ck0001131042-20240331
4973/31/2024GPS FUNDS
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GuideMark®
Funds
GuidePath®
Funds
Prospectus
July 31,
2024
GuideMark®
Large Cap Core Fund (Ticker:
GMLGX)
GuideMark®
Emerging Markets Fund (Ticker:
GMLVX)
GuideMark®
Small/Mid
Cap Core Fund (Ticker:
GMSMX)
GuideMark®
World
ex-US Fund (Ticker:
GMWEX)
GuideMark®
Core
Fixed Income Fund (Ticker:
GMCOX)
GuidePath®
Growth Allocation Fund (Ticker:
GPSTX)
GuidePath®
Conservative Allocation Fund (Ticker:
GPTCX)
GuidePath®
Tactical Allocation Fund (Ticker:
GPTUX)
GuidePath®
Absolute Return Allocation Fund (Ticker:
GPARX)
GuidePath®
Multi-Asset Income Allocation Fund (Ticker:
GPMIX)
GuidePath®
Flexible
Income Allocation Fund (Ticker:
GPIFX)
GuidePath®
Managed Futures Strategy Fund (Ticker:
GPMFX)
GuidePath®
Conservative
Income Fund (Ticker:
GPICX)
GuidePath®
Income
Fund (Ticker:
GPINX)
GuidePath®
Growth
and Income Fund (Ticker:
GPIGX)
The
Securities and Exchange Commission and the Commodity Futures Trading Commission
have not approved or disapproved these securities or passed upon the adequacy of
this Prospectus. Any representation to the contrary is a criminal
offense.
Table
of Contents
SUMMARY
SECTION
GUIDEMARK®
LARGE
CAP CORE FUND
Investment
Objective
GuideMark® Large Cap Core Fund (the “Fund”) seeks capital appreciation over the
long term.
Fees and Expenses of the
Fund
The
following 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 example below.
|
|
|
|
| |
Shareholder
Fees
(fees paid directly from your investment) |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fees |
0.45% |
Distribution
and/or Service (12b-1) Fees |
None |
Other
Expenses |
0.44% |
Administrative
Service Fees |
0.25% |
All
Other Expenses |
0.19% |
Total
Annual Fund Operating Expenses(1) |
0.89% |
(1)Note
that the amount of Total Annual Fund Operating Expenses shown in the above table
will differ from the Ratio of Expenses to Average Net Assets included in the
“Financial Highlights” section of the Prospectus which reflects the operating
expenses of the Fund and includes the expense reductions generated when the Fund
loaned its portfolio securities.
Example
The following Example is intended to help you compare the cost of
investing in Service Shares of the Fund with the cost of investing in other
mutual funds. The Example assumes that you invest $10,000 in Service Shares of
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. 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 |
$91 |
$284 |
$493 |
$1,096 |
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 19.47% of the average value of its
portfolio.
Principal Investment
Strategies of the Fund
Under normal
circumstances, the Fund invests at least 80% of its assets in the securities of
large capitalization companies. The Fund considers “large
capitalization companies” to be companies, at the time of purchase, whose market
capitalizations are within the range of the market capitalizations in the
Russell 1000®
Index.
The
Fund also may invest in derivatives such as futures, forwards and other similar
instruments in order to “equitize” cash balances by gaining exposure to relevant
equity markets. To the extent that derivatives have economic characteristics
similar to the securities of large capitalization companies, they will be
counted as such for purposes of the Fund’s 80% investment policy.
The
sub-advisor uses a rules-based methodology that emphasizes quantitatively-based
stock selection, portfolio construction and efficient implementation. The Fund
seeks to capture common sources of active equity returns, including the
following factors: value (i.e., how attractively a stock is priced relative to
its “fundamentals,” such as book value and free cash flow), momentum (i.e.,
whether a company’s share price is trending up or down) and quality (i.e.,
profitability). The sub-advisor seeks to capitalize on the low correlations in
returns across these factors by diversifying exposure to securities selected
based on such factors. The sub-advisor may, in its discretion, make changes to
its quantitative techniques, or use other quantitative techniques that are based
on the sub-advisor’s proprietary research.
The
sub-advisor constructs the Fund’s portfolio by investing in the securities
comprising the Russell 1000®
Index
and adjusting the relative weight of each security based on the security’s
attractiveness when evaluated based on the factors as described above, subject
to the Fund being constrained to long-only positions. Based on the sub-advisor’s
judgment, the Fund expects that its portfolio will be overweight with respect to
certain securities (i.e., the Fund will hold a greater percentage of those
securities than the index) and underweight with respect to others (i.e., the
Fund will hold a lesser percentage of those securities than the index), and that
such weightings may change over time. The
percentage
of the Fund’s portfolio exposed to any single security will vary from time to
time as the weightings of the securities within the Fund change. The degree to
which components of the Fund represent certain sectors or industries may change
over time.
The
Fund lends its portfolio securities to seek to generate additional
income.
Principal Risks of Investing in
the Fund
The
risks associated with an investment in the Fund can increase during times of
significant market volatility. There is the risk that you could lose all or a
portion of the money you have invested in the Fund. Different
risks may be more significant at different times depending on market conditions
or other factors. The following risks could affect the value of your investment
in the Fund:
•Management
Risk:
An investment or allocation strategy used by the Advisor or a sub-advisor may
fail to produce the intended results.
•Market
Risk:
The value of the Fund’s investments and the net asset values of the shares of
the Fund will fluctuate in response to various market and economic factors
related to the equity and fixed income markets as well as the financial
condition and prospects of companies in which the Fund
invests.
•Growth
Investment Risk: The Fund’s investments in growth-oriented securities may be subject
to greater price volatility and may be more sensitive to changes in the issuer’s
current or expected earnings than other equity securities.
•Equity
Risk: Common stocks are susceptible to general stock market fluctuations
and to volatile increases and decreases in value. The stock market may
experience declines or stocks in the Fund’s portfolio may not increase their
earnings at the rate anticipated. The Fund’s NAV and investment return will
fluctuate based upon changes in the value of its portfolio
securities.
•Value
Investment Risk:
The Fund’s investments in value-oriented securities may be out of favor and
potentially undervalued in the marketplace due to adverse business, industry or
other developments. The Fund’s investments in value-oriented securities may not
reach what the Fund’s sub-advisor believes are their full
value.
•Quantitative
Investment Techniques Risk:
Quantitative models may contain design flaws. In addition, quantitative
investment techniques may rely on inaccurate assumptions or data inputs, and the
Fund may be adversely affected by errors or limitations in the construction and
implementation of these techniques.
•Information
Technology Sector Risk.
The information technology (IT) sector has historically been relatively volatile
due to the rapid pace of product development within the sector. Products and
services of IT companies may not achieve commercial success or may become
obsolete quickly. Stock prices of companies operating within this sector may be
subject to abrupt or erratic movements. Additionally, these companies are
subject to significant competitive pressures, such as new market entrants,
aggressive pricing and tight profit margins. The activities of these companies
may also be adversely affected by changes in government
regulations.
•Derivatives
Risk:
A derivative is an instrument with a value based on the performance of an
underlying currency, security, index or other reference asset. The use of
derivatives involves risks different from, or greater than, the risks associated
with investing in more traditional investments. Derivatives involve costs, may
create leverage and may be illiquid, volatile, and difficult to value. The Fund
may not be able to close out or sell a derivative position at a particular time
or at an anticipated price. The use of derivatives could also result in a loss
if the counterparty to the transaction does not perform as promised, including
because of such counterparty’s bankruptcy or insolvency. The investment results
achieved by the use of derivatives by the Fund may not match or fully offset
changes in the value of the underlying currency, security, index or other
reference asset that it was attempting to hedge or the investment opportunity
the Fund was attempting to pursue.
•Securities
Lending Risk:
When the Fund lends its portfolio securities, the Fund is subject to the risk
that the borrower may fail to return the securities in a timely manner or at
all, resulting in a loss to the Fund and/or a delay in recovering the loaned
securities. The Fund could also lose money in connection with securities lending
transactions if it does not recover the loaned securities and/or the value of
the collateral falls, including the value of investments made with cash
collateral. Securities lending also may have certain adverse tax consequences.
The Fund is not obligated to engage in securities lending, and may discontinue
its securities lending activities at any time.
Performance
The bar chart and table that follow illustrate annual returns for
Service Shares of the Fund for periods ended December 31. This information is intended to give you some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and how the Fund’s average annual returns over time compare
with those of a broad measure of market performance and an additional index with
characteristics relevant to the Fund's investments.
The Fund’s past performance (before and after taxes) is not
necessarily an indication of how the Fund will perform in the
future. The Fund changed its investment strategies on October 9,
2015. The performance set forth below prior to such date is attributable to the
previous investment strategies and different sub-advisors.
GUIDEMARK®
LARGE
CAP CORE FUND – SERVICE SHARES
Calendar
Year Returns as of 12/31
The
year-to-date performance of the Fund’s Service
Shares as of June 30,
2024 was 13.44%.
During
the period shown on the bar chart, the Fund’s best and worst quarters are shown
below:
|
|
|
|
|
|
|
| |
Best
Quarter: |
Quarter
ended June 30,
2020 |
24.25 |
% |
Worst
Quarter: |
Quarter
ended March 31,
2020 |
-21.48 |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average Annual
Total Returns for Periods Ended December 31,
2023 |
|
| One
Year |
Five
Years |
Ten
Years |
Large
Cap Core Fund – Service Shares |
|
| |
Return Before
Taxes |
25.29% |
14.88% |
10.52% |
Return After
Taxes on Distributions |
25.06% |
14.10% |
9.82% |
Return After
Taxes on Distributions and Sale of Fund
Shares |
15.13% |
11.90% |
8.53% |
Russell
1000®
Index
(reflects no deduction for fees, expenses or
taxes) |
26.53% |
15.52% |
11.80% |
Russell
3000®
Index
(1)
(reflects no deduction for fees, expenses or
taxes) |
25.96% |
15.16% |
11.48% |
(1)
Effective
July 31, 2024, the Fund added this broad-based securities market index intended
to reflect the overall applicable securities market.
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 tax situation and may differ from those
shown. In addition, the after-tax returns shown are not relevant to
investors who hold their Fund shares through tax-advantaged arrangements such as
401(k) plans and individual retirement accounts because such accounts are only
subject to taxes upon withdrawal.
Investment
Advisor and Sub-Advisor
AssetMark,
Inc. (“AssetMark” or the “Advisor”) is the investment advisor for the Fund.
Goldman Sachs Asset Management, L.P. (“GSAM”) is the sub-advisor for the Fund.
Portfolio
Manager:
The Fund’s investment decisions are made by the following portfolio
managers:
|
|
|
|
|
|
|
| |
Portfolio
Manager |
Position
with GSAM |
Length
of Service to the Fund |
Karhan
E. Akcoglu |
Vice
President |
Since
2021 |
Andrew
Alford |
Managing
Director |
Since
2023 |
Purchase
and Sale of Fund Shares: Financial
institutions and intermediaries on behalf of their clients may purchase or sell
shares through U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank
Global Fund Services, the Fund’s transfer agent (or its authorized agent).
Institutions and intermediaries that use certain proprietary systems of the
Advisor may place orders to buy or sell electronically through those systems.
Transactions will only occur on days the New York Stock Exchange is open. The
Fund has no investment minimums, however, the financial institutions and
intermediaries that sell the Fund’s shares may have established minimum values
for the accounts that they handle.
Tax
Information: The
Fund’s distributions are taxable, and generally will be taxed as ordinary
income, capital gains, or some combination of both, unless you are investing
through a tax-advantaged arrangement, such as a 401(k) plan or an individual
retirement account. Withdrawals from such tax-advantaged arrangements may be
subject to tax.
Payments
to Broker-Dealers and Other Financial Intermediaries: If
you purchase Fund shares through a broker-dealer or other financial intermediary
(such as a bank), AssetMark and/or 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.
GUIDEMARK®
EMERGING
MARKETS FUND
Investment
Objective
GuideMark®
Emerging Markets Fund (the “Fund”) seeks capital appreciation over
the long term.
Fees and Expenses of the
Fund
The
following 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 example below:
|
|
|
|
| |
Shareholder
Fees
(fees paid directly from your investment) |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fees |
0.59% |
Distribution
and/or Service (12b-1) Fees |
None |
Other
Expenses |
1.29% |
Administrative
Service Fees |
0.25% |
All
Other Expenses |
1.04% |
Acquired
Fund Fees and Expenses(1)
|
0.03% |
Total
Annual Fund Operating Expenses(2) |
1.91% |
Fee
Waiver and/or Expense Assumption(3) |
-0.48% |
Total
Annual Fund Operating Expenses (After Fee Waiver and/or Expense
Assumption)(2)(3) |
1.43% |
(1)“Acquired Fund
Fees and Expenses” (“AFFE”) are indirect fees and expenses that the Fund incurs
from investing in the shares of other investment companies, including money
market funds and other mutual funds, closed end funds, business development
companies or certain exchange-traded funds.
(2)Note that the amount of Total Annual Fund Operating Expenses
shown in the above table will differ from the Ratio of Expenses to Average Net
Assets included in the “Financial Highlights” section of the Prospectus which
reflects the operating expenses of the Fund and does not include indirect
expenses such as AFFE, but includes the expense reductions generated when the
Fund loaned its portfolio securities.
(3)AssetMark,
Inc. (“AssetMark” or the “Advisor”) has contractually agreed through
July 31, 2025 to waive its advisory fees
and/or assume expenses otherwise payable by the Fund to the extent necessary to
ensure that Total Annual Fund Operating Expenses (excluding taxes, interest,
trading costs, AFFE, expenses paid with securities lending expense offset
credits and non-routine expenses) do not exceed 1.40% of average daily net
assets. This expense limitation agreement may not be terminated prior to July
31, 2025 unless the Board of Trustees consents to an earlier revision or
termination. Under the expense limitation agreement, AssetMark may recoup waived
fees and expenses borne for a three-year period under specified conditions. No
recoupment will be paid to AssetMark if the Fund’s current Total Annual Fund
Operating Expenses exceed the expense limitation in effect at the time fees were
waived or expenses were reimbursed.
