ck0000720498-20230630
MATRIX
ADVISORS
VALUE
FUND, INC.
TICKER:
MAVFX
10
Bank Street, Suite 590
White
Plains, New York 10606
Prospectus
October 28,
2023
The
Securities and Exchange Commission (the “SEC”) has not approved or disapproved
of these securities or passed upon the accuracy or adequacy of this Prospectus.
Any representation to the contrary is a criminal offense.
TABLE
OF CONTENTS
Summary
Section
Investment
Objective
The
Matrix
Advisors Value Fund (the “Fund”) seeks to achieve a total rate
of return which is comprised of capital appreciation and current
income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund. You may pay other fees, such as brokerage commissions and
other fees to financial intermediaries, which are not reflected in the tables
and examples below.
|
|
|
|
|
| |
|
Annual
fund operating expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
|
| |
| Management
Fees |
0.75% |
| Other
Expenses |
0.48% |
| Total
Annual Fund Operating Expenses |
1.23% |
| Less:
Fee Waiver and/or Expense Reimbursement |
-0.24% |
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement(1) |
0.99% |
(1)Matrix
Asset Advisors, Inc. (the “Advisor”), the Fund’s investment adviser, has
contractually agreed to waive its management fee and/or reimburse the Fund’s
operating expenses to the extent necessary to ensure that the Fund’s total
operating expenses (excluding front-end or contingent deferred loads, taxes,
leverage interest, brokerage commissions, acquiring fund fees and expenses,
expenses incurred in connection with any merger or reorganization, or
extraordinary expenses such as litigation) do not exceed 0.99% of the Fund’s
average daily net assets. The Advisor is entitled to recoup the fees waived
and/or expenses reimbursed within a three-year period from the date of the
waiver or expense payment if such reimbursement will not cause the Fund’s
expense ratio to exceed the lesser of: (a) the expense limitation in place at
the time of the waiver and/or expense payment; or (b) the expense limitation in
place at the time of the recoupment. The expense cap/reimbursement agreement
will continue in effect until at least October 31, 2024,
and may be terminated at any time, and without payment or penalty, by the Fund’s
Board of Directors (the “Board”) upon 60 days’ written notice to the Advisor.
The agreement may not be terminated by the Advisor without the consent of the
Board. Currently, the Advisor has agreed not to seek reimbursement of such
management fee waivers and/or expense reimbursements.
Example
This Example is intended to help you compare the costs 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. The expenses below reflect the
expense cap/reimbursement arrangement discussed in the previous table 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 |
| $101 |
$367 |
$653 |
$1,467 |
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
annual fund operating expenses or in the example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
22% of
the average value of its portfolio.
Principal Investment
Strategies
The Fund invests primarily in both dividend and
non-dividend paying common stocks of U.S. companies that the Advisor
believes are financially strong and meet specific valuation criteria using the
principles of value investing based on Classic Valuation Analysis. Using
valuation models, statistics such as earnings growth, dividend growth, return on
equity and book value are analyzed versus their historical, current and
projected levels to determine a company’s “Intrinsic Value.” The Fund invests
primarily in large capitalization companies, which the Advisor
defines as companies with minimum market capitalizations of
$2 billion at the time of purchase. Stocks will be sold when the Advisor
believes they no longer represent value. The Fund may invest in any sector. At
times, the Advisor may overweight the Fund’s portfolio in one or more particular
sectors, and/or underweight the Fund’s portfolio or not invest in one or more
particular sectors.
Principal Investment
Risks
There is a risk that you could
lose all or a portion of your investment in the Fund. The
following are some of the principal risks that can affect the value of your
investment:
Management
Risk.
The risk that the Advisor may fail to implement the Fund’s investment strategies
and meet its investment objective.
Market
Risks; Recent Market Events.
The
Fund’s investments are subject to market risk, which may cause the value of the
Fund’s investments to decline. If the value of the Fund’s investments goes down,
the share price of the Fund will go down, and you may lose money. U.S. and
international markets have experienced volatility in recent months and years due
to a number of economic, political and global macro factors, including rising
inflation, the war between Russia and Ukraine, and the impact of the coronavirus
(COVID-19) global pandemic. While U.S. and global economies are recovering from
the effects of COVID-19, the recovery is proceeding at slower than expected
rates and may last for a prolonged period of time. Uncertainties regarding the
level of central banks’ interest rate increases, political events, the
Russia-Ukraine conflict, rising government debt in the U.S. and trade tensions
also contribute to market volatility. During those periods, the Fund may
experience high levels of shareholder redemptions and may have to sell
securities at times when the Fund would otherwise not do so, potentially at
unfavorable prices.
Common
Stock Risk.
Common stocks are susceptible to general stock market fluctuations and to
volatile increases and decreases in value as market confidence in and
perceptions of their issuers change.
Large
Capitalization Company Risk.
Larger, more established companies may be unable to respond quickly to new
competitive challenges such as changes in consumer tastes or innovative, smaller
competitors. Also, large-capitalization companies are sometimes unable to attain
the high growth rates of successful, smaller companies, especially during
extended periods of economic expansion.
Sector
Emphasis Risk.
Investing a substantial portion of the Fund’s assets in related industries or
sectors may have greater risks, because companies in these sectors may share
common characteristics and may react similarly to market developments. In recent
years, the Fund has concentrated its investments in the Financials sector, and
as a result, it may be more susceptible to the particular risks that may affect
companies in the Financials sector, including government regulations, economic
conditions, credit rating downgrades, changes in interest rates and decreased
liquidity in credit markets. In addition, the Fund has recently concentrated its
investments in the Information Technology sector, and as a result, it may be
more susceptible to the particular risks that may affect companies in the
Information Technology sector because companies that rely heavily on technology
are particularly vulnerable to rapid changes in technology product cycles, rapid
product obsolescence, government regulation and competition.
Value
Strategy Risk.
The stock of value companies can continue to be undervalued for long periods of
time and not realize its expected value. The Advisor may not be able to
accurately determine the “Intrinsic Value” of a company, resulting in the
purchase of an overvalued security or premature sale of an undervalued company.
Additionally, the market may use different criteria to determine a company’s
value, which could have unexpected effects on a company’s performance and cause
losses for the Fund.
Cyber
Security Risk.
Investment
companies, such as the Fund, and their service providers may be subject to
operational and information security risks resulting from cyber-attacks.
Cyber-attacks include, among other behaviors, stealing or corrupting data
maintained online or digitally, denial of service attacks on websites, the
unauthorized release of confidential information or various other forms of cyber
security breaches. Cyber-attacks may interfere with the processing of
shareholder transactions, impact the Fund’s ability to calculate its net asset
value (“NAV”), cause the release of private shareholder information or
confidential company information, impede
redemptions, subject the Fund to regulatory fines or financial losses,
and cause reputational damage. The Fund may also incur additional costs for
cyber security risk management purposes. Similar types of cyber security risks
are also present for issuers of securities in which the Fund
invests.
Performance
The following performance information provides some indication
of the risks of investing in the Fund. The bar chart below shows
how the Fund’s total returns have varied from year to year. The table below
shows how the Fund’s average annual total returns for 1-year, 5-year and 10-year
periods compare with that of a broad-based market index. The Fund’s past
performance (before and after taxes) is not necessarily an indication of how it
will perform in the future. Updated performance information is
available on the Fund’s website at www.matrixadvisorsvaluefund.com.
