ck0001261788-20220331
CornerCap
Fundametrics® Large-Cap ETF
FUNL
Listed
on Cboe BZX Exchange, Inc.
PROSPECTUS
July
31, 2022
CornerCapFUNL-ETF.com
1-800-617-0004
The
U.S. Securities and Exchange Commission has not approved or disapproved these
securities or determined if this Prospectus is truthful or complete. Any
representation to the contrary is a criminal offense.
Table
of Contents
Investment Objective
The CornerCap Fundametrics®
Large-Cap ETF (the “Fund”) seeks long-term capital
appreciation.
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 table and the Example
below.
|
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| Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
| Management
Fee |
0.50 |
% |
| Distribution
and Service (12b-1) Fees |
None |
| Other
Expenses |
0.00 |
% |
| Total
Annual Fund Operating Expenses |
0.50 |
% |
Example
This Example is
intended to help you compare the cost of investing in the Fund with the cost of
investing in other funds. The Example assumes that you invest $10,000 in the
Fund for the time periods indicated and then hold or sell 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. This
Example does not include the brokerage commissions that investors may pay on
their purchases and sales of Fund shares. Although your actual costs may be higher
or lower, based on these assumptions your cost would
be:
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| 1
Year |
3
Years |
5
Years |
10
Years |
| $51 |
$160 |
$280 |
$628 |
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 the 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. For the fiscal year ended
March 31, 2022, the Fund’s portfolio turnover rate was 26% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund is an actively managed exchange-traded fund (“ETF”) that invests primarily
in equity securities listed on a U.S. exchange based on the results of a
proprietary, quantitative research system called “Fundametrics®”
developed by CornerCap Investment Counsel, Inc. (the “Adviser”). Under normal circumstances, the Fund
invests at least 80% of its net assets (plus borrowings for investment purposes)
in the securities of large-capitalization companies.
The
Adviser defines large-capitalization companies to be those companies with market
capitalizations within the range of the Russell 1000® Index at the time of
purchase. The market capitalization range of the Russell 1000® Index was $2.9
billion to $2.5 trillion as of May 6, 2022, and is expected to change
frequently.
The
Adviser uses Fundametrics® to select stocks for the Fund. Fundametrics®
evaluates all stocks in the Fund’s investible universe and groups companies with
similar characteristics into custom peer groups. Each peer group is evaluated
with respect to over 120 fundamental factors across all major styles (value,
growth, growth
at a reasonable price,
price momentum, quality, risk) to find the optimized risk adjusted mix. Overall,
valuation maintains the highest weight and greatest importance, but each peer
group can have an independent style representation.
Buy
and sell decisions are determined by the optimized subset of factors contained
within the Fundametrics® Alpha Composite (“Alpha Composite”) and the
Fundametrics® Financial Warnings Overlay (“Financial Warnings Overlay”). The
Alpha Composite is a combination of factors designed to identify alpha stocks,
which are stocks considered to have the potential for excess returns. The
Financial Warnings Overlay is then applied to the Fund’s investible universe of
stocks using a separate set of risk factors designed to identify stocks with
risk levels that the Adviser believes will lead to underperformance. The
Financial Warnings Overlay is designed to avoid high risk stocks that otherwise
rank attractively in the Alpha Composite. The Fund typically buys stocks that
score highly with respect to the Alpha Composite and pass the
Financial
Warnings Overlay and, as a final analysis, improve portfolio diversification.
The Fund typically sells stocks that score low on the Alpha Composite or are
flagged by the Financial Warnings Overlay as presenting unreasonable
risk.
The
Adviser selects securities from among approximately 500 issuers ranked according
to fundamental factors using the Adviser’s Alpha Composite. Among other
fundamental factors, the Alpha Composite model emphasizes the following three
key criteria when choosing equity securities with the potential for long-term
capital appreciation:
•relative
valuation;
•earnings
growth rates; and
•cash
flow measurements.
The
Fund may lend its portfolio securities to brokers, dealers, and other financial
organizations. These loans, if and when made, may not exceed 33 1/3% of the
total asset value of the Fund (including the loan collateral). By lending its
securities, the Fund may increase its income by receiving payments from the
borrower.
Principal Risks
As with all funds, a shareholder is subject to the risk
that his or her investment could lose money. An investment in the Fund is not a
bank deposit and is not insured or guaranteed by the Federal Deposit Insurance
Corporation (“FDIC”) or any government agency. The principal
risks affecting shareholders’ investments in the Fund are set forth below. Each
risk summarized below is considered a principal risk of investing in the Fund,
regardless of the order in which it appears.
Equity
Market Risk:
The securities markets are volatile and the market prices of the Fund’s
investments in equity securities may decline generally. Equity securities
fluctuate in price based on changes in a company’s financial condition and
overall market and economic conditions. Local, regional, or global events such
as war, acts of terrorism, the spread of infectious illness or other public
health issues, recessions, or other events could have a significant impact on
the securities markets and on specific securities. If the market prices of the
securities owned by the Fund fall, the value of your investment in the Fund will
decline. Volatility in the securities market may make it more difficult for the
Fund to accurately value its securities or to sell its securities on a timely
basis. Market volatility may also adversely affect the broader economy, which in
turn may adversely affect the value of securities owned by the Fund and the net
asset value (“NAV”) of its shares.
Value
Investing Risk.
The value approach to investing involves the risk that stocks may remain
undervalued. Value stocks may underperform the overall equity market if they
remain out of favor in the market or are not undervalued in the
market.
Growth
Investing Risk:
The prices of growth stocks are based largely on projections of the issuer’s
future earnings and revenues. If a company’s earnings or revenues fall short of
expectations, its stock price may fall dramatically. Growth stocks may be
volatile and may also be more expensive, relative to their earnings or assets,
compared to value or other stocks. In addition, growth stocks as a group may
fall out of favor and underperform the overall equity market.
Large-Capitalization
Companies Risk:
Large-capitalization stocks can perform differently from other segments of the
equity market or the equity market as a whole. Large-capitalization companies
may be less flexible in evolving markets or unable to implement change as
quickly as small-capitalization companies.
ETF
Risks:
Authorized
Participants, Market Makers, and Liquidity Providers Concentration
Risk. The
Fund has a limited number of financial institutions that may act as Authorized
Participants (“APs”). In addition, there may be a limited number of market
makers and/or liquidity providers in the marketplace. To the extent either of
the following events occur, Fund shares may trade at a material discount to NAV
and possibly face delisting: (i) APs exit the business or otherwise become
unable to process creation and/or redemption orders and no other APs step
forward to perform these services, or (ii) market makers and/or liquidity
providers exit the business or significantly reduce their business activities
and no other entities step forward to perform their functions.
