENTAGE
OWNED |
||
All American Equity Fund
|
National Financial Services, Cust the Exclusive Benefit of our Customers
|
5.85%
|
||
Holmes Macro Trends Fund
|
Charles Schwab And Co Inc
|
7.57%
|
||
Gold and Precious Metals Fund
|
Charles Schwab And Co Inc
|
20.95%
|
||
National Financial Services, Cust the Exclusive Benefit of our Customers
|
19.84%
|
|||
World Precious Minerals Fund
|
Charles Schwab And Co Inc
|
21.30%
|
||
National Financial Services, Cust the Exclusive Benefit of our Customers
|
17.63%
|
|||
Global Resources Fund
|
Charles Schwab And Co Inc
|
28.44%
|
||
National Financial Services, Cust the Exclusive Benefit of our Customers
|
17.93%
|
|||
TD Ameritrade Inc For The Exclusive Benefit of our Clients
|
7.20%
|
|||
Emerging Europe Fund
|
Charles Schwab And Co Inc
|
43.47%
|
||
National Financial Services, Cust the Exclusive Benefit of our Customers
|
21.22%
|
|||
TD Ameritrade Inc For The Exclusive Benefit of our Clients
|
7.34%
|
China Region Fund
|
Charles Schwab And Co Inc
|
16.43%
|
||
National Financial Services, Cust the Exclusive Benefit of our Customers
|
11.43%
|
|||
TD Ameritrade Inc For The Exclusive Benefit of our Clients
|
5.56%
|
|||
Near-Term Tax Free Fund
|
TD Ameritrade Inc For The Exclusive Benefit of our Clients
|
18.94%
|
||
Charles Schwab And Co Inc
|
15.79%
|
|||
National Financial Services, Cust the Exclusive Benefit of our Customers
|
9.47%
|
|||
U.S. Government Securities Ultra-Short Bond Fund
|
U S Global Investors Inc
|
11.50%
|
Fiscal Year Ended
|
||||||||||||
FUND
|
December 31,
2014 |
December 31,
2015 |
December 31,
2016 |
|||||||||
All American Equity Fund
|
$
|
185,983
|
$
|
167,090
|
$
|
143,514
|
||||||
Holmes Macro Trends Fund
|
$
|
513,911
|
$
|
449,744
|
$
|
382,097
|
||||||
Gold and Precious Metals Fund
|
$
|
752,383
|
$
|
565,159
|
$
|
976,160
|
||||||
World Precious Minerals Fund
|
$
|
1,428,006
|
$
|
923,871
|
$
|
1,512,127
|
||||||
Global Resources Fund
|
$
|
2,683,377
|
$
|
1,217,173
|
$
|
968,414
|
||||||
Emerging Europe Fund
|
$
|
1,203,532
|
$
|
727,480
|
$
|
540,478
|
||||||
China Region Fund
|
$
|
290,521
|
$
|
246,629
|
$
|
201,459
|
||||||
Near-Term Tax Free Fund
|
$
|
333,667
|
$
|
470,045
|
$
|
570,559
|
||||||
U. S. Government Securities Ultra-Short Bond Fund
|
$
|
346,170
|
$
|
299,305
|
$
|
299,089
|
Fiscal Year Ended
|
||||||||||||
FUND
|
December 31,
2014 |
December 31,
2015 |
December 31,
2016 |
|||||||||
All American Equity Fund
|
$
|
168,664
|
$
|
107,050
|
$
|
99,921
|
||||||
Holmes Macro Trends Fund
|
$
|
496,390
|
$
|
339,028
|
$
|
305,744
|
||||||
Gold and Precious Metals Fund
|
$
|
749,259
|
$
|
568,683
|
$
|
965,453
|
||||||
World Precious Minerals Fund
|
$
|
1,517,841
|
$
|
645,606
|
$
|
1,721,960
|
||||||
Global Resources Fund
|
$
|
1,843,643
|
$
|
622,643
|
$
|
982,844
|
||||||
Emerging Europe Fund
|
$
|
1,203,532
|
$
|
765,533
|
$
|
488,839
|
||||||
China Region Fund
|
$
|
179,068
|
$
|
123,787
|
$
|
139,793
|
||||||
Near-Term Tax Free Fund
|
$
|
0
|
$
|
0
|
$
|
0
|
||||||
U. S. Government Securities Ultra-Short Bond Fund
|
$
|
0
|
$
|
0
|
$
|
0
|
NAME OF FUND
|
ANNUAL PERCENTAGE OF AVERAGE DAILY NET ASSETS
|
All American Equity Fund
|
0.80%
<
$500,000,000; 0.75%> $500,000,000
|
Holmes Macro Trends Fund
|
1.00%
|
Gold and Precious Metals Fund
|
0.90%
<
$500,000,000; 0.85%> $500,000,000
|
World Precious Minerals Fund
|
1.00%
<
$500,000,000; 0.95% $500,000,001 - $1,000,000,000; 0.90%>$1,000,000,000
|
Global Resources Fund
|
0.95%
<
$500,000,000; 0.90% $500,000,001 - $1,000,000,000; 0.85%>$1,000,000,000
|
Emerging Europe Fund
|
1.25%
|
China Region Fund
|
1.25%
|
Near-Term Tax Free Fund
|
0.50%
|
U.S. Government Securities Ultra-Short Bond Fund
|
0.50%
<
$250,000,000; 0.375%>$250,000,000
|
Fiscal Year Ended
|
||||||||||||
FUND
|
December 31, 2014
|
December 31, 2015
|
December 31, 2016
|
|||||||||
All American Equity Fund
|
$
|
32,747
|
$
|
28,658
|
$
|
29,927
|
||||||
Holmes Macro Trends Fund
|
$
|
60,890
|
$
|
52,074
|
$
|
40,062
|
||||||
Gold and Precious Metals Fund
|
$
|
93,098
|
$
|
69,432
|
$
|
106,948
|
||||||
World Precious Minerals Fund
|
$
|
152,241
|
$
|
98,421
|
$
|
146,572
|
||||||
Global Resources Fund
|
$
|
290,878
|
$
|
133,089
|
$
|
96,969
|
||||||
Emerging Europe Fund
|
$
|
105,628
|
$
|
65,178
|
$
|
42,576
|
||||||
China Region Fund
|
$
|
32,741
|
$
|
27,590
|
$
|
29,016
|
||||||
Near-Term Tax Free Fund
|
$
|
0
|
$
|
0
|
$
|
88,228
|
||||||
U. S. Government Securities Ultra-Short Bond Fund
|
$
|
0
|
$
|
0
|
$
|
17,668
|
Fund
|
Advertising
|
Printing and
Mailing of Prospectuses to Other Than
Current Shareholders
|
Compensation to Underwriters
|
Compensation to Broker-Dealers
|
Compensation to Sales Personnel
|
Interest, Carrying or Other Financial Charges
|
Other
|
|||||||||||||||
All American Equity Fund
|
$
|
2,000
|
n/a
|
$
|
7,444
|
$
|
4,744
|
$
|
10,372
|
n/a
|
$
|
3,576
|
||||||||||
Holmes Macro Trends Fund
|
5,376
|
n/a
|
7,923
|
11,337
|
22,425
|
n/a
|
7,521
|
|||||||||||||||
Gold and Precious Metals Fund
|
21,292
|
n/a
|
9,481
|
100,947
|
97,714
|
n/a
|
22,076
|
|||||||||||||||
World Precious Minerals Fund
|
27,719
|
n/a
|
10,300
|
155,163
|
114,524
|
n/a
|
29,227
|
|||||||||||||||
Global Resources Fund
|
13,664
|
n/a
|
9,455
|
135,120
|
49,922
|
n/a
|
19,956
|
|||||||||||||||
Emerging Europe Fund
|
7,002
|
n/a
|
8,082
|
71,701
|
12,906
|
n/a
|
7,676
|
|||||||||||||||
China Region Fund
|
2,902
|
n/a
|
7,370
|
11,702
|
8,501
|
n/a
|
3,086
|
Fiscal Year Ended
*
|
||||||||||||
FUND
|
December 31,
2014
|
December 31,
2015
|
December 31,
2016
|
|||||||||
All American Equity Fund
|
$
|
49,382
|
$
|
29,955
|
$
|
23,504
|
||||||
Holmes Macro Trends Fund
|
$
|
56,032
|
$
|
63,955
|
$
|
49,639
|
||||||
Gold and Precious Metals Fund
|
$
|
70,708
|
$
|
90,834
|
$
|
137,191
|
||||||
World Precious Minerals Fund
|
$
|
87,866
|
$
|
135,779
|
$
|
191,315
|
||||||
Global Resources Fund
|
$
|
147,007
|
$
|
181,861
|
$
|
133,411
|
||||||
Emerging Europe Fund
|
$
|
75,350
|
$
|
92,759
|
$
|
66,357
|
||||||
China Region Fund
|
$
|
61,255
|
$
|
40,759
|
$
|
29,770
|
||||||
Near-Term Tax Free Fund
|
$
|
100,324
|
$
|
161,935
|
$
|
173,912
|
||||||
U.S. Government Securities Ultra-Short Bond Fund
|
$
|
61,579
|
$
|
85,535
|
$
|
78,406
|
* |
For periods prior to November 1, 2014, these amounts were paid to Brown Brothers Harriman & Co.