Example
The following Example is intended to help you compare the cost of
investing in Service Shares of the Fund with the cost of investing in other
mutual funds. The Example assumes that you invest $10,000 in Service Shares of
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 and that the Fund’s operating expenses remain the same. The Example
reflects adjustments made to the Fund’s operating expenses due to the fee waiver
and/or expense assumption by the Advisor for the 1-year number
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 |
$146 |
$554 |
$987 |
$2,194 |
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 43.80% of the average value of its
portfolio.
Principal Investment
Strategies of the Fund
Under normal
circumstances, the Fund invests at least 80% of its assets in securities and
other instruments that provide exposure to emerging market
countries. For purposes of this policy, securities and other
instruments that provide exposure to emerging market countries include: (i)
securities issued by entities which are located, incorporated or have
significant business activities in or are impacted by economic developments in
developing or emerging market countries, (ii) securities denominated in, or
linked to, currencies or interest rates of an emerging market country or
countries, and (iii) derivatives or pooled structures (such as exchange-traded
funds (“ETFs”)) that are linked to
emerging
markets. The Fund considers emerging market countries to be those defined by the
MSCI Emerging Markets Index. The Fund will, under normal circumstances, seek
exposure to a minimum of three emerging market countries.
The
Fund mainly invests in equity securities of issuers in emerging market
countries. The Fund’s investments in equity securities may include common
stocks, unit stocks, stapled securities, ETFs and preferred stocks of companies
of any size capitalization. The Fund also may invest in depositary receipts,
including American Depositary Receipts (“ADRs”) of foreign companies and Global
Depositary Receipts (“GDRs”). Depositary receipts are typically issued by a U.S.
or foreign bank or trust company and evidence ownership of underlying securities
issued by a foreign corporation.
The
Fund also may invest in derivatives such as futures, forwards and other similar
instruments in order to (i) “equitize” cash balances by gaining exposure to
relevant equity markets; and (ii) hedge exposure to foreign currencies. The Fund
may engage in currency futures and currency forwards for the purpose of hedging
exposures within the Fund to non-dollar-denominated assets. In general, the use
of currency derivatives for hedging may reduce the overall risk level of the
Fund, albeit at a cost that may lower overall performance.
The
sub-advisor uses a rules-based methodology that emphasizes quantitatively-based
stock selection, portfolio construction and efficient implementation. The Fund
seeks to capture common sources of active equity returns, including the
following factors: value (i.e., how attractively a stock is priced relative to
its “fundamentals,” such as book value and free cash flow), momentum (i.e.,
whether a company’s share price is trending up or down) and quality (i.e.,
profitability). The sub-advisor seeks to capitalize on the low correlations in
returns across these factors by diversifying exposure to securities selected
based on such factors. The sub-advisor may, in its discretion, make changes to
its quantitative techniques, or use other quantitative techniques that are based
on the sub-advisor’s proprietary research.
The
sub-advisor constructs the Fund’s portfolio by investing in the securities
comprising the MSCI Emerging Markets
Index
and adjusting the relative weight of each security based on the security’s
attractiveness when evaluated based on the factors as described above, subject
to the Fund being constrained to long-only positions. Based on the sub-advisor’s
judgment, the Fund expects that its portfolio will be overweight with respect to
certain securities (i.e., the Fund will hold a greater percentage of those
securities than the index) and underweight with respect to others (i.e., the
Fund will hold a lesser percentage of those securities than the index), and that
such weightings may change over time. The percentage of the Fund’s portfolio
exposed to any single security will vary from time to time as the weightings of
the securities within the Fund change. The degree to which components of the
Fund represent certain sectors or industries may change over time.
The
Fund lends its portfolio securities to seek to generate additional
income.
Principal Risks of Investing in
the Fund
The
risks associated with an investment in the Fund can increase during times of
significant market volatility. There is the risk that you could lose all or a
portion of the money you have invested in the Fund. Different
risks may be more significant at different times depending on market conditions
or other factors. The following risks could affect the value of your investment
in the Fund:
•Management
Risk:
An investment or allocation strategy used by the Advisor or a sub-advisor may
fail to produce the intended results.
•Market
Risk:
The value of the Fund’s investments and the net asset values of the shares of
the Fund will fluctuate in response to various market and economic factors
related to the equity and fixed income markets as well as the financial
condition and prospects of companies in which the Fund
invests.
•Equity
Risk:
Common stocks are susceptible to general stock market fluctuations and to
volatile increases and decreases in value. The stock market may experience
declines or stocks in the Fund’s portfolio may not increase their earnings at
the rate anticipated. The Fund’s NAV and investment return will fluctuate based
upon changes in the value of its portfolio
securities.
•Emerging
Markets Risk:
In addition to the risks generally associated with investing in foreign
securities, countries with emerging markets may also have relatively unstable
governments, social and legal systems that do not protect shareholders,
economies based on only a few industries and securities markets that trade a
small number of issues. Additionally, trading in the currencies of emerging
market countries may face periods of limited liquidity or the political risk of
exchange controls or currency repatriation
restrictions.
•Regional
Risk.
To the extent that the Fund invests a significant portion of its assets in a
specific geographic region, the Fund will have increased exposure to the risks
affecting that specific geographic region. In the event of economic or political
turmoil or a deterioration of diplomatic relations in a region where a
substantial portion of the Fund’s assets are invested, the Fund may experience
substantial illiquidity or reduction in the value of the Fund’s investments. In
addition, adverse economic events in a certain region can impact securities of
issuers in other countries whose economies appear to be unrelated. There are
special risks associated with investments in China, Hong Kong and Taiwan,
including exposure to currency fluctuations, less liquidity, expropriation,
confiscatory taxation, nationalization and exchange control regulations
(including currency blockage). Inflation and rapid fluctuations in inflation and
interest rates have had, and may continue to have, negative effects on the
economy and securities markets of China, Hong Kong and Taiwan. The Chinese
economy is heavily dependent on its large export sector and its economic growth
may be adversely affected by trade disputes with key trading partners and
escalating tariffs imposed on goods and services it produces. Investments in
Chinese companies may be made through a special structure known as a variable
interest entity (“VIE”). VIEs are common and are are well known to Chinese
officials and regulators, but historically the VIE structure has not been
formally recognized under Chinese law. There is uncertainty as to whether
Chinese courts or arbitration bodies would enforce the contractual rights of
foreign investors in a VIE structure and whether Chinese officials and
regulators will reverse their acceptance of the VIE structure generally, or with
respect to certain industries.
•Growth
Investment Risk: The Fund’s investments in growth-oriented securities may be subject
to greater price volatility and may be more sensitive to changes in the issuer’s
current or expected earnings than other equity securities.
•Value
Investment Risk:
The Fund’s investments in value-oriented securities may be out of favor and
potentially undervalued in the marketplace due to adverse business, industry or
other developments. The Fund’s investments in value-oriented securities may not
reach what the Fund’s sub-advisor believes are their full
value.
•Quantitative
Investment Techniques Risk:
Quantitative models may contain design flaws. In addition, quantitative
investment techniques may rely on inaccurate assumptions or data inputs, and the
Fund may be adversely affected by errors or limitations in the construction and
implementation of these techniques.
•Foreign
Securities Risk:
The risks of investing in foreign securities, ADRs and GDRs can increase the
potential for losses in the Fund and may include currency fluctuations,
political and economic instability, less government regulation, less publicly
available information, limited trading markets, differences in financial
reporting standards, fewer protections for passive investors and less stringent
regulation of securities markets.
•Small
and Medium Capitalization Company Risk:
Small and medium capitalization companies often have narrower markets, fewer
products or services to offer and more limited managerial and financial
resources than do larger, more established companies. As a result, their
performance can be more volatile, and they face a greater risk of business
failure, which could increase the volatility and risk of loss of the Fund's
assets.
•Derivatives
Risk: A derivative is an instrument with a value based on the performance
of an underlying currency, security, index or other reference asset. The use of
derivatives involves risks different from, or greater than, the risks associated
with investing in more traditional investments. Derivatives involve costs, may
create leverage and may be illiquid, volatile, and difficult to value. The Fund
may not be able to close out or sell a derivative position at a particular time
or at an anticipated price. The use of derivatives could also result in a loss
if the counterparty to the transaction does not perform as promised, including
because of such counterparty’s bankruptcy or insolvency. The investment results
achieved by the use of derivatives by the Fund may not match or fully offset
changes in the value of the underlying currency, security, index or other
reference asset that it was attempting to hedge or the investment opportunity
the Fund was attempting to pursue. For example, with currency derivatives, there
may be an imperfect correlation between a Fund’s portfolio holdings of
securities denominated in a particular currency and the currencies underlying
the currency derivatives entered into by the Fund.
•Liquidity
Risk: Liquidity risk is the risk that certain investments may be
difficult or impossible to buy or sell at the time and price that a Fund would
like to buy or sell the security.
•Exchange-Traded
Funds Risk: An ETF may represent a portfolio of securities, or may use
derivatives in pursuit of its stated objective. The risks of owning an ETF
generally reflect the risks of owning the underlying securities held by the ETF,
although a lack of liquidity in an ETF could result in it being more volatile.
In addition, ETF shares may trade at a premium or discount relative to their net
asset value. ETFs have management fees and other expenses which the Fund will
indirectly bear.
•Securities
Lending Risk:
When the Fund lends its portfolio securities, the Fund is subject to the risk
that the borrower may fail to return the securities in a timely manner or at
all, resulting in a loss to the Fund and/or a delay in recovering the loaned
securities. The Fund could also lose money in connection with securities lending
transactions if it does not recover the loaned securities and/or the value of
the collateral falls, including the value of investments made with cash
collateral. Securities lending also may have certain adverse tax consequences.
The Fund is not obligated to engage in securities lending, and may discontinue
its securities lending activities at any time.
Performance
The
bar chart and table that follow illustrate annual returns for Service Shares of
the Fund for periods ended December 31. This information is intended to give you some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and how the Fund’s average annual returns over time compare
with those of a broad measure of market performance.
The Fund’s past performance (before and after taxes) is not
necessarily an indication of how the Fund will perform in the
future. The Fund changed its investment strategies on October 9,
2015. The performance set forth below prior to such date is attributable to the
previous investment strategies and different
sub-advisors.
GUIDEMARK®
EMERGING
MARKETS FUND – SERVICE SHARES
Calendar
Year Returns as of 12/31
The
year-to-date performance of the Fund’s Service
Shares as of June 30,
2024 was 8.60%.
During
the period shown on the bar chart, the Fund’s best and worst quarters are shown
below:
|
|
|
|
|
|
|
| |
Best
Quarter: |
Quarter
ended December 31,
2020 |
19.40 |
% |
Worst
Quarter: |
Quarter
ended March 31,
2020 |
-25.06 |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns for Periods Ended December 31,
2023 |
|
| One
Year |
Five
Years |
Ten
Years |
Emerging
Markets Fund – Service Shares |
|
| |
Return Before
Taxes |
11.08% |
3.56% |
4.03% |
Return After
Taxes on Distributions |
10.29% |
2.37% |
2.94% |
Return After
Taxes on Distributions and Sale of Fund
Shares |
7.28% |
2.99% |
3.18% |
MSCI
Emerging Markets Index
(reflects no deduction for fees, expenses or
taxes) |
10.27% |
4.07% |
3.05% |
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 tax situation and may differ from those
shown. In addition, the after-tax returns shown are not relevant to
investors who hold their Fund shares through tax-advantaged arrangements such as
401(k) plans and individual retirement accounts because such accounts are only
subject to taxes upon withdrawal. 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. A higher after-tax return results when a capital loss occurs
upon redemption and provides an assumed tax deduction that benefits the
investor.
Investment
Advisor and Sub-Advisor
AssetMark,
Inc. (“AssetMark” or the “Advisor”) is the investment advisor for the Fund.
Goldman Sachs Asset Management, L.P. (“GSAM”) is the sub-advisor for the Fund.
Portfolio
Manager:
The Fund’s investment decisions are made by the following portfolio
managers:
|
|
|
|
|
|
|
| |
Portfolio
Manager |
Position
with GSAM |
Length
of Service to the Fund |
Karhan
E. Akcoglu |
Vice
President |
Since
2021 |
Andrew
Alford |
Managing
Director |
Since
2023 |
Purchase
and Sale of Fund Shares: Financial
institutions and intermediaries on behalf of their clients may purchase or sell
shares through U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank
Global Fund Services, the Fund’s transfer agent (or its authorized agent).
Institutions and intermediaries that use certain proprietary systems of the
Advisor may place orders to buy or sell electronically through those systems.
Transactions will only occur on days the New York Stock Exchange is open. The
Fund has no investment minimums, however, the financial institutions and
intermediaries that sell the Fund’s shares may have established minimum values
for the accounts that they handle.
Tax
Information: The
Fund’s distributions are taxable, and generally will be taxed as ordinary
income, capital gains, or some combination of both, unless you are investing
through a tax-advantaged arrangement, such as a 401(k) plan or an individual
retirement account. Withdrawals from such tax-advantaged arrangements may be
subject to tax.
Payments
to Broker-Dealers and Other Financial Intermediaries: If
you purchase Fund shares through a broker-dealer or other financial intermediary
(such as a bank), AssetMark and/or 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.
GUIDEMARK®
SMALL/MID
CAP CORE FUND
Investment
Objective
GuideMark®
Small/Mid Cap Core Fund (the “Fund”) seeks capital appreciation over
the long term.