Costs
of Buying or Selling Shares.
Due to the costs of buying or selling Fund shares, including brokerage
commissions imposed by brokers and bid/ask spreads, frequent trading of Fund
shares may significantly reduce investment results and an investment in Shares
may not be advisable for investors who anticipate regularly making small
investments.
Shares
May Trade at Prices Other Than NAV. As
with all ETFs, Fund shares may be bought and sold in the secondary market at
market prices. Although it is expected that the market price of Fund shares will
approximate the Fund’s NAV, there may be times when the market price of Fund
shares is more than the NAV intra-day (premium) or less than the NAV intra-day
(discount) due to supply and demand of Fund shares or during periods of market
volatility. If an investor buys Fund shares when the shares’ market price is at
a premium, the investor may pay more than the shares’ underlying value. If an
investor sells Fund shares when the shares’ market price is at a discount, the
investor may receive less than the shares’ underlying value. This risk is
heightened in times of market volatility, periods of steep market declines, and
periods
when there is limited trading activity for Fund shares in the secondary market,
in which case such premiums or discounts may be significant.
Trading. Although
Fund shares are listed for trading on the Cboe BZX Exchange, Inc. (the
“Exchange”) and may be traded on U.S. exchanges other than the Exchange, there
can be no assurance that an active trading market will be maintained for Fund
shares or that Fund shares will trade with any volume, or at all, on any stock
exchange. In stressed market conditions, the liquidity of Fund shares may begin
to mirror the liquidity of the Fund’s underlying portfolio holdings, which can
be significantly less liquid than Fund shares and could lead to differences
between the market price of the Fund’s shares and the underlying value of those
shares.
Market
Events Risk.
In the past several years financial markets, such as those in the United States,
Europe, Asia and elsewhere, have experienced increased volatility, depressed
valuations, decreased liquidity and heightened uncertainty. Governmental and
non-governmental issuers have defaulted on, or been forced to restructure, their
debts. These conditions may continue, recur, worsen or spread.
Economies
and financial markets throughout the world are becoming increasingly
interconnected. As a result, whether or not the Fund invests in securities of
issuers located in or with significant exposure to countries experiencing
economic and financial difficulties, the value and liquidity of the Fund’s
investments may be negatively affected.
Periods
of market volatility may occur in response to pandemics, acts of war, or events
affecting global markets. These types of events could adversely affect the
Fund’s performance. For example, since December 2019, a novel strain of
coronavirus (COVID-19) has spread globally, which has resulted in the temporary
closure of many corporate offices, retail stores, manufacturing facilities and
factories, and other businesses across the world.
In
addition, Russia’s military invasion of Ukraine in February 2022, the resulting
responses by the United States and other countries, and the potential for wider
conflict could increase volatility and uncertainty in the financial markets and
adversely affect regional and global economies.
Securities
Lending Risk:
There are certain risks associated with securities lending, including the risk
that the borrower may fail to return the securities on a timely basis or even
the loss of rights in the collateral deposited by the borrower, if the borrower
should fail financially. As a result, the Fund may lose money. The Fund could
also lose money in the event of a decline in the value of collateral provided
for loaned securities or a decline in the value of any investments made with
cash collateral. These events could also trigger adverse tax consequences for
the Fund.
Performance
Information
The following performance information
provides some indication of the risks of investing in the Fund by showing
changes in the Fund’s performance. The bar chart shows the
Fund’s performance for the calendar year ended December 30, 2021. The table
illustrates how the Fund’s average annual returns for the 1-year and since
inception periods compare with those of a broad measure of market performance.
The Fund’s past performance, before and after taxes, does not necessarily
indicate how it will perform in the future. Updated performance information is
available on the Fund’s website at CornerCapFUNL-ETF.com.
Calendar Year Ended December 31,
The Fund’s calendar
year-to-date return as of
June 30, 2022 was
-11.89%.
During the period of time shown in the bar
chart, the Fund’s highest quarterly return
was 12.41% for the quarter ended March 31, 2021 and the
lowest quarterly return was
-0.86% for the quarter ended September 30,
2021.
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Average Annual Total Returns
For the
Calendar Year Ended December 31, 2021 |
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|
1
Year |
|
Since
Inception
August 19,
2020 |
| Return Before
Taxes |
25.90% |
|
30.45% |
| Return After Taxes on
Distributions |
25.43% |
|
29.99% |
| Return After Taxes on Distributions and
Sale of Fund Shares |
15.65% |
|
23.43% |
|
Russell
1000 Value Total Return Index
(reflects no deduction for
fees, expenses, or taxes) |
25.16% |
|
30.53% |
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 your situation and may differ from those shown. Furthermore, the
after-tax returns shown are not relevant to those who hold their shares through
tax-deferred arrangements such as 401(k) plans or individual retirement accounts
(“IRAs”).
Investment
Adviser
CornerCap
Investment Counsel, Inc. is the investment adviser for the Fund.
Portfolio
Managers
The
Adviser employs a team of investment professionals that are jointly and
primarily responsible for the day-to-day management of the Fund’s investments
since its inception in August 2020. Its members are J. Cannon Carr, Jr., Chief
Executive Officer of the Adviser, Jeffrey P. Moeller, Director of Research of
the Adviser, and Joshua Tucker, Research Analyst of the Adviser.
Purchase
and Sale of Fund Shares
Individual
shares may only be purchased and sold on a national securities exchange through
a broker-dealer. You can purchase and sell individual shares of the Fund
throughout the trading day like any publicly traded security. The Fund’s shares
are listed on the Exchange. The price of the Fund’s shares is based on market
price and, because exchange-traded fund shares trade at market prices rather
than NAV, shares may trade at a price greater than NAV (premium) or less than
NAV (discount). The Fund issues and redeems shares on a continuous basis, at
NAV, only in blocks of shares called Creation Units, principally in-kind, and
only Authorized Participants (typically, broker-dealers) may purchase or redeem
Creation Units.
When
buying or selling the Fund’s shares on the Exchange, you may incur costs
attributable to the difference between the highest price a buyer is willing to
pay to purchase shares of the Fund (bid) and the lowest price a seller is
willing to accept for shares of the Fund (ask) (the “bid-ask spread”). Recent
information regarding the Fund’s NAV, market price, premiums and discounts, and
bid-ask spreads is available at CornerCapFUNL-ETF.com.
