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.

RETURN STATISTICS

Data through 3/26/2015 Latest Daily Return Month to Date Return Year to Date Return Since Inception 9/7/20041
TFS Market Neutral Fund 0.19% 0.26% 1.58% 6.88%

RISK STATISTICS

Data through 3/26/2015 Beta Alpha Sharpe Ratio Standard Deviation
TFS Market Neutral Fund 0.23 3.70% 0.73 7.63%

TOTAL RETURN

Month ending 2/28/2015 One Year Three Year1 Five Year1 Ten Year1 Since Inception 9/7/20041
TFS Market Neutral Fund 8.6% 4.0% 4.1% 6.8% 6.9%
S&P 500 15.5% 18.0% 16.2% 8.0% 8.4%
Quarter ending 12/31/2014 One Year Three Year1 Five Year1 Ten Year1 Since Inception 9/7/20041
TFS Market Neutral Fund 4.15% 4.43% 3.90% 6.74% 6.88%
S&P 500 13.69% 20.41% 15.45% 7.67% 8.30%

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 8.40% 8.40% 1.89%

Effective January 1, 2014, the management fee paid by the Fund was reduced from 2.25% per annum to 1.65% per annum. In addition, the Adviser 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 1.89% excludes acquired fund fees and expenses, dividend expenses, borrowing costs and brokerage expense on securities sold short which totaled 6.51% for the prior fiscal year. See the current Prospectus for a more detailed discussion.

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. Short selling subjects a fund to the potential for unlimited losses. 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. The Fund’s use of derivatives requires special skills and knowledge of investment techniques that are different than those normally required for purchasing and selling common stock. If the Adviser uses a derivative instrument at the wrong time or incorrectly identifies market conditions, or if the derivative instrument does not perform as expected, these strategies may significantly reduce the Fund’s return. The quantitative models used by the Adviser may be similar to the models used by other quantitative managers. This potential portfolio overlap with other quantitative funds could lead to periods of high volatility, especially in the event that other managers choose to rapidly sell securities or close short positions. A more detailed discussion of the Fund’s risks, including risks that are unique to the Fund, can be found in its prospectus. The US 3 Month Treasury Bill rate is used as the risk free rate in alpha calculations.

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. Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions. For periods less than one year the return figures are not annualized and represent an aggregate total return. Distributed by Ultimus Fund Distributors, LLC.