Edgar Lomax Value Fund

Objective

Long-term capital growth while providing some income

The Edgar Lomax Value Fund is a no-load mutual fund which invests primarily in the stocks of large, well-recognized companies it believes to be undervalued. The Fund consists of the stocks of approximately 45 to 55 companies (from the S&P 500). Selected stocks typically have lengthy histories of consistent corporate earnings, stable dividends, and healthy balance sheets due to conservative financing. The holdings are characterized by low price-to-earnings and price-to-book ratios, high and/or stable dividend yields, and low to moderate debt-to-equity ratios.

Strategy

The goal of the Fund’s investment strategy is to obtain the highest possible return with the lowest possible risk. To accomplish this, a disciplined, fundamental-based stock picking process is used to identify firms whose stocks are selling at prices below what the manager estimates they are worth. Put simply, the Fund is able to buy—at “bargain” prices—stock in businesses we believe to be of the highest quality, merely because the investment community has temporarily overlooked the companies’ true value. The resulting portfolio is designed to perform well in down markets, while fully participating in rising markets.

(For additional information on how to invest, please click here)

Performance as of 3/31/17 (Most Recent Quarter)

   
 
Annualized
 
  Year-to-date 1-Year 3-Year 5-Year 10-Year Since Inception
(December 12, 1997)
Edgar Lomax Value Fund 3.55% 15.98% 8.58% 11.84% 6.24% 6.46%
S&P 500* 6.07% 17.17% 10.37% 13.30% 7.51% 6.80%

Performance as of 4/30/17 (Most Recent Month)

   
 
Annualized
 
  Year-to-date 1-Year 3-Year 5-Year 10-Year Since Inception
(December 12, 1997)
Edgar Lomax Value Fund 3.69% 14.04% 8.31% 11.91% 5.73% 6.44%
S&P 500* 7.16% 17.92% 10.47% 13.68% 7.15% 6.83%

Gross Expense Ratio: 1.02%    Net Expense Ratio: 0.70%**

 

Market Commentary

 

Performance data quoted represents past performance; past performance does not guarantee future results.  The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.  Current performance of the Fund may be lower or higher than the performance quoted.

Performance is determined by the change in NAV (Net Asset Value), adjusted for distributions, over the respective time period.  Returns reflect fee waivers in effect.  In the absence of fee waivers, returns would be reduced.

* The S&P 500 index is an unmanaged market value-weighted index of 500 stocks designed to represent the broad domestic economy; it does not incur expenses and is not available for direct investment.

** The Edgar Lomax Company (the "Advisor") has contractually agreed to waive all or a portion of its management fees and pay expenses of the Fund to ensure that Total Annual Fund Operating Expenses (excluding acquired fund fees and expenses ("AFFE"), interest, taxes and extraordinary expenses) do not exceed 0.70% of the Fund’s average daily net assets (the "Expense Cap"). The Expense Cap will remain in effect through at least February 27, 2018, and may be terminated only by the Trust's Board of Trustees (the "Board"). The Advisor may request recoupment of previously waived fees and paid expenses from the Fund for three years from the date they were waived or paid, subject to the Expense Cap. In addition, the Advisor has voluntarily agreed to waive a portion of its management fee contingent upon the Fund’s performance versus the S&P 500®Value Index. If the Advisor waives management fees under this arrangement, it has also agreed to absorb all Fund expenses, other than management fees, AFFE, interest, taxes and extraordinary expenses. The Advisor has agreed to continue this waiver arrangement through at least February 27, 2018. While this waiver arrangement may be discontinued at any time after February 27, 2018, the Advisor has no current intention of doing so. With the voluntary waiver arrangement, actual Total Annual Fund Operating Expenses were 0.64% for the fiscal year ended October 31, 2016. For more information, please see the "Management Fee and Voluntary Fee Waiver" section in the statutory prospectus.

Holdings

Top 10 Holdings (as of April 30, 2017)

Security Name %
Wal-Mart Stores, Inc. 5.36%
Allstate Corp. 5.31%
Dow Chemical Co. 5.08%
International Business Machines Corp. 4.45%
Procter & Gamble Co. 4.34%
CVS Health Corp. 4.15%
AT&T, Inc. 3.79%
Pfizer, Inc. 3.56%
Coca-Cola Co. 3.55%
Exelon Corp. 3.54%

Fund holdings are subject to change at any time and are not recommendations to buy or sell any security.

Click Here for full holdings pdf.

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