Tax
Information
The
distributions made by the Fund are taxable, and will be taxed as ordinary
income, qualified dividend income, or capital gains (or a combination), unless
your investment is in an individual retirement account or other tax-advantaged
account. However, subsequent withdrawals from such a tax-advantaged account may
be subject to federal income tax. You should consult your tax advisor about your
specific tax situation.
Financial
Intermediary Compensation
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank) (an “Intermediary”), the Adviser or its affiliates
may pay Intermediaries for certain activities related to the Fund, including
participation in activities that are designed to make Intermediaries more
knowledgeable about exchange traded products, including the Fund, or for other
activities, such as marketing, educational training or other initiatives related
to the sale or promotion of Fund shares. These payments may create a conflict of
interest by influencing the Intermediary and your salesperson to recommend the
Fund over another investment. Any such arrangements do not result in increased
Fund expenses. Ask your salesperson or visit the Intermediary’s website for more
information.
Investment
Objective
The
Fund seeks long-term capital appreciation. The Fund’s objective is not
fundamental, and it may be changed without shareholder approval. The Fund will
provide shareholders at least 60 days prior notice of a change to its objective.
Principal
Investment Strategies
The
Fund is actively managed and invests primarily in equity securities listed on a
U.S. exchange based on the results of a proprietary, quantitative research
system called “Fundametrics®”
developed by CornerCap Investment Counsel, Inc. (the “Adviser”). Under normal
circumstances, the Fund invests at least 80% of its net assets (plus borrowings
for investment purposes) in the securities of large-capitalization companies.
The
Adviser defines large-capitalization companies to be those companies with market
capitalizations within the range of the Russell 1000® Index at the time of
purchase. The market capitalization range of the Russell 1000® Index was $2.9
billion to $2.5 trillion as of May 6, 2022, and is expected to change
frequently.
The
Adviser uses Fundametrics® to select stocks for the Fund. Fundametrics®
evaluates all stocks in the Fund’s investible universe with respect to over 120
fundamental factors. Fundametrics® starts with building an investible universe
and ends with an evaluation of every company in the investible universe. The
Fundametrics® Alpha Composite (“Alpha Composite”) and the Fundametrics®
Financial Warnings Overlay (“Financial Warnings Overlay”) are important
components within the Fundametrics® system that help formulate buy and sell
decisions.
Fundametrics®
groups companies with similar characteristics into custom peer groups. Each peer
group is evaluated with respect to over 120 fundamental factors across all major
styles (value, growth, growth
at a reasonable price,
price momentum, quality, risk) to find the optimized risk adjusted mix. Overall,
valuation maintains the highest weight and greatest importance, but each peer
group can have an independent style representation.
Buy
and sell decisions are determined by a subset of factors contained within the
Alpha Composite and the Financial Warnings Overlay . The Alpha Composite is a
combination of alpha seeking factors designed to identify stocks with potential
for excess returns. The makeup of the Alpha Composite is primarily
valuation-focused factors, but also includes certain growth, momentum and other
factors with low correlations to value for diversification purposes. The
Financial Warnings Overlay is then applied to the Fund’s investible universe of
stocks using a separate set of risk factors designed to identify stocks with
risk levels that the Adviser believes will lead to under performance. The
Financial Warnings Overlay is designed to avoid high risk stocks that otherwise
have attractive valuation metrics. The Fund typically buys stocks that score
highly with respect to the Alpha Composite and pass the Financial Warnings
Overlay and, as a final analysis, improve portfolio diversification. The Fund
typically sells stocks that score low on the Alpha Composite or are flagged by
the Financial Warnings Overlay as presenting unreasonable risk.
Stocks
that are attractively valued relative to their growth potential are stocks of
companies that the Adviser believes have strong prospects for growth in the near
or long-term and trade at a valuation discount to companies of comparable
growth. Undervalued stocks are stocks that the Adviser believes, based on its
financial and other analysis of the securities, should be valued higher.
Temporarily out of favor stocks are stocks of companies that the Adviser
believes have been devalued by negative sentiment or opinion among market
participants, either about the companies, the companies’ industries, the
companies’ prospects or similar matters, but that the Adviser believes will not
last over the long term based on the Adviser’s financial or other analysis of
the securities.
The
Adviser selects securities from among approximately 500 issuers ranked according
to fundamental factors using the Adviser’s Alpha Composite. Among other
fundamental factors, the Alpha Composite model emphasizes the following three
key criteria when choosing equity securities with the potential for long-term
capital appreciation:
•relative
valuation;
•earnings
growth rates; and
•cash
flow measurements.
The
Adviser may also consider other factors such as diversification and risk in
determining whether a particular security has the potential for appreciation.
The
Fund may lend its portfolio securities to brokers, dealers, and other financial
organizations. These loans, if and when made, may not exceed 33 1/3% of the
total asset value of the Fund (including the loan collateral). By lending its
securities, the Fund may increase its income by receiving payments from the
borrower.
Principal
Risks
As
with all funds, a shareholder is subject to the risk that his or her investment
could lose money. An investment in the Fund is not a bank deposit and is not
insured or guaranteed by the FDIC or any government agency. The principal risks
affecting shareholders’ investments in the Fund are set forth below. Each risk
described below is considered a “principal risk” of investing in the Fund,
regardless of the order in which it appears.
Equity
Market Risk:
The securities markets are volatile and the market prices of the Fund’s
investments in equity securities may decline generally. Equity securities
fluctuate in price based on changes in a company’s financial condition and
overall market and economic conditions. Local, regional, or global events such
as war, acts of terrorism, the spread of infectious illness or other public
health issues, recessions, or other events could have a significant impact on
the securities markets and on specific securities. If the market prices of the
securities owned by the Fund fall, the value of your investment in the Fund will
decline. Volatility in the securities market may make it more difficult for the
Fund to accurately value its securities or to sell its securities on a timely
basis. Market volatility may also adversely affect the broader economy, which in
turn may adversely affect the value of securities owned by the Fund and the NAV
of its shares. Additionally,
common stock is the last class of security to be paid in the event of
bankruptcy.
Value
Investing Risk.
The value approach to investing involves the risk that stocks may remain
undervalued. Value stocks may underperform the overall equity market if the
remain out of favor in the market or are not undervalued in the market.
These
investments may be volatile and highly speculative. Investors should be able to
bear the potential of incurring substantial losses.