Fees and Expenses of the
Fund
The
following 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 example below:
|
|
|
|
| |
Shareholder
Fees
(fees paid directly from your investment) |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fees |
0.57% |
Distribution
and/or Service (12b-1) Fees |
None |
Other
Expenses |
0.59% |
Administrative
Service Fees |
0.25% |
All
Other Expenses
|
0.34% |
Total
Annual Fund Operating Expenses(1) |
1.16% |
(1)Note
that the amount of Total Annual Fund Operating Expenses shown in the above table
will differ from the Ratio of Expenses to Average Net Assets included in the
“Financial Highlights” section of the Prospectus which reflects the operating
expenses of the Fund and includes the expense reductions generated when the Fund
loaned its portfolio securities.
Example
The following Example is intended to help you compare the cost of
investing in Service Shares of the Fund with the cost of investing in other
mutual funds. The Example assumes that you invest $10,000 in Service Shares of
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. 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 |
$118 |
$368 |
$638 |
$1,409 |
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 16.37% of the average value of its
portfolio.
Principal Investment
Strategies of the Fund
Under normal
circumstances, the Fund invests at least 80% of its assets in the securities of
small-to-medium capitalization companies. The Fund considers
“small-to-medium capitalization companies” to be companies, at the time of
purchase, whose market capitalizations are within the range of the market
capitalizations in the Russell 2500TM
Index.
The
Fund may invest in derivatives such as futures, forwards and other similar
instruments in order to “equitize” cash balances by gaining exposure to relevant
equity markets. To the extent that derivatives have economic characteristics
similar to the securities of small-to-medium capitalization companies, they will
be counted as such for purposes of the Fund’s 80% investment
policy.
The
sub-advisor uses a rules-based methodology that emphasizes quantitatively-based
stock selection, portfolio construction and efficient implementation. The Fund
seeks to capture common sources of active equity returns, including the
following factors: value (i.e., how attractively a stock is priced relative to
its “fundamentals,” such as book value and free cash flow), momentum (i.e.,
whether a company’s share price is trending up or down) and quality (i.e.,
profitability). The sub-advisor seeks to capitalize on the low correlations in
returns across these factors by diversifying exposure to securities selected
based on such factors. The sub-advisor may, in its discretion, make changes to
its quantitative techniques, or use other quantitative techniques that are based
on the sub-advisor’s proprietary research.
The
sub-advisor constructs the Fund’s portfolio by investing in the securities
comprising the Russell 2500TM
Index
and adjusting the relative weight of each security based on the security’s
attractiveness when evaluated based on the factors as described above, subject
to the Fund being constrained to long-only positions. Based on the sub-advisor’s
judgment, the Fund expects that its portfolio will be overweight with respect to
certain securities (i.e., the Fund will hold a greater percentage of those
securities than the index) and underweight with respect to others (i.e., the
Fund will hold a lesser percentage of those securities than the index), and that
such weightings may change over time. The percentage of the Fund’s portfolio
exposed to any single security will vary from time to time as the weightings of
the securities within the Fund change. The degree to which components of the
Fund represent certain sectors or industries may change over time.
The
Fund lends its portfolio securities to seek to generate additional
income.
Principal Risks of Investing in
the Fund
The
risks associated with an investment in the Fund can increase during times of
significant market volatility. There is the risk that you could lose all or a
portion of the money you have invested in the Fund. Different
risks may be more significant at different times depending on market conditions
or other factors. The following risks could affect the value of your investment
in the Fund:
•Management
Risk:
An investment or allocation strategy used by the Advisor or a sub-advisor may
fail to produce the intended results.
•Market
Risk:
The value of the Fund’s investments and the net asset values of the shares of
the Fund will fluctuate in response to various market and economic factors
related to the equity and fixed income markets as well as the financial
condition and prospects of companies in which the Fund
invests.
•Growth
Investment Risk: The Fund’s investments in growth-oriented securities may be subject
to greater price volatility and may be more sensitive to changes in the issuer’s
current or expected earnings than other equity securities.
•Equity
Risk:
Common stocks are susceptible to general stock market fluctuations and to
volatile increases and decreases in value. The stock market may experience
declines or stocks in the Fund’s portfolio may not increase their earnings at
the rate anticipated. The Fund’s NAV and investment return will fluctuate based
upon changes in the value of its portfolio
securities.
•Value
Investment Risk:
The Fund’s investments in value-oriented securities may be out of favor and
potentially undervalued in the marketplace due to adverse business, industry or
other developments. The Fund’s investments in value-oriented securities may not
reach what the Fund’s sub-advisor believes are their full
value.
•Quantitative
Investment Techniques Risk:
Quantitative models may contain design flaws. In addition, quantitative
investment techniques may rely on inaccurate assumptions or data inputs, and the
Fund may be adversely affected by errors or limitations in the construction and
implementation of these techniques.
•Small
and Medium Capitalization Company Risk:
Small and medium capitalization companies often have narrower markets, fewer
products or services to offer and more limited managerial and financial
resources than do larger, more established companies. As a result, their
performance can be more volatile, and they face a greater risk of business
failure, which could increase the volatility and risk of loss of the Fund’s
assets.
•Derivatives
Risk:
A derivative is an instrument with a value based on the performance of an
underlying currency, security, index or other reference asset. The use of
derivatives involves risks different from, or greater than, the risks associated
with investing in more traditional investments. Derivatives involve costs, may
create leverage and may be illiquid, volatile, and difficult to value. The Fund
may not be able to close out or sell a derivative position at a particular time
or at an anticipated price. The use of derivatives could also result in a loss
if the counterparty to the transaction does not perform as promised, including
because of such counterparty’s bankruptcy or insolvency. The investment results
achieved by the use of derivatives by the Fund may not match or fully offset
changes in the value of the underlying currency, security, index or other
reference asset that it was attempting to hedge or the investment opportunity
the Fund was attempting to pursue.
•Liquidity
Risk: Liquidity risk is the risk that certain investments may be
difficult or impossible to buy or sell at the time and price that a Fund would
like to buy or sell the security.
•Securities
Lending Risk:
When the Fund lends its portfolio securities, the Fund is subject to the risk
that the borrower may fail to return the securities in a timely manner or at
all, resulting in a loss to the Fund and/or a delay in recovering the loaned
securities. The Fund could also lose money in connection with securities lending
transactions if it does not recover the loaned securities and/or the value of
the collateral falls, including the value of investments made with cash
collateral. Securities lending also may have certain adverse tax consequences.
The Fund is not obligated to engage in securities lending, and may discontinue
its securities lending activities at any time.
Performance
The
bar chart and table that follow illustrate annual returns for Service Shares of
the Fund for periods ended December 31. This information is intended to give you some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and how the Fund’s average annual returns over time compare
with those of a broad measure of market performance and an additional index with
characteristics relevant to the Fund's investments.
The Fund’s past performance (before and after taxes) is not
necessarily an indication of how the Fund will perform in the
future. The Fund changed its investment strategies on October 9,
2015. The performance set forth below prior to such date is attributable to the
previous investment strategies and different
sub-advisors.
GUIDEMARK®
SMALL/MID
CAP CORE FUND – SERVICE SHARES
Calendar
Year Returns as of 12/31
The
year-to-date performance of the Fund’s Service
Shares as of June 30,
2024 was 2.12%.
During
the period shown on the bar chart, the Fund’s best and worst quarters are shown
below:
|
|
|
|
|
|
|
| |
Best
Quarter: |
Quarter
ended June 30,
2020 |
27.45 |
% |
Worst
Quarter: |
Quarter
ended March 31,
2020 |
-29.92 |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns for Periods Ended December 31,
2023 |
|
| One
Year |
Five
Years |
Ten
Years |
Small/Mid
Cap Core Fund – Service Shares |
|
| |
Return Before
Taxes |
17.74% |
12.46% |
8.22% |
Return After
Taxes on Distributions |
17.56% |
11.56% |
6.62% |
Return After
Taxes on Distributions and Sale of Fund
Shares |
10.64% |
9.95% |
6.24% |
Russell
2500TM
Index
(reflects no deduction for fees, expenses or
taxes) |
17.42% |
11.67% |
8.36% |
Russell
3000®
Index (1)
(reflects no deduction for fees, expenses or
taxes) |
25.96% |
15.16% |
11.48% |
(1)
Effective
July 31, 2024, the Fund added this broad-based securities market index intended
to reflect the overall applicable securities
market.
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 tax situation and may differ from those shown.
In addition, the after-tax returns shown are not relevant to investors who hold
their Fund shares through tax-advantaged arrangements such as 401(k) plans and
individual retirement accounts because such accounts are only subject to taxes
upon withdrawal.
Investment
Advisor and Sub-Advisor
AssetMark,
Inc. (“AssetMark” or the “Advisor”) is the investment advisor for the Fund.
Goldman Sachs Asset Management, L.P. (“GSAM”) is the sub-advisor for the Fund.
Portfolio
Manager:
The Fund’s investment decisions are made by the following portfolio
managers:
|
|
|
|
|
|
|
| |
Portfolio
Manager |
Position
with GSAM |
Length
of Service to the Fund |
Karhan
E. Akcoglu |
Vice
President |
Since
2021 |
Andrew
Alford |
Managing
Director |
Since
2023 |
Purchase
and Sale of Fund Shares: Financial
institutions and intermediaries on behalf of their clients may purchase or sell
shares through U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank
Global Fund Services, the Fund’s transfer agent (or its authorized agent).
Institutions and intermediaries that use certain proprietary systems of the
Advisor may place orders to buy or sell electronically through those systems.
Transactions will only occur on days the New York Stock Exchange is open. The
Fund has no investment minimums, however, the financial institutions and
intermediaries that sell the Fund’s shares may have established minimum values
for the accounts that they handle.
Tax
Information: The
Fund’s distributions are taxable, and generally will be taxed as ordinary
income, capital gains, or some combination of both, unless you are investing
through a tax-advantaged arrangement, such as a 401(k) plan or an individual
retirement account. Withdrawals from such tax-advantaged arrangements may be
subject to tax.
Payments
to Broker-Dealers and Other Financial Intermediaries: If
you purchase Fund shares through a broker-dealer or other financial intermediary
(such as a bank), AssetMark and/or 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.
GUIDEMARK®
WORLD
EX-US FUND
Investment
Objective
GuideMark®
World ex-US Fund (the “Fund”) seeks capital appreciation over the
long term.
Fees and Expenses of the
Fund
The
following 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 example below:
|
|
|
|
| |
Shareholder
Fees
(fees paid directly from your investment) |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fees |
0.50% |
Distribution
and/or Service (12b-1) Fees |
None |
Other
Expenses |
0.74% |
Administrative
Service Fees |
0.25% |
All
Other Expenses |
0.49% |
Acquired
Fund Fees and Expenses(1)
|
0.01% |
Total
Annual Fund Operating Expenses(2) |
1.25% |
Fee
Waiver and/or Expense Assumption(3) |
-0.09% |
Total
Annual Fund Operating Expenses (After Fee Waiver and/or Expense
Assumption)(2)(3) |
1.16% |
(1)“Acquired
Fund Fees and Expenses” (“AFFE”) are indirect fees and expenses that the Fund
incurs from investing in the shares of other investment companies, including
money market funds and other mutual funds, closed end funds, business
development companies or certain exchange-traded funds.
(2)Note that the amount of Total Annual Fund Operating Expenses
shown in the above table will differ from the Ratio of Expenses to Average Net
Assets included in the “Financial Highlights” section of the Prospectus which
reflects the operating expenses of the Fund and does not include indirect
expenses such as AFFE, but includes the expense reductions generated when the
Fund loaned its portfolio securities.
(3)AssetMark,
Inc. (“AssetMark” or the “Advisor”) has contractually agreed through
July 31, 2025, to waive its advisory fees
and/or assume expenses otherwise payable by the Fund to the extent necessary to
ensure that Total Annual Fund Operating Expenses (excluding taxes, interest,
trading costs, acquired fund fees and expenses, expenses paid with securities
lending expense offset credits and non-routine expenses) do not exceed 1.14% of
average daily net assets. This expense limitation agreement may not be
terminated prior to July 31, 2025 unless the Board of Trustees consents to an
earlier revision or termination. Under the expense limitation agreement,
AssetMark may recoup waived fees and expenses borne for a three-year period
under specified conditions. No recoupment will be paid to AssetMark if the
Fund’s current Total Annual Fund Operating Expenses exceed the expense
limitation in effect at the time fees were waived or expenses were
reimbursed.
Example
The following Example is intended to help you compare the cost of
investing in Service Shares of the Fund with the cost of investing in other
mutual funds. The Example assumes that you invest $10,000 in Service Shares of
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
Example reflects adjustments made to the Fund’s operating expenses due to the
fee waiver and/or expense assumption by the Advisor for the 1-year number
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 |
$118 |
$388 |
$678 |
$1,503 |
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 30.33% of the average value of its
portfolio.
Principal Investment
Strategies of the Fund
Under normal
circumstances, the Fund invests at least 80% of its assets in equity
securities. The Fund invests primarily in equity securities
incorporated or traded outside the United States. Generally, the Fund’s assets
will be invested in securities of companies located in developed countries. The
Fund considers developed countries to be those defined by the MSCI World ex-USA
Index. The Fund will, under normal circumstances, invest in a minimum of three
countries outside of the United States.
The
Fund’s investments in equity securities may include common stocks, unit stocks,
stapled securities, exchange-traded funds (“ETFs”) and preferred stocks of
companies of any size capitalization. The Fund also may invest in depositary
receipts, including American Depositary Receipts (“ADRs”) of foreign companies
and Global Depositary Receipts (“GDRs”). Depositary receipts are typically
issued by a U.S. or foreign bank or trust company and evidence ownership of
underlying securities issued by a foreign corporation.
The
Fund also may invest in derivatives such as futures, forwards and other similar
instruments in order to (i) “equitize” cash balances by gaining exposure to
relevant equity markets; and (ii) hedge exposure to foreign currencies. The Fund
may engage in currency futures and currency forwards for the purpose of hedging
exposures within the Fund to non-dollar-denominated assets. In general, the use
of currency derivatives for hedging may reduce the overall risk level of the
Fund, albeit at a cost that may lower overall performance. To the extent that
derivatives have economic characteristics similar to equity securities, they
will be counted as such for purposes of the Fund’s 80% investment policy.