Calendar Year Total
Returns*
*
The
Fund’s year-to-date return as of September 30, 2023 was
10.95%.
During
the periods shown in the bar chart, the Fund’s highest quarterly
return was 23.90% for the quarter ended
June 30,
2020, and the lowest quarterly
return was -27.68% for the quarter ended
March 31,
2020.
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and local
taxes. Actual
after-tax returns depend on an investor’s tax situation and may differ from
those shown, and after-tax returns shown are not relevant to investors who hold
their Fund shares through tax-deferred or other tax-advantaged arrangements,
such as 401(k) plans or individual retirement accounts.
In certain cases, the figure representing “Return after taxes
on distributions and sale of Fund shares” may be higher than the other return
figures for the same period since a higher after-tax return results when a
capital loss occurs upon redemption and provides an assumed tax deduction that
benefits the investor.
|
|
|
|
|
|
|
|
|
|
|
| |
|
Average Annual
Total Returns (for the periods ended December 31,
2022) |
|
| 1
Year |
5
Years |
10
Years |
| Matrix
Advisors Value Fund |
|
| |
| Return before
taxes |
-20.42% |
6.00% |
9.83% |
| Return after
taxes on distributions |
-21.33% |
4.39% |
8.76% |
| Return after
taxes on distributions and sale of Fund shares |
-11.44% |
4.58% |
7.99% |
|
S&P 500®
Index (reflects
no deduction for fees, expenses or
taxes) |
-18.11% |
9.42% |
12.56% |
Management
|
|
|
|
|
|
|
|
| |
| Investment
Advisor |
Portfolio
Manager |
Managed
the Fund Since |
| Matrix
Asset Advisors, Inc. |
David
A. Katz, President and Chief Investment Officer of the Advisor |
1996 |
Purchase
and Sale of Fund Shares
You
may purchase or redeem Fund shares on any business day by written request via
mail (Matrix Advisors Value Fund, Inc., c/o U.S. Bank Global Fund Services,
P.O. Box 701, Milwaukee, WI 53201-0701), by wire transfer, by telephone at
1-866-209-1965, or through a financial intermediary. The minimum initial and
subsequent investment amounts are shown in the table below.
Minimum
Investments
|
|
|
|
|
|
|
|
| |
|
| To
Open Your Account |
To
Add to Your Account |
| Regular
Account |
$1,000 |
$100 |
| Retirement
Account |
$500 |
$100 |
| Automatic
Investment Plan |
$500 |
$100 |
Tax
Information
The
Fund’s distributions are taxed as ordinary income or long-term capital gains,
unless you are investing through a tax-deferred or other tax-advantaged
arrangement, such as a 401(k) plan or an individual retirement account, in which
case you may be subject to federal income tax upon withdrawal from such a
tax-deferred or tax-advantaged arrangement.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of 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 website for more
information.
Additional
Information about the Fund’s
Investment
Objective and Principal Investment Strategies
The
investment objective of the Fund is to achieve a total rate of return which is
comprised of capital appreciation and current income. There is no assurance that
the Fund will achieve its investment objective.
The
Fund invests primarily in both dividend and non-dividend paying common stocks of
large capitalization domestic companies. The Advisor selects investment
securities that are financially strong and meet specific valuation criteria
using the principles of value investing based on Classic Valuation
Analysis.
Classic
Valuation Analysis
Classic
Valuation Analysis is an investment methodology based on principles developed
over 70 years ago by Benjamin Graham. Using valuation models, statistics such as
earnings growth, dividend growth, return on equity and book value are analyzed
versus their historical, current and projected levels to determine a company’s
“Intrinsic Value.” Value criteria requires companies to have a strong financial
position, as measured by balance sheet data, and current low stock market
valuation in comparison to investment “Intrinsic Value” as measured by historic
and current earnings, dividends, return on equity and book value.
Consistent
with the principles of Classic Valuation Analysis, the Fund diversifies its
portfolio over a range of companies and industries. The Fund may invest in any
sector. At times the Advisor may overweight the Fund’s portfolio in one or more
particular sectors, and/or underweight the Fund’s portfolio or not invest in one
or more particular sectors. Once a stock has been purchased for the Fund’s
portfolio, it generally is sold for one of two reasons:
•the
security no longer represents a value, as determined by the Advisor;
or
•there
has been a fundamental change in the issuer’s balance sheet or results of
operations so that it no longer meets the Fund’s financial or valuation
criteria.
In
addition, the Fund may, in unusual circumstances, sell a security at a time when
the sale is not indicated by Classic Valuation Analysis to avoid adverse tax
consequences or to meet abnormally heavy redemption requests.
The
Fund generally has had a low rate of portfolio turnover, which may lead to lower
transaction costs and may help to improve Fund performance. However, portfolio
securities may be sold without regard to the length of time they have been
held.
Temporary
Defensive Strategies
Under
normal market conditions, the Fund will stay fully invested in stocks. The Fund,
however, may temporarily depart from its principal investment strategies by
investing up to 100% of its assets in cash, cash equivalents, high quality
short-term money market instruments or money market mutual funds, in response to
adverse market, economic or political conditions, or in other appropriate
circumstances. If this type of defensive strategy is employed, the Fund may not
achieve its investment objective.
Index
Description
The
S&P 500®
Index is an unmanaged index generally representative of the market for the
stocks of large-sized U.S. companies. You may not invest directly in the S&P
500®
Index and, unlike the Fund, it does not incur fees and expenses.
Additional
Information about the Principal Risks of Investing in the Fund
The
principal risks that may adversely affect the Fund’s NAV or total return are
summarized above under “Summary Section.” These risks are discussed in more
detail below.
Management
Risk. Management
risk means that your investment in the Fund varies with the success or failure
of the Advisor’s investment strategies and the Advisor’s research, analysis and
determination of portfolio securities. If the Advisor’s investment strategies do
not produce the expected results, your investment could be diminished or even
lost.
Market
Risks; Recent Market Events.
The Fund’s investments are subject to market risk, which may cause the value of
the Fund’s investments to decline. If the value of the Fund’s investments goes
down, the share price of the Fund will go down, and you may lose money.
Volatility in share price is an inherent characteristic of equity markets. U.S.
and international markets have experienced volatility in recent months and years
due to a number of economic, political and global macro factors, including
rising inflation, the war between Russia and Ukraine, and the impact of the
coronavirus (COVID‑19) global pandemic. While U.S. and global economies are
recovering from the effects of COVID-19, the recovery is proceeding at slower
than expected rates and may last for a prolonged period of time. In addition,
the impact and spread of infectious diseases in developing or emerging market
countries may cause relatively greater strain on those countries’ healthcare
systems than those in developed countries. Uncertainties regarding the level of
central banks’ interest rate increases, political events, the Russia-Ukraine
conflict, rising government debt in the U.S. and trade tensions have also
contributed to market volatility. Global economies and financial markets are
increasingly interconnected, which increases the possibility that conditions in
one country or region might adversely impact issuers in a different country or
region.
Common
Stock Risk. Common
stocks are susceptible to general stock market fluctuations and to volatile
increases and decreases in value as market confidence in and perceptions of
their issuers change. Investor perceptions may impact the market and are based
on various and unpredictable factors including expectations regarding
government, economic, monetary and fiscal policies; inflation and interest
rates; economic expansion or contraction; and global or regional political,
economic and banking crises. If you hold common stocks of any given issuer, you
would generally be exposed to greater risk than if you hold preferred stocks or
debt obligations of the issuer because common stockholders generally have
inferior rights to receive payments from issuers in comparison with the rights
of preferred stockholders, bondholders and other creditors of such
issuers.
