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prospectus
or
statement of additional information
American Independence
Risk-Managed Allocation Fund
Institutional
| RMAIX | 026762260
Class A
| AARMX | 026762252
Class C
| ACRMX | 026762245
The Fund’s statutory Prospectus and Statement of Additional Information dated September 20, 2013, are incorporated into and made part of this Summary Prospectus by reference. Before you invest, you may want to review the Fund’s Prospectus, which contains more information about the Fund and its risks. You can find the Fund’s Prospectus and other information about the Fund online at
www.aifunds.com
. You can also get this information at no cost by calling 866-410-2006 or by sending an e-mail request to info@americanindependence.com.
The Securities and Exchange Commission (SEC) has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal o
ff
ense.
Not FDIC Insured
•
May Lose Value
•
No Bank Guarantee
Risk-Managed Allocation Fund
FUND SUMMARY – RISK-MANAGED ALLOCATION FUND
Investment Objectives/Goals.
The Risk-Managed Allocation Fund’s (the “Fund”) objective is to achieve long-term capital appreciation while providing lower than average risk.
Fees and Expenses of the Fund.
This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts on purchases of Class A shares if you and your family invest, or agree to invest in the future, at least $50,000 in the Fund. More information about these and other discounts is available from your financial professional and in the “Investing With The Fund” section starting on page 16 of the Fund’s Prospectus.
|
Institutional Class Shares
|
Class A Shares
|
Class C Shares
|
|
Shareholder Fees
(fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)
|
None
|
5.75%
|
None
|
Maximum Deferred Sales Charge (Load) (as a percentage of the Net Asset Value purchase)
|
None
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None
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1.00%
(1)
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Redemption Fee
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None
|
None
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
Management Fee
|
0.75%
|
0.75%
|
0.75%
|
Distribution and Service (12b-1) Fees
|
None
|
0.38%
(2)
|
1.00%
|
Other Expenses
(3)
|
0.41%
|
0.41%
|
0.41%
|
Acquired Fund Fees and Expenses
(3)
|
0.29%
|
0.29%
|
0.29%
|
Total Annual Fund Operating Expenses
|
1.45%
|
1.83%
|
2.45%
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Fee Waivers and Expense Reimbursements
(4)
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-0.26%
|
-0.26%
|
-0.26%
|
Net Annual Fund Operating Expenses After Fee Waivers and Expense Reimbursements
(4)
|
1.19%
|
1.57%
|
2.19%
|
(1)
Class C shares will be assessed a 1.00% contingent deferred sales charge if redeemed within one year of date of purchase.
(2)
The Board has approved a Rule 12b-1 plan with a 0.25% distribution fee for Class A Shares. In addition, the Board has approved a Shareholder Services Plan for Class A Shares which would provide for a fee paid quarterly at an annual rate of up to 0.25%. At the present time, the Fund is assessing the full 0.25% distribution fee and is assessing 0.13% of the shareholder servicing fee.
(3)
Other Expenses and Acquired Fund Fees and Expenses are based on estimated amounts for the current fiscal year.
(4)
American Independence Financial Services, LLC (“American Independence” or the “Adviser”) has contractually agreed to reduce the management fee and reimburse expenses until March 1, 2015 in order to keep the Total Annual Fund Operating Expenses to 0.90%, 1.28% and 1.90% of the Fund’s average net assets for Institutional Class Shares, Class A Shares and Class C Shares, respectively. The contractual expense limitation does not apply to Acquired Fund Fees and Expenses or Interest and Dividend Expense
on Short Sales, if any.
The Adviser is permitted to seek reimbursement from the Fund, subject to
limitations, for fees it waived and Fund expenses it paid in any fiscal year of
the Fund over the following three fiscal years, as long as the reimbursement
does not cause the Fund’s operating expenses to exceed the expense limitation.
The expense limitation may be terminated only by approval of the Board of
Trustees.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you
invest $10,000 in the Fund for the time periods indicated and then redeem all
of your shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
1
Year
|
3
Year
|
Institutional
Class Shares
|
|
$121
|
|
$433
|
|
Class
A Shares
|
|
$726
|
|
$1,094
|
|
Class
C Shares
|
|
$325
|
|
$739
|
|
Portfolio
Turnover
The Fund pays transaction costs, such as
commissions, when it buys and sells securities (or "turns over" its
portfolio). A higher portfolio turnover rate may indicate higher transaction
costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in the annual fund operating
expenses or in the Example, affect the Fund's performance. The Fund has not yet
commenced operations, and therefore, has no portfolio turnover rate to report.
