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Market Neutral Large Cap Fund COGMX | COGIX
Overview

Daily Price

as of
Ticker NAV $ Change % Change
 
 
Fund Facts
Total Net Assets* $99,067,441
Total Gross Assets* $182,835,105
Morningstar Category Market Neutral
Benchmark HFRX EH: Equity Market Neutral Index
Inception Date

* as of 06/30/17

Fund Summary Investor Institutional
Ticker
CUSIP
Investment Minimum $1,000 $100,000

Investment Objective

The Fund seeks long-term growth of capital independent of stock market direction.

Investment Team

Jonathan Angrist Brian Machtley Francisco Bido

If you have questions about terminology used in the call, please visit our Glossary of Terms page for definitions.

Morningstar Rating as of 06/30/2017
Market Neutral
COGMX Overall 3-Year
Rating
# of Funds 111 111
COGIX Overall 3-Year
Rating
# of Funds 111 111
Lipper Leaders: Overall Rating as of 06/30/2017
Alternatives
Total Return Consistent Return Preservation
COGMX 4 3 5
COGIX 4 2 5
# of Funds 77 77 11,921
Highest 5 4 3 2 1 Lowest
Strategy

Principal Investment Strategies

The Fund seeks to achieve its investment objective by balancing “long” and “short” positions. To do this, the Fund will buy (take long positions in) equity securities of U.S. companies that the Adviser believes are undervalued and more likely to appreciate and, at the same time, borrow and then sell (take short positions in) equity securities of U.S. companies that the Adviser believes are likely to underperform the long positions over time.

Strategy Characteristics

  • Beta-adjusted market nuetral strategy
  • Non-correlated to broad stock & bond markets
  • All holdings are constituents of the S&P 500; no ETFs, no options, no swaps or other derivatives
  • Strategy utllizes ROTA/ROME® to capture valuation inefficiencies in the market

For Investors Who:

  • Seek returns independent of broad market risks and macro events
  • Seek portfolio diversification through a non-correlated strategy
  • Seek to reduce downside risk without sacrificing upside potential

ROTA/ROME®

ROTA/ROME®, Cognios' value based investment process is a fundamental quantitative stock selection and portfolio construction methodology that seeks to identify companies whose per share intrinsic value has diverged significantly from the current market price of its stock. ROTA/ROME® focuses on a company's Return on Tangible Assets ("ROTA") and Return on Market Value of Equity ("ROME").

Performance

Quarterly Conference Calls

If you have questions about terminology used in the call, please visit our Glossary of Terms page for definitions.

Monthly Quarterly Growth of 10K Calendar Year

Calendar Year Performance
Investor1
Institutional1
2
3

The Fund launched .

Diversification does not eliminate the risk of experiencing investment losses.

Past performance does not guarantee future results. The performance data quoted represents past performance. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. You can obtain performance data current to the most recent month end by calling 855.254.6467.

1 Cognios Inception Date of .

2 HFRX EH: Equity Market Neutral Index is a common benchmark for long/short market neutral hedge funds (funds traditionally only available to high net-worth accredited and institutional investors that are also "qualified clients" as defined by the SEC). More information about this index may be found at www.hedgefundresearch.com.

3 S&P 500 TR Index: Broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks commonly known as the Standard & Poor's 500 or S&P 500. Indices are unmanaged and cannot be invested in directly.

Investor Class: Gross Expense Ratio - 4.08%, Net Expense Ratio - 3.81%, Adj. Net Expense Ratio - 1.95% as of 01/28/2017

Institutional Class: Gross Expense Ratio - 3.84%, Net Expense Ratio - 3.56%, Adj. Net Expense Ratio - 1.70% as of 01/28/2017

