Strategy. The SMI Fund seeks to achieve its objective by investing in a diversified portfolio of other investment companies using a Stock Upgrading strategy. This strategy is a systematic investment approach that is based on the belief of SMI Advisory Services, LLC (the Advisor), the SMI Funds adviser, that superior returns can be obtained by constantly monitoring the performance of a wide universe of other investment companies, and standing ready to move assets into funds deemed by the Advisor to be most attractive at the time of analysis. This upgrading process strives to keep assets invested in funds that are demonstrating superior performance relative to their peers as determined by a combination of size and investment style criteria. The SMI Fund … Show more… The SMI Fund seeks to achieve its objective by investing in a diversified portfolio of other investment companies using a Stock Upgrading strategy. This strategy is a systematic investment approach that is based on the belief of SMI Advisory Services, LLC (the Advisor), the SMI Funds adviser, that superior returns can be obtained by constantly monitoring the performance of a wide universe of other investment companies, and standing ready to move assets into funds deemed by the Advisor to be most attractive at the time of analysis. This upgrading process strives to keep assets invested in funds that are demonstrating superior performance relative to their peers as determined by a combination of size and investment style criteria. The SMI Fund primarily invests in the following types of funds: open-end equity mutual funds, exchange-traded funds (ETFs), and publicly traded partnerships (PTPs) (collectively, Underlying Funds) using its Stock Upgrading strategy. Generally, Underlying Funds with the highest momentum scores are chosen. Underlying Funds that do not have the highest momentum scores may not outperform and could, in fact, lose money. These Underlying Funds may, in turn, invest in a broad range of equity securities, including foreign securities and securities of issuers located in emerging markets. Underlying Funds also may invest in other investments, including but not limited to, commodities, fixed income securities of any maturity or credit quality, including high-yield, high-risk debt securities (junk bonds), and they may engage in derivative transactions. The Underlying Funds are typically categorized into the following seven risk categories: Large Value, Large Growth, Small Value, Small Growth, International, Commodities, and Non-Diversified (which includes concentrated and other higher-risk funds that are not normally included in the six other risk categories). Target allocations for each of the seven risk categories are monitored continuously and can shift based on relative performance, and holdings for each of the seven risk categories can range from 0% - 66% of the overall Stock Upgrading portfolio. The Stock Upgrading strategy also incorporates defensive protocols and may occasionally shift part or all of the portfolio holdings out of equity funds or commodities and into holdings focused on fixed income and/or cash based on the Advisors proprietary indicators. The strategy may result in the Fund investing a significant portion of its assets in one or a few Underlying Funds. Additionally, the SMI Fund may also invest in one or more ETFs that employ momentum and trend-based investing strategies, including the SMI 3Fourteen Full-Cycle Trend ETF, whose managers are affiliated with the SMI Fund. Such investments will be made in accordance with the Investment Company Act of 1940 (the 1940 Act). The SMI Fund indirectly will bear its proportionate share of all management fees and other expenses of the Underlying Funds in which it invests. Therefore, the SMI Fund will incur higher expenses than other mutual funds that invest directly in securities. Actual expenses are expected to vary with changes in the allocation of the SMI Funds assets among the various Underlying Funds in which it invests. The Advisor is under common control with the publisher of the Sound Mind Investing Newsletter (the Newsletter), a monthly financial publication that recommends a Stock Upgrading strategy similar to the strategy utilized by the SMI Fund. Although Underlying Funds purchased by the SMI Fund generally will be highly ranked in the Newsletter, the SMI Fund may also invest in funds not included in the Newsletter, including Underlying Funds not available to the general public but available only to institutional investors. It should be noted that, even though the Advisors upgrading process ranks Underlying Funds primarily on the basis of performance, past performance is no guarantee of future performance. Show less