Large
Capitalization Company Risk.
Larger, more established companies may be unable to respond quickly to new
competitive challenges such as changes in consumer tastes or innovative, smaller
competitors. Also, large-capitalization companies are sometimes unable to attain
the high growth rates of successful, smaller companies, especially during
extended periods of economic expansion.
Sector
Emphasis Risk. Investing
a substantial portion of the Fund’s assets in related industries or sectors may
have greater risks, because companies in these sectors may share common
characteristics and may react similarly to market developments. In recent years,
the Fund has concentrated its investments in the Financials sector, and as a
result, it may be more susceptible to the particular risks that may affect
companies in the Financials sector, including government regulations, economic
conditions, credit rating downgrades, changes in interest rates and decreased
liquidity in credit markets. In addition, the Fund has recently concentrated its
investments in the Information Technology sector, and as a result, it may be
more susceptible to the particular risks that may affect companies in the
Information Technology sector because companies that rely heavily on technology
are particularly vulnerable to rapid changes in technology product cycles, rapid
product obsolescence, government regulation and competition.
Value
Strategy Risk. Undervalued
stocks can react differently to issuer, political, market and economic
developments than the market as a whole and other types of stocks. Undervalued
stocks tend to be inexpensive relative to their earnings or assets compared to
other types of stocks. However, these stocks can continue to be inexpensive for
long periods of time and may not realize their full economic value. The
Advisor
may not be able to accurately determine the “Intrinsic Value” of a company,
resulting in the purchase of an overvalued security or premature sale of an
undervalued company. Additionally, the market may use different criteria to
determine a company’s value, which could have unexpected effects on a company’s
performance and cause losses for the Fund.
Cyber
Security Risk.
Investment companies, such as the Fund, and their service providers may be
subject to operational and information security risks resulting from
cyber-attacks. Cyber-attacks include, among other behaviors, stealing or
corrupting data maintained online or digitally, denial of service attacks on
websites, the unauthorized release of confidential information or various other
forms of cyber security breaches. Cyber-attacks affecting the Fund or the
Advisor, custodian, transfer agent, intermediaries and other third-party service
providers may adversely impact the Fund. For instance, cyber-attacks may
interfere with the processing of shareholder transactions, impact the Fund’s
ability to calculate its NAV, cause the release of private shareholder
information or confidential company information, impede redemptions, subject the
Fund to regulatory fines or financial losses, and cause reputational damage. The
Fund may also incur additional costs for cyber security risk management
purposes. Similar types of cyber security risks are also present for issuers of
securities in which the Fund invests, which could result in material adverse
consequences for such issuers and may cause the Fund’s investment in such
portfolio companies to lose value.
The
Fund may be appropriate for investors who:
•Are
pursuing a long-term goal such as retirement;
•Want
to add an investment in undervalued stocks to their equity portfolio;
and
•Are
willing to accept higher short-term risk along with higher potential for
long-term growth of capital.
Portfolio
Holdings
A
description of the Fund’s policies and procedures regarding disclosure of the
Fund’s portfolio securities is available in the Fund’s Statement of Additional
Information (“SAI”).
Investment
Advisor
Matrix
Asset Advisors, Inc. is the investment adviser to the Fund. The Advisor’s
address is 10 Bank Street, Suite 590, White Plains, New York, 10606. The Advisor
has provided investment advisory services to individuals, endowment, and pension
accounts since 1986 and to another mutual fund, the Matrix Advisors Dividend
Fund, a series of Matrix Advisors Funds Trust, since 2016. As
of June 30, 2023, the Advisor managed assets of approximately $961
million.
The Advisor provides the Fund with advice on buying and selling securities. The
Advisor also furnishes the Fund with office space and certain administrative
services and provides most of the personnel needed by the Fund. For its
services, the Fund pays the Advisor a monthly management fee based upon its
average daily net assets. Currently, the Advisor receives a management fee of
0.75% of the Fund’s average daily net assets. For
the fiscal year ended June 30, 2023, the Advisor received management fees
of 0.51% of the Fund’s average daily net assets, after fee waivers.
A
discussion regarding the basis for the Board of Directors’ approval of the
investment advisory agreement with the Advisor is available in the Fund’s
semi-annual report to shareholders for the period ended December 31,
2022
and will be available in the Fund’s semi-annual report for the period ending
December 31, 2023.
Portfolio
Manager
Mr. David
A. Katz, President and Chief Investment Officer of the Advisor, has overall
responsibility for the Advisor’s investment efforts and is primarily responsible
for the management of the Fund’s portfolio. He graduated summa
cum laude
from Union College with a Bachelor of Arts degree in Economics. He received a
Master of Business Administration degree, with a concentration in Finance, from
New York University Graduate School of Business in 1987, graduating with
distinction. His numerous works on
Value
Investing have earned him various awards and distinctions at the undergraduate
and graduate levels. Mr. Katz is a CFA charterholder. After initially working at
Management Asset Corporation (Westport, CT), Mr. Katz co-founded Value Matrix
Management with the late John M. Gates in 1986. He served as the firm’s Senior
Vice President and Chief Investment Officer and was Head of the Investment
Policy Committee. In 1990, he merged the Value Matrix Management organization
into Matrix Asset Advisors, Inc. Mr. Katz chairs the Investment Policy Committee
and is a Portfolio Manager/Analyst. He appears frequently as a guest on CNBC and
Bloomberg Radio. He has been President and Chief Investment Officer of the
Advisor and a principal shareholder of the Advisor for over thirty five years.
The
Fund’s SAI provides additional information about the portfolio manager’s
compensation, other accounts managed by the portfolio manager and the portfolio
manager’s ownership of securities of the Fund.
Fund
Expenses
The
Advisor has agreed to waive its management fee and/or reimburse the Fund’s
operating expenses through at least October 31,
2024,
to the extent necessary to ensure that the Fund’s total operating expenses
(excluding front-end or contingent deferred loads, taxes, leverage interest,
brokerage commissions, acquired fund fees and expenses, expenses incurred in
connection with any merger or reorganization, or extraordinary expenses such as
litigation) do not exceed 0.99% of the Fund’s average daily net assets. The
expense cap/reimbursement agreement can be terminated at any time, and without
payment or penalty, by the Board upon 60 days’ written notice to the Advisor.
The agreement may not be terminated by the Advisor without the consent of the
Board. The expense cap/reimbursement agreement has the effect of lowering the
overall expense ratio for the Fund and increasing the Fund’s overall return to
investors during the time any such amounts are waived and/or reimbursed. The
Advisor is permitted to recoup any expenses or fees it has waived or reimbursed
within a three-year period from the date of the waiver or reimbursement, if the
expense ratios in those future years are less than the limits specified above
and less than the limits in effect at that future time. The expense
cap/reimbursement agreement may have the effect of increasing the Fund’s overall
expense ratio during any periods where the Advisor recoups previously waived or
reimbursed expenses. Currently,
the Advisor has agreed not to seek reimbursement of such management fee waivers
and/or expense reimbursements.
Shareholder
Information
How
to Buy Shares
You
may open a Fund account with a minimum initial investment of $1,000 and add to
your account at any time with a minimum subsequent investment of $100 or more.