Cognios Capital, LLC (the “Adviser”) has agreed contractually to reduce the fees payable to it under the Advisory Agreement (but not below zero) and/or reimburse other expenses of the Fund attributable to services provided by ALPS Fund Services, Inc. and its affiliates (including, but not limited to, organizational expenses and offering costs), to the extent necessary to limit the Total Annual Fund Operating Expenses (as defined in Item 3 of Form N-1A) of each of the Investor Class and Institutional Class shares of the Fund (exclusive of brokerage costs, interest, taxes, dividends, litigation expenses, indemnification amounts, borrowing costs, brokerage expenses and dividend expenses on securities sold short, distribution/12b-1 fees and extraordinary expenses (as determined under generally accepted accounting principles) to 1.70% of the Fund´s average annual net assets. This agreement is in effect through January 31, 2018 and may not be terminated or modified prior to this date except with the approval of the Fund’s Board of Trustees. The Adviser will be permitted to recover, on a class-by-class basis, expenses it has borne through the agreement described above to the extent that the Fund’s expenses in later periods fall below the annual rates set forth in the agreement. The Fund will not be obligated to pay any such deferred fees and expenses more than three years after the end of the fiscal year in which the fees and expenses were deferred.

Diversification does not eliminate the risk of experiencing investment losses.

Past performance does not guarantee future results. The performance data quoted represents past performance. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. You can obtain performance data current to the most recent month end by calling 855.254.6467.

1 Cognios Inception Date of .

2 S&P 500 TR Index: Broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks commonly known as the Standard & Poor's 500 or S&P 500. Indices are unmanaged and cannot be invested in directly.

3 Russell 1000® Value Index: Measures the performance of those Russell 1000 Index companies (the 1,000 largest publicly traded U.S. companies, based on total market capitalization) with lower price-to-book ratios and lower forecasted growth values.

Investor Class: Gross Expense Ratio - 1.36%, Net Expense Ratio - 1.10% as of 10/03/2016

Institutional Class: Gross Expense Ratio - 1.11%, Net Expense Ratio - 0.85% as of 10/03/2016

Cognios Capital, LLC (the “Adviser”) has entered into an Expense Limitation Agreement with the Value Fund under which it has agreed to waive or reduce its fees and to assume other expenses of the Value Fund, if necessary, in an amount that limits the Value Fund’s annual operating expenses (exclusive of interest, taxes, brokerage fees and commissions, acquired funds fees and expenses, extraordinary expenses, and amounts, if any, payable pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act) to not more than 0.85% through at least October 31, 2018. Subject to approval by the Value Fund’s Board, any waiver under the Expense Limitation Agreement is subject to repayment by the Value Fund within the three fiscal years following the year in which such waiver occurred, if the Value Fund is able to make the payment without exceeding the expense limitation in place at the time of the waiver. The current contractual agreement cannot be terminated prior to at least one year after the effective date of the Registration Statement without the Board of Trustees’ approval.

Diversification does not eliminate the risk of experiencing investment losses.

Past performance does not guarantee future results. The performance data quoted represents past performance. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. You can obtain performance data current to the most recent month end by calling 855.254.6467.

1 Cognios Inception Date of .

2 Russell 1000® TR Index: A market-capitalization weighted, large-cap index created by Frank Russell Company to measure the performance of the 1,000 largest publicly traded U.S. companies, based on total market capitalization.

3 Russell 1000® Growth Index: Measures the performance of those Russell 1000 Index companies (the 1,000 largest publicly traded U.S. companies, based on total market capitalization) with higher price-to-book ratios and higher forecasted growth values.

Investor Class: Gross Expense Ratio - 2.52%, Net Expense Ratio - 1.15% as of 10/03/2016

Institutional Class: Gross Expense Ratio - 2.27%, Net Expense Ratio - 0.90% as of 10/03/2016

Cognios Capital, LLC (the “Adviser”) has entered into an Expense Limitation Agreement with the Growth Fund under which it has agreed to waive or reduce its fees and to assume other expenses of the Growth Fund, if necessary, in an amount that limits the Growth Fund’s annual operating expenses (exclusive of interest, taxes, brokerage fees and commissions, acquired funds fees and expenses, extraordinary expenses, and amounts, if any, payable pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act) to not more than 0.90% through at least October 31, 2018. Subject to approval by the Growth Fund’s Board, any waiver under the Expense Limitation Agreement is subject to repayment by the Growth Fund within the three fiscal years following the year in which such waiver occurred, if the Growth Fund is able to make the payment without exceeding the expense limitation in place at the time of the waiver. The current contractual agreement cannot be terminated prior to at least one year after the effective date of the Registration Statement without the Board of Trustees’ approval.