Growth
Investing Risk:
The prices of growth stocks are based largely on projections of the issuer’s
future earnings and revenues. If a company’s earnings or revenues fall short of
expectations, its stock price may fall dramatically. Growth stocks may be
volatile and may also be more expensive, relative to their earnings or assets,
compared to value or other stocks. In addition, growth stocks as a group may
fall out of favor and underperform the overall equity market.
Large-Capitalization
Companies Risk:
Large-capitalization stocks can perform differently from other segments of the
equity market or the equity market as a whole, may
be more susceptible to market downturns, and have more volatile stock
prices.
Large-capitalization companies may be less flexible in evolving markets or
unable to implement change as quickly as small-capitalization
companies.
ETF
Risks:
APs,
Market Makers, and Liquidity Providers Concentration Risk.
The Fund has a limited number of financial institutions that may act as APs. In
addition, there may be a limited number of market makers and/or liquidity
providers in the marketplace. To the extent either of the following events
occur, Shares may trade at a material discount to NAV and possibly face
delisting: (i) APs exit the business or otherwise become unable to process
creation and/or redemption orders and no other APs step forward to perform these
services, or (ii) market makers and/or liquidity providers exit the business or
significantly reduce their business activities and no other entities step
forward to perform their functions.
Costs
of Buying or Selling Shares.
Investors buying or selling Fund shares in the secondary market will pay
brokerage commissions or other charges imposed by brokers, as determined by that
broker. Brokerage commissions are often a fixed amount and may be a significant
proportional cost for investors seeking to buy or sell relatively small amounts
of Fund shares. In addition, secondary market investors will also incur the cost
of the difference between the price at which an investor is willing to buy Fund
shares (the “bid” price) and the price at which an investor is willing to sell
Fund shares (the “ask” price). This difference in bid and ask prices is often
referred to as the “spread” or “bid/ask spread.” The bid/ask spread varies over
time for Fund shares based on trading volume and market liquidity, and is
generally lower if Fund shares have more trading volume and market liquidity and
higher if Shares have little trading volume and market liquidity. Further, a
relatively small investor base in the Fund, asset swings in the Fund and/or
increased market volatility may cause increased bid/ask spreads. Due to the
costs of buying or selling Fund shares, including bid/ask spreads, frequent
trading of Fund shares may significantly reduce investment results and an
investment in Fund shares may not be advisable for investors who anticipate
regularly making small investments.
Shares
May Trade at Prices Other Than NAV.
As with all ETFs, Fund shares may be bought and sold in the secondary market at
market prices. Although it is expected that the market price of Fund shares will
approximate the Fund’s NAV, there may be times when the market price of Shares
is more than the NAV intra-day (premium) or less than the NAV intra-day
(discount) due to supply and demand of Shares or during periods of market
volatility. If an investor buys Fund shares when the shares’ market price is at
a premium, the investor may pay more than the shares’ underlying value. If an
investor sells Fund shares when the shares’ market price is at a discount, the
investor may receive less than the shares’ underlying value. This risk is
heightened in times of market volatility, periods of steep market declines, and
periods
when
there is limited trading activity for Shares in the secondary market, in which
case such premiums or discounts may be significant.
Trading.
Although Fund shares are listed for trading on the Exchange and may be listed or
traded on U.S. and non-U.S. stock exchanges other than the Exchange, there can
be no assurance that an active trading market for such Fund shares will develop
or be maintained. Trading in Fund shares may be halted due to market conditions
or for reasons that, in the view of the Exchange, make trading in Fund shares
inadvisable. In addition, trading in Fund shares on the Exchange is subject to
trading halts caused by extraordinary market volatility pursuant to Exchange
“circuit breaker” rules, which temporarily halt trading on the Exchange when a
decline in the S&P 500®
Index during a single day reaches certain thresholds (e.g.,
7%, 13%, and 20%). Additional rules applicable to the Exchange may halt trading
in Fund shares when extraordinary volatility causes sudden, significant swings
in the market price of Fund shares. There can be no assurance that Fund shares
will trade with any volume, or at all, on any stock exchange. In stressed market
conditions, the liquidity of Fund shares may begin to mirror the liquidity of
the Fund’s underlying portfolio holdings, which can be significantly less liquid
than Fund shares and could lead to differences between the market price of the
Fund’s shares and the underlying value of those shares.
Market
Events Risk.
In the past several years financial markets, such as those in the United States,
Europe, Asia and elsewhere, have experienced increased volatility, depressed
valuations, decreased liquidity and heightened uncertainty. Governmental and
non-governmental issuers have defaulted on, or been forced to restructure, their
debts. These conditions may continue, recur, worsen or spread.
The
U.S. Government and the Federal Reserve, as well as certain foreign governments
and central banks, have taken steps to support financial markets, including by
keeping interest rates at historically low levels. This and other government
intervention may not work as intended, particularly if the efforts are perceived
by investors as being unlikely to achieve the desired results. The Federal
Reserve recently has reduced its market support activities. Further reduction or
withdrawal of Federal Reserve or other U.S. or non-U.S. governmental or central
bank support, including interest rate increases, could negatively affect
financial markets generally, increase market volatility and reduce the value and
liquidity of securities in which the Fund invests.
Policy
and legislative changes in the United States and in other countries are
affecting many aspects of financial regulation, and may in some instances
contribute to decreased liquidity and increased volatility in the financial
markets. The impact of these changes on the markets, and the practical
implications for market participants, may not be fully known for some time.
Economies
and financial markets throughout the world are becoming increasingly
interconnected. As a result, whether or not the Fund invests in securities of
issuers located in or with significant exposure to countries experiencing
economic and financial difficulties, the value and liquidity of the Fund’s
investments may be negatively affected.
Periods
of market volatility may occur in response to pandemics, acts of war, or events
affecting global markets. These types of events could adversely affect the
Fund’s performance. For example, since December 2019, a novel strain of
coronavirus (COVID-19) has spread globally, which has resulted in the temporary
closure of many corporate offices, retail stores, manufacturing facilities and
factories, and other businesses across the world. The extent to which COVID-19
may negatively affect the Fund’s performance or the duration of any potential
business disruption is uncertain. Any potential impact on performance will
depend to a large extent on future developments and new information that may
emerge regarding the duration and severity of COVID-19 and the actions taken by
authorities and other entities to contain COVID-19 or treat its
impact.