|
TYPE OF ACCOUNT
|
NUMBER
OF
ACCOUNTS
|
TOTAL
ASSETS
|
NUMBER OF
PERFORMANCE
FEE
ACCOUNTS
|
TOTAL ASSETS
OF
PERFORMANCE
FEE
ACCOUNTS
|
||||||||||||
Registered investment companies
|
1
|
$
|
65,727,852
|
0
|
$
|
0
|
||||||||||
Pooled investment vehicles
|
2
|
$
|
15,250,638
|
2
|
$
|
15,250,638
|
||||||||||
Other accounts
|
1
|
$
|
18,240,992
|
0
|
$
|
0
|
NAME OF FUND
|
DOLLAR RANGE OF EQUITY SECURITIES
IN THE
FUND HELD AS OF 12/31/2016
|
All American Equity Fund
|
$100,001 -- $500,000
|
Holmes Macro Trends Fund
|
$100,001 – $500,000
|
Gold and Precious Metals Fund
|
$50,001 – $100,000
|
World Precious Minerals Fund
|
$50,001 – $100,000
|
Global Resources Fund
|
$50,001 – $100,000
|
Emerging Europe Fund
|
$50,001 – $100,000
|
China Region Fund
|
$50,001 – $100,000
|
Near-Term Tax Free Fund
|
Over $1,000,000
|
U.S. Government Securities Ultra-Short Bond Fund
|
$500,001 – $1,000,000
|
TYPE OF ACCOUNT
|
NUMBER
OF
ACCOUNTS
|
TOTAL
ASSETS
|
NUMBER OF
PERFORMANCE
FEE
ACCOUNTS
|
TOTAL ASSETS
OF
PERFORMANCE
FEE
ACCOUNTS
|
||||||||||||
Registered investment companies
|
1
|
$
|
65,727,852
|
0
|
$
|
0
|
||||||||||
Pooled investment vehicles
|
2
|
$
|
15,250,638
|
2
|
$
|
15,250,638
|
||||||||||
Other accounts
|
0
|
$
|
0
|
0
|
$
|
0
|
NAME OF FUND
|
DOLLAR RANGE OF EQUITY SECURITIES
IN THE
FUND HELD AS OF 12/31/2016
|
Gold and Precious Metals Fund
|
$100,001-$500,000
|
World Precious Minerals Fund
|
$100,001-$500,000
|
All American Equity Fund
|
$10,001-$50,000
|
Emerging Europe Fund
|
$1 - $10,000
|
Near-Term Tax Free Fund
|
$10,001-$50,000
|
U.S. Government Ultra-Short Bond Fund
|
$100,001-$500,000
|
Holmes Macro Trends Fund
|
$10,001-$50,000
|
Global Resources Fund
|
$50,001-$100,000
|
China Region Fund
|
$1 - $10,000
|
Fiscal Year Ended
|
||||||||||||
December 31, 2014
|
December 31, 2015
|
December 31,
2016
|
||||||||||
All American Equity Fund
|
$
|
114,236
|
$
|
44,920
|
$
|
90,344
|
||||||
Holmes Macro Trends Fund
|
$
|
194,591
|
$
|
281,113
|
$
|
180,830
|
||||||
Gold and Precious Metals Fund
|
$
|
602,696
|
$
|
427,094
|
$
|
1,060,242
|
||||||
World Precious Minerals Fund
|
$
|
931,431
|
$
|
530,012
|
$
|
1,302,065
|
||||||
Global Resources Fund
|
$
|
6,540,761
|
$
|
2,509,014
|
$
|
986,110
|
||||||
Emerging Europe Fund
|
$
|
456,398
|
$
|
631,774
|
$
|
309,866
|
||||||
China Region Fund
|
$
|
227,604
|
$
|
169,547
|
$
|
107,987
|
COMMISSIONS
|
PRINCIPAL VALUE
|
||||||
All American Equity Fund
|
$
|
30,470
|
$
|
33,208,740
|
|||
Holmes Macro Trends Fund
|
$
|
95,339
|
$
|
101,851,345
|
|||
Gold and Precious Metals Fund
|
$
|
347,039
|
$
|
129,109,091
|
|||
World Precious Minerals Fund
|
$
|
327,308
|
$
|
129,235,175
|
|||
Global Resources Fund
|
$
|
457,932
|
$
|
220,378,642
|
|||
Emerging Europe Fund
|
$
|
69,801
|
$
|
29,020,966
|
|||
China Region Fund
|
$
|
5,187
|
$
|
1,860,034
|
|||
Total
|
$
|
1,333,071
|
$
|
644,663,992
|
No Expiration
|
||||||||
Fund
|
Short-Term
|
Long-Term
|
||||||
All American Equity Fund
|
$
|
938,403
|
$
|
—
|
||||
Holmes Macro Trends Fund (a)
|
—
|
—
|
||||||
Global Resources Fund
|
157,911,652
|
47,767,868
|
||||||
World Precious Minerals Fund
|
67,035,669
|
216,769,016
|
||||||
Gold and Precious Metals Fund
|
36,635,685
|
66,683,902
|
||||||
Emerging Europe Fund
|
14,051,309
|
12,670,868
|
||||||
China Region Fund
|
4,822,299
|
—
|
||||||
Near-Term Tax Free Fund (a)
|
154,542
|
196,384
|
||||||
U.S. Government Securities Ultra-Short Bond Fund
|
—
|
—
|
Expiration Date
|
||||||||||||
Fund
|
2017
|
2018
|
Total
|
|||||||||
Near-Term Tax Free Fund (a)
|
$
|
722
|
$
|
2,532
|
$
|
354,180
|
||||||
All American Equity Fund
|
—
|
—
|
938,403
|
|||||||||
Holmes Macro Trends Fund (a)
|
—
|
—
|
—
|
|||||||||
Global Resources Fund
|
259,212,512
|
—
|
464,892,032
|
|||||||||
World Precious Minerals Fund
|
63,779,512
|
—
|
347,584,197
|
|||||||||
Gold and Precious Metals Fund
|
—
|
—
|
103,319,587
|
|||||||||
Emerging Europe Fund
|
257,523,539
|
15,445,946
|
299,691,662
|
|||||||||
China Region Fund
|
—
|
—
|
4,822,299
|
|||||||||
U.S. Government Securities Ultra-Short Bond Fund
|
—
|
—
|
—
|
(a) |
Utilization of capital loss carryovers is subject to annual limitation.
|
Fund
|
Post October 31, 2016
Capital Loss Deferral |
Post October 31, 2016
Ordinary Loss Deferral |
||||||
Near-Term Tax Free Fund
|
$
|
291,288
|
$
|
—
|
||||
World Precious Minerals Fund
|
6,304,769
|
—
|
||||||
Gold and Precious Metals Fund
|
—
|
193,994
|
||||||
U.S. Government Securities Ultra-Short Bond Fund
|
44
|
—
|
(i) |
any net capital loss incurred after October 31 of the current taxable year, or, if there is no such loss, any net long-term capital loss or any net short-term capital loss incurred after October 31 of the current taxable year (“post-October capital losses”), and
|
(ii) |
the sum of (1) the excess, if any, of (a) specified losses incurred after October 31 of the current taxable year, over (b) specified gains incurred after October 31 of the current taxable year and (2) the excess, if any, of (a) ordinary losses incurred after December 31 of the current taxable year, over (b) the ordinary income incurred after December 31 of the current taxable year.
|
Page
|
|
GENERAL INFORMATION
|
2
|
FUND POLICIES
|
3
|
FUNDAMENTAL INVESTMENT RESTRICTIONS
|
3
|
NON-FUNDAMENTAL INVESTMENT RESTRICTIONS
|
4
|
VALUATION OF SHARES
|
4
|
INVESTMENT STRATEGIES AND RISKS
|
5
|
COMMON INVESTMENT STRATEGIES AND RELATED RISKS
|
6
|
PORTFOLIO TURNOVER
|
13
|
PORTFOLIO HOLDINGS DISCLOSURE POLICY
|
14
|
MANAGEMENT OF THE TRUST
|
15
|
CODE OF ETHICS
|
20
|
PROXY VOTING POLICIES
|
20
|
PRINCIPAL HOLDERS OF SECURITIES
|
21
|
INVESTMENT ADVISORY AND OTHER SERVICES
|
22
|
DISTRIBUTION AGREEMENT
|
24
|
TRANSFER AGENCY AGREEMENT
|
25
|
ADMINISTRATION AGREEMENT
|
25
|
PORTFOLIO MANAGERS
|
25
|
REGULAR BROKERS OR DEALERS
|
26
|
BROKERAGE ALLOCATION AND OTHER PRACTICES
|
27
|
TRADE AGGREGATION AND ALLOCATION PROCEDURES
|
27
|
PURCHASE, REDEMPTION AND PRICING OF SHARES
|
28
|
ADDITIONAL INFORMATION ON REDEMPTIONS
|
28
|
FEDERAL INCOME TAXES
|
29
|
TAXATION OF THE FUNDS - IN GENERAL
|
29
|
TAXATION OF THE FUNDS’ INVESTMENTS
|
30
|
TAXATION OF THE SHAREHOLDER
|
33
|
TAX BASIS REPORTING
|
36
|
CURRENCY FLUCTUATIONS - “SECTION 988” GAINS OR LOSSES
|
37
|
FOREIGN TAXES
|
37
|
FUND ACCOUNTANT AND ADMINISTRATOR
|
37
|
CUSTODIAN
|
38
|
TRANSFER AGENT
|
38
|
DISTRIBUTOR
|
38
|
FINANCIAL STATEMENTS
|
38
|
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM AND LEGAL COUNSEL
|
38
|
1. |
Issue senior securities, except as permitted under the 1940 Act, and as interpreted or modified by regulatory authority having jurisdiction, from time to time.
|
2. |
Borrow money, except as permitted under the 1940 Act, and as interpreted or modified by regulatory authority having jurisdiction, from time to time.
|
3. |
Engage in the business of underwriting securities issued by other issuers, except to the extent that, in connection with the disposition of portfolio securities, the fund may be deemed an underwriter under the Securities Act of 1933.
|
4. |
Purchase or sell real estate, which term does not include securities of companies which deal in real estate and/or mortgages or investments secured by real estate, or interests therein, except that the fund reserves freedom of action to hold and to sell real estate acquired as a result of the fund’s ownership of securities.
|
5. |
Make loans except as permitted under the 1940 Act, and as interpreted or modified by regulatory authority having jurisdiction, from time to time.
|
6. |
Invest more than 25% of its total assets in securities of companies principally engaged in any one industry, except that the World Precious Minerals Fund will invest more than 25% of its total assets in securities of companies involved in the mining, fabrication, processing, marketing or distribution of metals including gold, silver, platinum group, palladium and diamonds; and the Global Resources Fund will invest more than 25% of the value of its respective total assets in securities of companies principally engaged in natural resources operations.