The
sub-advisor uses a rules-based methodology that emphasizes quantitatively-based
stock selection, portfolio construction and efficient implementation. The Fund
seeks to capture common sources of active equity returns, including the
following factors: value (i.e., how attractively a stock is priced relative to
its “fundamentals,” such as book value and free cash flow), momentum (i.e.,
whether a company’s share price is trending up or down) and quality (i.e.,
profitability). The sub-advisor seeks to capitalize on the low correlations in
returns across these factors by diversifying exposure to securities selected
based on such factors. The sub-advisor may, in its discretion, make changes to
its quantitative techniques, or use other quantitative techniques that are based
on the sub-advisor’s proprietary research.
The
sub-advisor constructs the Fund’s portfolio by investing in the securities
comprising the MSCI World ex-USA
Index
and adjusting the relative weight of each security based on the security’s
attractiveness when evaluated based on the factors as described above, subject
to the Fund being constrained to long-only positions. Based on the sub-advisor’s
judgment, the Fund expects that its portfolio will be overweight with respect to
certain securities (i.e., the Fund will hold a greater percentage of those
securities than the index) and underweight with respect to others (i.e., the
Fund will hold a lesser percentage of those securities than the index), and that
such weightings may change over time. The percentage of the Fund’s portfolio
exposed to any single security will vary from time to time as the weightings of
the securities within the Fund change. The degree to which components of the
Fund represent certain sectors or industries may change over time.
The
Fund lends its portfolio securities to seek to generate additional
income.
Principal Risks of Investing in
the Fund
The
risks associated with an investment in the Fund can increase during times of
significant market volatility. There is the risk that you could lose all or a
portion of the money you have invested in the Fund. Different
risks may be more significant at different times depending on market conditions
or other factors. The following risks could affect the value of your investment
in the Fund:
•Management
Risk:
An investment or allocation strategy used by the Advisor or a sub-advisor may
fail to produce the intended results.
•Market
Risk:
The value of the Fund’s investments and the net asset values of the shares of
the Fund will fluctuate in response to various market and economic factors
related to the equity and fixed income markets as well as the financial
condition and prospects of companies in which the Fund
invests.
•Equity
Risk:
Common stocks are susceptible to general stock market fluctuations and to
volatile increases and decreases in value. The stock market may experience
declines or stocks in the Fund’s portfolio may not increase their earnings at
the rate anticipated. The Fund’s NAV and investment return will fluctuate based
upon changes in the value of its portfolio
securities.
•Growth
Investment Risk: The Fund’s investments in growth-oriented securities may be subject
to greater price volatility and may be more sensitive to changes in the issuer’s
current or expected earnings than other equity securities.
•Value
Investment Risk: The
Fund’s investments in value-oriented securities may be out of favor and
potentially undervalued in the marketplace due to adverse business, industry or
other developments. The Fund’s investments in value-oriented securities may not
reach what the Fund’s sub-advisor believes are their full
value.
•Quantitative
Investment Techniques Risk:
Quantitative models may contain design flaws. In addition, quantitative
investment techniques may rely on inaccurate assumptions or data inputs, and the
Fund may be adversely affected by errors or limitations in the construction and
implementation of these techniques.
•Small
and Medium Capitalization Company Risk:
Small and medium capitalization companies often have narrower markets, fewer
products or services to offer and more limited managerial and financial
resources than do larger, more established companies. As a result, their
performance can be more volatile, and they face a greater risk of business
failure, which could increase the volatility and risk of loss of the Fund’s
assets.
•Foreign
Securities Risk:
The risks of investing in ADRs, GDRs and foreign securities can increase the
potential for losses in the Fund and may include currency fluctuations,
political and economic instability, less government regulation, less publicly
available information, limited trading markets, differences in financial
reporting standards, fewer protections for passive investors and less stringent
regulation of securities markets.
•Derivatives
Risk:
A derivative is an instrument with a value based on the performance of an
underlying currency, security, index or other reference asset. The use of
derivatives involves risks different from, or greater than, the risks associated
with investing in more traditional investments. Derivatives involve costs, may
create leverage, and may be illiquid, volatile, and difficult to value. The Fund
may not be able to close out or sell a derivative position at a particular time
or at an anticipated price. In addition, the use of currency derivatives may not
match or fully offset changes in the value of the underlying
non-dollar-denominated or bank assets. The use of derivatives could also result
in a loss if the counterparty to the transaction does not perform as promised,
including because of such counterparty’s bankruptcy or insolvency. The
investment results achieved by the use of derivatives by the Fund may not match
or fully offset changes in the value of the underlying currency, security, index
or other reference asset that it was attempting to hedge or the investment
opportunity the Fund was
attempting to pursue. For example, with currency derivatives, there
may be an imperfect correlation between a Fund’s portfolio holdings of
securities denominated in a particular currency and the currencies underlying
the currency derivatives entered into by the Fund.
•Liquidity
Risk: Liquidity risk is the risk that certain investments may be
difficult or impossible to buy or sell at the time and price that a Fund would
like to buy or sell the security.
•Exchange-Traded
Funds Risk: An ETF may represent a portfolio of securities, or may use
derivatives in pursuit of its stated objective. The risks of owning an ETF
generally reflect the risks of owning the underlying securities held by the ETF,
although a lack of liquidity in an ETF could result in it being more volatile.
In addition, ETF shares may trade at a premium or discount relative to their net
asset value. ETFs have management fees and other expenses which the Fund will
indirectly bear.
•Securities
Lending Risk:
When the Fund lends its portfolio securities, the Fund is subject to the risk
that the borrower may fail to return the securities in a timely manner or at
all, resulting in a loss to the Fund and/or a delay in recovering the loaned
securities. The Fund could also lose money in connection with securities lending
transactions if it does not recover the loaned securities and/or the value of
the collateral falls, including the value of investments made with cash
collateral. Securities lending also may have certain adverse tax consequences.
The Fund is not obligated to engage in securities lending, and may discontinue
its securities lending activities at any time.
Performance
The
bar chart and table that follow illustrate annual returns for Service Shares of
the Fund for periods ended December 31. This information is intended to give you some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and how the Fund’s average annual returns over time compare
with those of a broad measure of market performance.
The Fund’s past performance (before and after taxes) is not
necessarily an indication of how the Fund will perform in the
future. The Fund changed its investment strategies on October 9,
2015. The performance set forth below prior to such date is attributable to the
previous investment strategies and different
sub-advisors.
GUIDEMARK®
WORLD
EX-US FUND – SERVICE SHARES
Calendar
Year Returns as of 12/31
The
year-to-date performance of the Fund’s Service
Shares as of June 30,
2024 was 5.17%.
During
the period shown on the bar chart, the Fund’s best and worst quarters are shown
below:
|
|
|
|
|
|
|
| |
Best
Quarter: |
Quarter
ended December 31,
2022 |
17.76 |
% |
Worst
Quarter: |
Quarter
ended March 31,
2020 |
-22.94 |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns for Periods Ended December 31,
2023 |
|
| One
Year |
Five
Years |
Ten
Years |
World
ex-US Fund – Service Shares |
|
| |
Return Before
Taxes |
16.10% |
7.18% |
3.34% |
Return After
Taxes on Distributions |
15.34% |
6.83% |
3.04% |
Return After
Taxes on Distributions and Sale of Fund
Shares |
10.34% |
5.82% |
2.75% |
MSCI
World ex-USA Index
(reflects no deduction for fees, expenses or
taxes) |
18.60% |
9.02% |
4.85% |
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 tax situation and
may differ from those shown. In addition, the after-tax returns
shown are not relevant to investors who
hold their Fund shares through tax-advantaged arrangements such as 401(k) plans
and individual retirement accounts because such accounts are only subject to
taxes upon withdrawal.
Investment
Advisor and Sub-Advisor
AssetMark,
Inc. (“AssetMark” or the “Advisor”) is the investment advisor for the Fund.
Goldman Sachs Asset Management, L.P. (“GSAM”) is the sub-advisor for the Fund.
Portfolio
Manager:
The Fund’s investment decisions are made by the following portfolio
managers:
|
|
|
|
|
|
|
| |
Portfolio
Manager |
Position
with GSAM |
Length
of Service to the Fund |
Karhan
E. Akcoglu |
Vice
President |
Since
2021 |
Andrew
Alford |
Managing
Director |
Since
2023 |
Purchase
and Sale of Fund Shares: Financial
institutions and intermediaries on behalf of their clients may purchase or sell
shares through U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank
Global Fund Services, the Fund’s transfer agent (or its authorized agent).
Institutions and intermediaries that use certain proprietary systems of the
Advisor may place orders to buy or sell electronically through those systems.
Transactions will only occur on days the New York Stock Exchange is open. The
Fund has no investment minimums, however, the financial institutions and
intermediaries that sell the Fund’s shares may have established minimum values
for the accounts that they handle.
Tax
Information: The
Fund’s distributions are taxable, and generally will be taxed as ordinary
income, capital gains, or some combination of both, unless you are investing
through a tax-advantaged arrangement, such as a 401(k) plan or an individual
retirement account. Withdrawals from such tax-advantaged arrangements may be
subject to tax.
Payments
to Broker-Dealers and Other Financial Intermediaries: If
you purchase Fund shares through a broker-dealer or other financial intermediary
(such as a bank), AssetMark and/or 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.
GUIDEMARK®
CORE
FIXED INCOME FUND
Investment
Objective
GuideMark®
Core
Fixed Income Fund
(the “Fund”) seeks to provide current income consistent with low
volatility of principal.
Fees and Expenses of the
Fund
The
following 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 example below:
|
|
|
|
| |
Shareholder
Fees (fees
paid directly from your investment) |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fees |
0.40% |
Distribution
and/or Service (12b-1) Fees |
None |
Other
Expenses |
0.60% |
Administrative
Service Fees |
0.25% |
All
Other Expenses |
0.35% |
Acquired
Fund Fees and Expenses(1)
|
0.01% |
Total
Annual Fund Operating Expenses(2) |
1.01% |
Fee
Waiver and/or Expense Assumption(3) |
-0.05% |
Total
Annual Fund Operating Expenses (After Fee Waiver and/or Expense
Assumption)(2)(3) |
0.96% |
(1)“Acquired Fund
Fees and Expenses” (“AFFE”) are indirect fees and expenses that the Fund incurs
from investing in the shares of other investment companies, including money
market funds and other mutual funds, closed end funds, business development
companies or certain exchange-traded funds.
(2)Note that the amount of Total Annual Fund Operating Expenses
shown in the above table will differ from the Ratio of Expenses to Average Net
Assets included in the “Financial Highlights” section of the Prospectus which
reflects the operating expenses of the Fund and does not include indirect
expenses such as AFFE, but includes the expense reductions generated when the
Fund loaned its portfolio securities.
(3)AssetMark,
Inc. (“AssetMark” or the “Advisor”) has contractually agreed through
July 31, 2025, to waive its advisory fees
and/or assume expenses otherwise payable by the Fund to the extent necessary to
ensure that Total Annual Fund Operating Expenses (excluding taxes, interest,
trading costs, acquired fund fees and expenses, expenses paid with securities
lending expense offset credits and non-routine expenses) do not exceed 0.94% of
average daily net assets. This expense limitation agreement may not be
terminated prior to July 31, 2025 unless the Board of Trustees consents to an
earlier revision or termination. Under the expense limitation agreement,
AssetMark may recoup waived fees and expenses borne for a three-year period
under specified conditions. No recoupment will be paid to AssetMark if the
Fund’s current Total Annual Fund Operating Expenses exceed the expense
limitation in effect at the time fees were waived or expenses were
reimbursed.
Example
The following Example is intended to help you compare the cost of
investing in Service Shares of the Fund with the cost of investing in other
mutual funds. The Example assumes that you invest $10,000 in Service Shares of
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
Example reflects adjustments made to the Fund’s operating expenses due to the
fee waiver and/or expense assumption by the Advisor for the 1-year number
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 |
$98 |
$317 |
$553 |
$1,232 |
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 267.22% of the average value of its
portfolio.
Principal Investment
Strategies of the Fund
Under normal
circumstances, the Fund will invest at least 80% of its assets in fixed income
securities.
The
Fund will primarily invest in fixed income securities that are rated investment
grade or better (i.e., rated in one of the four highest rating categories by a
Nationally Recognized Statistical Rating Organization (“NRSRO”) or determined to
be of comparable quality by the Fund’s sub-advisor if the security is unrated).
The fixed income securities in which the Fund invests may have maturities of any
length.
The
Fund is designed to allow the sub-advisor to invest in the core sectors of the
U.S. domestic fixed income market (as defined by the Fund’s benchmark index)
while seeking to maintain the Fund’s duration within a relatively close range to
the duration of the Fund’s benchmark index. Duration is a measure of the
sensitivity of the price of a debt security (or a portfolio of debt securities)
to changes in
interest
rates. The prices of debt securities with shorter durations generally will be
less affected by changes in interest rates than the prices of debt securities
with longer durations.
The
sub-advisor combines top-down views with bottom-up driven research to manage the
Fund’s assets. Top-down views set by the portfolio management team determine
risk targets, sector allocation, duration and yield curve positioning. Sector
teams are responsible for credit research and building bottom-up driven sector
portfolios that meet the targets set by the portfolio management
team.
While
the Fund will primarily invest in fixed income securities that are rated
investment grade, the Fund may, at times, hold debt securities that are rated
below investment grade as a result of downgrades in the rating of the securities
subsequent to their purchase by the Fund.
The
Fund may buy and sell certain types of exchange-traded and over-the-counter
derivative instruments for duration and risk management purposes and otherwise
in pursuit of the Fund’s investment objective. The types of derivatives in which
the Fund may invest include, but are not limited to, futures contracts, swaps
agreements and options.
The
Fund lends its portfolio securities to seek to generate additional
income.