Performance

1 Month 3 Month YTD 1 Year 3 Year 5 Year Since Inception1

The Fund launched . All performance greater than one year is annualized.

Diversification does not eliminate the risk of experiencing investment losses.

Past performance does not guarantee future results. The performance data quoted represents past performance. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. You can obtain performance data current to the most recent month end by calling 855.254.6467.

1 Cognios Inception Date of .

2 HFRX EH: Equity Market Neutral Index is a common benchmark for long/short market neutral hedge funds (funds traditionally only available to high net-worth accredited and institutional investors that are also "qualified clients" as defined by the SEC). More information about this index may be found at www.hedgefundresearch.com.

3 S&P 500 TR Index: Broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks commonly known as the Standard & Poor's 500 or S&P 500. Indices are unmanaged and cannot be invested in directly.

Investor Class: Gross Expense Ratio - 4.08%, Net Expense Ratio - 3.81%, Adj. Net Expense Ratio - 1.95% as of 01/28/2017

Institutional Class: Gross Expense Ratio - 3.84%, Net Expense Ratio - 3.56%, Adj. Net Expense Ratio - 1.70% as of 01/28/2017

Cognios Capital, LLC (the “Adviser”) has agreed contractually to reduce the fees payable to it under the Advisory Agreement (but not below zero) and/or reimburse other expenses of the Fund attributable to services provided by ALPS Fund Services, Inc. and its affiliates (including, but not limited to, organizational expenses and offering costs), to the extent necessary to limit the Total Annual Fund Operating Expenses (as defined in Item 3 of Form N-1A) of each of the Investor Class and Institutional Class shares of the Fund (exclusive of brokerage costs, interest, taxes, dividends, litigation expenses, indemnification amounts, borrowing costs, brokerage expenses and dividend expenses on securities sold short, distribution/12b-1 fees and extraordinary expenses (as determined under generally accepted accounting principles) to 1.70% of the Fund´s average annual net assets. This agreement is in effect through January 31, 2018 and may not be terminated or modified prior to this date except with the approval of the Fund’s Board of Trustees. The Adviser will be permitted to recover, on a class-by-class basis, expenses it has borne through the agreement described above to the extent that the Fund’s expenses in later periods fall below the annual rates set forth in the agreement. The Fund will not be obligated to pay any such deferred fees and expenses more than three years after the end of the fiscal year in which the fees and expenses were deferred.

Diversification does not eliminate the risk of experiencing investment losses.

Past performance does not guarantee future results. The performance data quoted represents past performance. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. You can obtain performance data current to the most recent month end by calling 855.254.6467.

1 Cognios Inception Date of .

2 S&P 500 TR Index: Broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks commonly known as the Standard & Poor's 500 or S&P 500. Indices are unmanaged and cannot be invested in directly.

3 Russell 1000® Value Index: Measures the performance of those Russell 1000 Index companies (the 1,000 largest publicly traded U.S. companies, based on total market capitalization) with lower price-to-book ratios and lower forecasted growth values.

Investor Class: Gross Expense Ratio - 1.36%, Net Expense Ratio - 1.10% as of 10/03/2016

Institutional Class: Gross Expense Ratio - 1.11%, Net Expense Ratio - 0.85% as of 10/03/2016

Cognios Capital, LLC (the “Adviser”) has entered into an Expense Limitation Agreement with the Value Fund under which it has agreed to waive or reduce its fees and to assume other expenses of the Value Fund, if necessary, in an amount that limits the Value Fund’s annual operating expenses (exclusive of interest, taxes, brokerage fees and commissions, acquired funds fees and expenses, extraordinary expenses, and amounts, if any, payable pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act) to not more than 0.85% through at least October 31, 2018. Subject to approval by the Value Fund’s Board, any waiver under the Expense Limitation Agreement is subject to repayment by the Value Fund within the three fiscal years following the year in which such waiver occurred, if the Value Fund is able to make the payment without exceeding the expense limitation in place at the time of the waiver. The current contractual agreement cannot be terminated prior to at least one year after the effective date of the Registration Statement without the Board of Trustees’ approval.