1
|
7. |
(a) Purchase or sell commodities, except that the World Precious Minerals Fund, and the Global Resources Fund may purchase precious metals.
|
1. |
All funds will not borrow money, except that a fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of a fund’s total assets (including the amount borrowed) less liabilities (other than borrowings).
|
2. |
All funds will not purchase securities on margin or make short sales, except (i) short sales against the box, (ii) short term credits as are necessary for the clearance of transactions, and (iii) margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin or selling securities short.
|
1
|
Although not part of the funds’ fundamental investment restriction, for purposes of determining a company’s industry, the funds use the Bloomberg Sector Classification System.
|
1. |
The risk that a fund’s assets may be exposed to nationalization, expropriation or confiscatory taxation.
|
2. |
The fact that emerging market securities markets are substantially smaller, less liquid and more volatile than the securities markets of more developed nations. The relatively small market capitalization and trading volume of emerging market securities may cause the fund’s investments to be comparatively less liquid and subject to greater price volatility than investments in the securities markets of developed nations. Many emerging markets are in their infancy and have yet to be exposed to a major correction. In the event of such an occurrence, the absence of various market mechanisms that are inherent in the markets of more developed nations may lead to turmoil in the market place, as well as the inability of the fund to liquidate its investments.
|
3. |
Greater social, economic and political uncertainty (including the risk of war).
|
4. |
Greater price volatility, substantially less liquidity and significantly smaller market capitalization of securities markets.
|
5. |
Currency exchange rate fluctuations and the lack of available currency hedging instruments.
|
6. |
Higher rates of inflation.
|
7. |
Controls on foreign investment and limitations on repatriation of invested capital and on a fund’s ability to exchange local currencies for U.S. dollars.
|
8. |
Greater governmental involvement in and control over the economy.
|
9. |
The fact that emerging market companies may be smaller, less seasoned, and newly organized.
|
10. |
The difference in, or lack of, auditing and financial reporting standards, which may result in unavailability of material information about issuers.
|
11. |
The fact that the securities of many companies may trade at prices substantially above book value, at high price/earnings ratios, or at prices that do not reflect traditional measures of value.
|
12. |
The fact that statistical information regarding the economy of many emerging market countries may be inaccurate or not comparable to statistical information regarding the United States or other economies.
|
13. |
Less extensive regulation of the securities markets.
|
14. |
Certain considerations, such as currency fluctuations, less public disclosure and economic and political risk, regarding the maintenance of fund portfolio securities and cash with foreign sub-custodians and securities depositories.
|
15. |
The risk that it may be more difficult, or impossible, to obtain and/or enforce a judgment than in other countries.
|
16. |
The risk that a fund may be subject to income or withholding taxes imposed by emerging market countries or other foreign governments. The funds intend to elect for federal income tax purposes, when eligible, to “pass through” to the funds’ shareholders the amount of foreign income tax and similar taxes paid by a fund. The foreign taxes passed through to a shareholder would be included in the shareholder’s income and may be claimed as a deduction or credit on their federal income tax return. Other taxes, such as transfer taxes, may be imposed on a fund, but would not give rise to a credit or be eligible to be passed through to the shareholders.
|
17. |
The fact that a fund also is permitted to engage in foreign currency hedging transactions and to enter into stock options on stock index futures transactions, each of which may involve special risks, although these strategies cannot at the present time be used to a significant extent by a fund in the markets in which the fund will principally invest.
|
18. |
Enterprises in which a fund invests may be or become subject to unduly burdensome and restrictive regulation affecting the commercial freedom of the invested company and thereby diminishing the value of a fund’s investment in it. Restrictive or over-regulation may be, therefore, a form of indirect nationalization.
|
19. |
Investments in equity securities are subject to inherent market risks and fluctuations in value due to earnings, economic conditions, quality ratings and other factors beyond the control of the Adviser. As a result, the return and net asset value of the funds will fluctuate.
|
20. |
The Adviser may engage in hedging transactions in an attempt to hedge a fund’s foreign securities investments back to the U.S. dollar when, in its judgment, currency movements affecting particular investments are likely to harm the performance of a fund. Possible losses from changes in currency exchange rates are primarily a risk of unhedged investing in foreign securities. While a security may perform well in a foreign market, if the local currency declines against the U.S. dollar, gains from the investment can disappear or become losses. Typically, currency fluctuations are more extreme than stock market fluctuations. Accordingly, the strength or weakness of the U.S. dollar against foreign currencies may account for part of a fund’s performance even when the Adviser attempts to minimize currency risk through hedging activities. While currency hedging may reduce portfolio volatility, there are costs associated with such hedging, including the loss of potential profits, losses on hedging transactions, and increased transaction expenses.
|
Fiscal Year Ended
|
||||
FUND
|
December 31,
2015 |
December 31,
2016 |
||
World Precious Minerals Fund
|
71%
|
136%
|
||
Global Resources Fund
|
445%
|
255%
|
Name and Year of Birth
|
Position with the Trust
|
Length of Time Served
|
Principal Occupation(s) During Past Five Years
|
Number of Series in Fund Complex Overseen By Trustee
|
Other Directorships Held By Trustee During Past Five Years
|
Independent Trustees
|
|||||
David Tucker
Born: 1958
|
Chairman of the Board; Trustee; Chairman, Nominating Committee and Qualified Legal Compliance Committee
|
Since 2015
|
Director, Blue Sky Experience (a charitable endeavor), since 2008; Senior Vice President & General Counsel, American Century Companies (an investment management firm) 1998-2008.
|
47
|
Trustee, Forum Funds; Trustee, Forum ETF Trust; Trustee, Forum Funds II
|
Mark D. Moyer
Born: 1959
|
Trustee; Chairman Audit Committee
|
Since 2015
|
Chief Financial Officer, Institute of International Education 2008-2011; Chief Financial Officer and Chief Restructuring Officer, Ziff Davis Media Inc. 2005-2008; Adjunct Professor of Accounting, Fairfield University from 2009-2012.
|
23
|
Trustee, Forum ETF Trust; Trustee, Forum Funds II
|
Jennifer Brown-Strabley
Born: 1964
|
Trustee
|
Since 2015
|
Principal, Portland Global Advisors 1996-2010.
|
23
|
Trustee, Forum ETF Trust; Trustee, Forum Funds II
|
Interested Trustees
|
|||||
Stacey E. Hong
Born: 1966
|
Trustee
|
Since 2015
|
President, Atlantic since 2008
|
22
|
Trustee, Forum Funds II
|
John Y. Keffer
1
Born: 1942
|
Trustee
|
Since 2015
|
Chairman, Atlantic Fund Administration, LLC (a fund services company) since 2008; President, Forum Investment Advisors, LLC since 2011; President, Forum Foundation (a charitable organization) since 2005; President, Forum Holdings Corp. I since 1997.
|
47
|
Trustee, Forum Funds, Trustee, Forum ETF Trust; Trustee, Forum Funds II; Director, Wintergreen Fund, Inc.
|
1 |
Atlantic and Forum Investment Advisors, LLC are subsidiaries of Forum Holdings Corp. I, a Delaware corporation that is wholly owned by Mr. Keffer.
|
Trustees
|
Dollar Range of Beneficial Ownership in the Funds as of December 31, 2016
|
Aggregate Dollar Range of Ownership
as of December 31, 2016 in all Registered
Investment Companies Overseen by Trustee
in the Fund Complex
|
Independent Trustees
|
||
David Tucker
|
None
|
None
|
Mark D. Moyer
|
None
|
None
|
Jennifer Brown-Strabley
|
None
|
None
|
Interested Trustees
|
||
Stacey E. Hong
|
None
|
None
|
John Y. Keffer
|
None
|
None
|
Name and
Year of Birth |
Position with
the Trust |
Length of
Time Served |
Principal Occupation(s)
During Past 5 Years |
Jessica Chase Born: 1970
|
President; Chief Executive Officer
|
Since 2015
|
Senior Vice President, Atlantic since 2008.
|
Karen Shaw Born: 1972
|
Treasurer; Chief Financial Officer
|
Since 2015
|
Senior Vice President, Atlantic since 2008.
|
Zachary Tackett Born: 1988
|
Vice President; Secretary and Anti-Money Laundering Compliance Officer, and Identity Theft Prevention Officer
|
Since 2015
|
Associate Counsel, Atlantic since 2014; Intern Associate, Coakley & Hyde, PLLC, 2010-2013.
|
Carlyn Edgar Born: 1963
|
Chief Compliance Officer, Code of Ethics Review Officer
|
Since 2015
|
Senior Vice President, Atlantic since 2008.
|
Susan McGee Born: 1959
|
Vice President
|
Since 2016
|
President and General Counsel of the Adviser. Since September 1992, Ms. McGee has served and continues to serve in various positions with the Adviser, its subsidiaries, and the investment companies it sponsors.
|
Trustee
|
Aggregate Compensation
from the Funds
|
Pension or Retirement Benefits Accrued as part of Fund Expenses
|
Total Compensation
from Fund Complex
|
Independent Trustees
|
|||
David Tucker
|
$20,000
|
N/A
|
$99,000
|
Mark D. Moyer
|
$15,000
|
N/A
|
$31,000
|
Jennifer Brown-Strabley
|
$15,000
|
N/A
|
$31,000
|
Interested Trustees
|
|||
Stacey E. Hong
|
$0
|
N/A
|
$0
|
John Y. Keffer
|
$0
|
N/A
|
$0
|
* |
Each trustee was elected on December 9, 2015. On December 9, 2015, the Board approved new trustee compensation under which Independent Trustees of the Trust each receive an annual fee of $15,000 for service to the Trust. The Chairman of the Board is paid an annual fee of $20,000. The trustees and Chairman may receive additional fees for special Board meetings. Each trustee is also reimbursed for all reasonable out-of-pocket expenses incurred in connection with his duties as a trustee, including travel and related expenses incurred in attending Board meetings. The Trust has no pension or retirement plan. No other entity affiliated with the Trust pays any compensation to the trustees.
|
FUND
|
SHAREHOLDERS
|
PERCENTAGE OWNED
|
||
World Precious Minerals Fund
|
Charles Schwab And Co Inc
|
72.44%
|
||
Td Ameritrade Inc For The Exclusive Benefit of our Clients
|
12.11%
|
|||
Global Resources Fund
|
Td Ameritrade Inc For The Exclusive Benefit of our Clients
|
51.68%
|
||
Charles Schwab And Co Inc
|
6.36%
|
Fiscal Year Ended
|
||||||||||||
FUND
|
December 31,
2014 |
December 31,
2015 |
December 31,
2016 |
|||||||||
World Precious Minerals Fund
|
$
|
8,395
|
$
|
1,163
|
$
|
25,719
|
||||||
Global Resources Fund
|
$
|
334,792
|
$
|
71,245
|
$
|
7,565
|
Fiscal Year Ended
|
||||||||||||
FUND
|
December 31,
2014 |
December 31,
2015 |
December 31,
2016 |
|||||||||
World Precious Minerals Fund
|
$
|
10,538
|
$
|
732
|
$
|
6,844
|
||||||
Global Resources Fund
|
$
|
211,243
|
$
|
22,232
|
$
|
2,362
|
NAME OF FUND
|
ANNUAL PERCENTAGE OF AVERAGE DAILY NET ASSETS
|
|
World Precious Minerals Fund
|
1.00%
<
$500,000,000; 0.95% $500,000,001 - $1,000,000,000; 0.90%>$1,000,000,000
|
|
Global Resources Fund
|
0.95%
<
$500,000,000; 0.90% $500,000,001 - $1,000,000,000; 0.85%>$1,000,000,000
|
Base
Advisory Fee |
Benchmark
|
Hurdle
Rate |
Base
Advisory Fee Range With Performance Fee Adjustment |
|||||||
World Precious Minerals Fund
|
1.00
|
%
|
NYSE Arca Gold Miners Index
|
+/- 5
|
%
|
0.75%-1.25
|
%
|
|||
Global Resources Fund
|
0.95
|
%
|
S&P Global Natural Resources Index (Net Total Return)
|
+/- 5
|
%
|
0.70%-1.20
|
%
|
Fiscal Year Ended
|
||||||||||||
FUND
|
December 31,
2014
|
December 31,
2015
|
December 31,
2016
|
|||||||||
World Precious Minerals Fund
|
$
|
395
|
$
|
56
|
$
|
1,721
|
||||||
Global Resources Fund
|
$
|
15,176
|
$
|
3,441
|
$
|
519
|
Fiscal Year Ended
*
|
||||||||||||
FUND
|
December 31,
2014
|
December 31,
2015
|
December 31,
2016
|
|||||||||
World Precious Minerals Fund
|
$
|
415
|
$
|
170
|
$
|
3,165
|
||||||
Global Resources Fund
|
$
|
16,625
|
$
|
10,209
|
$
|
1,091
|
* |
For periods prior to November 1, 2014, these amounts were paid to Brown Brothers Harriman & Co.