Principal Risks of Investing in
the Fund
The
risks associated with an investment in the Fund can increase during times of
significant market volatility. There is the risk that you could lose all or a
portion of the money you have invested in the Fund. Different
risks may be more significant at different times depending on market conditions
or other factors. The following risks could affect the value of your investment
in the Fund:
•Management
Risk:
An investment or allocation strategy used by the Advisor or a sub-advisor may
fail to produce the intended results.
•Market
Risk:
The value of the Fund’s investments and the net asset values of the shares of
the Fund will fluctuate in response to various market and economic factors
related to the equity and fixed income markets as well as the financial
condition and prospects of companies or issuers in which the Fund
invests.
•Interest
Rate Risk: The market value of fixed income securities will fluctuate with
changes in interest rates. For example, when interest rates rise, the market
value of fixed income securities declines. If the market value of the Fund’s
investments decreases, investors in the Fund may lose money. The Fund may face a
heightened level of interest rate risk due to certain changes in general
economic conditions, inflation and monetary policy, including interest rate
changes by the Federal Reserve.
•Mortgage-
and Asset-Backed Securities Risk: Mortgage- and asset-backed securities are subject to prepayment
risk, which is the risk that the borrower will prepay some or all of the
principal owed to the issuer. If that happens, the Fund may have to replace the
security by investing the proceeds in a less attractive
security.
•Derivatives
Risk:
A derivative is an instrument with a value based on the performance of an
underlying currency, security, index or other reference asset. The use of
derivatives involves risks different from, or greater than, the risks associated
with investing in more traditional investments. Derivatives involve costs, may
create leverage, and may be illiquid, volatile, and difficult to value. The Fund
may not be able to close out or sell a derivative position at a particular time
or at an anticipated price. The use of derivatives could also result in a loss
if the counterparty to the transaction does not perform as promised, including
because of such counterparty’s bankruptcy or insolvency. The investment results
achieved by the use of derivatives by the Fund may not match or fully offset
changes in the value of the underlying currency, security, index or other
reference asset that it was attempting to hedge or the investment opportunity
the Fund was attempting to pursue.
•Debt/Fixed
Income Securities Risk: An
increase in interest rates typically causes a fall in the value of the debt
securities in which the Fund may invest. Conversely, very low or negative
interest rates may heighten the Fund's susceptibility to interest rate risk and
diminish yield and performance.The value of your investment in the Fund may
change in response to changes in the credit ratings of the debt securities in
the Fund's portfolio. Moreover, rising interest rates or lack of market
participants may lead to decreased liquidity in the bond and loan markets,
making it more difficult for the Fund to sell its holdings at a time when the
Fund's manager might wish to sell. Lower rated securities ("junk bonds") are
generally subject to greater risk of loss of your money than higher rated
securities. Issuers may (increase) decrease prepayments of principal when
interest rates (fall) increase, affecting the maturity of the debt security and
causing the value of the security to decline. To the extent the Fund or an
Underlying Fund invests in derivatives tied to fixed income markets, the Fund or
Underlying Fund may be more substantially exposed to these risks than a fund
that does not invest in derivatives.
•Credit
Risk: Individual issues of fixed income securities may be subject to the
credit risk of the issuer. The issuer of a fixed income security may experience
financial problems, causing it to be unable to meet its payment
obligations.
•Tax
Risk Inflation-Indexed Securities: Any
increase in the principal amount of an inflation-indexed security may be
included for tax purposes in the Fund’s gross income, even though no cash
attributable to such gross income has been received by the Fund. In such event,
the Fund may be required to make annual distributions to shareholders that
exceed the cash it has otherwise received. In order to pay such distributions,
the Fund may be required to raise cash by selling portfolio investments. The
sale of such investments could result in capital gains to the Fund and
additional capital gain distributions to shareholders. In addition, adjustments
during the taxable year for deflation to an inflation-indexed bond held by the
Fund may cause amounts previously distributed to shareholders in the taxable
year as income to be characterized as a return of
capital.
•U.S.
Government Agency Obligations Risk:
Government agency obligations have different levels of credit support and,
therefore, different degrees of credit risk. Some securities issued by agencies
and instrumentalities of the U.S. Government are supported by the full faith and
credit of the United States, but others are neither insured nor guaranteed by
the U.S. Government. For example, Connecticut Avenue Securities issued by the
Federal National Mortgage Association and Structured Agency Credit Risk debt
notes issued by the Federal Home
Loan
Mortgage Association carry no guarantee whatsoever and the risk of default
associated with these securities would be borne by the Fund. The U.S. Department
of the Treasury has the authority to provide financial support to these debt
obligations, but no assurance can be given that the U.S. Government will do
so.
•Liquidity
Risk: Liquidity risk is the risk that certain investments may be
difficult or impossible to buy or sell at the time and price that a Fund would
like to buy or sell the security.
•Inflation-Indexed
Securities Risk:
Inflation-indexed securities have a tendency to react to changes in real
interest rates. Real interest rates represent nominal (stated) interest rates
lowered by the anticipated effect of inflation. In general, the price of an
inflation-indexed security can decrease when real interest rates increase, and
can increase when real interest rates decrease. Interest payments on
inflation-indexed securities will fluctuate as the principal and/or interest is
adjusted for inflation and can be unpredictable.
•Maturity
Risk:
The Fund may invest in fixed income securities with a range of maturities.
Generally, the longer a security’s maturity, the greater the risk that interest
rate fluctuations may adversely affect the value of the
security.
•Portfolio
Turnover Risk:
Depending on market and other conditions, the Fund may experience a high
portfolio turnover, which may result in higher brokerage costs and transaction
costs (which could reduce investment returns). Distributions of net short-term
capital gains are taxable as ordinary income when Fund shares are held in a
taxable account. A fund with a high portfolio turnover rate (a measure of how
frequently assets within a fund are bought and sold) is more likely to generate
short-term capital gains than a fund with a low portfolio turnover
rate.
•Variable
Rate Securities Risk:
Changes in interest rates on variable rate securities may lag behind changes in
market rates, causing the value of such securities to decline during periods of
rising interest rates until their interest rates reset to market rates. During
periods of declining interest rates, interest rates on variable rate securities
generally reset downward, and their market value is unlikely to rise to the same
extent as the value of comparable fixed rate securities. Newly originated
variable rate securities (including reissuances and restructured loans) may
possess lower levels of credit document protections than has historically been
the case. Accordingly, in the event of default the Fund may experience lower
levels of recoveries than has historically been the
norm.
•Collateralized
Debt Obligations Risk:
Collateralized debt obligations (“CDOs”) are subject to the following risks: (i)
the possibility that distributions from collateral securities will not be
adequate to make interest or other payments; (ii) the quality of the collateral
may decline in value or quality or go into default or be downgraded; (iii) a
Fund may invest in tranches of a CDO that are subordinate to other classes; and
(iv) the risk of disputes with the issuer, difficulty in valuing the security or
unexpected investment results.
•Extension
Risk: As
interest rates rise, repayments of principal on certain debt securities,
including, but not limited to, floating rate loans and mortgage-related
securities, may occur at a slower rate than expected and the expected maturity
of those securities could lengthen as a result. Securities that are subject to
extension risk generally have a greater potential for loss when prevailing
interest rates rise, which could cause their values to fall sharply.
Interest-only and principal-only securities are especially sensitive to interest
rate changes, which can affect not only their prices but can also change the
income flows and repayment assumptions about those
investments.
•Securities
Lending Risk:
When the Fund lends its portfolio securities, the Fund is subject to the risk
that the borrower may fail to return the securities in a timely manner or at
all, resulting in a loss to the Fund and/or a delay in recovering the loaned
securities. The Fund could also lose money in connection with securities lending
transactions if it does not recover the loaned securities and/or the value of
the collateral falls, including the value of investments made with cash
collateral. Securities lending also may have certain adverse tax consequences.
The Fund is not obligated to engage in securities lending, and may discontinue
its securities lending activities at any time.
Performance
The bar chart and table that follow illustrate annual returns for
Service Shares of the Fund for periods ended December 31. This information is intended to give you some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and how the Fund’s average annual returns over time compare
with those of a broad measure of market performance.
The Fund’s past performance (before and after taxes) is not
necessarily an indication of how the Fund will perform in the
future.
GUIDEMARK®
CORE
FIXED INCOME FUND – SERVICE SHARES
Calendar
Year Returns as of 12/31
The
year-to-date performance of the Fund’s Service
Shares as of June 30,
2024 was -0.17%.
During
the period shown on the bar chart, the Fund’s best and worst quarters are shown
below:
|
|
|
|
|
|
|
| |
Best
Quarter: |
Quarter
ended December 31,
2023 |
7.08 |
% |
Worst
Quarter: |
Quarter
ended March 31,
2022 |
-6.30 |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns for Periods Ended December 31,
2023 |
|
| One
Year |
Five
Years |
Ten
Years |
Core
Fixed Income Fund – Service Shares |
|
| |
Return Before
Taxes |
6.11% |
0.83% |
1.20% |
Return
After Taxes on Distributions |
4.64% |
-0.16% |
0.26% |
Return
After Taxes on Distributions and Sale of Fund
Shares |
3.60% |
0.26% |
0.55% |
Bloomberg
U.S. Aggregate Bond Index
(reflects no deduction for fees, expenses or
taxes) |
5.53% |
1.10% |
1.81% |
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 tax situation and may differ from those
shown. In addition, the after-tax returns shown are not relevant to
investors who hold their Fund shares through tax-advantaged arrangements such as
401(k) plans and individual retirement accounts because such accounts are only
subject to taxes upon withdrawal. 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. A higher after-tax return results when a capital loss occurs
upon redemption and provides an assumed tax deduction that benefits the
investor.
Investment
Advisor and Sub-Advisor
AssetMark,
Inc. (“AssetMark” or the “Advisor”) is the investment advisor for the Fund.
Wellington Management Company LLP (“Wellington Management”) is the sub‑advisor
for the Fund.
Portfolio
Managers:
The Fund’s investment decisions are made by the following portfolio
managers:
|
|
|
|
|
|
|
| |
Portfolio
Manager |
Position
with Wellington Management |
Length
of Service to the Fund |
Campe
Goodman, CFA |
Senior
Managing Director and Fixed Income Portfolio Manager |
Since
2012 |
Joseph
F. Marvan, CFA |
Senior
Managing Director and Fixed Income Portfolio Manager |
Since
2012 |
Robert
D. Burn, CFA |
Senior
Managing Director and Fixed Income Portfolio Manager |
Since
2016 |
Purchase
and Sale of Fund Shares: Financial
institutions and intermediaries on behalf of their clients may purchase or sell
shares through U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank
Global Fund Services, the Fund’s transfer agent (or its authorized agent).
Institutions and intermediaries that use certain proprietary systems of the
Advisor may place orders to buy or sell electronically through those systems.
Transactions will only occur on days the New York Stock Exchange is open. The
Fund has no investment minimums, however, the financial institutions and
intermediaries that sell the Fund’s shares may have established minimum values
for the accounts that they handle.
Tax
Information: The
Fund’s distributions are taxable, and generally will be taxed as ordinary
income, capital gains, or some combination of both, unless you are investing
through a tax-advantaged arrangement, such as a 401(k) plan or an individual
retirement account. Withdrawals from such tax-advantaged arrangements may be
subject to tax.
Payments
to Broker-Dealers and Other Financial Intermediaries: If
you purchase Fund shares through a broker-dealer or other financial intermediary
(such as a bank), AssetMark and/or 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.
GUIDEPATH®
GROWTH
ALLOCATION FUND
Investment
Objective
GuidePath®
Growth
Allocation Fund (the “Fund”) seeks to maximize total return, consisting of a
combination of long-term capital appreciation and current income, while
moderating risk and volatility in the portfolio.
Fees and Expenses of the
Fund
The
following 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 example below:
|
|
|
|
| |
Shareholder
Fees
(fees paid directly from your investment) |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fees |
0.25% |
Distribution
and/or Service (12b-1) Fees |
None |
Other
Expenses |
0.42% |
Administrative
Service Fees |
0.25% |
All
Other Expenses |
0.17% |
Acquired
Fund Fees and Expenses(1) |
0.16% |
Total
Annual Fund Operating Expenses(2) |
0.83% |
(1)“Acquired
Fund Fees and Expenses” (“AFFE”) are indirect fees and expenses that the Fund
incurs from investing in the shares of other investment companies, including
money market funds and other mutual funds, closed end funds, business
development companies or certain exchange-traded
funds.
(2)Note that the amount of Total Annual Fund Operating Expenses
shown in the above table will differ from the Ratio of Expenses to Average Net
Assets included in the “Financial Highlights” section of the Prospectus which
reflects the operating expenses of the Fund and does not include indirect
expenses such as AFFE, but includes the expense reductions generated when the
Fund loaned its portfolio securities.
Example
The following Example is intended to help you compare the cost of
investing in Service Shares of the Fund with the cost of investing in other
mutual funds. The Example assumes that you invest $10,000 in Service Shares of
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. 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 |
$85 |
$265 |
$460 |
$1,025 |
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 18.58% of the average value of its
portfolio.
Principal Investment
Strategies of the Fund
The
Fund operates as a fund of funds, investing primarily in registered mutual
funds, including exchange-traded funds (“ETFs”). The funds in which the Fund may
invest are referred to herein as the “Underlying Funds.” The Advisor believes
that investing in Underlying Funds provides the Fund with an efficient means of
creating a portfolio that provides investors with indirect exposure to a broad
range of securities. By investing in the Fund, you will indirectly bear fees and
expenses of the Underlying Funds in addition to the Fund’s direct fees and
expenses. In order to obtain exposure to certain markets, asset classes or
active management styles, the Fund may buy Underlying Funds managed by the
Advisor or its affiliates, which, in turn, invest in various securities,
including ETFs. The Fund may also invest directly in securities and other
exchange-traded products, such as exchange-traded notes (“ETNs”).