Diversification does not eliminate the risk of experiencing investment losses.

Past performance does not guarantee future results. The performance data quoted represents past performance. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. You can obtain performance data current to the most recent month end by calling 855.254.6467.

1 Cognios Inception Date of .

2 Russell 1000® TR Index: A market-capitalization weighted, large-cap index created by Frank Russell Company to measure the performance of the 1,000 largest publicly traded U.S. companies, based on total market capitalization.

3 Russell 1000® Growth Index: Measures the performance of those Russell 1000 Index companies (the 1,000 largest publicly traded U.S. companies, based on total market capitalization) with higher price-to-book ratios and higher forecasted growth values.

Investor Class: Gross Expense Ratio - 2.52%, Net Expense Ratio - 1.15% as of 10/03/2016

Institutional Class: Gross Expense Ratio - 2.27%, Net Expense Ratio - 0.90% as of 10/03/2016

Cognios Capital, LLC (the “Adviser”) has entered into an Expense Limitation Agreement with the Growth Fund under which it has agreed to waive or reduce its fees and to assume other expenses of the Growth Fund, if necessary, in an amount that limits the Growth Fund’s annual operating expenses (exclusive of interest, taxes, brokerage fees and commissions, acquired funds fees and expenses, extraordinary expenses, and amounts, if any, payable pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act) to not more than 0.90% through at least October 31, 2018. Subject to approval by the Growth Fund’s Board, any waiver under the Expense Limitation Agreement is subject to repayment by the Growth Fund within the three fiscal years following the year in which such waiver occurred, if the Growth Fund is able to make the payment without exceeding the expense limitation in place at the time of the waiver. The current contractual agreement cannot be terminated prior to at least one year after the effective date of the Registration Statement without the Board of Trustees’ approval.

Performance

3 Month YTD 1 Year 3 Year 5 Year Since Inception1

The Fund launched . All performance greater than one year is annualized.

Diversification does not eliminate the risk of experiencing investment losses.

Past performance does not guarantee future results. The performance data quoted represents past performance. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. You can obtain performance data current to the most recent month end by calling 855.254.6467.

1 Cognios Inception Date of .

2 HFRX EH: Equity Market Neutral Index is a common benchmark for long/short market neutral hedge funds (funds traditionally only available to high net-worth accredited and institutional investors that are also "qualified clients" as defined by the SEC). More information about this index may be found at www.hedgefundresearch.com.

3 S&P 500 TR Index: Broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks commonly known as the Standard & Poor's 500 or S&P 500. Indices are unmanaged and cannot be invested in directly.

Investor Class: Gross Expense Ratio - 4.08%, Net Expense Ratio - 3.81%, Adj. Net Expense Ratio - 1.95% as of 01/28/2017

Institutional Class: Gross Expense Ratio - 3.84%, Net Expense Ratio - 3.56%, Adj. Net Expense Ratio - 1.70% as of 01/28/2017

Cognios Capital, LLC (the “Adviser”) has agreed contractually to reduce the fees payable to it under the Advisory Agreement (but not below zero) and/or reimburse other expenses of the Fund attributable to services provided by ALPS Fund Services, Inc. and its affiliates (including, but not limited to, organizational expenses and offering costs), to the extent necessary to limit the Total Annual Fund Operating Expenses (as defined in Item 3 of Form N-1A) of each of the Investor Class and Institutional Class shares of the Fund (exclusive of brokerage costs, interest, taxes, dividends, litigation expenses, indemnification amounts, borrowing costs, brokerage expenses and dividend expenses on securities sold short, distribution/12b-1 fees and extraordinary expenses (as determined under generally accepted accounting principles) to 1.70% of the Fund´s average annual net assets. This agreement is in effect through January 31, 2018 and may not be terminated or modified prior to this date except with the approval of the Fund’s Board of Trustees. The Adviser will be permitted to recover, on a class-by-class basis, expenses it has borne through the agreement described above to the extent that the Fund’s expenses in later periods fall below the annual rates set forth in the agreement. The Fund will not be obligated to pay any such deferred fees and expenses more than three years after the end of the fiscal year in which the fees and expenses were deferred.