|
TYPE OF ACCOUNT
|
NUMBER
OF
|
TOTAL ASSETS
|
NUMBER OF
PERFORMANCE FEE
|
TOTAL ASSETS OF
PERFORMANCE FEE
|
||||||||||||
Registered investment companies
|
1
|
$
|
65,727,852
|
0
|
$
|
0
|
||||||||||
Pooled investment vehicles
|
2
|
$
|
15,250,638
|
2
|
$
|
15,250,638
|
||||||||||
Other accounts
|
1
|
$
|
18,240,992
|
0
|
$
|
0
|
NAME OF FUND
|
DOLLAR RANGE OF EQUITY SECURITIES IN THE
FUND HELD AS OF 12/31/2016
|
||
World Precious Minerals Fund
|
$50,001 – $100,000
|
||
Global Resources Fund
|
$50,001 – $100,000
|
TYPE OF ACCOUNT
|
NUMBER
OF
ACCOUNTS
|
TOTAL ASSETS
|
NUMBER OF
PERFORMANCE FEE
ACCOUNTS
|
TOTAL ASSETS OF
PERFORMANCE FEE
ACCOUNTS
|
||||||||||||
Registered investment companies
|
1
|
$
|
65,727,852
|
0
|
$
|
0
|
||||||||||
Pooled investment vehicles
|
2
|
$
|
15,250,638
|
2
|
$
|
15,250,638
|
||||||||||
Other accounts
|
0
|
$
|
0
|
0
|
$
|
0
|
NAME OF FUND
|
DOLLAR RANGE OF EQUITY SECURITIES IN THE
FUND HELD AS OF 12/31/2016
|
||
World Precious Minerals Fund
|
$100,001 – $500,000
|
||
Global Resources Fund
|
$50,001 – $100,000
|
Fiscal Year Ended
|
||||||||||||
December 31,
2014
|
December 31,
2015 |
December 31,
2016
|
||||||||||
World Precious Minerals Fund
|
$
|
931,431
|
$
|
530,012
|
$
|
1,302,065
|
|
|||||
Global Resources Fund
|
$
|
6,540,761
|
$
|
2,509,014
|
$
|
986,110
|
|
COMMISSIONS
|
PRINCIPAL VALUE
|
|||||||
World Precious Minerals Fund
|
$
|
327,308
|
|
$
|
129,235,175
|
|
||
Global Resources Fund
|
$
|
457,932
|
|
$
|
220,378,642
|
|
||
Total
|
$
|
785,240
|
|
$
|
349,613,817
|
|
1. |
The securities offered by the investor in exchange for shares of the fund must not be in any way restricted as to resale or otherwise be illiquid.
|
2. |
Securities of the same issuer must already exist in the fund’s portfolio.
|
3. |
The securities must have a value that is readily ascertainable (and not established only by valuation procedures) as evidenced by a listing on the NYSE, or NASDAQ-AMEX.
|
4. |
Any securities so acquired by the fund shall not comprise over 5% of the fund’s net assets at the time of such exchange.
|
5. |
No over-the-counter securities will be accepted unless the principal over-the-counter market is in the United States.
|
6. |
The securities are acquired for investment and not for resale.
|
· |
distribute each taxable year at least the sum of (i) 90% of the fund’s investment company taxable income (which includes, among other items, dividends, interest, the excess of any net short-term capital gain over net long-term capital loss and other taxable income, other than any net long-term capital gain, reduced by deductible expenses) determined without regard to the deduction for dividends paid and (ii) 90% of a fund’s net tax-exempt interest (the excess of its gross tax-exempt interest over certain disallowed deductions). Each fund intends to distribute substantially all of such income each year. (“Distribution Requirement”)
|
· |
derive in each taxable year at least 90% of its gross income from dividends, interest, payments with respect to securities loans, gains from the sale or other disposition of stock, securities or foreign currencies, or other income derived with respect to its business of investing in such stock, securities or currencies and net income derived from interests in qualified publicly traded partnerships (“Gross Income Test”);
|
· |
satisfy the following asset diversification test at the close of each quarter of the fund’s tax year: (1) at least 50% of the value of the fund’s assets must consist of cash and cash items, U.S. government securities, securities of other regulated investment companies, and securities of other issuers (as to which the fund has not invested more than 5% of the value of the fund’s total assets in securities of an issuer and as to which the fund does not hold more than 10% of the outstanding voting securities of the issuer); and (2) no more than 25% of the value of the fund’s total assets may be invested in the securities of any one issuer (other than U.S. government securities or securities of other regulated investment companies) or of two or more issuers which the fund controls and which are engaged in the same or similar trades or businesses, or, in the securities of one or more qualified publicly traded partnerships. (“Asset Value Test”)
|
No Expiration
|
||||||||
Fund
|
Short-Term
|
Long-Term
|
||||||
World Precious Minerals Fund
|
67,035,669
|
216,769,016
|
||||||
Global Resources Fund
|
157,911,652
|
47,767,868
|
Expiration Date
|
||||||||||||
Fund
|
2017
|
2018
|
Total
|
|||||||||
World Precious Minerals Fund
|
63,779,512
|
—
|
347,584,197
|
|||||||||
Global Resources Fund
|
259,212,512
|
—
|
464,892,032
|
Fund
|
Post October 31, 2016
Capital Loss Deferral |
Post October 31, 2016
Ordinary Loss Deferral |
||||||
World Precious Minerals Fund
|
6,304,769
|
—
|
(i) |
any net capital loss incurred after October 31 of the current taxable year, or, if there is no such loss, any net long-term capital loss or any net short-term capital loss incurred after October 31 of the current taxable year (“post-October capital losses”), and
|
(ii) |
the sum of (1) the excess, if any, of (a) specified losses incurred after October 31 of the current taxable year, over (b) specified gains incurred after October 31 of the current taxable year and (2) the excess, if any, of (a) ordinary losses incurred after December 31 of the current taxable year, over (b) the ordinary income incurred after December 31 of the current taxable year.
|
(a) |
Agreement and Declaration of Trust, dated July 31, 2008, incorporated by reference to Post-Effective Amendment 100 filed October 1, 2008 (EDGAR Accession No. 0000950134-08-017422).
|
(b) |
By-laws, dated July 31, 2008, incorporated by reference to Post-Effective Amendment 100 filed October 1, 2008 (EDGAR Accession No. 0000950134-08-017422).
|
(c) |
Instruments Defining Rights of Security Holders. Not applicable.
|
(d) |
1. Advisory Agreement with U.S. Global Investors, Inc., dated October 1, 2008, incorporated by reference to Post-Effective Amendment 100 filed October 1, 2008 (EDGAR Accession No. 0000950134-08-017422).
|
(e) |
1. Distribution Agreement with Foreside Fund Services, LLC dated December 9, 2015, incorporated by reference to Post-Effective Amendment No. 124 filed February 29, 2016 (EDGAR Accession No. 0001398344-16-010373).
|
(f) |
Bonus or Profit Sharing Contracts. Not applicable.
|
(g) |
1. Custodian Agreement, dated November 1, 1997, between Registrant and Brown Brothers Harriman & Co., incorporated by reference to Post-Effective Amendment No. 82 filed September 2, 1998 (EDGAR Accession No. 0000101507-98-000031).
|
(h) |
1. Transfer Agent Servicing Agreement, dated September 5, 2013, between Registrant and U.S. Bancorp Fund Services, LLC, incorporated by reference to the N-14 filed October 24, 2013 (EDGAR Accession No. 0001104659-13-077689).
|
(i) |
1. Opinion of Counsel, filed herein.
|
(j) |
1. Consent of BBD, LLP, filed herein.
2. Consent of KPMG, LLP, filed herein.
|
(k) |
Omitted Financial Statements. Not applicable.
|
(l) |
Initial Capital Agreements. Not applicable.
|
(m) |
1. Amended Distribution Plan, dated March 4, 2010, incorporated by reference to Post-Effective Amendment 107 filed April 30, 2010 (EDGAR Accession No. 0001104659-10-02438).
|
(n) |
1. Multi-Class and Expense Allocation Policy dated March 23, 2017, filed herein.
|
(o) |
Powers of Attorney, dated December 9, 2015, incorporated by reference to Post-Effective Amendment No. 124 filed February 29, 2016 (EDGAR Accession No. 0001398344-16-010373).
|
(p) |
1. U.S. Global Investors Funds Code of Ethics, incorporated by reference to Post-Effective Amendment 125 filed April 29, 2016 (EDGAR Accession No. 0001398344-16-012463).
|
Item 32(a) |
Foreside Fund Services, LLC (the “Distributor”) serves as principal underwriter for the following investment companies registered under the Investment Company Act of 1940, as amended:
|
1. |
ABS Long/Short Strategies Fund
|
2. |
Absolute Shares Trust
|
3. |
AdvisorShares Trust
|
4. |
American Beacon Funds
|
5. |
American Beacon Select Funds
|
6. |
Ark ETF Trust
|
7. |
Avenue Mutual Funds Trust
|
8. |
BP Capital TwinLine Energy Fund, Series of Professionally Managed Portfolios
|
9. |
BP Capital TwinLine MLP Fund, Series of Professionally Managed Portfolios
|
10. |
Braddock Multi-Strategy Income Fund, Series of Investment Managers Series Trust
|
11. |
Bridgeway Funds, Inc.
