operating expenses remain the same and that you reinvest all dividends and
distributions. The example reflects contractual fee waivers and reimbursements for the first year only. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$709
|
$1,255
|
$1,825
|
$3,368
|
C
Shares |
$318
|
$
915 |
$1,634
|
$3,542
|
I
Shares |
$117
|
$
645 |
$1,200
|
$2,715
|
You would pay the following
expenses if you did not redeem your shares:
|
1
year |
3
years |
5
years |
10
years |
A
Shares |
$709
|
$1,255
|
$1,825
|
$3,368
|
C
Shares |
$218
|
$
915 |
$1,634
|
$3,542
|
I
Shares |
$117
|
$
645 |
$1,200
|
$2,715
|
Portfolio Turnover
The Fund pays transaction costs, 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
annual fund operating expenses or in the example, affect the Fund’s performance.
Simultaneous with the Fund’s commencement of operation,
the Fund will acquire the assets and assume the liabilities of the Capital Innovations Global Agri, Timber, Infrastructure Fund, a series of Investment Managers Series Trust (the “Predecessor Fund”). For the year ended November 30, 2015,
the portfolio turnover rate for the Predecessor Fund was 19%.
Principal Investment Strategies
Under normal circumstances, the Fund invests at least 80% of
its net assets (plus any borrowings for investment purposes) in the securities of issuers that are primarily engaged in the ownership, development, exploration, production, distribution or processing of natural resources, as well as in securities of
companies that are suppliers to firms producing natural resources, and in instruments with economic characteristics similar to natural resources securities. Natural resources may include, for example, energy sources, precious and other metals,
forest products, real estate, food and agriculture, and other basic commodities.
In selecting investments for purchase and sale, Capital
Innovations, LLC (“Capital Innovations” or the “Subadviser”) employs an in-depth analysis which consists of researching historical performance, characteristics, and long-term fundamental outlook of infrastructure, timber, and
agribusiness companies to construct a diversified portfolio representing exposure to these asset classes. To achieve the Fund’s investment objective, the Subadviser generally allocates the Fund’s assets among the following three of its
existing investment strategies: the Capital Innovations Global Listed Infrastructure strategy, the Capital Innovations Global Listed Timber strategy and the Capital Innovations Global Listed Agribusiness strategy. The Subadviser has appointed
a
committee consisting of senior management (the “Allocation
Committee”) to determine the percentage of the Fund’s assets to be allocated to each such asset class. On a periodic basis the Allocation Committee reviews and may adjust the specific allocation ranges based upon its judgment of
economic, market and regulatory conditions. Actual allocations may vary at any time due to market movements, cash flows into or out of the Fund and other factors.
The Subadviser seeks to capitalize on market inefficiencies by
adhering to a systematic and disciplined investment approach. The Subadviser first screens the infrastructure, timber, and agribusiness industry universes based on specific guidelines, and then applies fundamental analysis to each potential
investment. After an Allocation Committee review of the best ideas, the Subadviser invests in companies it believes have sustainable competitive advantages, based on the Subadviser’s assessment of the durability of cash flows, relative market
valuation and growth potential.
The Fund may invest in
securities of issuers located anywhere in the world. Under normal market conditions, the Fund will invest in issuers listed in at least three countries outside the United States, and will invest at least 40% of its assets in foreign issuers.
However, when market conditions warrant, the Fund may invest a higher percentage in U.S. issuers. In such cases, the Fund will invest at least 30% in foreign issuers. Investments are deemed to be “foreign” if: (a) an issuer’s
domicile or location of headquarters is in a foreign country; (b) an issuer derives a significant proportion (at least 50%) of its revenues or profits from goods produced or sold, investments made, or services performed in a foreign country or has
at least 50% of its assets situated in a foreign country; (c) the principal trading market for a security is located in a foreign country; or (d) it is a foreign currency.
The Fund may invest in companies of any market capitalization
but the majority of the Fund’s investments are generally in large and mid-cap securities. Potential investments include all types of equities, and American depositary receipts (“ADRs”) and global depositary receipts
(“GDRs”) of global infrastructure, timber, and agribusiness companies, trading on U.S. and global exchanges and market places. In addition, the Fund may invest in domestic master limited partnership (“MLPs”) and real estate
investment trusts (“REITs”). MLPs are publicly traded companies organized as limited partnerships or limited liability companies and treated as partnerships for federal income tax purposes. REITs are companies that own interests in real
estate or in real estate related loans or other interests and that qualify for favorable federal income tax treatment.
The Fund may purchase the securities of an exchange-traded fund
(“ETF”) to temporarily gain exposure to a portion of the market while awaiting purchase of securities or as an efficient means of gaining exposure to a particular asset class. The Fund might also purchase shares of an ETF to gain
exposure to the securities in the ETF’s portfolio at times when the Fund may not be able to buy those securities directly. Any investment in an ETF would be consistent with the Fund’s objective and investment program.