Mutual Funds

Fund Information

TFS Market Neutral Fund

(Ticker: tfsmx)

The TFS Market Neutral Fund seeks to produce capital appreciation while having a low correlation to the S&P 500 Index. In addition, it seeks to produce lower volatility than would result from a long-only investment in the U.S. equity market.

LIPPER RANKINGS - Market Neutral Category

Data as of 2/28/2014 3 Year 5 Year
Funds in category 68 41
Rank in category 50th 13th

RETURN STATISTICS

Data through 4/17/2014 Latest Daily Return Month to Date Return Year to Date Return Since Inception 9/7/20041
TFS Market Neutral Fund 0.20% 1.14% -0.79% 6.86%

RISK STATISTICS

Data through 4/17/2014 Beta Alpha Sharpe Ratio Standard Deviation
TFS Market Neutral Fund 0.23 3.28% 0.63 7.87%

TOTAL RETURN

Month ending 3/31/2014 One Year Three Year1 Five Year1 Since Inception 9/7/20041
TFS Market Neutral Fund -3.47% 0.65% 5.79% 6.77%
S&P 500 21.86% 14.66% 21.16% 7.73%
Quarter ending 3/31/2014 One Year Three Year1 Five Year1 Since Inception 9/7/20041
TFS Market Neutral Fund -3.47% 0.65% 5.79% 6.77%
S&P 500 21.86% 14.66% 21.16% 7.73%

1Annualized

The performance data quoted represents past performance, which is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Fee waivers and/or expense reimbursements by the Adviser have positively impacted the Fund’s performance. Without such waivers and/or reimbursements, performance would have been lower.

An investor should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. To obtain a summary prospectus and/or prospectus, which each contain this and other important information, go to www.TFSCapital.com or call (888) 534-2001. Please read the summary prospectus and/or prospectus carefully before investing. The Fund may not be suitable for all investors.

  Gross Expense Ratio Net Expense Ratio Adj. Net Expense Ratio
TFS Market Neutral Fund 8.13% 8.13% 1.81%

Effective January 1, 2014, the management fee paid by the Fund has been reduced from 2.25% per annum to 1.65% per annum. In addition, the Adviser has contractually agreed for the life of the Fund to reduce its management fees and to absorb the Fund’s operating expenses to the extent necessary to limit the annual ordinary operating expenses to an amount not exceeding 1.90% of the Fund’s average daily net assets. The Fund’s annual ordinary operating expenses include all Fund expenses except acquired fund fees and expenses, dividend expenses, borrowing costs and brokerage expense on securities sold short. The expense ratio information listed above has been restated for the new management fee and expense cap arrangement between the Fund and the Adviser. The Adj. Net Expense Ratio of 1.81% excludes acquired fund fees and expenses, dividend expenses, borrowing costs and brokerage expense on securities sold short which totaled 6.32% for the prior fiscal year.

The following “risk” information is being provided to you to help better understand the unique risks associated with investing in TFSMX. As a result of TFSMX’s use of short selling, TFSMX will not participate to the same level as a long-only mutual fund in a bull market. In addition, TFSMX will have a high portfolio turnover rate which will increase transaction costs for the Fund and decrease tax efficiency relative to funds with lower turnover. When TFSMX uses leverage, it will exaggerate any increase or decrease in the Fund’s net asset value. A more detailed discussion of the Fund’s risks, including risks that are unique to the Fund, can be found in its prospectus.

Beta is a measure of a portfolio’s volatility, or systemic risk, in comparison to the market as a whole. Alpha is the abnormal rate of return on a portfolio in excess of what would be predicted by its risk. Distributed by Ultimus Fund Distributors, LLC.

Ranking information provided by Lipper for the three year and five year periods ending with the most recent month end. TFSMX was assigned by Lipper to the Equity Market Neutral category. The Fund is ranked based on total return. Each fund is ranked within a universe of funds with similar investment objectives. Rankings include the reinvestment of dividends and capital gains but exclude the effect of a fund’s sales load, if applicable. Fund ranking calculated monthly by Lipper Analytical Services of New York. Lipper Inc. is a nationally recognized organization that ranks the performance of mutual funds.