|
12. |
Brinker Capital Destinations Trust
|
13. |
Center Coast MLP & Infrastructure Fund
|
14. |
Center Coast MLP Focus Fund, Series of Investment Managers Series Trust
|
15. |
Context Capital Funds
|
16. |
CornerCap Group of Funds
|
17. |
Davis Fundamental ETF Trust
|
18. |
Direxion Shares ETF Trust
|
19. |
Eaton Vance NextShares Trust
|
20. |
Eaton Vance NextShares Trust II
|
21. |
EIP Investment Trust
|
22. |
Evanston Alternative Opportunities Fund
|
23. |
Exchange Listed Funds Trust
(f/k/a Exchange Traded Concepts Trust II)
|
24. |
FEG Absolute Access Fund I LLC
|
25. |
FlexShares Trust
|
26. |
Forefront Income Trust
|
27. |
Forum Funds
|
28. |
Forum Funds II
|
29. |
FQF Trust
|
30. |
Guinness Atkinson Funds
|
31. |
Henderson Global Funds
|
32. |
Horizon Spin-off and Corporate Restructuring Fund, Series of Investment Managers Series Trust
(f/k/a Liberty Street Horizon Fund)
|
33. |
Horizons ETF Trust
|
34. |
Horizons ETF Trust I (f/k/a Recon Capital Series Trust)
|
35. |
Infinity Core Alternative Fund
|
36. |
Ironwood Institutional Multi-Strategy Fund LLC
|
37. |
Ironwood Multi-Strategy Fund LLC
|
38. |
John Hancock Exchange-Traded Fund Trust
|
39. |
Manor Investment Funds
|
40. |
Miller/Howard Funds Trust
|
41. |
Miller/Howard High Income Equity Fund
|
42. |
Moerus Worldwide Value Fund, Series of Northern Lights Fund Trust IV
|
43. |
OSI ETF Trust
|
44. |
Palmer Square Opportunistic Income Fund
|
45. |
PENN Capital Funds Trust
|
46. |
Performance Trust Mutual Funds, Series of Trust for Professional Managers
|
47. |
Pine Grove Alternative Institutional Fund
|
48. |
Plan Investment Fund, Inc.
|
49. |
PMC Funds, Series of Trust for Professional Managers
|
50. |
Quaker Investment Trust
|
51. |
Ramius Archview Credit and Distressed Fund
|
52. |
Renaissance Capital Greenwich Funds
|
53. |
RMB Investors Trust
(f/k/a Burnham Investors Trust)
|
54. |
Robinson Opportunistic Income Fund, Series of Investment Managers Series Trust
|
55. |
Robinson Tax Advantaged Income Fund, Series of Investment Managers Series Trust
|
56. |
Salient MF Trust
|
57. |
SharesPost 100 Fund
|
58. |
Sound Shore Fund, Inc.
|
59. |
Steben Alternative Investment Funds
|
60. |
Steben Select Multi-Strategy Fund
|
61. |
Strategy Shares*
|
62. |
The 504 Fund
(f/k/a The Pennant 504 Fund)
|
63. |
The Community Development Fund
|
64. |
Third Avenue Trust
|
65. |
Third Avenue Variable Series Trust
|
66. |
TIFF Investment Program
|
67. |
Turner Funds
|
68. |
U.S. Global Investors Funds
|
69. |
Victory CEMP US 500 Volatility Wtd Index ETF, a Series of Victory Portfolios II
|
70. |
Victory CEMP US Small Cap Volatility Wtd Index ETF, a Series of Victory Portfolios II
|
71. |
Victory CEMP International Volatility Wtd Index ETF, a Series of Victory Portfolios II
|
72. |
Victory CEMP Emerging Market Volatility Wtd Index ETF, a Series of Victory Portfolios II
|
73. |
Victory CEMP US Large Cap High Div Volatility Wtd Index ETF, a Series of Victory Portfolios II
|
74. |
Victory CEMP US Small Cap High Div Volatility Wtd Index ETF, a Series of Victory Portfolios II
|
75. |
Victory CEMP International High Div Volatility Wtd Index ET, a Series of Victory Portfolios II
|
76. |
Victory CEMP US Discovery Enhanced Volatility Wtd Index ETF, a Series of Victory Portfolios II
|
77. |
Victory CEMP US 500 Enhanced Volatility Wtd Index ETF, a Series of Victory Portfolios II
|
78. |
Victory CEMP Developed Enhanced Volatility Wtd Index ETF, a Series of Victory Portfolios II
|
79. |
Victory CEMP US EQ Income Enhanced Volatility Wtd Index ETF, a Series of Victory Portfolios II
|
80. |
Wakefield Managed Futures Strategy Fund, a Series of Wakefield Alternative Series Trust
|
81. |
West Loop Realty Fund, Series of Investment Managers Series Trust
(f/k/a Chilton Realty Income & Growth Fund)
|
82. |
Wintergreen Fund, Inc.
|
83. |
WisdomTree Trust
|
Item 32(b) |
The following are the Officers and Manager of the Distributor, the Registrant’s underwriter. The Distributor’s main business address is Three Canal Plaza, Suite 100, Portland, Maine 04101.
|
Name
|
Address
|
Position with Underwriter
|
Position with Registrant
|
|||
Richard J. Berthy
|
Three Canal Plaza, Suite 100, Portland, ME 04101
|
President, Treasurer and Manager
|
None
|
|||
Mark A. Fairbanks
|
Three Canal Plaza, Suite 100, Portland, ME 04101 | Vice President | None | |||
Jennifer K. DiValerio
|
899 Cassatt Road, 400 Berwyn Park, Suite 110, Berwyn, PA 19312
|
Vice President
|
None
|
|||
Nanette K. Chern
|
Three Canal Plaza, Suite 100, Portland, ME 04101
|
Vice President and Chief Compliance Officer
|
None
|
|||
Jennifer E. Hoopes
|
Three Canal Plaza, Suite 100, Portland, ME 04101
|
Secretary
|
None
|
Item 32(c)
|
Not applicable.
|
U.S. GLOBAL INVESTORS FUNDS
|
|||
By:
|
/s/ Jessica Chase
|
||
Jessica Chase, President
|
(a)
|
Chief Executive Officer
|
||
/s/ Jessica Chase
|
|||
Jessica Chase
|
|||
Chief Executive Officer
|
|||
(b)
|
Chief Financial Officer
|
||
/s/ Karen Shaw
|
|||
Karen Shaw
|
|||
Chief Financial Officer
|
|||
(c)
|
A majority of the Trustees
|
||
/s/ Stacey E. Hong
|
|||
Stacey E. Hong, Trustee
|
|||
John Y. Keffer, Trustee*
|
|||
David Tucker, Trustee*
|
|||
Mark Moyer, Trustee*
|
|||
Jennifer Brown-Strabley, Trustee*
|
|||
*By:
|
/s/ Zachary R. Tackett
|
||
Zachary R. Tackett
|
|||
As Attorney-in-fact under Power of Attorney Dated
|
|||
December 9, 2015
|
(d)(4)
|
Addendum to Expense Limitation Agreement dated May 1, 2013
|
(e)(3) |
Distribution Agreement with Foreside Fund Services, LLC
|
(h)(3) |
Amended and Restated Services Agreement between Registrant, Atlantic Fund Administration, LLC (d/b/a Atlantic Fund Services) and Atlantic Shareholder Services, LLC, dated December 9, 2015, as amended March 24, 2016, December 8, 2016, and March 23, 2017
|
(h)(4) |
Shareholder Services Plan dated December 9, 2015, as amended March 23, 2017
|
(i)(1)
|
Opinion of Counsel
|
(j)(1)
|
Consent of BBD, LLP
|
(j)(2)
|
Consent of KPMG, LLP
|
(n)(1)
|
Multi-Class and Expense Allocation Policy dated March 23, 2017
|
U.S. GLOBAL INVESTORS FUNDS,
|
|
on behalf of each series of the Trust set forth in Schedule A
|
|
/s/ Frank E. Holmes | |
Frank E. Holmes
President |
U.S. GLOBAL INVESTORS,
INC.
|
|
/s/ Susan B. McGee
|
|
Susan B. McGee
President and General Counsel |
Name of Fund
|
Maximum Annual
Operating Expense Limit
|
Tax Free Fund
|
0.70%
|
Near-Term Tax Free Fund
|
0.45%
|
2. |
Term and Termination of Agreement
.
|
U.S. GLOBAL INVESTORS FUNDS,
|
|
on behalf of the Tax Free Fund and the Near-Term Tax Free Fund
|
|
/s/ Frank E. Holmes | |
Frank E. Holmes
|
|
President
|
U.S. GLOBAL INVESTORS, INC.
|
|
/s/ Susan B. McGee | |
Susan B. McGee
|
|
President and General Counsel
|
2. |
Term and Termination of Agreement
.
|
U.S. GLOBAL INVESTORS FUNDS,
|
|
on behalf of the Near-Term Tax Free Fund
|
|
/s/ Frank E. Holmes | |
Frank E. Holmes
|
|
President
|
U.S. GLOBAL INVESTORS, INC.
|
|
/s/ Susan B. McGee | |
Susan B. McGee
|
|
President and General Counsel
|
2. |
Term and Termination of Agreement
.
|
U.S. GLOBAL INVESTORS FUNDS,
|
|
on behalf of the Near-Term Tax Free Fund
|
|
/s/ Frank E. Holmes | |
Frank E. Holmes
|
|
President
|
U.S. GLOBAL INVESTORS, INC.
|
|
/s/ Susan B. McGee | |
Susan B. McGee
|
|
President and General Counsel
|
2. |
Term and Termination of Agreement
.
|
U.S. GLOBAL INVESTORS FUNDS,
|
|
on behalf of the Near-Term Tax Free Fund
|
|
/s/ Jessica Chase | |
Jessica Chase
|
|
President/CEO
|
U.S. GLOBAL INVESTORS, INC.
|
|
/s/ Susan B. McGee | |
Susan B. McGee
|
|
President and General Counsel
|
2. |
Term and Termination of Agreement
.
|
U.S. GLOBAL INVESTORS FUNDS,
|
|
on behalf of the Near-Term Tax Free Fund
|
|
/s/ Jessica Chase | |
Jessica Chase
|
|
President/CEO
|
U.S. GLOBAL INVESTORS, INC.
|
|
/s/ Susan B. McGee | |
Susan B. McGee
|
|
President and General Counsel
|
FORESIDE FUND SERVICES, LLC
|
U.S. GLOBAL INVESTORS FUNDS
|
|||
By:
|
/s/ Richard J. Berthy |
By:
|
/s/ Jessica Chase | |
Richard J. Berthy, President
|
Name:
|
Jessica Chase
|
||
Title:
|
President
|
Page | ||
SECTION 1.
|
DEFINED TERMS; APPOINTMENT; DELIVERY OF DOCUMENTS
|
3
|
SECTION 2.
|
DUTIES OF ATLANTIC AND THE TRUST
|
6
|
SECTION 3.
|
STANDARD OF CARE; INDEMNIFICATION; RELIANCE; AND LIABILITY LIMITATIONS
|
9
|
SECTION 4.