Diversification does not eliminate the risk of experiencing investment losses.

Past performance does not guarantee future results. The performance data quoted represents past performance. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. You can obtain performance data current to the most recent month end by calling 855.254.6467.

1 Cognios Inception Date of .

2 S&P 500 TR Index: Broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks commonly known as the Standard & Poor's 500 or S&P 500. Indices are unmanaged and cannot be invested in directly.

3 Russell 1000® Value Index: Measures the performance of those Russell 1000 Index companies (the 1,000 largest publicly traded U.S. companies, based on total market capitalization) with lower price-to-book ratios and lower forecasted growth values.

Investor Class: Gross Expense Ratio - 1.36%, Net Expense Ratio - 1.10% as of 10/03/2016

Institutional Class: Gross Expense Ratio - 1.11%, Net Expense Ratio - 0.85% as of 10/03/2016

Cognios Capital, LLC (the “Adviser”) has entered into an Expense Limitation Agreement with the Value Fund under which it has agreed to waive or reduce its fees and to assume other expenses of the Value Fund, if necessary, in an amount that limits the Value Fund’s annual operating expenses (exclusive of interest, taxes, brokerage fees and commissions, acquired funds fees and expenses, extraordinary expenses, and amounts, if any, payable pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act) to not more than 0.85% through at least October 31, 2018. Subject to approval by the Value Fund’s Board, any waiver under the Expense Limitation Agreement is subject to repayment by the Value Fund within the three fiscal years following the year in which such waiver occurred, if the Value Fund is able to make the payment without exceeding the expense limitation in place at the time of the waiver. The current contractual agreement cannot be terminated prior to at least one year after the effective date of the Registration Statement without the Board of Trustees’ approval.

Diversification does not eliminate the risk of experiencing investment losses.

Past performance does not guarantee future results. The performance data quoted represents past performance. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. You can obtain performance data current to the most recent month end by calling 855.254.6467.

1 Cognios Inception Date of .

2 Russell 1000® TR Index: A market-capitalization weighted, large-cap index created by Frank Russell Company to measure the performance of the 1,000 largest publicly traded U.S. companies, based on total market capitalization.

3 Russell 1000® Growth Index: Measures the performance of those Russell 1000 Index companies (the 1,000 largest publicly traded U.S. companies, based on total market capitalization) with higher price-to-book ratios and higher forecasted growth values.

Investor Class: Gross Expense Ratio - 2.52%, Net Expense Ratio - 1.15% as of 10/03/2016

Institutional Class: Gross Expense Ratio - 2.27%, Net Expense Ratio - 0.90% as of 10/03/2016

Cognios Capital, LLC (the “Adviser”) has entered into an Expense Limitation Agreement with the Growth Fund under which it has agreed to waive or reduce its fees and to assume other expenses of the Growth Fund, if necessary, in an amount that limits the Growth Fund’s annual operating expenses (exclusive of interest, taxes, brokerage fees and commissions, acquired funds fees and expenses, extraordinary expenses, and amounts, if any, payable pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act) to not more than 0.90% through at least October 31, 2018. Subject to approval by the Growth Fund’s Board, any waiver under the Expense Limitation Agreement is subject to repayment by the Growth Fund within the three fiscal years following the year in which such waiver occurred, if the Growth Fund is able to make the payment without exceeding the expense limitation in place at the time of the waiver. The current contractual agreement cannot be terminated prior to at least one year after the effective date of the Registration Statement without the Board of Trustees’ approval.