Russia’s
military invasion of Ukraine in February 2022, the resulting responses by the
United States and other countries, and the potential for wider conflict could
increase volatility and uncertainty in the financial markets and adversely
affect regional and global economies. The United States and other countries have
imposed broad-ranging economic sanctions on Russia, certain Russian individuals,
banking entities and corporations, and Belarus as a response to Russia’s
invasion of Ukraine, and may impose sanctions on other countries that provide
military or economic support to Russia. The extent and duration of Russia’s
military actions and the repercussions of such actions (including any
retaliatory actions or countermeasures that may be taken by those subject to
sanctions, including cyber attacks) are impossible to predict, but could result
in significant market disruptions, including in certain industries or sectors,
such as the oil and natural gas markets, and may negatively affect global supply
chains, inflation and global growth. These and any related events could
significantly impact the Fund’s performance and the value of an investment in
the Fund, even if the Fund does not have direct exposure to Russian issuers or
issuers in other countries affected by the invasion.
Securities
Lending Risk:
There are certain risks associated with securities lending, including the risk
that the borrower may fail to return the securities on a timely basis or even
the loss of rights in the collateral deposited by the borrower, if the borrower
should fail financially. As a result, the Fund may lose money. The Fund could
also lose money in the event of a
decline
in the value of collateral provided for loaned securities or a decline in the
value of any investments made with cash collateral. These events could also
trigger adverse tax consequences for the Fund.
Information
about the Fund’s daily portfolio holdings will be available on the Fund’s
website, CornerCapFUNL-ETF.com. A summarized description of the Fund’s policies
and procedures with respect to the disclosure of the Fund’s portfolio holdings
is available in the Fund’s Statement of Additional Information (“SAI”).
Investment
Adviser
CornerCap
Investment Counsel, Inc., the
investment adviser, is located at The Peachtree, Suite 1700, 1355 Peachtree
Street NE, Atlanta, GA 30309. The Adviser was formed in 1989 and has over three
decades of experience providing investment management services to various funds.
The Adviser is controlled by Mr. Thomas E. Quinn.
The
Adviser serves as investment adviser to the Fund with overall responsibility for
the day-to-day portfolio management of the Fund, subject to the supervision of
the Board. The Adviser also furnishes the Fund with office space and certain
administrative services and provides most of the personnel needed to fulfill its
obligations under its Investment Advisory Agreement (the “Advisory Agreement”).
Under the Advisory Agreement, the Adviser has agreed to pay all expenses of the
Fund, except for the fee paid to the Adviser pursuant to the Advisory Agreement,
interest charges on any borrowings, dividends, and other expenses on securities
sold short, taxes, brokerage commissions and other expenses incurred in placing
orders for the purchase and sale of securities and other investment instruments,
expenses associated with the purchase, sale, or ownership of securities,
acquired fund fees and expenses, accrued deferred tax liability, extraordinary
expenses, and distribution (12b-1) fees and expenses. For its services, the
Adviser receives a single unitary management fee that is equal to 0.50% per
annum of the average daily net assets of the Fund.
A
discussion regarding the basis for the Board’s approval of the Advisory
Agreement is available in the Fund’s semi-annual report to shareholders for the
period ended September 30, 2021.
J.
Cannon Carr, Jr., Chief Executive Officer of the Adviser, Jeffrey P. Moeller,
Director of Research of the Adviser, and Joshua Tucker, Research Analyst of the
Adviser, are
the portfolio managers for the Fund since inception in August 2020.
Mr.
Carr is Chief Executive Officer of the Adviser and has been with the firm since
2007. He leads the Adviser’s investment committee, which oversees management of
the Adviser’s investment research and products, including the Fund. He assumed
the formal role of co-manager in July 2013. Prior to 2007, Mr. Carr was a Senior
Equity Analyst on Wall Street for ten years.
Mr.
Moeller, Director of Research and portfolio manager with the Adviser, has been
with the Adviser since 2000, and his duties have included development of
Fundametrics® research platform, portfolio management, and investment research.
Mr. Moeller is a CFA Charterholder.
Mr.
Tucker, research analyst with the Adviser, has been with the Adviser since 2013
and his duties include development of Fundametrics® research platform and
investment research.
Mr. Tucker is a CFA Charterholder.
The
SAI provides additional information about the portfolio managers’ compensation,
other accounts managed by the portfolio managers and their ownership of
securities in the Fund.
Fund
shares are listed for secondary trading on the Exchange. When you buy or sell
the Fund’s shares on the secondary market, you will pay or receive the market
price. You may incur customary brokerage commissions and charges and may pay
some or all of the spread between the bid and the offered price in the secondary
market on each leg of a round trip (purchase and sale) transaction. The shares
will trade on the Exchange at prices that may differ to varying degrees from the
daily NAV of the shares. The Fund’s NAV per share is calculated as of the close
of regular trading (generally 4:00 pm Eastern Time) on each day that the New
York Stock Exchange (“NYSE”) is open for business. The NYSE and the Exchange are
generally open Monday through Friday and are closed weekends and the following
holidays: New Year’s Day, Martin Luther King, Jr. Day, Presidents’ Day, Good
Friday, Memorial Day, Juneteenth National Independence Day, Independence Day,
Labor Day, Thanksgiving Day and Christmas Day.
Purchase
and redemption requests are priced based on the next NAV per share calculated
after receipt of such request. The NAV is the value of the Fund’s securities,
cash and other assets, minus all expenses and liabilities (assets – liabilities
= NAV). NAV per share is determined by dividing NAV by the number of shares
outstanding (NAV/ # of shares = NAV per
share).
The NAV takes into account the expenses and fees of the Fund, including
management and administration fees, which are accrued daily.
In
calculating the NAV, portfolio securities are valued using current market values
or official closing prices, if available. Each security owned by the Fund that
is listed on a securities exchange is valued at its last sale price on that
exchange on the date as of which assets are valued. When the security is listed
on more than one exchange, the Fund will use the price of the exchange that the
Fund generally considers to be the principal exchange on which the security is
traded.
When
reliable market quotations are not readily available or the Fund’s pricing
service does not provide a valuation (or provides a valuation that in the
judgment of the Adviser does not represent the security’s fair value) or when,
in the judgment of the Adviser, events have rendered the market value
unreliable, a security or other asset is valued at its fair value as determined
under procedures approved by the Board. Valuing securities at fair value is
intended to ensure that the Fund is accurately priced and involves reliance on
judgment. Fair value determinations are made in good faith in accordance with
the procedures adopted by the Board. The Board will regularly evaluate whether
the Fund’s fair valuation pricing procedures continue to be appropriate in light
of the specific circumstances of the Fund and the quality of prices obtained
through their application by the Adviser and Trust’s valuation committee. There
can be no assurance that the Fund will obtain the fair value assigned to a
security if it were to sell the security at approximately the time at which the
Fund determines its NAV per share.