|
COMPENSATION AND EXPENSES
|
11
|
SECTION 5.
|
EFFECTIVENESS, DURATION, TERMINATION AND ASSIGNMENT
|
12
|
SECTION 6.
|
ADDITIONAL FUNDS OR CLASSES OF SHARES
|
14
|
SECTION 7.
|
RECORDKEEPING; PROPRIETARY INFORMATION; CONFIDENTIALITY
|
14
|
SECTION 8.
|
REPRESENTATIONS, WARRANTIES AND AGREEMENTS
|
16
|
SECTION 9.
|
FORCE MAJEURE
|
18
|
SECTION 10.
|
ACTIVITIES OF ATLANTIC
|
18
|
SECTION 11.
|
ANTI-MONEY LAUNDERING PROGRAM
|
19
|
SECTION 12.
|
IDENTITY THEFT PREVENTION PROGRAM
|
20
|
SECTION 13.
|
AUDIT RIGHTS; COOPERATION WITH CHIEF COMPLIANCE OFFICER OTHER SERVICE PROVIDERS AND INDEPENDENT ACCOUNTANTS
|
21
|
SECTION 14.
|
SERVICE DAYS
|
23
|
SECTION 15.
|
LIMITATION OF SHAREHOLDER AND TRUSTEE LIABILITY
|
23
|
SECTION 16.
|
TAXES
|
23
|
SECTION 17.
|
MISCELLANEOUS
|
23
|
(A)
|
Annual Trust Administration Service Fees
|
1
|
(B)
|
Compliance Support Services
|
1
|
(C)
|
Recoupment of Costs Upon Termination
|
2
|
(D)
|
Out-of-Pocket and Related Expenses
|
2
|
(E)
|
Fee Waivers
|
3
|
APPENDIX A
|
SERVICES
|
A-1
|
APPENDIX B
|
DEPENDENCIES
|
B-1
|
APPENDIX C
|
FORMS OF CERTIFICATIONS
|
C-1
|
APPENDIX D
|
LIST OF FUNDS
|
D-1
|
SECTION 1. |
DEFINED TERMS; APPOINTMENT; DELIVERY OF DOCUMENTS
|
1934 Act
|
9
|
1940 Act
|
ii
|
38a-1 Compliance Program
|
6
|
38a-1 Manuals
|
22
|
Adviser
|
7
|
AML Services
|
19
|
Atlantic
|
ii
|
Atlantic AML Policies and Procedures
|
19
|
Atlantic Identity Theft Prevention Procedures
|
20
|
Atlantic Indemnitees
|
9
|
Atlantic Processes
|
8
|
Authorized Person
|
5
|
Board
|
6
|
CCO
|
8
|
Change Control Process
|
7
|
Class
|
ii
|
Dependencies
|
7
|
Dependencies Schedule
|
7
|
Disclosing Party
|
15
|
Effective Date
|
12
|
Executive Officers
|
6
|
Fee Schedule
|
11
|
Fund
|
ii
|
Fund Intermediaries
|
7
|
Governmental Authority
|
5
|
Identity Theft Prevention Services
|
20
|
Law
|
5
|
Non-Discretionary Subcontractors
|
7
|
NSCC
|
9
|
Organic Documents
|
6
|
Partial Termination
|
12
|
PEO
|
6
|
PFO
|
6
|
Plan
|
6
|
Policies and Procedures
|
6
|
Policy
|
18
|
Privacy Laws
|
16
|
Proprietary Information
|
15
|
Prospectus
|
5
|
Receiving Party
|
15
|
Registration Statement
|
6
|
Reviews
|
22
|
Service Change
|
6
|
Service Change Plan
|
6
|
Service Plan
|
6
|
Service Providers
|
17
|
Services
|
6
|
Services Operations
|
22
|
Shareholders
|
5
|
Shares
|
ii
|
Standard of Care
|
9
|
termination costs
|
13
|
Trust
|
ii
|
Trust AML Program
|
19
|
Trust Counsel
|
8
|
Trust Identity Theft Prevention Program
|
20
|
Trust Records
|
14
|
SECTION 2. |
DUTIES OF ATLANTIC AND THE TRUST
|
(i) |
if any relevant Dependencies (as defined in
Appendix B)
, hereinafter the “
Dependencies Schedule
”, “
Dependencies
”) upon which performance of the relevant Service depends are not met and the failure to meet any such Dependencies was not a result of delay, or failure to provide information or take action, by Atlantic required to be provided or taken under this Agreement;
|
(ii) |
if the failure to perform the Services is at the request or with the consent of the Trust or an Authorized Person;
|
(iii) |
if the failure to perform the Services results from incorrect or corrupted information provided by (A) any Third Party Service Provider, including any Adviser, the principal underwriter for a Fund, brokers or other intermediaries through which a Fund’s Shares may be sold or distributed (“
Fund Intermediaries
”) and any other current or predecessor service providers to the Trust or (B) valuation or market information providers, pricing services, couriers, software houses, custodians (excluding Atlantic), clearing systems or depositories,
provided
, that (1) if any such Person described in clause (B) above is chosen by Atlantic, then the selection of such Person must have been reasonable under the circumstances (and the selection of such a Person shall be deemed reasonable if, after notice explicitly identifying such selection and providing an opportunity to object to such selection, the Board or an Executive Officer does not object to such selection); and (2) in any event, Persons shall be deemed reasonable if they are selected or retained at the direction of the Trust or an Authorized Person (“
Non-Discretionary Subcontractors
”) or with the consent of the Trust or an Authorized Person; and/or
|
(iv) |
if any Law (as defined below) to which Atlantic or any third party is subject prevents or limits the performance of the duties and obligations of Atlantic, and, if such Law affects Atlantic, Atlantic has notified the Trust or an Authorized Person.
|
SECTION 3. |
STANDARD OF CARE; INDEMNIFICATION; RELIANCE; AND LIABILITY LIMITATIONS
|
(i) |
the advice of the Trust or of counsel, who may be counsel to the Trust or counsel to Atlantic, and upon statements of accountants, brokers and other Persons reasonably believed in good faith by Atlantic to be expert in the matters upon which they are consulted;
|
(ii) |
any oral instruction that it receives and that it reasonably believes in good faith was transmitted by the Person or Persons authorized by the Board to give such oral instruction; Atlantic shall have no duty or obligation to make any inquiry or effort of certification of such oral instruction;
|
(iii) |
any written instruction or certified copy of any resolution of the Board, and Atlantic may rely upon the genuineness of any such document or copy thereof reasonably believed in good faith by Atlantic to have been validly executed;
|
(iv) |
any signature, instruction, request, letter of transmittal, certificate, opinion of counsel, statement, instrument, report, notice, consent, order, or other document reasonably believed in good faith by Atlantic to be genuine and to have been signed or presented by the Trust or other proper party or parties;
|
(v) |
any share certificates which are reasonably believed to bear the proper manual or facsimile signatures of the officers of the Trust, and the proper countersignature of any former transfer agent or former registrar or of a co-transfer agent or co-registrar of the Trust; or
|
(vi) |
any electronic instructions from the Trust in conformity with security procedures established by Atlantic from time to time in order to (x) effect the transfer or movement of cash or Shares or (y) transmit Shareholder information or other information.
|
SECTION 4. |
COMPENSATION AND EXPENSES
|
SECTION 5. |
EFFECTIVENESS, DURATION, TERMINATION AND ASSIGNMENT
|
(i) |
with or without cause, at any time, by either Party on the date specified in a written notice to the other Party provided not less than 120 days (60 days with respect to the Services described in Part IV of
Appendix A
) prior to the termination date specified in the notice,
provided
that in the event the Trust gives notice of a Partial Termination (other than with respect to the Services described in Part IV of
Appendix A
), Atlantic shall have thirty (30) days to deliver notice that it intends to terminate any remaining portion, or the entirety, of this Agreement (and any such notice from Atlantic shall be deemed to have been given as of the date of the original notice from the Trust and with the same effective date as that set forth in such notice from the Trust);
provided further,
that in the event Atlantic gives notice of termination or of a Partial Termination, the Board may delay the termination or Partial Termination for up to 60 days upon written notice to Atlantic and a finding that doing so is in the best interest of shareholders of the affected Fund or Funds;
|
(ii) |
for cause at any time by the non-breaching Party on at least sixty (60) days’ written notice thereof to the other Party, if the other Party has materially breached any of its obligations hereunder including, with respect to Atlantic, the failure by Atlantic to act consistently with the Standard of Care;
provided, however,
that (i) the termination notice shall describe the breach, and (ii) no such termination shall be effective if, with respect to any breach that is capable of being cured prior to the date set forth in the termination notice, the breaching Party has cured such breach to the reasonable satisfaction of the non-breaching Party; and
|
(iii) |
the provisions of this Agreement related to any of the Services described in Sections 1 through 4 of Part IV of
Appendix A
may be terminated at any time by the Board, effective upon the date set forth in the written notice to Atlantic, without the payment of any penalty; the remaining portions of this Agreement shall be considered severable and not affected. In the event of termination of any of the Services described in Sections 1 through 4 of Part IV of
Appendix A
, the Parties will mutually agree upon the fees payable to Atlantic with respect to the other Services described in Part IV of
Appendix A
.
|
SECTION 6. |
ADDITIONAL FUNDS OR CLASSES OF SHARES
|
SECTION 7. |
RECORDKEEPING; PROPRIETARY INFORMATION; CONFIDENTIALITY
|
SECTION 8. |
REPRESENTATIONS, WARRANTIES AND AGREEMENTS
|
(i) |
Each of Atlantic FA and Atlantic TA is a limited liability company duly organized and existing under the laws of the State of Delaware and is in good standing in the States of Delaware and Maine.
|
(ii) |
Each of Atlantic FA and Atlantic TA is empowered under Law applicable to Atlantic FA and Atlantic TA, respectively, and by the documents pursuant to which it was formed as a limited liability company entity in the State of Delaware to enter into this Agreement and perform its duties under this Agreement.
|
(iii) |
All requisite limited liability company proceedings have been taken to authorize each of Atlantic FA and Atlantic TA to enter into this Agreement and perform its duties under this Agreement.
|
(iv) |
It has access to the necessary facilities, equipment, and personnel to perform its duties and obligations, and assist the CCO in the performance of the CCO’s duties and obligations, under this Agreement.
|
(v) |
This Agreement, when executed and delivered, will constitute a legal, valid and binding obligation of each of Atlantic TA and Atlantic FA, enforceable against Atlantic in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting the rights and remedies of creditors and secured parties.
|
(vi) |
Atlantic FA shall make available an individual who is competent and knowledgeable regarding the federal securities laws and is otherwise reasonably qualified to act as a CCO and who will, in the reasonable opinion of Atlantic, in the exercise of the CCO’s duties to the Trust, act in good faith and in a manner reasonably believed by the CCO to be in the best interests of the Trust.