In
seeking to maximize total return, under normal circumstances, the Fund’s assets
are allocated, either directly or indirectly via the Underlying Funds, among
various asset classes, including domestic and international equity securities
(including American Depositary Receipts (“ADRs”) and Global Depositary Receipts
(“GDRs”)) and domestic and international fixed income securities. The intention
is to capture broad capital market returns, while seeking to balance the pursuit
of maximum total return against the control of risk in the
portfolio.
In
addition to the general allocation into equity, fixed income and cash equivalent
asset classes, the Fund’s assets are also typically allocated among a variety of
sub-asset classes. The Fund’s equity investments typically include, either
directly or indirectly via the Underlying Funds, a mix of weightings of larger
and smaller capitalization equity securities, growth and value stocks, and
equity securities from developed and emerging international markets. The Fund’s
fixed income investments may be expected to be allocated, either directly or
indirectly via the Underlying Funds, among corporate bonds, mortgage-backed or
asset-backed securities, securities issued by the U.S. and foreign
governments
or their agencies and instrumentalities, and to higher-yielding bonds (sometimes
referred to as “junk bonds”), including emerging market debt. Typically, a
significant portion of the Fund’s fixed income allocation will be in
non-investment grade fixed income investments with varying
maturities.
The
Advisor’s asset allocation decisions are based on different factors and
analytical approaches, derived from asset allocation approaches developed by
various research providers and considered by the Advisor in constructing the
Fund’s portfolio.
The
Fund’s asset allocation mix among equity, fixed income and cash equivalent money
market securities is intended to generally remain consistent for longer periods
of time. Under normal circumstances, the Fund is expected to allocate between
65% and 100% of its assets to equity securities or investments that provide
exposure to equity securities. Over time, the asset allocation mix may change as
a result of changing capital market assumptions. Under normal market conditions,
the Fund is expected to allocate approximately 99% of its assets to equity
securities or investments that provide exposure to equity securities and 1% of
its assets to fixed income securities or investments that provide exposure to
fixed income securities, including cash equivalents. The
Fund also may allocate significant assets to international equity markets: up to
45% to developed international markets and up to 35% to emerging markets.
The
Fund may invest in Underlying Funds that use derivatives for risk management
purposes or as part of their investment strategies. An Underlying Fund may use
derivatives to enhance returns, to manage or adjust the risk profile of the
Underlying Fund, to replace more traditional direct investments, or to obtain
exposure to certain markets.
The
Fund lends its portfolio securities to seek to generate additional
income.
Principal Risks of Investing
in the Fund
The
risks associated with an investment in the Fund can increase during times of
significant market volatility. There is the risk that you could lose all or a
portion of the money you have invested in the Fund. The Fund is
subject to a number of risks either directly or indirectly through its
investments in Underlying Funds. For purposes of this section, the term “Fund”
should be read to mean the Fund and the Underlying Funds. The following risks
could affect the value of your investment in the Fund:
•Fund
of Funds Risk:
The Fund is subject to fund of funds risk, which means that the ability of the
Fund to meet its investment objective is directly related to the ability of the
Underlying Funds to meet their investment objectives. There can be no
assurance that either the Fund or the Underlying Funds will achieve their
investment objectives. Additionally, each Fund may invest in other investment
companies for which the Advisor or an affiliate serves as investment advisor
(i.e., affiliated Underlying Funds). Such investments in the Underlying Funds
could create a conflict of interest for the Advisor in managing the Fund’s
assets. By investing in the Fund, you will indirectly bear fees and expenses of
the Underlying Funds in addition to the Fund’s direct fees and
expenses.
•Management
Risk:
An investment or allocation strategy used by the Advisor may fail to produce the
intended results.
•Market
Risk:
The value of the Fund’s investments and the net asset values of the shares of
the Fund will fluctuate in response to various market and economic factors
related to the equity and fixed income markets as well as the financial
condition and prospects of companies in which the Fund
invests.
•Equity
Risk:
Common stocks are susceptible to general stock market fluctuations and to
volatile increases and decreases in value. The stock market may experience
declines or stocks in the Fund’s portfolio may not increase their earnings at
the rate anticipated. The Fund’s NAV and investment return will fluctuate based
upon changes in the value of its portfolio
securities.
•Exchange-Traded
Funds Risk: An ETF may represent a portfolio of securities, or may use
derivatives in pursuit of its stated objective. The risks of owning an ETF
generally reflect the risks of owning the underlying securities held by the ETF,
although a lack of liquidity in an ETF could result in it being more volatile.
In addition, ETF shares may trade at a premium or discount relative to their net
asset value. ETFs have management fees and other expenses which the Fund will
indirectly bear.
•Value
Investment Risk:
The Fund’s investments in value-oriented securities may be out of favor and
potentially undervalued in the marketplace due to adverse business, industry or
other developments. The Fund’s investments in value-oriented securities may not
reach what the Fund’s Advisor believes are their full
value.
•Growth
Investment Risk: The Fund’s investments in growth-oriented securities may be subject
to greater price volatility and may be more sensitive to changes in the issuer’s
current or expected earnings than other equity securities.
•Small
and Medium Capitalization Company Risk:
Small and medium capitalization companies often have narrower markets, fewer
products or services to offer and more limited managerial and financial
resources than do larger, more established companies. As a result, their
performance can be more volatile, and they face a greater risk of business
failure, which could increase the volatility and risk of loss of the Fund’s
assets.
•Foreign
Securities Risk:
The risks of investing in foreign securities (including ADRs and GDRs) can
increase the potential for losses in the Fund and may include currency
fluctuations, political and economic instability, less government regulation,
less publicly available information, limited trading markets, differences in
financial reporting standards, fewer protections for passive investors and less
stringent regulation of securities markets.
•Foreign
Exchange Trading Risk: The
trading of foreign currencies directly generates risks separate from those faced
from the risks of inactive or indirect exposures to non-dollar denominated
instruments, insofar as the Fund may experience a loss from the buying and
selling of currencies without any related exposure to non-dollar-denominated
assets.
•Emerging
Markets Risk:
In addition to the risks generally associated with investing in foreign
securities described above, countries with emerging markets may also have
relatively unstable governments, fewer shareholder protections, and more limited
economies and securities markets.
•Interest
Rate Risk:
The market value of fixed income securities will fluctuate with changes in
interest rates. For example, when interest rates rise, the market value of fixed
income securities declines. If the market value of the Fund’s investments
decreases, investors in the Fund may lose money. The Fund may face a heightened
level of interest rate risk due to changes in general economic conditions,
inflation and monetary policy, including interest rate changes by the Federal
Reserve.
•High-Yield
Debt Securities Risk: High-yield debt securities or “junk bonds” are debt securities rated
below investment grade by an NRSRO. Junk bonds are subject to greater credit
risk than higher-grade securities, have a greater risk of default and are
considered speculative. Issuers of junk bonds are more likely to experience
financial difficulties that may impair their ability to make principal and
interest payments.
•Mortgage-
and Asset-Backed Securities Risk: Mortgage- and asset-backed securities are subject to prepayment
risk, which is the risk that the borrower will prepay some or all of the
principal owed to the issuer. If that happens, the Fund may have to replace the
security by investing the proceeds in a less attractive
security.
•Derivatives
Risk:
A derivative is an instrument with a value based on the performance of an
underlying currency, security, index or other reference asset. The use of
derivatives involves risks different from, or greater than, the risks associated
with investing in more traditional investments. Derivatives involve costs, may
create leverage, and may be illiquid, volatile, and difficult to value. The Fund
may not be able to close out or sell a derivative position at a particular time
or at an anticipated price. The use of derivatives could also result in a loss
if the counterparty to the transaction does not perform as promised, including
because of such counterparty’s bankruptcy or insolvency. The investment results
achieved by the use of derivatives by the Fund may not match or fully offset
changes in the value of the underlying currency, security, index or other
reference asset that it was attempting to hedge or the investment opportunity
the Fund was attempting to pursue.
•Credit
Risk: Individual issues of fixed income securities may be subject to the
credit risk of the issuer. This means that the issuer of a fixed income
security, or in the case of a municipal security, the underlying municipality,
may experience financial problems, causing it to be unable to meet its payment
obligations.
•U.S.
Government Agency Obligations Risk:
Government agency obligations have different levels of credit support and,
therefore, different degrees of credit risk. Some securities issued by agencies
and instrumentalities of the U.S. Government are supported by the full faith and
credit of the United States, but others are neither insured nor guaranteed by
the U.S. Government. The U.S. Department of the Treasury has the authority to
provide financial support to these debt obligations, but no assurance can be
given that the U.S. Government will do so.
•Debt/Fixed
Income Securities Risk: An
increase in interest rates typically causes a fall in the value of the debt
securities in which the Fund may invest. Conversely, very low or negative
interest rates may heighten the Fund's susceptibility to interest rate risk and
diminish yield and performance.The value of your investment in the Fund may
change in response to changes in the credit ratings of the debt securities in
the Fund's portfolio. Moreover, rising interest rates or lack of market
participants may lead to decreased liquidity in the bond and loan markets,
making it more difficult for the Fund to sell its holdings at a time when the
Fund's manager might wish to sell. Lower rated securities ("junk bonds") are
generally subject to greater risk of loss of your money than higher rated
securities. Issuers may (increase) decrease prepayments of principal when
interest rates (fall) increase, affecting the maturity of the debt security and
causing the value of the security to decline. To the extent the Fund or an
Underlying Fund invests in derivatives tied to fixed income markets, the Fund or
Underlying Fund may be more substantially exposed to these risks than a fund
that does not invest in derivatives.
•Securities
Lending Risk:
When the Fund lends its portfolio securities, the Fund is subject to the risk
that the borrower may fail to return the securities in a timely manner or at
all, resulting in a loss to the Fund and/or a delay in recovering the loaned
securities. The Fund could also lose money in connection with securities lending
transactions if it does not recover the loaned securities and/or the value of
the collateral falls, including the value of investments made with cash
collateral. Securities lending also may have certain adverse tax consequences.
The Fund is not obligated to engage in securities lending, and may discontinue
its securities lending activities at any time.
Performance
The bar chart and table that follow illustrate annual returns for
Service Shares of the Fund for the periods ended December 31. This information is intended to give you some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and how the Fund’s average annual returns over time compare
with those of a broad measure of market performance and an additional index with
characteristics relevant to the Fund's investments.
The Fund’s past performance (before and after taxes) is not
necessarily an indication of how the Fund will perform in the
future. The Fund changed its investment strategy on January 19,
2016. The performance set forth below prior to January 19, 2016 is attributable
to the previous investment strategies.
GUIDEPATH®
GROWTH
ALLOCATION FUND – SERVICE SHARES
Calendar
Year Returns as of 12/31
The
year-to-date performance of the Fund’s
Service Shares as of June 30, 2024 was
10.60%.
During
the period shown on the bar chart, the Fund’s best and worst quarters are shown
below:
|
|
|
|
|
|
|
| |
Best
Quarter: |
Quarter
ended June 30,
2020 |
21.01 |
% |
Worst
Quarter: |
Quarter
ended March 31,
2020 |
-20.68 |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns for Periods Ended December 31,
2023 |
| One
Year |
Five
Years |
Ten
Years |
Growth
Allocation Fund – Service Shares |
|
| |
Return Before
Taxes |
24.18% |
11.57% |
6.94% |
Return
After Taxes on Distributions |
23.60% |
10.95% |
6.02% |
Return
After Taxes on Distributions and Sale of Fund
Shares |
14.73% |
9.17% |
5.34% |
S&P®
Target Risk Aggressive Index
(reflects no deduction for fees, expenses or
taxes) |
18.69% |
10.05% |
7.47% |
MSCI
All Country World Index (ACWI)
(1)
(reflects no deduction for fees, expenses or
taxes) |
22.81% |
12.27% |
8.48% |
(1)
Effective
July 31, 2024, the Fund added this broad-based securities market index intended
to reflect the overall applicable securities market.
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 tax situation and may differ from those
shown. In addition, the after-tax returns shown are not relevant to
investors who hold their Fund shares through tax-advantaged arrangements such as
401(k) plans and individual retirement accounts because such accounts are only
subject to taxes upon withdrawal.
Investment
Advisor
AssetMark,
Inc. (“AssetMark” or the “Advisor”) is the investment advisor for the Fund.
Portfolio
Managers:
The Fund’s investment decisions are made by the following portfolio
managers:
|
|
|
|
|
|
|
| |
Portfolio
Manager |
Title |
Length
of Service to the Fund |
Selwyn
Crews |
Director,
Investment Strategies |
Since
Inception |
Christian
Chan |
Senior
Vice President, Chief Investment Officer |
Since
2022 |
Purchase
and Sale of Fund Shares: Financial
institutions and intermediaries on behalf of their clients may purchase or sell
shares through U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank
Global Fund Services, the Fund’s transfer agent (or its authorized agent).
Institutions and intermediaries that use certain proprietary systems of the
Advisor may place orders to buy or sell electronically through those systems.
Transactions will only occur on days the New York Stock Exchange is open. The
Fund has no investment minimums, however, the financial institutions and
intermediaries that sell the Fund’s shares may have established minimum values
for the accounts that they handle.
Tax
Information: The
Fund’s distributions are taxable, and generally will be taxed as ordinary
income, capital gains, or some combination of both, unless you are investing
through a tax-advantaged arrangement, such as a 401(k) plan or an individual
retirement account. Withdrawals from such tax-advantaged arrangements may be
subject to tax.
Payments
to Broker-Dealers and Other Financial Intermediaries: If
you purchase Fund shares through a broker-dealer or other financial intermediary
(such as a bank), AssetMark and/or 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.
GUIDEPATH®
CONSERVATIVE
ALLOCATION FUND
Investment
Objective
GuidePath®
Conservative Allocation Fund (the “Fund”) seeks to maximize total return,
consisting of a combination of long-term capital appreciation and current
income, while moderating risk and volatility in the
portfolio.