Fair
value pricing may be applied to non-U.S. securities. The trading hours for most
non-U.S. securities end prior to the close of the NYSE, the time that the Fund’s
NAV is calculated. The occurrence of certain events after the close of non-U.S.
markets, but prior to the close of the NYSE (such as a significant surge or
decline in the U.S. market) often will result in an adjustment to the trading
prices of non-U.S. securities when non-U.S. markets open on the following
business day. If such events occur, the Fund may value non-U.S. securities at
fair value, taking into account such events, when it calculates its NAV. In such
cases, use of fair valuation can reduce an investor’s ability to seek to profit
by estimating the Fund’s NAV per share in advance of the time the NAV per share
is calculated. The Adviser anticipates that the Fund’s portfolio holdings will
be fair valued when market quotations for those holdings are considered
unreliable.
Other
types of investments that the Fund may hold for which fair value pricing might
be required include, but are not limited to: (a) investments which are not
frequently traded and/or the market price of which the Adviser believes may be
stale; (b) illiquid securities, including “restricted” securities and private
placements for which there is no public market; (c) securities of an issuer that
has entered into a restructuring; (d) securities whose trading has been halted
or suspended; and (e) fixed income securities that have gone into default and
for which there is not a current market value quotation.
Frequent
Purchases and Redemptions of Fund Shares
Unlike
frequent trading of shares of a traditional open-end mutual fund’s (i.e.,
not exchange-traded) shares, frequent trading of shares of the Fund on the
secondary market does not disrupt portfolio management, increase the Fund’s
trading costs, lead to realization of capitalization gains, or otherwise harm
the Fund’s shareholders because these trades do not involve the Fund directly.
Certain institutional investors are authorized to purchase and redeem the Fund’s
shares directly with the Fund. Because these trades are effected in-kind
(i.e.,
for securities, and not for cash), they do not cause any of the harmful effects
noted above that may result from frequent cash trades. Moreover, the Fund
imposes transaction fees on in-kind purchases and redemptions of Creation Units
to cover the custodial and other costs incurred by the Fund in effecting in-kind
trades. These fees increase if an investor substitutes cash in part or in whole
for Creation Units, reflecting the fact that the Fund’s trading costs increase
in those circumstances. For these reasons, the Board has determined that it is
not necessary to adopt policies and procedures to detect and deter frequent
trading and market-timing in shares of the Fund.
Dividend
Reinvestment Service
Brokers
may make available to their customers who own the Fund’s shares the Depository
Trust Company (“DTC”) book-entry dividend reinvestment service. If this service
is available and used, dividend distributions of both income and capital gains
will automatically be reinvested in additional whole shares of the Fund. Without
this service, investors would receive their distributions in cash. In order to
achieve the maximum total return on their investments, investors are encouraged
to use the dividend reinvestment service. To determine whether the dividend
reinvestment service is available and whether there is a commission or other
charge for using this service, consult your broker. Brokers may require the
Fund’s shareholders to adhere to specific procedures and timetables. If this
service is available and used, dividend distributions of both income and
realized gains will be automatically reinvested in additional whole shares of
the Fund purchased in the secondary market.
Fund
Distributions
The
Fund intends to pay out dividends, if any, annually and distribute any net
realized capital gains to its shareholders annually.
Tax
Information
Below
the Fund has summarized some important U.S. federal income tax considerations
generally applicable to investments in the Fund. The summary is based on current
tax law, which may be changed by legislative, judicial or administrative action.
Please consult your tax advisor about the tax consequences of an investment in
Fund shares, including the possible application of foreign, state, and local tax
laws.
The
Fund has elected and intends to qualify each year for treatment as a regulated
investment company (“RIC”) within the meaning of Subchapter M of the Internal
Revenue Code of 1986, as amended. If it meets certain minimum distribution
requirements, a RIC is not subject to tax at the fund level on income and gains
from investments that are timely distributed to shareholders. However, the
Fund’s failure to qualify as a RIC or to meet minimum distribution requirements
would result (if certain relief provisions were not available) in fund-level
taxation and consequently a reduction in income available for distribution to
shareholders.
Unless
you are a tax-exempt entity or your investment in Fund shares is made through
tax-deferred retirement account, such as an individual retirement account, you
need to be aware of the possible tax consequences when the Fund makes
distributions, you sell Fund shares, and you purchase or redeem Creation Units
(APs only).
Taxes
on Distributions
The
Fund will generally make distributions of dividends from any net investment
income and capital gains annually. Dividends of net investment income and
distributions from the Fund’s net short-term capital gains are taxable to you as
ordinary income or, in some cases, as qualified dividend income. Distributions
from the Fund’s net capital gain (the excess of its net long-term capital gains
over its net short-term capital losses) are generally taxable to non-corporate
shareholders at rates of up to 20%, regardless of how long the shareholders held
their respective shares in the Fund. You will be taxed in the same manner
whether you receive your dividends and capital gain distributions in cash or
reinvest them in additional Fund shares.
Distributions
that the Fund reports as “qualified dividend income” may be eligible to be taxed
to non-corporate shareholders at rates of up to 20% if requirements, including
holding period requirements, are satisfied. In general, the Fund may report its
dividends as qualified dividend income to the extent derived from dividends paid
to the Fund by U.S. corporations or certain foreign corporations that are either
incorporated in a U.S. possession or eligible for tax benefits under certain
U.S. income tax treaties. In addition, dividends that the Fund receives in
respect of stock of certain foreign corporations may be qualified dividend
income if that stock is readily tradable on an established U.S. securities
market. A portion of the dividends received from the Fund (but none of its
capital gain distributions) may qualify for the dividends received deduction for
corporations.
A
tax of 3.8% applies to all or a portion of net investment income of U.S.
individuals with income exceeding specified thresholds, and to all or a portion
of undistributed net investment income of certain estates and trusts. Net
investment income generally includes for this purpose dividends and capital gain
distributions paid by the Fund and gain on the redemption of Fund shares.
Any
dividend or capital gain distribution paid by the Fund has the effect of
reducing the NAV per share on the ex-dividend date by the amount of the dividend
or capital gain distribution. You should note that a dividend or capital gain
distribution paid on shares purchased shortly before that dividend or capital
gain distribution was declared will be subject to income taxes even though the
dividend or capital gain distribution represents, in substance, a partial return
of capital to you. This is known as “buying a dividend” and should be avoided by
taxable investors.