|
(vii) |
It shall compensate the CCO fairly, subject to the Board’s right under any applicable Law (
e.g.,
Rule 38a-1) to approve the designation, termination and level of compensation of the CCO and it shall not retaliate against the CCO should the CCO inform the Board of a compliance failure or take aggressive action to ensure compliance with the federal securities laws by the Trust or by any Adviser, administrator (as that term is defined in Rule 0-1 of the 1940 Act), principal underwriter or transfer agent to the Trust (collectively, “
Service Providers
”).
|
(viii) |
It shall report to the Board promptly if it learns about CCO malfeasance or in the event the CCO is terminated as a Chief Compliance Officer by another investment company registered under the 1940 Act.
|
(ix) |
It shall report to the Board if at any time it knows that the CCO is subject to the disqualifications set forth in Section 15(b)(4) of the 1934 Act or Section 9 of the 1940 Act.
|
(x) |
Atlantic TA has adopted and will maintain a written program concerning any anti-money laundering Services it provides hereunder, and (ii) its policies and procedures are reasonably adequate for it to provide the Services related to anti-money laundering and comply with its obligations under this Agreement.
|
(i) |
It is a statutory trust duly organized and existing and in good standing under the laws of the State of Delaware.
|
(ii) |
It is empowered under Law applicable to the Trust and by its Organic Documents to enter into this Agreement and perform its duties under this Agreement.
|
(iii) |
All requisite statutory trust proceedings have been taken to authorize it to enter into this Agreement and perform its duties under this Agreement.
|
(iv) |
It is registered as an open-end management investment company under the 1940 Act.
|
(v) |
This Agreement, when executed and delivered, will constitute a legal, valid and binding obligation of the Trust, enforceable against the Trust in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting the rights and remedies of creditors and secured parties.
|
(vi) |
A registration statement under the Securities Act is currently effective and will remain effective, and appropriate state securities law filings have been made and will continue to be made, with respect to all Shares of the Funds and Classes of the Trust being offered for sale, except to the extent that Atlantic is responsible for any of the foregoing under this Agreement and has failed to cause such filings to be made not as the result of the failure of a Dependency.
|
(vii) |
The CCO shall be covered by the Trust’s Directors & Officers/Errors & Omissions insurance policy (the “
Policy
”), and the Trust shall use reasonable efforts to ensure that the CCO's coverage under the Policy is (a) reinstated should the Policy be cancelled; (b) continued after the CCO ceases to serve as the Trust’s CCO on substantially the same terms as such coverage is provided for Trust officers after such individuals are no longer officers of the Trust; or (c) continued in the event the Trust merges or terminates, on substantially the same terms as such coverage is provided for Trust officers (but for a period no less than six years). The Trust shall provide Atlantic with proof of current coverage, including a copy of the Policy, and shall notify Atlantic immediately should the Policy be cancelled or terminated.
|
(viii) |
Each of the employees of Atlantic that serves or has served at any time as an officer of the Trust, including but not limited to the CCO, President and Treasurer, is covered by the Policy and subject to the provisions of the Trust’s Organic Documents regarding indemnification of its officers.
|
SECTION 9. |
FORCE MAJEURE
|
SECTION 10. |
ACTIVITIES OF ATLANTIC
|
SECTION 11. |
ANTI-MONEY LAUNDERING PROGRAM
|
(i) |
Atlantic TA undertakes to perform all delegated responsibilities under the Trust AML Program; and
|
(ii) |
Atlantic TA has adopted and will maintain written policies and procedures reasonably designed to carry out the responsibilities delegated to Atlantic TA by the Trust under the Trust’s AML Program (“
Atlantic AML Policies and Procedures
”).
|
(i) |
agrees to provide, upon request by federal examiners, information and records maintained by Atlantic TA relating to the Trust AML Program for purposes of the Trust AML Program;
|
(ii) |
agrees to provide, upon request by the Trust, information and records maintained by Atlantic TA relating to the AML Services and the Atlantic AML Policies and Procedures as it applies to the AML Services;
|
(iii) |
agrees to cooperate with the Trust’s AML Compliance Officer with respect to any request for information by the Financial Crimes Enforcement Network pursuant to the Bank Secrecy Act, as amended by the USA PATRIOT Act and the regulations thereunder; and
|
(iv) |
consents to the inspection of Atlantic TA by federal examiners for purposes of the Trust AML Program; any such inspection shall be deemed outside of routine and normal periodic reviews as contemplated under SECTION 4(c).
|
(i) |
a copy of Atlantic AML Policies and Procedures as in effect on the date hereof, and any material amendment thereto promptly after the adoption of any such amendment;
|
(ii) |
no less frequently than annually, a report on Atlantic AML Policies and Procedures that includes a certification to the Trust concerning Atlantic TA’s implementation of, and ongoing compliance with, Atlantic AML Policies and Procedures and a summary of any audit report prepared with respect to Atlantic AML Policies and Procedures as its pertains to the AML Services;
|
(iii) |
interim reports with respect to any material issues that arise with respect to the AML Services or Atlantic AML Policies and Procedures; and
|
(iv) |
periodic reports concerning Atlantic’s compliance with Atlantic AML Policies and Procedures and/or the AML Services at such times as may be reasonably requested by the Board or AML Compliance Officer.
|
SECTION 12. |
IDENTITY THEFT PREVENTION PROGRAM
|
(i) |
Atlantic undertakes to perform all delegated responsibilities under the Trust Identity Theft Prevention Program; and
|
(ii) |
Atlantic has adopted and will maintain a written identity theft prevention program (“
Atlantic Identity Theft Prevention Procedures
”) that enable it to perform its responsibilities under this Agreement.
|
(i) |
prompt written notification of any transaction or combination of transactions that Atlantic TA believes, based on the Identity Theft Prevention Procedures, evidence identity theft activities in connection with the Trust or any shareholder of the Trust;
|
(ii) |
prompt written notification of any customer(s) that Atlantic TA reasonably believes, based upon the Identity Theft Prevention Procedures, to be engaged in identity theft activities, provided that the Trust shall not communicate this information to the customer;
|
(iii) |
Any reports received by Atlantic from any government agency or applicable industry self-regulatory organization pertaining to Atlantic AML Policies and Procedures, the Trust AML Program, the Identity Theft Prevention Procedures or the Trust Identity Theft Prevention Program;
|
(iv) |
prompt written notification of any action taken in response to identity theft activity as described in (i), (ii) or (iii); and
|
(v) |
certified annual and quarterly reports of its monitoring and customer identification activities on behalf of the Trust.
|
(i) |
determine whether such Law applies to Atlantic (or such assignee or subcontractor) and whether Atlantic (or such assignee or subcontractor) is in violation of such applicable Law;
|
(ii) |
provide the CCO (and each Executive Officer that requests such report) with a report identifying the cause of, and the intended procedure/steps for correcting or resolving, such violation and the timeline for completing such procedure/steps;
|
(iii) |
with respect to any such violation that is material, and if requested by the CCO or an Executive Officer, meet with the CCO or an Executive Officer to discuss such violation and such intended procedure/steps and timeline; and
|
(iv) |
implement the intended procedure/steps for correcting such failure.
|
SECTION 14. |
SERVICE DAYS
|
SECTION 15. |
LIMITATION OF SHAREHOLDER AND TRUSTEE LIABILITY
|
SECTION 16. |
TAXES
|
SECTION 17. |
MISCELLANEOUS
|
U.S. GLOBAL INVESTORS FUNDS
|
|||
By:
|
/s/ David Tucker
|
||
David Tucker
|
|||
Chairman
|
|||
ATLANTIC FUND ADMINISTRATION, LLC
|
|||
By:
|
/s/ Stacey E. Hong
|
||
Stacey E. Hong
|
|||
President
|
|||
ATLANTIC SHAREHOLDER SERVICES, LLC
|
|||
By:
|
/s/ Stacey E. Hong
|
||
Stacey E. Hong
|
|||
President
|
1. |
Board Meetings and Board Reports
|
(a) |
Maintain a calendar of scheduled meetings of the Board;
|
2. |
SEC Filings
|
(c)
|
Oversee the printing of SEC Filings that are intended to be distributed to Shareholders;
|
(d)
|
Oversee the distribution of those 2(a) items that are to be provided to Shareholders; and
|
(e)
|
Assist Trust Counsel in preparing and submitting SEC exemptive order requests and no-action letter requests.
|
3. |
Compliance
|
4. |
Organic Documents; Recordkeeping and Ministerial Matters
|
5. |
Expense Accounting
|
6. |
Financial Statements; other Financial Matters
|
7. |
Tax Matters
|
(i)
|
Calculate periodic income distributions and calculate capital gain distributions (in addition to typical calendar year end distributions);
|
(iii)
|
Oversee and coordinate the payment of distributions to Shareholders;
|
8. |
Shareholder Voting
|
1.
|
Services Related to Calculation of Accounting Items, Determination of NAV and Maintenance of a General Ledger
|
2. |
Services Related to Reporting of Data and Provision of Other Information
|
3. |
Services Related to Distributions and Reconciliation of Data
|
4. |
Services Related to Recordkeeping and Reporting
|
(iii)
|
Separate ledger accounts required by subsection (b)(2)(ii) and (iii) of the Rule;
|
1. |
General.
|
2.2
|
Notes and Conditions to Purchase, Redemption and Transfer of Shares:
|
(i)
|
for a wire received, at the time of the receipt of the wire;
|
(ii)
|
for a check drawn on a member bank of the Federal Reserve System, on the next Fund business day following receipt of the check; and
|
3. |
Processing Distributions
|
4.1 |
Anti-Money Laundering (“AML”) Services
|
4.2 |
Notes and Conditions to AML Services
|
5.1 |
Payments to Financial Intermediaries, Redemption Fees
|
5.2 |
Notes and Conditions to Financial Intermediaries Services
|
6. |
Blue Sky; Escheatment
|
(a) |
Monitor sales of Shares for compliance with state blue sky laws;
|
(c)
|
Calculate the total number of Shares of each Fund and Class thereof sold in each reporting jurisdiction authorized by the Trust;
|
(d)
|
Monitor and prepare and make appropriate filings with respect to the escheatment laws of the various states and territories of the United States; and
|
(i)
|
documentation of search policies and procedures;
|
(ii)
|
execution of required searches;
|
(iii)
|
tracking results and maintaining data sufficient to comply with the Lost Shareholder Rules; and
|
(iv)
|
preparation and submission of data required under the Lost Shareholder Rules.