Fees and Expenses of the
Fund
The
following 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 example below:
|
|
|
|
| |
Shareholder
Fees
(fees paid directly from your investment) |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fees |
0.25% |
Distribution
and/or Service (12b-1) Fees |
None |
Other
Expenses |
0.45% |
Administrative
Service Fees |
0.25% |
All
Other Expenses |
0.20% |
Acquired
Fund Fees and Expenses(1) |
0.15% |
Total
Annual Fund Operating Expenses(2) |
0.85% |
(1)“Acquired
Fund Fees and Expenses” (“AFFE”) are indirect fees and expenses that the Fund
incurs from investing in the shares of other investment companies, including
money market funds and other mutual funds, closed end funds, business
development companies or certain exchange-traded
funds.
(2)Note that the amount of Total Annual Fund Operating Expenses
shown in the above table will differ from the Ratio of Expenses to Average Net
Assets included in the “Financial Highlights” section of the Prospectus which
reflects the operating expenses of the Fund and does not include indirect
expenses such as AFFE, but includes the expense reductions generated when the
Fund loaned its portfolio securities.
Example
The following Example is intended to help you compare the cost of
investing in Service Shares of the Fund with the cost of investing in other
mutual funds. The Example assumes that you invest $10,000 in Service Shares of
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. 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 |
$87 |
$271 |
$471 |
$1,049 |
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. The Fund does not pay
transaction costs when buying and selling shares of other mutual funds, however,
the underlying funds pay transaction costs when buying and selling securities
for their portfolio. 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 19.92% of the average value of
its portfolio.
Principal Investment
Strategies of the Fund
The
Fund operates as a fund of funds, investing primarily in registered mutual
funds, including exchange-traded funds (“ETFs”). The funds in which the Fund may
invest are referred to herein as the “Underlying Funds.” The Advisor believes
that investing in Underlying Funds provides the Fund with an efficient means of
creating a portfolio that provides investors with indirect exposure to a broad
range of securities. By investing in the Fund, you will indirectly bear fees and
expenses of the Underlying Funds in addition to the Fund’s direct fees and
expenses. In order to obtain exposure to certain markets, asset classes or
active management styles, the Fund may buy Underlying Funds managed by the
Advisor or its affiliates, which, in turn, invest in various securities,
including ETFs. The Fund may also invest directly in securities and other
exchange-traded products, such as exchange-traded notes (“ETNs”).
In
seeking to maximize total return, under normal circumstances, the Fund’s assets
are allocated, either directly or indirectly via the Underlying Funds, into a
diversified portfolio consisting of domestic and international equity securities
(including American Depositary Receipts (“ADRs”) and Global Depositary Receipts
(“GDRs”)) and domestic and international fixed income securities. The intention
is to capture broad capital market returns over the long term, while seeking to
balance the pursuit of maximum total return against the control of risk in the
portfolio.
In
addition to the general strategic allocation into equity, fixed income and cash
equivalent asset classes, the Fund’s assets are also typically allocated among a
variety of sub-asset classes. The Fund’s equity investments typically include,
either directly or indirectly via the Underlying Funds, a mix of weightings of
larger and smaller capitalization equity securities, growth and value stocks,
and equity securities
from
developed and emerging international markets. The Fund’s fixed income
investments may be expected to be allocated, either directly or indirectly via
the Underlying Funds, among corporate bonds, mortgage-backed or asset-backed
securities, securities issued by the U.S. and foreign governments or their
agencies and instrumentalities, and to higher-yielding bonds (sometimes referred
to as “junk bonds”), including emerging market debt. A significant portion of
the Fund’s fixed income allocation may be in non-investment grade fixed income
investments with varying maturities. The Fund may also allocate a portion of its
assets to commodities related investments.
The
Advisor’s asset allocation decisions will be based on different factors and
analytical approaches, derived from asset allocation approaches developed by
various research providers and considered by the Advisor in constructing the
Fund’s portfolio.
Under
normal circumstances, the Fund is expected to allocate between 15% and 55% of
its assets to equity securities and investments that provide exposure to equity
securities and between 45% and 85% of its assets to fixed income securities and
investments that provide exposure to fixed income securities. Over time, the
asset allocation mix may change as a result of changing capital market
assumptions or short-term market opportunities. Under normal market conditions,
the Fund is expected to allocate approximately 35% of its assets to equity
securities and investments that provide exposure to equity securities and 65% of
its assets to fixed income securities and investments that provide exposure to
fixed income securities, including cash equivalents. For
example, if the Advisor believes that the stock market is undervalued, it may
increase the equity allocation, or if the Advisor believes that the stock market
is overvalued, it may decrease the equity allocation. Within these ranges, the
Advisor has the ability to overweight or underweight certain asset classes in
pursuit of increased return or reduced risk in the short to intermediate term.
The Fund’s portfolio will be rebalanced periodically as a result of asset class
performance causing drift away from the targeted asset allocation
mix.
The
Fund may invest in Underlying Funds that use derivatives to earn income and
enhance returns, to manage or adjust their risk profile, to replace more
traditional direct investments, or to obtain exposure to certain
markets.
The
Fund lends its portfolio securities to seek to generate additional
income.
Principal Risks of Investing
in the Fund
The
risks associated with an investment in the Fund can increase during times of
significant market volatility. There is the risk that you could lose all or a
portion of the money you have invested in the Fund. The Fund is
subject to a number of risks either directly or indirectly through its
investments in Underlying Funds. For purposes of this section, the term “Fund”
should be read to mean the Fund and the Underlying Funds. The following risks
could affect the value of your investment in the Fund:
•Fund
of Funds Risk:
The Fund is subject to fund of funds risk, which means that the ability of the
Fund to meet its investment objective is directly related to the ability of the
Underlying Funds to meet their investment objectives. There can be no
assurance that either the Fund or the Underlying Funds will achieve their
investment objectives. Additionally, each Fund may invest in other investment
companies for which the Advisor or an affiliate serves as investment advisor
(i.e., affiliated Underlying Funds). Such investments in the Underlying Funds
could create a conflict of interest for the Advisor in managing the Fund’s
assets. By investing in the Fund, you will indirectly bear fees and expenses of
the Underlying Funds in addition to the Fund’s direct fees and
expenses.
•Management
Risk:
An investment or allocation strategy used by the Advisor may fail to produce the
intended results.
•Market
Risk:
The value of the Fund’s investments and the net asset values of the shares of
the Fund will fluctuate in response to various market and economic factors
related to the equity and fixed income markets as well as the financial
condition and prospects of companies in which the Fund
invests.
•Equity
Risk:
Common stocks are susceptible to general stock market fluctuations and to
volatile increases and decreases in value. The stock market may experience
declines or stocks in the Fund’s portfolio may not increase their earnings at
the rate anticipated. The Fund’s NAV and investment return will fluctuate based
upon changes in the value of its portfolio
securities.
•Exchange-Traded
Funds Risk: An ETF may represent a portfolio of securities, or may use
derivatives in pursuit of its stated objective. The risks of owning an ETF
generally reflect the risks of owning the underlying securities held by the ETF,
although a lack of liquidity in an ETF could result in it being more volatile.
In addition, ETF shares may trade at a premium or discount relative to their net
asset value. ETFs have management fees and other expenses which the Fund will
indirectly bear.
•Value
Investment Risk:
The Fund’s investments in value-oriented securities may be out of favor and
potentially undervalued in the marketplace due to adverse business, industry or
other developments. The Fund’s investments in value-oriented securities may not
reach what the Fund’s Advisor believes are their full
value.
•Growth
Investment Risk: The Fund’s investments in growth-oriented securities may be subject
to greater price volatility and may be more sensitive to changes in the issuer’s
current or expected earnings than other equity securities.
•Small
and Medium Capitalization Company Risk:
Small and medium capitalization companies often have narrower markets, fewer
products or services to offer and more limited managerial and financial
resources than do larger, more established companies. As a result, their
performance can be more volatile, and they face a greater risk of business
failure, which could increase the volatility and risk of loss of the Fund’s
assets.
•Foreign
Securities Risk:
The risks of investing in foreign securities (including ADRs and GDRs) can
increase the potential for losses in the Fund and may include currency
fluctuations, political and economic instability, less government regulation,
less publicly available information, limited trading markets, differences in
financial reporting standards, fewer protections for passive investors and less
stringent regulation of securities markets.
•Foreign
Exchange Trading Risk: The
trading of foreign currencies directly generates risks separate from those faced
from the risks of inactive or indirect exposures to non-dollar denominated
instruments, insofar as the Fund may experience a loss from the buying and
selling of currencies without any related exposure to non-dollar-denominated
assets.
•Emerging
Markets Risk:
In addition to the risks generally associated with investing in foreign
securities described above, countries with emerging markets may also have
relatively unstable governments, fewer shareholder protections, and more limited
economies and securities markets.
•Interest
Rate Risk: The market value of fixed income securities will fluctuate with
changes in interest rates. For example, when interest rates rise, the market
value of fixed income securities declines. If the market value of the Fund’s
investments decreases, investors in the Fund may lose money. The Fund may face a
heightened level of interest rate risk due to changes in general economic
conditions, inflation and monetary policy, including interest rate changes by
the Federal Reserve.
•High-Yield
Debt Securities Risk: High-yield debt securities or “junk bonds” are debt securities rated
below investment grade by an NRSRO. Junk bonds are subject to greater credit
risk than higher-grade securities, have a greater risk of default and are
considered speculative. Issuers of junk bonds are more likely to experience
financial difficulties that may impair their ability to make principal and
interest payments.
•Mortgage-
and Asset-Backed Securities Risk: Mortgage- and asset-backed securities are subject to prepayment
risk, which is the risk that the borrower will prepay some or all of the
principal owed to the issuer. If that happens, the Fund may have to replace the
security by investing the proceeds in a less attractive
security.
•Derivatives
Risk:
A derivative is an instrument with a value based on the performance of an
underlying currency, security, index or other reference asset. The use of
derivatives involves risks different from, or greater than, the risks associated
with investing in more traditional investments. Derivatives involve costs, may
create leverage, and may be illiquid, volatile, and difficult to value. The Fund
may not be able to close out or sell a derivative position at a particular time
or at an anticipated price. The use of derivatives could also result in a loss
if the counterparty to the transaction does not perform as promised, including
because of such counterparty’s bankruptcy or insolvency. The investment results
achieved by the use of derivatives by the Fund may not match or fully offset
changes in the value of the underlying currency, security, index or other
reference asset that it was attempting to hedge or the investment opportunity
the Fund was attempting to pursue.
•Credit
Risk: Individual issues of fixed income securities may be subject to the
credit risk of the issuer. This means that the issuer of a fixed income
security, or in the case of a municipal security, the underlying municipality,
may experience financial problems, causing it to be unable to meet its payment
obligations.
•Commodities
Risk:
The Fund’s investment in commodity-linked investments and other
commodity/natural resource-related securities may subject the Fund to greater
volatility than investments in traditional securities. Commodity-linked
investments may have a substantial risk of loss with respect to both principal
and interest, and their returns may deviate significantly from the return of the
underlying commodity, instruments, or measures. The ability of the Fund to
invest in commodity-linked investments without exposing the Fund to Fund-level
tax is limited under the Internal Revenue Code of 1986, as
amended.
•U.S.
Government Agency Obligations Risk:
Government agency obligations have different levels of credit support and,
therefore, different degrees of credit risk. Some securities issued by agencies
and instrumentalities of the U.S. Government are supported by the full faith and
credit of the United States, but others are neither insured nor guaranteed by
the U.S. Government. The U.S. Department of the Treasury has the authority to
provide financial support to these debt obligations, but no assurance can be
given that the U.S. Government will do so.
•Debt/Fixed
Income Securities Risk: An
increase in interest rates typically causes a fall in the value of the debt
securities in which the Fund may invest. Conversely, very low or negative
interest rates may heighten the Fund's susceptibility to interest rate risk and
diminish yield and performance.The value of your investment in the Fund may
change in response to changes in the credit ratings of the debt securities in
the Fund's portfolio. Moreover, rising interest rates or lack of market
participants may lead to decreased liquidity in the bond and loan markets,
making it more difficult for the Fund to sell its holdings at a time when the
Fund's manager might wish to sell. Lower rated securities ("junk bonds") are
generally subject to greater risk of loss of your money than higher rated
securities. Issuers may (increase) decrease prepayments of principal when
interest rates (fall) increase, affecting the maturity of the debt security and
causing the value of the security to decline. To the extent the Fund or an
Underlying Fund invests in derivatives tied to fixed income markets, the Fund or
Underlying Fund may be more substantially exposed to these risks than a fund
that does not invest in derivatives.
•Securities
Lending Risk:
When the Fund lends its portfolio securities, the Fund is subject to the risk
that the borrower may fail to return the securities in a timely manner or at
all, resulting in a loss to the Fund and/or a delay in recovering the loaned
securities. The Fund could also lose money in connection with securities lending
transactions if it does not recover the loaned securities and/or the value of
the collateral falls, including the value of investments made with cash
collateral. Securities lending also may have certain adverse tax consequences.
The Fund is not obligated to engage in securities lending, and may discontinue
its securities lending activities at any time.
Performance
The bar chart and table that follow illustrate annual returns for
Service Shares of the Fund for the periods ended December 31. This information is intended to give you some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and how the Fund’s average annual returns over time compare
with those of a broad measure of market performance and an additional index with
characteristics relevant to the Fund's investments.
The Fund’s past performance (before and after taxes) is not
necessarily an indication of how the Fund will perform in the
future. The Fund changed its investment strategy on January 19,
2016. The performance set forth below prior to January 19, 2016 is attributable
to the previous investment strategies.
GUIDEPATH®
CONSERVATIVE
ALLOCATION FUND – SERVICE SHARES
Calendar
Year Returns as of 12/31
The
year-to-date performance of the Fund’s
Service Shares as of June 30, 2024 was
3.91%.