Although
distributions are generally taxable when received, certain distributions
declared in October, November, or December to shareholders of record on a
specified date in such a month but paid the following January are taxable as if
received in December of the year in which the dividend is declared.
The
Fund will send you a report annually summarizing the amount and tax aspects of
your distributions. The Fund will be required to report to the Internal Revenue
Service (“IRS”) all distributions of taxable income and capital gains as well as
gross proceeds from the redemption of Fund shares, except in the case of exempt
shareholders, which includes most corporations. The Fund will also be required
to report tax basis information for such shares and indicate whether these
shares had a short-term or long-term holding period. If a shareholder has a
different basis for different shares of the Fund in the same account
(e.g.,
if a shareholder purchased shares in the same account at different times for
different prices), the Fund calculates the basis of the shares sold using its
default method unless the shareholder has properly elected to use a different
method.
The Fund’s default method for calculating basis is first-in, first-out (“FIFO”).
A shareholder may elect, on an account-by-account basis, to use a method other
than FIFO by following procedures established by the Fund or its administrative
agent. If such an election is made on or prior to the date of the first exchange
or redemption of shares in the account and on or prior to the date that is one
year after the shareholder receives notice of the Fund’s default method, the new
election will generally apply as if the FIFO method had never been in effect for
such account. Shareholders should consult their tax advisers concerning the tax
consequences of applying the Fund’s default method or electing another method of
basis calculation. Shareholders also should carefully review any cost basis
information provided to them and make any additional basis, holding period or
other adjustments that are required when reporting these amounts on their
federal income tax returns.
Taxes
on Sale of Fund Shares
Each
sale of shares of the Fund may be a taxable event. A sale may result in a
capital gain or loss to you. Any capital gain or loss generally will be treated
as short-term if you held the shares 12 months or less, except that any capital
loss on a sale of shares held for six months or less is treated as a long-term
capital loss to the extent of capital gain distributions paid with respect to
such shares. Any capital gain or loss generally will be treated as long-term if
you held the shares for longer than 12 months. If you redeem your Fund shares,
it is considered a taxable event for you. Depending on the purchase price
and the redemption price of the shares you redeem, you may have a gain or a loss
on the transaction. You are responsible for any tax liabilities generated
by your transaction. All or a portion of any loss realized upon a taxable
disposition of Fund shares will be disallowed if you purchase other
substantially identical shares within 30 days before or after the disposition.
In such a case, the basis of the newly purchased shares will be adjusted to
reflect the disallowed loss. The ability to deduct capital losses may be limited
depending on your circumstances.
Taxes
on Purchases and Redemptions of Creation Units
An
AP having the U.S. dollar as its functional currency for U.S. federal income tax
purposes who exchanges securities for Creation Units generally recognizes a gain
or a loss. The gain or loss will be equal to the difference between the value of
the Creation Units at the time of the exchange and the exchanging AP’s aggregate
basis in the securities delivered, plus the amount of any cash paid for the
Creation Units. An AP who exchanges Creation Units for securities will generally
recognize a gain or loss equal to the difference between the exchanging AP’s
basis in the Creation Units and the aggregate U.S. dollar market value of the
securities received, plus any cash received for such Creation Units. The IRS may
assert, however, that a loss that is realized upon an exchange of securities for
Creation Units may not be currently deducted under the rules governing “wash
sales” (for an AP who does not mark-to-market its holdings) or on the basis that
there has been no significant change in economic position. Persons exchanging
securities or non-U.S. currency for Creation Units should consult their own tax
advisor with respect to the tax treatment of any creation or redemption
transaction and whether the wash sale rules apply and when a loss might be
deductible.
Gain
or loss recognized by an AP upon an issuance of Creation Units in exchange for
securities, or upon a redemption of Creation Units, may be capital or ordinary
gain or loss depending on the circumstances. Any capital gain or loss realized
upon an issuance of Creation Units in exchange for securities will generally be
treated as long-term capital gain or loss if the securities have been held for
more than one year. Any capital gain or loss realized upon the redemption of a
Creation Unit will generally be treated as long-term capital gain or loss if the
Fund shares comprising the Creation Unit have been held for more than one year.
Otherwise, such capital gains or losses are treated as short-term capital gains
or losses.
The
Fund may include cash when paying the redemption price for Creation Units in
addition to, or in place of, the delivery of a basket of securities. The Fund
may be required to sell portfolio securities in order to obtain the cash needed
to distribute redemption proceeds. This may cause the Fund to recognize
investment income and/or capital gains or losses that it might not have
recognized if it had completely satisfied the redemption in-kind. As a result,
the Fund may be less tax efficient if it includes such a cash payment than if
the in-kind redemption process was used.
Non-U.S.
Investors
If
you are neither a resident nor a citizen of the United States or if you are a
foreign entity, distributions (other than capital gain distributions) paid to
you by the Fund will generally be subject to a U.S. withholding tax at the rate
of 30%, unless a lower treaty rate applies. The Fund may, under certain
circumstances, report all or a portion of a dividend as an “interest-related
dividend” or a “short- term capital gain dividend,” which would generally be
exempt from this 30% U.S. withholding tax, provided certain other requirements
are met.
Under
legislation generally known as “FATCA” (the Foreign Account Tax Compliance Act),
the Fund is required to withhold 30% of certain ordinary dividends it pays to
shareholders that are foreign entities and that fail to meet prescribed
information reporting or certification requirements.
Backup
Withholding
The
Fund (or financial intermediaries, such as brokers, through which shareholders
own shares of the Fund) generally is required to withhold and to remit to the
U.S. Treasury a percentage of the taxable distributions and the sale or
redemption proceeds paid to any shareholder who fails to properly furnish a
correct taxpayer identification number, who has under-reported dividend or
interest income, or who fails to certify that he, she or it is not subject to
such withholding.
Foreign
Taxes
To
the extent the Fund invests in foreign securities, it may be subject to foreign
withholding taxes with respect to dividends or interest the Fund received from
sources in foreign countries.
Additional
information concerning taxation of the Fund and its shareholders is contained in
the SAI. Tax consequences are not the primary consideration of the Fund in
making its investment decisions. If you have a tax-advantaged retirement
account, you will generally not be subject to federal taxation on any dividends
and capital gain distributions until you begin receiving your distributions from
your retirement account. You
should consult your own tax adviser concerning federal, state and local tax
considerations of an investment in the Fund.