Principal Investment Strategies, Risks and Performance.
Principal Strategies.
The Fund strives to
obtain a lower than average risk by diversifying the portfolio across several
different asset classes which have low, or negative, correlations to one
another. By having a portfolio with multiple asset classes with differing
correlations, the total volatility of the portfolio is lower than some, or all,
of the underlying asset classes if they were held individually. Also, the use
of cash as a tactical asset class during times of high market volatility
further helps reduce the risk of the portfolio.
The Fund seeks long-term appreciation by
investing in exchange-traded funds (“ETFs”), listed on U.S. Exchanges, representing
three major asset classes: equities, fixed income, and alternative investments,
in both developed and emerging market countries. The Fund treats cash
equivalents as a tactical asset class and has the ability to fully invest in
cash or cash equivalents as a potential defense against volatile market
downturns. Allocations within each asset class are based on a macro, top down
approach focusing on fundamental credit driven research and data to measure
risk in each holding and the portfolio as a whole.
Under normal market conditions, the Fund
intends to invest in the following manner:
Ø
At least 80% (and
generally as close to 100% as practical) of its net assets, plus borrowings for
investment purposes, will be invested in equities, fixed income, and alternative
investments in ETFs listed on U.S. exchanges, representing both developed and
emerging market countries; and
Ø
At least 20% of its
net assets, plus borrowings for investment purposes, will be invested in fixed
income ETFs, listed on U.S. exchanges, representing both developed and
emerging market
countries, with varying maturities and
credit qualities including high yield securities (commonly known as junk bonds).
The Fund is a “fund
of funds.” The term “fund of funds” is typically used to describe mutual funds
whose primary investment strategy involves investing in other investment
companies, such as ETFs and other mutual funds. The Fund is best suited for
long-term investors.
In addition to
investing primarily in ETFs, the Fund may also invest in short-term money
market securities, cash, money market mutual funds and Treasury Bills for
temporary purposes.
Main
types of securities the Fund may hold:
Ø
ETFs;
to the extent the Fund invests in ETFs the Fund will bear
the proportionate share of the underlying expenses of the ETF
Ø
Short-term money market
securities, including cash, money market mutual funds, and Treasury Bills
Principal Risks.
Before investing in
the Fund, you should carefully consider your own investment goals, the amount
of time you are willing to leave your money invested and the amount of risk you
are willing to take. The Fund is not intended to be a complete investment
program, and is subject to management risk and may not achieve its objective if
the Sub-Adviser’s expectations regarding particular securities or markets are
not met. A summary of the principal risks of investing in the Fund can be found
below and include risks that the Fund is exposed to by investing in the ETFs:
ETF Risks
. The following are
various types of risks to which the Fund is subject based on the certain types
of ETFs in which the Fund will be investing:
General ETF Risk
. The cost to a
shareholder of investing in the Fund may be higher than the cost of investing
directly in ETF shares and may be higher than other mutual funds that invest
directly in the related securities. Shareholders will indirectly bear the fees
and expenses charged by the ETFs in addition to the Fund’s direct fees and
expenses.
Tracking Error Risk
. ETFs typically
trade on securities exchanges and their shares may, at times, trade at a
premium or discount to their net asset values. In addition, an ETF may not
replicate exactly the performance of the benchmark index it seeks to track for
a number of reasons, including transaction costs incurred by the ETF, the
temporary unavailability of certain index securities in the secondary market or
discrepancies between the ETF and the index with respect to the weighting of
securities or the number of securities held.
Fund of Funds Structure Risk
. Investments in
securities of other investment companies, including ETFs, are subject to
statutory limitations prescribed by the 1940 Act. Absent an available
exemption, the Fund may not: (i) acquire more than 3% of the voting securities
of any other investment company; (ii) invest more than 5% of its total assets
in securities of any one investment company; or (iii) invest more than 10% of
its total assets in securities of all investment companies.