You may open a retirement account or Automatic Investment Plan account with a
minimum initial investment of $500 and add to your account at any time with a
minimum subsequent investment of $100 or more. The Fund may waive minimum
investment requirements from time to time.
In
compliance with the USA PATRIOT Act of 2001, please note that U.S. Bancorp Fund
Services, LLC, the Fund’s transfer agent (the “Transfer Agent”), will verify
certain information on your account application as part of the Fund’s anti-money
laundering program. As requested on the application, you must supply your full
name, date of birth, social security number and permanent street address. If you
are opening the account in the name of a legal entity (e.g.,
partnership, limited liability company, business trust, corporation, etc.), you
must also supply the identity of the beneficial owners or controlling persons at
your legal entity prior to the opening of your account. Mailing addresses
containing only a P.O. Box will not be accepted. Please contact the Transfer
Agent at 1-866-209-1965 if you need additional assistance when completing your
application.
If
we do not have a reasonable belief of the identity of a customer, the account
will be rejected, or the customer will not be allowed to perform a transaction
on the account until such information is received. In
the
rare event that the Transfer Agent is unable to verify your identity, the Fund
reserves the right to redeem your account at the current day’s net asset
value.
You
may purchase shares of the Fund by check, wire or via electronic funds transfer
through the Automated Clearing House (ACH) network. Your share purchase price
will be at the NAV next determined after the Transfer Agent receives your order
with complete information and meeting all of the requirements discussed in this
Prospectus. For certain qualified brokers, when you place your order with such a
broker or its authorized agent, your order is treated as if you had placed it
directly with the Transfer Agent, and you will pay or receive the next share
price calculated by the Fund. The Fund will be deemed to have received a
purchase or redemption order when an authorized broker or, if applicable, a
broker’s authorized designee, receives the order. All purchases by check must be
in U.S. dollars, drawn on a U.S. financial institution. If your check does not
clear you will be charged a return check fee and may be responsible for any loss
sustained by the Fund. The Fund will not accept payment in cash or money orders.
To prevent check fraud, the Fund will not accept third party checks, Treasury
checks, credit card checks, traveler’s checks or starter checks for the purchase
of shares. The Fund is unable to accept post-dated checks or any conditional
order or payment. The Fund does not issue share certificates.
The
Fund reserves the right to reject any purchase order if, in the Fund’s
discretion, it is in its best interest to do so. For example, a purchase order
may be refused if it appears so large that it would disrupt the management of
the Fund. Purchases may also be rejected from persons believed to be engaged in
“frequent trading” as described under “Frequent Trading,” below. Investors will
generally be notified of any purchase orders that are rejected within two
business days.
Shares
of the Fund have not been registered for sale outside of the United
States.
By
Check
If
you are making an initial investment in the Fund, simply complete the Account
Application included with this Prospectus and mail or send it via overnight
delivery with a check made payable to “Matrix Advisors Value Fund, Inc.”
to:
|
|
|
|
|
| |
|
Regular
Mail
Matrix
Advisors Value Fund, Inc.
c/o
U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
WI 53201-0701 |
Overnight
Delivery
Matrix
Advisors Value Fund, Inc.
c/o
U.S. Bank Global Fund Services
615
E. Michigan Street, 3rd
Floor
Milwaukee,
WI 53202-5207 |
Please
do not send letters by overnight delivery service or express mail to the P.O.
Box address. The Fund does not consider the U.S. Postal Service or other
independent delivery services to be its agents. Therefore, deposit in the mail
or with such services, or receipt at the Transfer Agent post office box, of
purchase orders or redemption requests does not constitute receipt by the
Transfer Agent. Receipt of purchase orders or redemption requests is based on
when the order is received at the Transfer Agent’s offices.
If
you are making a subsequent purchase, please note that an Invest by Mail form is
attached to the confirmation statement you will receive after each transaction.
Detach the form from the confirmation statement and mail it together with a
check made payable to “Matrix Advisors Value Fund, Inc.” to the Fund in the
envelope provided with your statement or to the address noted above. You should
write your account number on the check.
You
may also mail a letter together with a check to the Transfer Agent identifying
the name of the Fund and indicating the dollar value of shares to be purchased.
Please write your account number on the check.
By
Wire
If
you are making your first investment in the Fund, you must have a completed
Account Application before you wire funds to the Transfer Agent. You can mail or
overnight deliver your Account Application
to
the Transfer Agent at the above address. You may also fax the Account
Application by calling the Transfer Agent at 1-866-209-1965. Upon receipt of
your completed Account Application, the Transfer Agent will establish an account
for you. The account number assigned will be required as part of the instruction
that should be provided to your bank to send the wire. Your bank must include
the name of the Fund you are purchasing, the account number, and your name so
that monies can be correctly applied. Your bank should transmit funds by wire
to:
U.S.
Bank N.A.
777
E. Wisconsin Avenue
Milwaukee,
WI 53202
ABA
No.: 075000022
Credit:
U.S. Bancorp Fund Services, LLC
Account
No.: 112-952-137
Further
Credit: Matrix Advisors Value Fund, Inc.
Account
name (shareholder name)
Shareholder
account number
Before
sending your wire, please contact the Transfer Agent at 1-866-209-1965 to advise
it that you are intending to wire funds. This will ensure prompt and accurate
credit upon receipt of your investment. Your bank may charge you a fee for
sending a wire to the Fund. Wired funds must be received prior to 4:00 p.m.,
Eastern Time, to be eligible for the same day pricing. The Fund and U.S. Bank
N.A. are not responsible for the consequences of delays resulting from the
banking or Federal Reserve wire system, or from incomplete wiring
instructions.
Telephone
Purchase
Investors
may purchase additional shares of the Fund by calling 1-866-209-1965. Unless you
declined this option on your account application, telephone orders will be
accepted via electronic funds transfer from your bank account through the
Automated Clearing House (ACH) network. You must have banking information
established on your account prior to making a purchase and your account must be
open for at least 7 business days before the first telephone purchase. If your
order is received prior to 4:00 p.m. Eastern time, your shares will be purchased
at the NAV calculated on the day your order is placed.
Telephone
trades must be received by or prior to market close. During periods of high
market activity, shareholders may encounter higher than usual call waits. Please
allow sufficient time to place your telephone transaction.
Investment
Brokers or Dealers
You
may buy or sell shares of the Fund through certain brokers (and their agents)
that have made arrangements with the Fund to sell its shares. For certain
qualified brokers, when you place your order with such a broker or its
authorized agent, your order is treated as if you had placed it directly with
the Transfer Agent, and you will pay or receive the next share price calculated
by the Fund. The broker (or agent) generally holds your shares in an omnibus
account in the broker’s (or agent’s) name, and the broker (or agent) maintains
your individual ownership records. The Advisor may pay the broker (or its agent)
for maintaining these records as well as providing other shareholder services.
The broker (or its agent) may charge you a fee for handling your order. The
broker (or agent) is responsible for processing your order correctly and
promptly, keeping you advised regarding the status of your individual account,
confirming your transactions and ensuring that you receive copies of the Fund’s
prospectus.