Hypothetical Growth of $10,000

 

The chart shown above represents a hypothetical investment of $10,000 in the Fund’s Investor Class shares for the period from inception to . All returns reflect reinvested dividends, but do not reflect the deduction of taxes that an investor would pay on distributions or redemptions. Investing in the Fund is subject to investment risks, including possible loss of the principal amount invested. The Fund also offers Institutional Class shares, performance for which is not reflected in the graphs above. The performance of Institutional Class shares may be higher or lower than the performance of the Investor Class shares shown in the graphs above based upon differences in fees paid by shareholders investing in the Investor Class shares and Institutional Class shares.

Holdings

Net Sector Exposure

Top 10 Holdings

Distributions
Class Ex-Date Record Date Payable Date Short Term Long Term Ordinary Income Total

Distributions are not guaranteed.

Distributions were the same across all share classes.

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Literature

Regulatory

Marketing

How To Invest
Investment Professionals: Contact Us Directly

Investing through a Financial Advisor

To open an account with the Cognios Market Neutral Large Cap Fund you should contact a financial advisor at the financial institution of your choice.

There is no minimum investment requirement for accounts opened through a financial advisor, although some financial intermediary firms may impose their own minimum investment requirements.

Investing Directly with the Funds

Cognios Market Neutral Large Cap Fund

For eligible investors seeking to open an account directly with the Cognios Market Neutral Large Cap Fund, please download and carefully read the fund's prospectus as well as the appropriate Account Application form below.

Please mail a check payable to Cognios Market Neutral Large Cap Fund in the applicable minimum amount, along with a completed and signed Account Application to:

Cognios Market Neutral Large Cap Fund
P.O Box 1920
Denver, CO 80201
855.254.6467

Applications must include your valid taxpayer identification number.

You may also purchase Fund shares by wire transfer from your bank account to your Fund account. To place a purchase by wire, please call 855.254.6467 for more information.

Frequently Asked Questions

Is this an actively managed fund?

Yes

Why doesn't the Cognios Market Neutral Large Cap Fund use a Treasury benchmark like other market-neutral mutual funds?

Short-term treasuries and bonds are the most common benchmarks for market neutral mutual funds. In fact, Morningstar uses 3-Month U.S. Treasuries to benchmark all funds in their Market Neutral category. However, Cognios does not believe the risk-free rate (U.S. Treasuries are thought to have such low risk that the risk is considered not to exist) is an appropriate benchmark for market-neutral equity funds given the inherent risks of investing in the stock market, using short selling, and potentially using leverage.

If an investor is seeking treasury-like returns, we believe the investor should chose an investment backed by the federal government rather than an investment in the equity markets.

The Cognios Market Neutral Large Cap Fund is benchmarked against the HFRX Equity Market Neutral Index. The HFRX Equity Market Neutral Index is a common benchmark for long/short market neutral hedge funds (funds traditionally only available to high net-worth accredited and institutional investors that are also "qualified clients" as defined by the SEC). More information about this index may be found at www.hedgefundresearch.com.

What types of securities are purchased by the Fund?

The Fund generally seeks to purchase and sell short large capitalization U.S. equity common stocks of companies that are constituents of the S&P 500 Index.

What does it mean to take a long or short position in a stock?

When the Fund takes a long position, it purchases a stock outright.

When the Fund takes a short position, it sells at the current market price a stock it does not own but has borrowed in anticipation that the market price of the stock will decline or underperform the positions in the long book. To complete, or close out, the short sale transaction, the Fund buys the same stock in the market at a later date and returns it to the lender.

What is the potential benefit of a long/short portfolio?

By employing this long/short Beta-adjusted market neutral investment strategy, the Fund seeks to limit its volatility relative to movements in the overall stock market and limit downside risk during market declines.

How does the advisor choose securities that it believes will outperform or underperform the market?

The Adviser selects securities for purchase or short sale using its proprietary ROTA/ROME® investment strategy. The ROTA/ROME® strategy is a fundamental quantitative stock selection process that seeks to determine a company’s intrinsic value1 and compare that value to the current market price of its stock. In general, ROTA/ROME® can be considered a value-based investment strategy, but it also incorporates the premise that growth is an important component of assessing a stock’s intrinsic value.

1 The intrinsic value of a company is the actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market value.

What does Beta mean?