|
7. |
Recordkeeping and Reporting; Facilities
|
(b)
|
Maintain records of account for and provide reports and statements to the Trust and Shareholders about the matters covered by this Appendix A (Part III);
|
8. |
Omnibus Account Transaction Monitoring
|
(a)
|
Identify omnibus Shareholder accounts;
|
(b)
|
Analyze trading activity to determine if arbitrage opportunities exist triggering underlying account transaction data request of an intermediary;
|
(c)
|
Manage the request and flow of underlying data;
|
(d)
|
Customize file feed/format translations;
|
(e)
|
Store underlying account transaction data;
|
(f)
|
Apply each Fund’s market timing rules upon receipt of the underlying account transaction data to flag violations;
|
(g)
|
Report “red flag” violations to the applicable Fund and CCO; and
|
(h)
|
Provide standard report package for on-going review and monitoring of data.
|
1. |
Make Available a Qualified Person to Act as CCO
|
2. |
CCO Responsibilities
|
(a)
|
Report directly to the Board;
|
(e)
|
Apprise the Board of significant compliance events at the Trust or the Service Providers;
|
(f)
|
Design testing methods for the Trust’s compliance program policies and procedures;
|
(h)
|
Conduct periodic site visits to Service Providers as necessary;
|
(i)
|
Provide training to the Trust and deliver updates to the Trust or the Service Providers, as necessary;
|
(l)
|
No less than annually, meet separately with the Trust’s independent trustees.
|
3. |
Other Services
|
(c)
|
Assist the Trust with related compliance matters as reasonably requested.
|
4. |
Sarbanes-Oxley and Other Officers
|
5. |
Periodic Fee Analyses
|
6. |
Other Services
|
7. |
Recordkeeping
|
Re: |
Rule 38a-1 Certification for the Fund(s) (each a “Fund” and collectively, the “Funds”) listed on
Exhibit A
|
1) |
Atlantic has adopted and implemented written policies and procedures (the “Procedures”) that are reasonably designed to prevent the violation of the federal securities laws (as defined under Rule 38a-1) by the Funds.
|
2) |
With respect to the Funds, to the best of Atlantic’s knowledge after due inquiry, the items listed on
Exhibit B
represent compliance matters that have come to Atlantic’s attention during the Period, and may or may not reasonably be deemed material (as defined under Rule 38a-1). We note that you may have already been notified by Atlantic of other compliance matters in the due course of business. In addition, except as otherwise noted, there is nothing that has come to Atlantic’s attention to indicate that the Procedures are not effective in all material respects in relation to violations of federal securities laws that they were designed to prevent.
|
Re: |
Sarbanes-Oxley [N-Q/N-CSR] Certification for the Fund(s) (each a “Fund” and collectively, the “Funds”) listed on Exhibit A
|
1. |
Atlantic is responsible for the design and operation of Atlantic’s internal controls relating to the services that it provides for the Fund(s).
|
2. |
For the Period, Atlantic is not aware of any significant deficiencies or material weaknesses in the design or operation of internal controls over financial reporting for which Atlantic is responsible under the Agreement that are likely to adversely affect the Fund’s ability to record, process, summarize or report financial information.
|
3. |
For the Period, there have been no material changes with respect to the design or operation of the internal controls of Atlantic related to the services provided by Atlantic under the Agreement.
|
4. |
For the Period, Atlantic is not aware of any instances of fraud involving employees of Atlantic who have significant roles with respect to the Fund’s internal controls over financial reporting.
|
Fund
|
Effective Date*
|
U.S. Government Securities Ultra-Short Bond Fund | December 10, 2015 |
Near-Term Tax Free Fund | December 10, 2015 |
All American Equity Fund | December 10, 2015 |
Holmes Macro Trends Fund | December 10, 2015 |
Global Resources Fund | December 10, 2015 |
World Precious Metals Fund | December 10, 2015 |
Gold and Precious Metals Fund | December 10, 2015 |
Emerging Europe Fund | December 10, 2015 |
China Region Fund
|
December 10, 2015
|
* |
Atlantic’s services as transfer agent for the Funds commenced effective September 1, 2016. Atlantic’s services as fund accountant for the Funds commenced effective November 1, 2017.
|
U.S. GLOBAL INVESTORS FUNDS
|
|||
By:
|
/s/ David Tucker
|
||
David Tucker
|
|||
Chairman of the Board of Trustees
|
|||
ATLANTIC FUND ADMINISTRATION, LLC
|
|||
By:
|
/s/ Stacey E. Hong
|
||
Stacey E. Hong
|
|||
President
|
|||
ATLANTIC SHAREHOLDER SERVICES, LLC
|
|||
By:
|
/s/ Stacey E. Hong
|
||
Stacey E. Hong
|
|||
President
|
Fund
|
Fee
|
Investor Class Shares
|
|
China Region Fund
|
0.20%
|
All American Equity Fund
|
0.20%
|
Gold and Precious Metals Fund
|
0.20%
|
World Precious Minerals Fund
|
0.20%
|
Global Resources Fund
|
0.20%
|
Emerging Europe Fund
|
0.20%
|
Holmes Macro Trends Fund
|
0.20%
|
Near-Term Tax Free Fund
|
0.20%
|
U.S. Government Securities Ultra-Short Bond
|
0.20%
|
Institutional Class Shares
|
|
Gold and Precious Metals Fund
|
0.20%
|
World Precious Minerals Fund
|
0.20%
|
Global Resources Fund
|
0.20%
|
Emerging Europe Fund
|
0.20%
|
Re: |
Post-Effective Amendment No. 127 to the Registration
|
Very truly yours,
|
|||
STRADLEY, RONON, STEVENS & YOUNG, LLP
|
|||
BY:
|
/s/ Christopher J. Zimmerman
|
||
Christopher J. Zimmerman, a Partner
|
BBD, LLP
|
SECTION 1. |
BACKGROUND
|
SECTION 2. |
CLASS DESIGNATIONS
|
(A) |
Institutional Shares:
|
· |
are offered and sold to larger investors;
|
· |
are offered and sold without the imposition of a front-end sales charge or contingent deferred sales charge (“CDSC”);
|
· |
are not subject to any fee charged under a Rule 12b-1 Plan;
|
· |
may pay non-Rule 12b-1 service fees as authorized by the Board (“Shareholder Service Fee”);
|
· |
may impose a redemption or exchange fee for Shares redeemed or exchanged within a certain number of days of purchase; and
|
· |
generally require an investment minimum of $5,000 to $1,000,000.
|
(B) |
I Shares:
|
· |
are offered and sold to all investors;
|
· |
are offered and sold without the imposition of a front-end sales charge or CDSC;
|
· |
are not subject to any Rule 12b-1 Fee but may be subject to a Shareholder Service Fee; and
|
· |
generally require an investment minimum of $1,000.
|
(C) |
Investor and Advisor Shares (as applicable):
|
· |
are generally offered and sold to retail investors;
|
· |
are offered and sold without the imposition of a front-end sales charge or CDSC;
|
· |
may be subject to a Rule 12b-1 Fee of up to 0.25% and may pay a Shareholder Service Fee;
|
· |
may impose a redemption or exchange fee for Shares redeemed within a certain number of days of purchase; and
|
· |
generally require an investment minimum of up to $5,000.
|
(D) |
A Shares:
|
· |
are generally offered and sold to retail investors;
|
· |
are offered and sold
with the imposition of a front-end sales charge of up to 5.75% of the public offering price; this charge may be reduced or waived according to a schedule set forth in the Prospectus or for certain eligible investors or in conjunction with certain purchase plans described in the Prospectus;
|
· |
are offered and sold without imposition of a CDSC, except that purchases of Class A Shares of the Fund in excess of $1 million that are sold on a front end sales charge-waived basis (whether in a single sale or pursuant to a letter of intent or rights of accumulation) may be subject to a CDSC of up to 1.00% of the NAV of the Shares at the time of their purchase or redemption, whichever is less, for a period of up to 2 years following the purchase of the Shares;
|
· |
are subject to a Rule 12b-1 Fee of up to 0.50% and may pay a Shareholder Service Fee; do not pay exchange fees; and
|
· |
generally require an investment minimum of $2,000 to $10,000.
|
(E) |
C Shares:
|
· |
are generally offered and sold to retail investors;
|
· |
are generally offered and sold without the imposition of a front-end sales charge or a CDSC;
|
· |
are subject to a Rule 12b-1 Fee of up to 1.00% and may pay a Shareholder Service Fee;
|
· |
do not pay exchange fees; however, C Shares sold by an investor within 12 months of purchase may be subject to a deferred sales charge of up to 1.00% of the NAV of the Shares at the time of their purchase or redemption, whichever is less; and
|
· |
generally require an investment minimum of $2,500.
|
(F) |
D Shares:
|
· |
are offered and sold without a front-end sales charge or CDSC;
|
· |
are subject to a Rule 12b-1 Fee of up to 0.25% but not a Shareholder Service Fee;
|
· |
do not pay redemption or exchange fees; and
|
· |
generally require an investment minimum of $2,000.
|
(G) |
R Shares:
|
· |
are generally offered and sold to retail investors;
|
· |
are offered and sold without the imposition of a front-end or sales charge or CDSC;
|
· |
are subject to a Rule 12b-1 Fee of up to 0.25% and may pay a Shareholder Service Fee; and
|
· |
generally require an investment minimum of up to $250,000.
|
(H) |
Supra Institutional Shares:
|
· |
are offered and sold to seed investors or larger investors;
|
· |
are offered and sold without the imposition of a front-end sales charge or CDSC;
|
· |
are not subject to any Rule 12b-1 Fee but may be subject to a Shareholder Service Fee;
|
· |
may impose a redemption or exchange fee for Shares redeemed or exchanged within a certain number of days of purchase; and
|
· |
generally require an investment minimum of $1
0,000,000.
|
SECTION 3. |
VOTING
|
SECTION 4. |
CLASS EXPENSE ALLOCATIONS
|
(2) |
Blue Sky fees incurred by a specific Class of Shares;
|
(3)
|
Administration, fund accounting and transfer agent fees and expenses identified as being attributable to a specific Class;
|
(4)
|
Litigation, legal and audit fees related to a specific Class;
|
(5)
|
Trustees’ fees and expenses incurred as a result of issues relating to a specific Class;
|
(6)
|
Expenses incurred in connection with shareholder meetings related to a specific Class;
|
(7)
|
Subject to approval by the Board, such other fees and expenses as the Administrator deems to be allocable to specified Classes; and
|
SECTION 5. |
OTHER ALLOCATIONS AND WAIVERS/REIMBURSEMENTS
|
(1)
|
Trust level state registration expenses shall be divided equally among separate Classes of the Trust;
|
SECTION 6. |
EXCHANGE PRIVILEGES
|
SECTION 7. |
AMENDMENTS AND BOARD REVIEW
|