Automatic
Investment Plan
For
your convenience, the Fund offers an Automatic Investment Plan (an “AIP”). The
minimum initial investment is reduced to $500 for investors who wish to enroll
in an AIP. Under an AIP, you authorize the Fund to withdraw a minimum amount of
$100 from your bank on a monthly, quarterly, semi-annual, or annual basis. We
are unable to debit or credit mutual fund or pass-through accounts. Please
contact
your
financial institution to determine if it participates in the Automated Clearing
House System (ACH). If your bank rejects your payment, the Transfer Agent will
charge a $25 fee to your account. If you wish to enroll in an AIP, complete the
appropriate section in the Account Application. The Fund may terminate or modify
this privilege at any time. You may terminate your participation in the AIP at
any time by notifying the Transfer Agent in writing or by telephone. Any changes
should be submitted five days prior to effective date.
Retirement
Plans
The
Fund offers an Individual Retirement Account (“IRA”) plan. You may obtain
information about opening an IRA plan account by calling the Transfer Agent at
1-866-209-1965.
How
to Sell Shares
You
may sell (redeem) your Fund shares on any date the Fund and the New York Stock
Exchange (“NYSE”) are open for business.
You
may redeem your shares by sending a written request to the Transfer Agent or by
telephone as discussed below. You should give your account number and state
whether you want all or some of your shares redeemed. The letter should be
signed by all of the shareholders whose names appear on the account
registration, and include a signature guarantee(s), if applicable. Corporations,
executors, administrators, trustees or guardians must submit documents
evidencing their authority to act. Certain redemptions require a signature
guarantee. Call the Transfer Agent for details. You should send your redemption
request to:
|
|
|
|
|
| |
|
Regular
Mail
Matrix
Advisors Value Fund, Inc.
c/o
U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
WI 53201-0701 |
Overnight
Delivery
Matrix
Advisors Value Fund, Inc.
c/o
U.S. Bank Global Fund Services
615
E. Michigan Street, 3rd
Floor
Milwaukee,
WI 53202-5207 |
Please
do not send letters by overnight delivery service or express mail to the P.O.
Box address. The Fund does not consider the U.S. Postal Service or other
independent delivery services to be its agents. Therefore, deposit in the mail
or with such services, or receipt at the U.S. Bancorp Fund Services, LLC post
office box, of purchase orders or redemption requests does not constitute
receipt by the Transfer Agent. Receipt of purchase orders or redemption requests
is based on when the order is received at the Transfer Agent’s
offices.
The
Fund typically expects to send the redemption proceeds on the next business day
(a day when the NYSE is open for normal business) after the redemption request
is received in good order and prior to market close, regardless of whether the
redemption proceeds are sent via check, wire, or ACH transfer. Under unusual
circumstances, the Fund may suspend redemptions, or postpone payment for up to
seven days, as permitted by federal securities law. If you did not purchase your
shares via wire, the Fund may delay payment of your redemption proceeds for up
to 15 calendar days from date of purchase or until your purchase amount has
cleared, whichever occurs first.
The
Fund may redeem the shares in your account if the value of your account is less
than $1,000 as a result of redemptions you have made. This does not apply to IRA
or other retirement plans, or Uniform Gifts or Transfers to Minors Act accounts.
You will be notified that the value of your account is less than $1,000 before
the Fund makes an involuntary redemption. You will then have 30 days in which to
make an additional investment to bring the value of your account up to at least
$1,000 before the Fund takes any action. Redemption of your shares under these
circumstances may result in a taxable gain or loss.
The
Fund typically expects to meet redemption requests by paying out proceeds from
cash or cash equivalent portfolio holdings, or by selling portfolio holdings. In
stressed market conditions, redemption methods may include paying redemption
proceeds to you in whole or in part by a distribution of securities
from
the Fund’s portfolio (a “redemption in-kind”). If the Fund pays your redemption
proceeds by a distribution of securities, you could incur brokerage or other
charges in converting the securities to cash and will bear any market risks
associated with such securities until they are converted into cash. For federal
income tax purposes, redemptions paid in securities are taxed in the same manner
to a redeeming shareholder as redemptions paid in cash.
Shareholders
may request that redemption proceeds of $1,000 or more be wired directly to a
bank account or by electronic funds transfer via the ACH network to the bank
account designated by you on your application. There is a $15 fee for each wire
transfer.
Signature
Guarantee
Your
signature must be guaranteed, from either a Medallion program member or a
non-Medallion program member, if: (a) the proceeds of any redemption exceed
$50,000; (b) ownership on your account is being changed;
(c) redemption proceeds are payable or sent to any person, address or bank
account not on record, (d) redemptions are transmitted by federal wire
transfer (if not previously authorized on the account); or (e) a redemption
is received by the Transfer Agent and the account address has changed within the
last 30 calendar days. In addition to the situations described above, the Fund
and/or the Transfer Agent may require a signature guarantee in other instances
based on the circumstances relative to the particular situation. Non-financial
transactions including establishing or modifying certain services on an account
may require a signature guarantee, signature verification from a Signature
Validation Program member, or other acceptable form of authentication from a
financial institution source. Signature guarantees will generally be accepted
from domestic banks, brokers, dealers, credit unions, national securities
exchanges, registered securities associations, clearing agencies and savings
associations as well as from participants in the Securities Transfer Agents
Medallion Program (STAMP) and the New York Stock Exchange Medallion Signature
Program (NYSE MSP). A notary public is not an acceptable signature guarantee.
The
Fund reserves the right to waive any signature requirement at its
discretion.
Additional
documentation may be required for the redemption of shares held in corporate,
partnership or fiduciary accounts. In case of any questions, please contact the
Fund in advance by calling 1-866-209-1965.
Telephone
Transactions
Unless
you specifically declined telephone options on the account application, you may
redeem amounts of $50,000 or less by telephone. Proceeds redeemed will be mailed
or sent via electronic funds transfer through the ACH network or wired only to
an investor’s address or bank of record shown on the records of the Transfer
Agent.
When
you establish any telephone privileges, you are authorizing the Fund and its
Transfer Agent to act upon the telephone instructions of the person or persons
you have designated on your Account Application. Before acting on instructions
received by telephone, the Fund and the Transfer Agent will use reasonable
procedures to confirm that the telephone instructions are genuine. If an account
has more than one owner or authorized person, the Fund will accept telephone
instructions from any one owner or authorized person. These procedures may
include recording the telephone call and asking the caller for a form of
personal identification. The Fund reserves the right to refuse a telephone
request if it believes that the person making the request is neither the record
owner of the shares nor otherwise authorized by the shareholder to request the
transaction. If the Fund and the Transfer Agent follow these procedures, they
will not be liable for any loss, expense, or cost arising out of any telephone
transaction request that is reasonably believed to be genuine. This includes any
fraudulent or unauthorized request. Once a telephone transaction is placed, it
cannot be cancelled or modified after the close of regular trading on the NYSE
(generally 4:00 p.m., Eastern time). The Fund may change, modify or terminate
these privileges at any time upon at least 60 days’ notice to
shareholders.
To
arrange for the telephone redemption privilege after an account has been opened,
or to change the bank account or address designated to receive redemption
proceeds, a written request must be sent to the Transfer Agent. The request must
be signed by each shareholder of the account and may require a signature
guarantee, a signature verification from a Signature Validation Program member,
or other acceptable form of authentication from a financial institution source.
Further documentation may be requested from corporations, executors,
administrators, trustees and guardians.
Lost
Shareholders, Inactive Accounts and Unclaimed Property
It
is important that the Fund maintains a correct address for each investor. An
incorrect address may cause an investor’s account statements and other mailings
to be returned to the Fund. Based upon statutory requirements for returned mail,
the Fund will attempt to locate the investor or rightful owner of the account.