As used by our fund, Beta is a statistical measure of the sensitivity of a company’s stock price to the movement of a broad stock market index. For the Fund, the Adviser uses a company stock price Beta relative to the S&P 500 Index. A Beta of 1.0 means a stock generally moves up and down in proportion to the movement of the stock market. A Beta greater than 1.0 means a stock generally moves up and down more than the movement of the stock market. A Beta less than 1.0 means that a stock generally moves up and down less than the movement of the stock market.

What does it mean that the Fund is Beta-adjusted market neutral?

A "Beta-adjusted market neutral" strategy typically seeks to derive total returns strictly from stock picking Alpha, with none of the return over time coming from the general up and down movement of the broader stock market.

“Beta-adjusted market neutral” means that the Adviser will attempt to offset 100% of the Fund´s long exposure to the Beta of the broad stock market (i.e., the up and down movements of the S&P 500 Index) by sizing the short positions based on the relative Betas of the longs versus the shorts.

For example, when the Betas of the shorts are higher than the Betas of the longs, fewer dollars of short positions are needed to offset the Betas of the long book. In this case, the Fund dollar will be “net long” (i.e., more dollars invested in the long positions than in the short positions), but will still be “market neutral” on a Beta-adjusted basis.

What does alpha mean?

The risk-adjusted (i.e., Beta-adjusted) outperformance or underperformance of the portfolio relative to the stock market. Since the Fund has generally attempted to hedge out all of the overall market’s returns on a Beta-adjusted basis through its short positions, all of the Fund’s net return is expected to be solely the Alpha generated by the portfolio managers, less all of the Fund’s fees and expenses.

How will the Fund try to generate alpha?

This Alpha can be generated if the stocks selected for the long book exceed the performance of the S&P 500 and/or if the stocks selected for the short book underperform the S&P 500, less all of the Fund’s fees and expenses.

How does this fund differ from a traditional long-only mutual fund?

Cognios' long/short beta-adjusted market neutral fund differs from traditional long-only mutual funds by employing risk management techniques such as the use of hedging through short sales. The hedging strategy has potential to limit the downside risk of our portfolio as well as the potential to generate Alpha for the portfolio. Until recently this type of strategy was only available to institutions and wealthy individuals through hedge funds. Cognios believes that offering this strategy to all investors through a mutual fund offers many benefits to investors. Because mutual funds are registered with the SEC, they are highly regulated products and have strict reporting requirements. Additionally, mutual funds provide daily liquidity1 and enhanced portfolio transparency2 to their investors, all characteristics less common in hedge funds. In times of unpredictable and volatile markets, liquid alternative products such as the Cognios Market Neutral Large Cap Fund may provide strategy diversification to an investor's portfolio.

1 Purchases and redemptions may be made on any day the New York Stock Exchange is open for trading. You may purchase and sell shares directly with the Fund through the Fund's website at www.cogniosfunds.com.

2 The Fund's holdings will be updated quarterly at www.cogniosfunds.com.

The Morningstar Rating for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed end funds, and separate accounts) with at least a three-year history. Exchange –traded funds and open ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-,five-,and 10 year (if applicable) Morningstar Rating metrics. The weights are 100% three-year rating for 36-59 months of total returns, 60% five year rating/40%three-year rating for 60-119 months of total returns, and 50% 10 year rating/30%five-year rating/20%three year rating for 120 or more months of total returns. While the 10 year overall rating formula seems to give the most weight to the 10 year period, the most recent three –year period actually has the greatest impact because it is included in all three rating periods.

The Cognios Market Neutral Large Cap Fund was rated against the following numbers of U.S.-domiciled market neutral funds over the following time periods as of March 31,2017: 114 funds in the last three years and for the Overall rating. With respect to these market neutral funds, the Cognios Market Neutral Large Cap Fund Institutional and Investor Share Classes received a Morningstar RatingTM of 5 stars and 4 stars, respectively, overall and for the three -year period.

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Lipper, a Reuters company, is a nationally recognized organization that ranks the performance of mutual funds within a universe of funds that have similar investment objectives. Rankings are historical and are based on total return with capital gains and dividends reinvested.