Quasar
Distributors, LLC, a wholly-owned broker-dealer subsidiary of Foreside Financial
Group, LLC, is located at 111 E. Kilbourn Avenue, Suite 2200, Milwaukee,
Wisconsin 53202, and is the distributor for the shares of the Fund. Quasar
is a registered broker-dealer and a member of the Financial Industry Regulatory
Authority. The Distributor distributes Creation Units for the Fund on an
agency basis and does not maintain a secondary market in Fund shares. The
Distributor has no role in determining the policies of the Fund or the
securities that are purchased or sold by the Fund.
The
Board has adopted a Distribution and Service Plan (the “Plan”) pursuant to Rule
12b-1 under the 1940 Act. In accordance with the Plan, the Fund is authorized to
pay an amount up to 0.25% of its average daily net assets each year for certain
distribution-related activities and shareholder services.
No
Rule 12b-1 fees are currently paid by the Fund, and there are no plans to impose
these fees. However, in the event Rule 12b-1 fees are charged in
the future, because the fees are paid out of the Fund’s assets, over time these
fees will increase the cost of your investment and may cost you more than
certain other types of sales charges.
Shares
of the Trust are not sponsored, endorsed, or promoted by the Exchange. The
Exchange makes no representation or warranty, express or implied, to the owners
of the shares of the Fund. The Exchange is not responsible for, nor has it
participated in, the determination of the timing of, prices of, or quantities of
the shares of the Fund to be issued, or in the determination or calculation of
the equation by which the shares are redeemable.
The
Exchange has no obligation or liability to owners of the shares of the Fund in
connection with the administration, marketing, or trading of the shares of the
Fund. Without limiting any of the foregoing, in no event shall the Exchange have
any liability for any lost profits or indirect, punitive, special, or
consequential damages even if notified of the possibility thereof.
The
Adviser and the Fund make no representation or warranty, express or implied, to
the owners of shares of the Fund or any members of the public regarding the
advisability of investing in securities generally or in the Fund
particularly.
Information
regarding how often Shares traded on the Exchange at a price above (i.e., at a
premium) or below (i.e., at a discount) the NAV of the Fund can be found on the
Fund’s website at CornerCapFUNL-ETF.com
The
financial highlights table is intended to help you understand the Fund’s
financial performance for the fiscal period/year shown. Certain information
reflects financial results for a single share. The total returns in the table
represent the rate that an investor would have earned or lost on an investment
in the Fund (assuming reinvestment of all dividends and distributions). The
information has been audited by BBD, LLP, whose report, along with the
Fund’s financial statements, are included in the Fund’s annual report, which is
available upon request.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For
a capital share outstanding throughout the period: |
For
the
Year Ended March 31, 2022 |
|
For
the
Period Ended March 31, 2021* |
|
| Net
Asset Value, Beginning of Period |
$ |
31.96 |
|
|
$ |
25.00 |
|
|
|
|
|
|
|
| Income
from Investment Operations: |
|
|
|
|
|
Net
investment income (1) |
0.57 |
|
|
0.33 |
|
|
| Net
realized and unrealized gain on investments |
3.28 |
|
|
6.76 |
|
|
| Total
Gain from Investment Operations |
3.85 |
|
|
7.09 |
|
|
|
|
|
|
|
| Less
Distributions: |
|
|
|
|
| Net
investment income |
(0.54) |
|
(0.13) |
|
| Net
realized gain on investments |
0.00 |
^ |
— |
|
| Total
Distributions |
(0.54) |
|
(0.13) |
|
|
|
|
|
|
| Net
Asset Value, End of Period |
$35.27 |
|
$31.96 |
|
|
|
|
|
|
| Total
Return |
12.11 |
% |
|
28.41 |
% |
(2) |
|
|
|
|
|
| Supplemental
Data and Ratios: |
|
|
|
|
| Net
assets, end of period (in thousands) |
$125,373 |
|
$96,835 |
|
| Ratio
of expenses to average net assets |
0.50 |
% |
|
0.50 |
% |
(3) |
| Ratios
of net investment income to average net assets |
1.68 |
% |
|
1.89 |
% |
(3) |
|
Portfolio
turnover rate (4) |
26 |
% |
|
6 |
% |
(2) |
* Commencement
of operations on August 19, 2020.
^ Amount
is less than $0.01 per share.
(1)
Per share amounts have been calculated using average
shares method.
(2)
Not Annualized.
(3) Annualized.
(4)
Portfolio turnover rate excludes securities received or
delivered in-kind.
Investment
Adviser
CornerCap
Investment Counsel, Inc.
The
Peachtree, Suite 1700, 1355 Peachtree Street NE
Atlanta,
GA 30309
Distributor
Quasar
Distributors, LLC
111
E. Kilbourn Avenue, Suite 2200
Milwaukee,
Wisconsin 53202
Custodian
U.S.
Bank National Association
Custody
Operations
1555
North Rivercenter Drive, Suite 302
Milwaukee,
Wisconsin 53212
Transfer
Agent, Administrator
U.S.
Bancorp Fund Services, LLC
615
East Michigan Street
Milwaukee,
Wisconsin 53202
Independent
Registered Public Accounting Firm
BBD,
LLP
1835
Market Street, 3rd Floor
Philadelphia,
Pennsylvania 19103
Legal
Counsel
Morgan,
Lewis & Bockius, LLP
1111
Pennsylvania Avenue NW
Washington,
DC 20004
CornerCap
Fundametrics® Large-Cap ETF
You
can find more information about the Fund in the following
documents:
Statement
of Additional Information
Annual
and Semi-Annual Reports
The
Fund’s annual and semi-annual reports (collectively, the “Shareholder Reports”)
provide the most recent financial reports and portfolio listings. The annual
report contains a discussion of the market conditions and investment strategies
that affected the Fund’s performance during the Fund’s last fiscal
year.
The
SAI and the Shareholder Reports are available free of charge on the Fund’s
website at CornerCapFUNL-ETF.com. You can obtain a free copy of the SAI and
Shareholder Reports, request other information, or make general inquiries about
the Fund by calling the Fund at 1-800-617-0004
or by writing to:
CornerCap
Fundametrics® Large-Cap ETF
c/o
U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
Wisconsin 53201-0701
Reports
and other information about the Fund are available:
•Free
of charge from the SEC’s EDGAR database on the SEC’s website at
http://www.sec.gov; or
•For
a duplicating fee, by electronic request at the following e-mail address:
[email protected].
(The
Trust’s SEC Investment Company Act file number is 811‑21422.)