If the Fund is unable to locate the investor, then it will determine whether the
investor’s account can legally be considered abandoned. Mutual fund accounts may
be transferred to the state government of an investor’s state of residence if no
activity occurs within the account during the “inactivity period” specified in
the applicable state’s abandoned property laws, which varies by state. The Fund
is legally obligated to escheat (or transfer) abandoned property to the
appropriate state’s unclaimed property administrator in accordance with
statutory requirements. The investor’s last known address of record determines
which state has jurisdiction. Please proactively contact the Transfer Agent
toll-free at 1-866-209-1965 at least annually to ensure your account remains in
active status. Investors who are residents of the state of Texas may designate a
representative to receive legislatively required unclaimed property due
diligence notifications. Please contact the Fund to complete a Texas Designation
of Representative form.
Pricing
of Fund Shares
The
price of the Fund’s shares is the Fund’s NAV. This is calculated by dividing the
Fund’s assets, minus its liabilities, by the number of shares outstanding. The
Fund’s assets are the value of securities held in its portfolio, plus any cash
and other assets. The Fund’s liabilities are fees and expenses owed by the Fund.
The number of Fund shares outstanding is the amount of shares which have been
issued to shareholders. The price you will pay to buy Fund shares or the amount
you will receive when you sell your Fund shares is based on the NAV next
calculated after your order is received by the Transfer Agent with complete
information and meeting all the requirements discussed in this Prospectus.
Applications for purchase of shares and requests for redemption of shares
received after the close of trading on the NYSE will be based upon the NAV as
determined as of the close of trading on the next day the NYSE is
open.
The
NAV of the Fund’s shares is determined as of the close of regular trading on the
NYSE, generally 4:00 p.m., Eastern Time. Fund shares will not be priced on days
that the NYSE is closed for trading (including weekends and certain U.S.
holidays).
Fair
Value Pricing
The
Fund’s investments are valued principally according to market value when market
quotations are readily available. Securities traded on a national securities
exchange are valued at the last reported sale price at the close of regular
trading on each day the exchanges are open for trading. Securities trading on
the NASDAQ Stock Market Inc. (“NASDAQ”) are valued at the NASDAQ Official
Closing Price. When a market quote is not readily available, the security’s
value is based on “fair value” as determined in good faith by the Advisor using
procedures established by the Board of Directors. In determining fair value, the
Fund will seek to assign a value to the security which it believes represents
the amount that the Fund could reasonably expect to receive upon the security’s
current sale. With respect to securities that are actively traded on U.S.
exchanges, the Fund expects that market quotations will generally be available,
and that fair value might be used only in limited circumstances, such as when
trading for a security is halted during the trading day or a security is
thinly-traded. Fair value pricing involves subjective judgments, and it is
possible that the fair value determined for a security may differ materially
from the value that could be realized upon the sale of the
security.
The
value of any shares of open-end mutual funds held by the Fund will be calculated
using the NAV of such funds. The prospectuses for any such open-end mutual funds
should explain the circumstances under which the funds use fair value pricing
and the effects of using fair value pricing.
Frequent
Trading
The
Fund discourages short-term or excessive trading (“frequent trading”) of its
shares by shareholders and maintains procedures reasonably designed to detect
and deter such frequent trading. The Board of Directors has adopted a policy and
procedures that are designed to detect and deter frequent trading. Frequent
trading is sometimes referred to as market timing. Market timing may take many
forms but commonly refers to arbitrage activity involving the frequent buying
and selling of mutual fund shares in order to take advantage of the fact that
there may be a lag between a change in the value of a mutual fund’s portfolio
securities and the reflection of that change in the mutual fund’s share price.
Frequent trading may dilute the value of Fund shares held by long-term
shareholders. Frequent trading may also interfere with the efficient management
of the Fund’s portfolio, as it may result in the Fund maintaining higher cash
balances than it otherwise would or cause the Fund to sell portfolio securities
at a time it otherwise would not. Frequent trading may further result in
increased portfolio transaction (or brokerage) costs, administrative and other
operating costs and may cause the Fund to realize taxable capital gains or
harvest capital losses at a time that it otherwise would not. For these reasons,
frequent trading poses the risk of lower returns for long-term shareholders of
the Fund. There is no guarantee that these policies and procedures will be
effective in detecting and preventing frequent trading in whole or in
part.
In
addition, while the Fund has no present intention to invest a significant
portion of its assets in foreign securities, to the extent that it does invest
in foreign securities traded primarily on markets that close prior to the time
the Fund determines its NAV, frequent trading by some shareholders may, in
certain circumstances, dilute the value of Fund shares held by other
shareholders. This may occur when an event that affects the value of the foreign
security takes place after the close of the primary foreign market, but before
the time that the Fund determines its NAV. Certain investors may seek to take
advantage of the fact that there will be a delay in the adjustment of the market
price for a security caused by this event until the foreign market reopens
(referred to as price arbitrage). If this occurs, the market timers who attempt
this type of price arbitrage may dilute the value of the Fund’s shares to the
extent they receive shares or proceeds based upon NAVs that have been calculated
using the closing market prices for foreign securities. In an effort to prevent
price arbitrage, the Fund has procedures designed to adjust closing market
prices of foreign securities before the Fund calculates its NAV when it believes
such an event has occurred. Prices are adjusted to reflect what the Fund
believes are the fair values of these foreign securities at the time the Fund
determines its NAV (called fair value pricing). Fair value pricing, however,
involves judgments that are inherently subjective and inexact, since it is not
possible to always be sure when an event will affect a market price and to what
extent. As a result, there can be no assurance that fair value pricing will
always eliminate the risk of price arbitrage. The risk of price arbitrage also
exists with thinly-traded securities in the United States, such as some
small-capitalization equity securities. Such securities are typically less
liquid and more thinly-traded than securities of large capitalization issuers.
Developments affecting issuers of thinly-traded or less liquid securities will
not be reflected in their market price until the security trades again in the
marketplace. Frequent traders may seek to exploit this delay by engaging in
price arbitrage, in this case by buying or selling shares of the Fund prior to
the time of the adjustment of the market price of securities in its portfolio.
This may result in the dilution of the value of the Fund’s shares. The Fund may
employ fair value pricing to these types of securities if it determines that the
last quoted market price no longer represents the fair value of the
security.
The
Fund monitors selected trades in an effort to detect excessive short-term
trading activities. If, as a result of this monitoring, the Fund believes that a
shareholder has engaged in excessive short-term trading, it may, in its
discretion, ask the shareholder to stop such activities or refuse to process
purchases in the shareholder’s accounts. In making such judgments, the Fund
seeks to act in a manner that it believes is consistent with the best interests
of shareholders. Due to the complexity and subjectivity involved in identifying
abusive trading activity and the volume of shareholder transactions the Fund
handles, there can be no assurance that the Fund’s efforts will identify all
trades or trading practices that may be considered abusive. In addition, the
Fund’s ability to monitor trades that are placed by individual shareholders
within group, or omnibus, accounts maintained by financial intermediaries is
severely limited because the Fund does not have simultaneous access to the
underlying shareholder account information.
In
compliance with Rule 22c-2 under the Investment Company Act of 1940, as amended
(the “1940 Act”), Quasar Distributors, LLC, the Fund’s distributor, on behalf of
the Fund, has entered into written agreements with each of the Fund’s financial
intermediaries, under which the intermediary must, upon request, provide the
Fund with certain shareholder and identity trading information so that the Fund
can enforce its market timing policies.