Many ETFs have obtained exemptive relief from
the SEC to permit unaffiliated funds to invest in the ETF’s shares beyond the
above statutory limitations, subject to certain conditions and pursuant to a
contractual arrangement between the particular ETF and the investing fund. The
Fund may rely on these exemptive orders to invest in unaffiliated ETFs. If the
Fund is unable to rely on an exemptive order, the limitations discussed above
may prevent the Fund from allocating its investments in the manner the Sub-Adviser
considers prudent, or cause the Sub-Adviser to select an investment other than
that which the Sub-Adviser considers suitable.
Because the Fund’s investments are
concentrated in underlying funds, and the Fund’s performance is directly
related to the performance of such underlying funds, the ability of the Fund to
achieve its
investment objective is directly related to
the ability of the underlying funds to meet their investment objectives.
Asset Allocation Risk
. The Fund’s
investment performance depends on how its assets are allocated and reallocated.
A principal risk of investing in the Fund is that the Sub-Adviser may make less
than optimal or poor asset allocation decisions. The Sub-Adviser employs an
active approach to allocation among sectors, but there is no guarantee that
such allocation techniques will produce the desired results. It is possible
that the Sub-Adviser will focus on an investment that performs poorly or
underperforms other investments under various market conditions.
Equity Securities Risk
.
In
general, prices of equity securities are more volatile than those of fixed
income securities. The prices of equity securities fluctuate, and sometimes
widely fluctuate, in response to activities specific to the issuer of the
security as well as factors unrelated to the fundamental condition of the
issuer, including general market, economic and political conditions.
Fixed-Income Securities Risk
. Fixed-income
securities are subject to the risk of the issuer’s inability to meet principal
and interest payments on its obligations (i.e., credit risk) and are subject to
price volatility resulting from, among other things, interest rate sensitivity,
market perception of the creditworthiness of the issuer and general market
liquidity (i.e., market risk). Generally fixed-income securities will decrease
in value if interest rates rise and will increase in value if interest rates
decline. Securities with longer durations are likely to be more sensitive to
changes in interest rates, generally making them more volatile than securities
with shorter durations. Lower rated fixed-income securities have greater
volatility because there is less certainty that principal and interest payments
will be made as scheduled.
High Yield Securities Risk
. Lower rated
securities are subject to greater risk of loss of income and principal than
higher rated securities and may have a higher incidence of default than
higher-rated securities. The prices of lower rated securities are likely to be
more sensitive to adverse economic changes or individual corporate developments
than higher rated securities. High yield securities are commonly referred to as
“junk bonds” and are considered to be speculative.
Foreign Securities Risk
.
To the
extent the Fund invests in foreign securities, including depositary receipts,
such investments are subject to additional risks including political and
economic risks, greater volatility, civil conflicts and war, currency
fluctuations, expropriation and nationalization risks, higher transaction
costs, delayed settlement, possible foreign controls on investment, and less
stringent investor protection and disclosure standards.
Emerging Markets Risk
. The Fund may
invest in foreign securities that may include securities of companies located
in developing or emerging markets, which entail additional risks, including:
less social, political and economic stability; smaller securities markets and
lower trading volume, which may result in less liquidity and greater price
volatility; national policies that may restrict a securities investment
opportunities, including restrictions on investments in issuers or industries,
or expropriation or confiscation of assets or property; and less developed
legal structures governing private or foreign investment.
Foreign Currency Risk
. Investments in
foreign currencies are subject to the risk that those currencies will decline
in value relative to the U.S. dollar, or, in the case of hedged positions, that
the U.S. dollar will decline relative to the currency being hedged. When the
U.S. dollar strengthens relative to a foreign currency, the U.S. dollar value
of an investment denominated in that currency will typically fall. Currency
rates in foreign countries may fluctuate significantly over short periods of
time.
Political Risk
.
A greater potential
for revolts, and the expropriation of assets by governments exists when
investing in securities of foreign countries.
Interest Rate and
Duration Risk
. The
Fund's share price and total return will vary in response to changes in
interest rates. If rates increase, the value of the Fund's
investments generally will decline, as will the value of your investment in the
Fund. Longer-term securities are subject to greater interest rate risk.
