MarketGrader 100 Enhanced Index Fund
Systematic â€œgrowth at a reasonable priceâ€ (GARP) equity strategy hedged with a dynamic risk overlay
The investment objective of the MarketGrader 100 Enhanced Index Fund (the â€œFundâ€) is to seek investment results that correspond generally to the directional performance of the U.S equity market using a proprietary methodology that attempts to enhance risk-adjusted returns through hedging strategies.
Invest in the 100 most fundamentally sound and attractively-priced US companies
Apply hedges only when conditions warrant
Smart beta index with cost-conscious tactical risk management
|PERFORMANCE (as of 6/30/2017)|
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Returns for one year or less are cumulative. Investment return and principal value will fluctuate so that an investorâ€™s shares, when redeemed, may be worth more or less than original cost. For the most recent month end performance, please call 1-844-524-9366. Other share class performance may vary.
Minimum Investments Initial investment
For Class A and C shares: $2,500
For Class I shares: $10,000
Subsequent Investment: $500
($1,000 for Class I shares)
Automatic Investment Plan: $100
Maximum Sales Charge
For Class A Shares: 5.50%
For Class C and I Shares: None
Maximum Deferred Sales Charge
For Class C Shares: 1.0% on shares
sold within 12 months of purchase
For Class A and I Shares: None
Expense Ratio (Gross)
Class I Shares: 2.62%
Expense Ratio (Net)
Class I Shares: 1.51%
*The Fund’s advisor has contractually agreed to waive its fees and/or operating expenses until April 30, 2018
The Fund will make distributions of net investment income monthly and net capital gains (if any) typically in December. Distributable dividends and taxable capital gains are automatically reinvested in the Fund unless you request cash distributions on your application or through a written request to the Transfer Agent.
For Class A, C and I shares: 2,0% on shares sold within 30 days of purchase.
Fund Assets Under Management
$76.1 Million (as of 6/30/2017)
IMST Distributors, LLC.
December 31, 2015
MarketGrader 100 Index Methodology
Systematically identify and invest in the most fundamentally sound US companies, not just the biggest.
A Disciplined and Repeatable
Quantitative Investment Approach
The MarketGrader 100 Index is a rules-based index intended to give investors a means of tracking the overall performance of a portfolio of 100 U.S equity securities with attractive metrics. The screening methodology is based primarily on the strength of a companyâ€™s fundamentals with respect to growth, value, profitability and cash flow. Each position is equally weighted to create a well-diversified U.S. equity portfolio with risk controls such as sector limits and liquidity filters.
Kaizen Dynamic Risk Overlay
Go long volatility when conditions warrant, stay out of the way in bull markets
A Hedging Strategy Designed to
Mitigate Risk and Enhance Returns
The â€œFinancial Tornadoâ€ Warning System
Kaizen systematically analyzes volatility prices and relationships looking for traits that have been common to past systemic events (e.g. bear markets) in stocks. The overlay strategy is long volatility only when these conditions are met. Staying out of the way during bull markets is just as important as hedging during bear markets.
FUND ADVISOR AND SUBADVISORS
Kaizen Advisory, LLC, an Illinois limited liability company formed in May 2014, acts as the investment advisor to the Fund. Kaizen is registered with the SEC and has approximately $187.4 million in assets under management as of June 30, 2017. Kaizenâ€™s services to the Fund include providing overall supervision of the investment management operations of the Fund and related administrative services.
Portfolio Managers for the MarketGrader 100 Enhanced Index Fund are Michael Thompson and D. Matthew Thompson, who are responsible for the day-to-day management of the Fundâ€™s portfolio.
IMPORTANT DISCLOSURE and RISKS
Before investing you should carefully consider the Fundâ€™s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by calling 1-844-524-9366. Please read the prospectus carefully before you invest.
An investment in the Fund is subject to risk, including the possible loss of principal. Fund risks include, but are not limited to, the following: The Fund invests in small and medium size companies, which carry greater risk than is customarily associated with larger, more established companies. Derivatives instruments involve inherent leverage, which may magnify the Fundâ€™s gains or losses. Adverse changes in the value or level of the underlying asset, reference rate or index can result in loss of an amount substantially greater than the amount invested in the derivative. In addition, the use of leverage may cause the Fund to liquidate portfolio positions when it would not be advantageous to do so in order to satisfy obligations. The Fund must segregate liquid assets, or engage in other measures to â€œcoverâ€ open positions with respect to certain kinds of derivatives and short sales. The Fund may incur losses on derivatives and other leveraged investments (including the entire amount of the Fundâ€™s investment in such investments) even if they are covered.
Risks of futures contracts may arise from an imperfect correlation between movements in the price of the instruments and the price of the underlying securities. The Fundâ€™s use of futures contracts exposes the Fund to leverage risk because of the small margin requirements relative to the value of the futures contract. Hedging transactions involve risks different than those of underlying investments. In particular, the variable degree of correlation between price movements of hedging transactions and price movements in the position being hedged means that losses on the hedge may be greater than gains in the value of the Fundâ€™s positions, opportunities for gain may be limited or that there may be losses on both parts of a transaction.
Liquidity risk exists when particular investments of the Fund would be difficult to purchase or sell, possibly preventing the Fund from selling such illiquid securities at an advantageous time or price, or possibly requiring the Fund to dispose of other investments at unfavorable times or prices in order to satisfy its obligations. The Fund is newly organized and has no operating history. As a result, prospective investors have no track record or history on which to base their investment decisions.
Smart beta is an investment style where a manager passively follows an index designed to take advantage of perceived systematic biases or inefficiencies in the market.
The Kaizen Dynamic Risk Overlay Index (â€KZTVOLâ€) is a separate, proprietary index that reflects the use of CBOE Volatility IndexÂ® (VIX) futures contracts to hedge portfolios during bear market periods while minimizing hedging expenses during rising markets.
The CBOE Volatility Index (“VIX”) is a widely used measure of market risk that represents the market’s expectation of near term (30-day) volatility based on S&P 500 stock index option prices. One cannot invest directly in an index.
Distributed by IMST Distributors, LLC.