The
Fund will not accommodate frequent trading of Fund shares. As indicated above
under “How to Buy Shares,” the Fund reserves the right to refuse any purchase
order for its shares for any reasons, including transactions deemed by the Fund
to represent frequent trading activity. The Fund may change its policies
relating to frequent trading at any time without prior notice to
shareholders.
Redemptions
In-Kind
The
Fund has made an election pursuant to Rule 18f-1 under the 1940 Act which
obligates it to pay in cash all redemptions to any shareholder of record unless
a shareholder requests a redemption, within a 90-day period of shares having a
value in excess of (i) $250,000, or (ii) 1% of the Fund’s NAV, whichever is
less. In this case, the Fund is permitted to pay the redemption price in whole
or in part by a distribution of securities from its portfolio. In that event,
the value of the securities distributed would be equal to the amount redeemed,
determined at the same time, and in the same manner, as the redemption price is
determined. Shareholders who receive redemption payments in securities may incur
brokerage costs in converting the securities they receive into cash and will
bear any market risks associated with such securities until they are converted
into cash. For federal income tax purposes, redemptions-in-kind are taxed in the
same manner to a redeeming shareholder as redemptions paid in cash. The
subsequent sale of securities received in kind may also result in recognized
gains or losses for federal income tax purposes.
Distributions
The
Fund will make distributions of net investment income and net capital gain, if
any, at least annually, typically within the month of December. The Fund may
make additional distributions if it deems such distributions necessary at any
other time during the year.
All
distributions will be reinvested in additional Fund shares unless you choose to
receive either net investment income and/or net capital gain distributions in
cash.
If
you elect to receive distributions in cash and the U.S. Postal Service cannot
deliver your check, or if a check remains uncashed for six-months, the Fund
reserves the right to reinvest the distribution check in your account at the
Fund’s then current NAV and to reinvest all subsequent distributions in your
account.
If
you wish to change your distribution option, write or call the Transfer Agent at
least five days in advance of the payment date of the distribution. However, any
such change will be effective only as to distributions for which the record date
is five or more days after the Transfer Agent has received the written
request.
Tax
Consequences
Changes
in income tax laws, potentially with retroactive effect, could impact the Fund’s
investments or the tax consequences to you of investing in the Fund.
Distributions
of the Fund’s investment company taxable income (which includes, but is not
limited to, interest, dividends, net gain from foreign currency transactions,
and net short-term capital gain), if any, are generally taxable to the Fund’s
shareholders as ordinary income. For non-corporate shareholders, to the extent
that the Fund’s distributions of investment company taxable income are
attributable to and reported as “qualified dividend” income, such income may be
subject to tax at the reduced federal income tax rates applicable to long-term
capital gains, if certain holding period requirements have been satisfied by the
Fund and the shareholder. For corporate shareholders, a portion of the Fund’s
distributions of investment company taxable income may be eligible for the
intercorporate dividends-received deduction to the extent that the Fund receives
dividends directly or indirectly from U.S. corporations, reports the amount as
eligible for deduction, and the shareholder meets certain holding period
requirements. To the extent the Fund’s distributions of investment company
taxable income are attributable to net short-term capital gain, such
distributions will be treated as ordinary income and generally cannot be offset
by a shareholder’s capital losses from other investments.
Distributions
of net capital gain (net long-term capital gain less net short-term capital
loss) are generally taxable to shareholders as long-term capital gains
regardless of the length of time a shareholder has owned Fund shares.
Distributions of net capital gain are not eligible for qualified dividend income
treatment, or the dividends-received deduction described above.
You
will be taxed in the same manner whether you receive your distributions (of
either investment company taxable income or net capital gain) in cash or
reinvest them in additional Fund shares. Distributions are generally taxable
when received. However, distributions declared in October, November, or December
to shareholders of record and paid the following January are taxable as if
received on December 31.
Shareholders
that sell or redeem shares generally will have a capital gain or loss from the
sale or redemption. The amount of the gain or loss and the applicable rate of
federal income tax will depend generally upon the amount paid for the shares,
the amount received from the sale or redemption (including redemptions paid
in-kind) and how long the shares were held by a shareholder. Generally, capital
gain or loss realized upon a sale or redemption of Fund shares will be long-term
if you have held your Fund shares for more than one year and short-term if you
have held your Fund shares for one year or less. If you purchase Fund shares
(through reinvestment of distributions or otherwise) within 30 days before
or after selling or redeeming other Fund shares at a loss, all or part of that
loss will not be deductible and will instead increase the basis of the new
shares. Additionally, any loss realized upon a sale or redemption of shares held
for six months or less will be treated as a long-term capital loss to the extent
of any distributions of net capital gain received or deemed to be received with
respect to those shares.
In
addition to the federal income tax, certain individuals, trusts and estates may
be subject to a Net Investment Income (“NII”) tax of 3.8%. The NII tax is
imposed on the lesser of (i) a taxpayer’s investment income, net of deductions
properly allocable to such income, or (ii) the amount by which such taxpayer’s
modified adjusted gross income exceeds certain thresholds ($250,000 for married
individuals filing jointly, $200,000 for unmarried individuals, and $125,000 for
married individuals filing separately). The Fund’s distributions are includable
in a shareholder’s investment income for purposes of this NII tax. In addition,
any capital gain realized on the sale or redemption of Fund shares is includable
in a shareholder’s investment income for purposes of this NII tax.
The
Fund may be required to withhold federal income tax from a shareholder’s
distributions and redemption proceeds (at a rate set under Section 3406 of the
Internal Revenue Code of 1986, as amended, for U.S. residents) if a shareholder
fails to furnish the Fund with his or her correct Social Security number
or
other taxpayer identification number and certain certifications or the Fund
receives a notification from the Internal Revenue Service (“IRS”) that the
shareholder is subject to backup withholding.
Shareholders
who hold their Fund shares through an IRA or other retirement plan must indicate
on their written redemption request whether or not to withhold federal income
tax. Redemption requests failing to indicate an election not to have tax
withheld will generally be subject to 10% withholding. Shares held in IRA and
other retirement accounts may be redeemed by telephone at 1-866-209-1965.
Investors will be asked whether or not to withhold taxes from any distribution.
The
Fund is required to report to certain shareholders and the IRS the cost basis of
Fund shares acquired on or after January 1, 2012, when such shareholder
subsequently sells or redeems those shares. The Fund will determine the cost
basis of such shares using the average cost method unless you elect in writing
any alternative IRS-approved cost basis method. Please see the SAI for more
information regarding cost basis reporting.
The
Fund will annually report to shareholders the federal income tax status of all
distributions made by the Fund for the preceding year. This section is not
intended to be a full discussion of federal tax laws and the effect of such laws
on you. There may be other federal, state, foreign or local tax considerations
applicable to a particular investor. You are urged to consult your own tax
advisor.
Householding
In
an effort to decrease costs, the Fund will reduce the number of duplicate
prospectuses, supplements and certain other shareholder documents that you
received by sending only one copy of each to those addresses shown by two or
more accounts. Please call the Transfer Agent toll free at 1-866-209-1965 to
request individual copies of these documents. The Fund will begin sending
individual copies 30 days after receiving your request. This policy does not
apply to account statements.
Financial
Highlights
This
table shows the Fund’s financial performance for the past five fiscal years.