Duration is a measure of the sensitivity of a security's price to changes in
interest rates. The longer a security's duration, the more sensitive it will be
to changes in interest rates. Similarly, a fund with longer average fund
duration will be more sensitive to changes in interest rates and will
experience more price volatility than a fund with shorter average fund
duration.
Credit Risk
. The issuer of a
fixed income security may not be able to make interest and principal payments
when due. Generally, the lower the credit rating of a security, the greater the
risk that the issuer will default on its obligation, which could result in a
loss to the Fund.
Prepayment Risk
. Prepayment occurs when the issuer of a security can repay principal
prior to the security’s maturity. Securities subject to prepayment can offer
less potential for gains during a declining interest rate environment and
similar or greater potential for loss in a rising interest rate environment. In
addition, the potential impact of prepayment features on the price of a debt
security can be difficult to predict and result in greater volatility. This
risk could affect the total return of the Fund.
U.S. Government Obligations Risk
. U.S.
government securities are subject to market and interest rate risk, as well as
varying degrees of credit risk. Some U.S. government securities are issued or
guaranteed by the U.S. Treasury and are supported by the full faith and credit
of the United States. Other types of U.S. government securities are supported
by the full faith and credit of the United States (but not issued by the U.S.
Treasury). These securities may have less credit risk than U.S. government
securities not supported by the full faith and credit of the United States.
With respect to U.S. government securities that are not backed by the full
faith and credit of the U.S. Government, there is the risk that the U.S.
Government will not provide financial support to such U.S. government agencies,
instrumentalities or sponsored enterprises if it is not obligated to do so by
law.
Commodities Risk
. Investments in commodities, such as gold, or in commodity-linked
instruments, will subject the Fund’s portfolio to volatility that may also
deviate from price movements in equity and fixed income securities.
Real Estate Investment Risk
. The risk that the value of the Fund’s shares will be
negatively affected by factors specific to the real estate market, including
interest rate risk, leverage risk, property risk and management risk.
High Portfolio Turnover Rate Risk
. High portfolio
turnover rates could generate capital gains that must be distributed to
shareholders as short-term capital gains taxed at ordinary income rates
(currently as high as 39.6%) and could increase brokerage commission costs.
Investments in the Fund are not deposits or
obligations of, or guaranteed or endorsed by, any bank and are not insured or
guaranteed by the FDIC, the Federal Reserve Board or any other government
agency.
You could lose money by investing in the
Fund.
Past Performance.
The Fund has not
commenced operations as of the date of this Prospectus, and, therefore, has no
reportable performance history. Once the Fund has operated for at least one
calendar year, a bar chart and performance table will be included in the Prospectus
to show the performance of the Fund.
Management.
Investment Advisers.
The Fund’s investment adviser is American Independence Financial Services, LLC (“American Independence”).
The Fund’s sub-adviser is J.A. Forlines, LLC (“JAF”).
Portfolio Management.
Manager Name
|
Primary Title
|
Managed the Fund Since
|
John A. Forlines III
|
Portfolio Manager; Chairman and CIO of JAF
|
2013
|
Eric M. Rubin
|
Portfolio Manager, President of American Independence
|
2013
|
Purchase and Sale Information.
Purchase minimums
|
Institutional Class Shares
|
Class A Shares
|
Class C Shares
|
Initial Purchase
|
$3,000,000
|
$5,000
|
$5,000
|
Subsequent Purchases
|
$5,000
|
$250
|
$250
|
How to purchase and redeem shares
·
Through Matrix Capital Group, Inc. (the “Distributor”)
·
Through banks, brokers and other investment representatives
·
Through retirement plan administrators and record keepers
·
Purchases
: by completing an application and sending a check to the Fund at the address below (an application can be obtained through the Fund’s website at www.aifunds.com or by calling 1-888-266-8787).
·
Redemptions
: by calling 1-888-266-8787 or by writing to the Fund at the address below:
American Independence Funds
|
P.O. Box 8045
|
Boston, MA 02266-8045
|
Tax Information.
The Fund intends to make distributions that may be taxed as ordinary income or capital gains, except when your investment is in an IRA, 401(k) plan or other tax-advantaged investment plan.
Financial Intermediary Compensation.
If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s Web site for more information.
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