Certain information reflects financial results for a single Fund share. “Total
return” shows how much your investment in the Fund would have increased or
decreased during each period, assuming you had reinvested all distributions. The
information has been audited by Tait, Weller & Baker LLP, the Fund’s
independent registered public accounting firm, whose report, together with the
Fund’s financial statements, are included in the Fund’s annual report for the
fiscal year ended June
30, 2023,
which is available at no charge by calling the Fund at 1-800-366-6223.
For
a capital share outstanding throughout each year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| YEARS
ENDED JUNE 30, |
|
|
|
|
|
|
| |
|
| 2023 |
| 2022 |
| 2021 |
| 2020 |
| 2019 |
|
|
|
|
|
|
|
| |
| Net
asset value, beginning of year |
$ |
73.48 |
|
| $ |
96.30 |
|
| $ |
64.74 |
|
| $ |
68.01 |
|
| $ |
70.38 |
|
|
|
|
|
|
|
|
| |
| Income
(loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Net
investment income(a) |
0.73 |
|
| 0.78 |
|
| 0.87 |
|
| 1.12 |
|
| 0.95 |
|
|
|
|
|
|
|
|
| |
Net
realized and unrealized
gain (loss) on
investments |
8.33 |
|
| (12.88) |
|
| 33.05 |
|
| (1.37) |
|
| 1.84 |
|
|
|
|
|
|
|
|
| |
| Total
from investment operations |
9.06 |
|
| (12.10) |
|
| 33.92 |
|
| (0.25) |
|
| 2.79 |
|
|
|
|
|
|
|
|
| |
| Less
distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Dividends
from net investment income |
(0.60) |
|
| (0.78) |
|
| (1.49) |
|
| (0.67) |
|
| (0.90) |
|
|
|
|
|
|
|
|
| |
| Distributions
from net realized gain |
(2.91) |
|
| (9.94) |
|
| (0.87) |
|
| (2.35) |
|
| (4.26) |
|
|
|
|
|
|
|
|
| |
| Total
distributions |
(3.51) |
|
| (10.72) |
|
| (2.36) |
|
| (3.02) |
|
| (5.16) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net
asset value, end of year |
$ |
79.03 |
|
| $ |
73.48 |
|
| $ |
96.30 |
|
| $ |
64.74 |
|
| $ |
68.01 |
|
|
|
|
|
|
|
|
| |
|
Total
return |
12.99 |
% |
| (14.61) |
% |
| 53.33 |
% |
| (0.82) |
% |
| 5.25 |
% |
|
|
|
|
|
|
|
| |
| Ratios/supplemental
data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net
assets, end of year (millions) |
$ |
56.9 |
|
| $ |
52.8 |
|
| $ |
65.2 |
|
| $ |
48.1 |
|
| $ |
53.6 |
|
|
|
|
|
|
|
|
| |
| Ratio
of operating expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Before
expense reimbursement |
1.23 |
% |
| 1.16 |
% |
| 1.21 |
% |
| 1.23 |
% |
| 1.19 |
% |
|
|
|
|
|
|
|
| |
| After
expense reimbursement |
0.99 |
% |
| 0.99 |
% |
| 0.99 |
% |
| 0.99 |
% |
| 0.99 |
% |
|
|
|
|
|
|
|
| |
| Ratio
of net investment income to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Before
expense reimbursement |
0.73 |
% |
| 0.68 |
% |
| 0.87 |
% |
| 1.44 |
% |
| 1.19 |
% |
|
|
|
|
|
|
|
| |
| After
expense reimbursement |
0.97 |
% |
| 0.85 |
% |
| 1.09 |
% |
| 1.68 |
% |
| 1.39 |
% |
|
|
|
|
|
|
|
| |
| Portfolio
turnover rate |
22 |
% |
| 23 |
% |
| 24 |
% |
| 28 |
% |
| 22 |
% |
|
|
|
|
|
|
|
| |
___________________
(a)Calculated
using the average shares method.
PRIVACY
NOTICE
The
Fund collects non-public information about you from the following
sources:
•Information
we receive about you on applications or other forms;
•Information
you give us orally; and
•Information
about your transactions with us or others.
We
do not disclose any non-public personal information about our shareholders or
former shareholders without the shareholder's authorization, except as required
or permitted by law or in response to inquiries from governmental authorities.
We restrict access to your personal and account information to those employees
who need to know that information to provide products and services to you. We
may disclose that information to unaffiliated third parties (such as to brokers
or custodians) only as permitted by law and only as needed for us to provide
agreed services to you. We maintain physical, electronic and procedural
safeguards to guard your non-public personal information.
If
you hold shares of the Fund through a financial intermediary, including, but not
limited to, a broker-dealer, bank, or trust company, the privacy policy of your
financial intermediary would govern how your nonpublic personal information
would be shared by those entities with nonaffiliated third parties.
Investment
Advisor
Matrix
Asset Advisors, Inc.
10
Bank Street, Suite 590
White
Plains, NY 10606
1-800-366-6223
●
Custodian
U.S.
Bank N.A.
1555
N. Rivercenter Drive, Suite 302
Milwaukee,
WI 53212
●
Transfer
Agent
U.S.
Bancorp Fund Services, LLC
615
East Michigan Street
Milwaukee,
WI 53202-5207
1-866-209-1965
●
Independent
Registered Public Accounting Firm
Tait,
Weller & Baker LLP
Two
Liberty Place
50
South 16th Street, Suite 2900
Philadelphia,
PA 19102
●
Distributor
Quasar
Distributors, LLC
111
East Kilbourn Avenue, Suite 2200
Milwaukee,
WI 53202-5207
●
Legal
Counsel
Godfrey
& Kahn, S.C.
833
East Michigan Street, Suite 1800
Milwaukee, WI 53202-5615
|
|
|
|
|
| |
|
MATRIX
ADVISORS VALUE FUND, INC.
www.matrixadvisorsvaluefund.com
For
investors who want more information about the Fund, the following
documents are available free upon request:
Annual/Semi-Annual
Reports: Additional
information about the Fund’s investments is available in the Fund’s annual
and semi-annual reports to shareholders. In the Fund’s annual report, you
will find a discussion of market conditions and investment strategies that
significantly affected the Fund’s performance during its last fiscal
year.
Statement
of Additional Information:
The SAI provides more detailed information about the Fund and is
incorporated by reference into this Prospectus.
To
request and receive free copies of the annual and semi-annual reports or
the SAI, or to request other information (including shareholder inquiries)
and discuss your questions about the Fund, contact the Fund
at:
Matrix
Asset Advisors, Inc.
10
Bank Street, Suite 590
White
Plains, NY 10606
Telephone
(toll free): 1-866-209-1965
Or,
on the Fund’s website at: www.matrixadvisorsvaluefund.com
Reports
and other information about the Fund are also available:
• Free
of charge from the SEC’s EDGAR database on the SEC’s Internet website at
http://www.sec.gov.
• For
a fee, by electronic request at the following e-mail address:
[email protected].
(The
Fund’s SEC Investment Company Act file number is
811‑03758.) |
Prospectus
MATRIX
ADVISORS
VALUE
FUND, INC.
Ticker
Symbol: MAVFX
Cusip:
57681T102
October
28, 2023
10
Bank Street, Suite 590
White
Plains, NY 10606
The
SEC has not approved or disapproved these securities or passed upon the
accuracy or adequacy of this Prospectus. Any representation to the
contrary is a criminal offense. |