During
the period shown on the bar chart, the Fund’s best and worst quarters are shown
below:
|
|
|
|
|
|
|
| |
Best
Quarter: |
Quarter
ended June 30,
2020 |
9.61 |
% |
Worst
Quarter: |
Quarter
ended March 31,
2020 |
-10.61 |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns for Periods Ended December 31,
2023 |
| One
Year |
Five
Years |
Ten
Years |
Conservative
Allocation Fund – Service Shares |
|
| |
Return Before
Taxes |
10.65% |
5.96% |
3.59% |
Return
After Taxes on Distributions |
9.45% |
5.08% |
2.42% |
Return
After Taxes on Distributions and Sale of Fund
Shares |
6.50% |
4.39% |
2.51% |
S&P®
Target Risk Conservative Index
(reflects no deduction for fees, expenses or
taxes) |
11.21% |
4.86% |
4.02% |
Bloomberg
U.S. Aggregate Bond Index (1)
(reflects no deduction for fees, expenses or
taxes) |
5.53% |
1.10% |
1.81% |
(1)
Effective
July 31, 2024, the Fund added this broad-based securities market index intended
to reflect the overall applicable securities
market.
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 tax situation and may differ from those
shown. In addition, the after-tax returns shown are not relevant to
investors who hold their Fund shares through tax-advantaged arrangements such as
401(k) plans and individual retirement accounts because such accounts are only
subject to taxes upon withdrawal. 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. A higher after-tax return results when a capital loss occurs upon
redemption and provides an assumed tax deduction that benefits the
investor.
Investment
Advisor
AssetMark,
Inc. (“AssetMark” or the “Advisor”) is the investment advisor for the Fund.
Portfolio
Managers:
The Fund’s investment decisions are made by the following portfolio
managers:
|
|
|
|
|
|
|
| |
Portfolio
Manager |
Title |
Length
of Service to the Fund |
Selwyn
Crews |
Director,
Investment Strategies |
Since
Inception |
Christian
Chan |
Senior
Vice President, Chief Investment Officer |
Since
2022 |
Purchase
and Sale of Fund Shares: Financial
institutions and intermediaries on behalf of their clients may purchase or sell
shares through U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank
Global Fund Services, the Fund’s transfer agent (or its authorized agent).
Institutions and intermediaries that use certain proprietary systems of the
Advisor may place orders to buy or sell electronically through those systems.
Transactions will only occur on days the New York Stock Exchange is open. The
Fund has no investment minimums, however, the financial institutions and
intermediaries that sell the Fund’s shares may have established minimum values
for the accounts that they handle.
Tax
Information: The
Fund’s distributions are taxable, and generally will be taxed as ordinary
income, capital gains, or some combination of both, unless you are investing
through a tax-advantaged arrangement, such as a 401(k) plan or an individual
retirement account. Withdrawals from such tax-advantaged arrangements may be
subject to tax.
Payments
to Broker-Dealers and Other Financial Intermediaries: If
you purchase Fund shares through a broker-dealer or other financial intermediary
(such as a bank), AssetMark and/or 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.
GUIDEPATH®
TACTICAL
ALLOCATION FUND
Investment
Objective
GuidePath®
Tactical Allocation Fund (the “Fund”) seeks to maximize total return, consisting
of a combination of long-term capital appreciation and current income, while
moderating risk and volatility in the portfolio.
Fees and Expenses of the
Fund
The
following 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 example below:
|
|
|
|
| |
Shareholder
Fees
(fees paid directly from your investment) |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fees |
0.35% |
Distribution
and/or Service (12b-1) Fees |
None |
Other
Expenses |
0.44% |
Administrative
Service Fees |
0.25% |
All
Other Expenses |
0.19% |
Acquired
Fund Fees and Expenses(1) |
0.11% |
Total
Annual Fund Operating Expenses(2) |
0.90% |
(1)“Acquired
Fund Fees and Expenses” (“AFFE”) are indirect fees and expenses that the Fund
incurs from investing in the shares of other investment companies, including
money market funds and other mutual funds, closed end funds, business
development companies or certain exchange-traded
funds.
(2)Note that the amount of Total Annual Fund Operating Expenses
shown in the above table will differ from the Ratio of Expenses to Average Net
Assets included in the “Financial Highlights” section of the Prospectus which
reflects the operating expenses of the Fund and does not include indirect
expenses such as AFFE, but includes the expense reductions generated when the
Fund loaned its portfolio securities.
Example
The following Example is intended to help you compare the cost of
investing in Service Shares of the Fund with the cost of investing in other
mutual funds. The Example assumes that you invest $10,000 in Service Shares of
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. 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 |
$92 |
$287 |
$498 |
$1,108 |
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. The Fund does not pay
transaction costs when buying and selling shares of other mutual funds, however,
the underlying funds pay transaction costs when buying and selling securities
for their portfolio. 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 333.31% of the average value of
its portfolio.
Principal Investment
Strategies of the Fund
In
seeking to maximize total return, under normal circumstances, the Fund’s assets
are allocated into a diversified portfolio consisting of domestic and
international equity securities (including American Depositary Receipts (“ADRs”)
and Global Depositary Receipts (“GDRs”)), domestic and international fixed
income securities, exchange-traded funds (“ETFs”), mutual funds and cash
equivalent money market securities. The Fund’s allocation to individual
securities may range from 0% to 90% of the Fund’s assets.
The
asset classes in which the Fund may invest include growth and value stocks,
equity securities from developed and emerging international markets,
commodity-related securities and domestic and international real estate
securities, corporate bonds, mortgage- backed or asset-backed securities,
securities issued by the U.S. and foreign governments or their agencies and
instrumentalities, and higher-yielding bonds (sometimes referred to as “junk
bonds”), including emerging market debt. The Fund may invest in debt obligations
of any maturity. A significant portion of the Fund’s fixed income allocation may
be in non-investment grade fixed income investments with varying maturities, but
these allocations may vary significantly over time.
The
Fund may allocate assets to various fixed income and equity securities and
sectors. Using this type of strategy, the Fund seeks to tactically avoid risk by
reducing exposure to unattractive sectors at the appropriate times, while also
increasing exposure to attractive sectors on a timely basis.
The
Fund may invest in investment companies (collectively, referred to herein as
“Underlying Funds”) when AssetMark, Inc. (“AssetMark”
or
the “Advisor”) believes that investing in Underlying Funds would provide the
Fund with an efficient means of creating exposure to a broad range of
securities. The Fund’s allocation to Underlying Funds may range from 10% to 100%
of the Fund’s assets. The Fund may also invest in other exchange-traded
products, such as exchange-traded notes (“ETNs”). The ETFs and ETNs in which the
Fund invests may include inverse, leveraged, and inverse-leveraged ETFs and
ETNs. Inverse ETFs and ETNs are designed to correlate inversely with the
performance of an index. Leveraged and inverse-leveraged ETFs and ETNs seek
investment results that correspond to two or more times the performance of an
index or inverse of the performance of an index, respectively. By investing in
the Fund, you will indirectly bear fees and expenses of Underlying Funds in
which the Fund may invest in addition to the Fund’s direct fees and expenses. In
order to obtain exposure to certain markets, asset classes or active management
styles, the Fund may buy Underlying Funds managed by the Advisor or its
affiliates, which, in turn, invest in various securities, including ETFs. The
Fund may invest in Underlying Funds that use alternative strategies (e.g.,
long/short strategies - equity and fixed income, market- neutral strategies, and
absolute return/global macro strategies) and/or use derivatives for risk
management purposes or as part of their investment strategies. An Underlying
Fund may use derivatives to earn income and enhance returns, to manage or adjust
its risk profile, to replace more traditional direct investments, or to obtain
exposure to certain markets.
The
Advisor’s asset allocation decisions will be based on different factors and
analytical approaches, including tactical volatility managed asset allocation
approaches developed by various research providers selected by the Advisor. The
Advisor may utilize a combination of internal and external research constructing
the Fund’s portfolio.
The
Fund’s asset allocation mix among equity, fixed income and cash equivalent money
market securities is intended to change frequently over time. The Fund does not
have a set target asset allocation mix among equities, fixed income securities
and cash equivalent investments. If the Advisor believes that the stock market
conditions are unfavorable or overvalued, it may significantly increase the
allocation to more defensive asset classes such as fixed income or cash
equivalent securities. The Advisor also has broad latitude to allocate assets to
equity securities in pursuit of perceived opportunities for additional return.
Based on these judgments, the Fund’s asset allocation mix may significantly
change over time in response to opportunities as they are
identified.
The
Fund lends its portfolio securities to seek to generate additional
income.
Principal Risks of Investing
in the Fund
The
risks associated with an investment in the Fund can increase during times of
significant market volatility. There is the risk that you could lose all or a
portion of the money you have invested in the Fund. The Fund is
subject to a number of risks either directly or indirectly through its
investments in Underlying Funds. For purposes of this section, the term “Fund”
should be read to mean the Fund and the Underlying Funds. The following risks
could affect the value of your investment in the Fund:
•Management
Risk:
An investment or allocation strategy used by the Advisor may fail to produce the
intended results.
•Market
Risk: The
value of the Fund’s investments and the net asset values of the shares of the
Fund will fluctuate in response to various market and economic factors related
to the equity and fixed income markets as well as the financial condition and
prospects of companies in which the Fund invests.
•Value
Investment Risk:
The Fund’s investments in value-oriented securities may be out of favor and
potentially undervalued in the marketplace due to adverse business, industry or
other developments. The Fund’s investments in value-oriented securities may not
reach what the Fund’s Advisor believes are their full
value.
•Growth
Investment Risk:
The Fund’s investments in growth-oriented securities may be subject to greater
price volatility and may be more sensitive to changes in the issuer’s current or
expected earnings than other equity securities.
•Investments
in Underlying Funds Risk:
To the extent that the Fund allocates a substantial portion of its assets to
Underlying Funds, the ability of the Fund to meet its investment objective will
depend on the ability of the Underlying Funds to meet their investment
objectives. There can be no assurance that either the Fund or the Underlying
Funds will achieve their investment objectives. Additionally, the Fund may
invest in other investment companies for which the Advisor or an affiliate
serves as investment advisor (i.e., affiliated Underlying Funds). Such
investments in the Underlying Funds could create a conflict of interest for the
Advisor in managing the Fund’s assets. By investing in the Fund, you will
indirectly bear fees and expenses of the Underlying Funds in addition to the
Fund’s direct fees and expenses.
•Exchange-Traded
Funds Risk: An
ETF may represent a portfolio of securities, or may use derivatives in pursuit
of its stated objective. The risks of owning an ETF generally reflect the risks
of owning the underlying securities held by the ETF, although a lack of
liquidity in an ETF could result in it being more volatile. In addition, ETF
shares may trade at a premium or discount relative to their net asset value.
ETFs have management fees and other expenses which the Fund will indirectly
bear.
•Exchange-Traded
Notes Risk:
ETNs are debt securities that are traded on an exchange (e.g., the New York
Stock Exchange) whose returns are linked to the performance of a particular
market benchmark or strategy. An ETN generally reflects the risks associated
with the assets composing the underlying market benchmark or strategy it is
designed to track. ETNs also are subject to issuer and fixed- income
risks.
•Equity
Risk:
Common stocks are susceptible to general stock market fluctuations and to
volatile increases and decreases in value. The stock market may experience
declines or stocks in the Fund’s portfolio may not increase their earnings at
the rate anticipated. The Fund’s NAV and investment return will fluctuate based
upon changes in the value of its portfolio
securities.
•Alternative
Strategies Risk: Certain
Underlying Funds that use alternative investment strategies may be subject to
risks including, but not limited to, derivatives risk, liquidity risk, credit
risk and commodities risk. Certain alternative strategies involve the risk that
a
counterparty
to a transaction will not perform as promised, which could result in losses to
the Fund. Furthermore, alternative strategies may employ leverage, involve
extensive short positions and/or focus on narrow segments of the market, which
may magnify the overall risks and volatility associated with such
investments.
•Small
and Medium Capitalization Company Risk:
Small and medium capitalization companies often have narrower markets, fewer
products or services to offer and more limited managerial and financial
resources than do larger, more established companies. As a result, their
performance can be more volatile, and they face a greater risk of business
failure, which could increase the volatility and risk of loss of the Fund’s
assets.
•Foreign
Securities Risk:
The risks of investing in foreign securities (including ADRs and GDRs) can
increase the potential for losses in the Fund and may include currency
fluctuations, political and economic instability, less government regulation,
less publicly available information, limited trading markets, differences in
financial reporting standards, fewer protections for passive investors and less
stringent regulation of securities markets.
•Foreign
Exchange Trading Risk: The
trading of foreign currencies directly generates risks separate from those faced
from the risks of inactive or indirect exposures to non-dollar denominated
instruments, insofar as the Fund may experience a loss from the buying and
selling of currencies without any related exposure to non-dollar-denominated
assets.
•Emerging
Markets Risk:
In addition to the risks generally associated with investing in foreign
securities described above, countries with emerging markets may also have
relatively unstable governments, fewer shareholder protections, and more limited
economies and securities markets.
•Interest
Rate Risk: The
market value of fixed income securities will fluctuate with changes in interest
rates. For example, when interest rates rise, the market value of fixed income
securities declines. If the market value of the Fund’s investments decreases,
investors in the Fund may lose money. The Fund may face a heightened level of
interest rate risk due to changes in general economic conditions, inflation and
monetary policy, including interest rate changes by the Federal
Reserve.
•High-Yield
Debt Securities Risk: High-yield
debt securities or “junk bonds” are debt securities rated below investment grade
by an NRSRO. Junk bonds are subject to greater credit risk than higher-grade
securities, have a greater risk of default and are considered speculative.
Issuers of junk bonds are more likely to experience financial difficulties that
may impair their ability to make principal and interest
payments.
•Leveraged
and Inverse ETF/ETN Risk:
Inverse ETFs/ETNs generally use derivatives and short sales that, in
combination, are designed to produce returns that move in the opposite direction
of the indices they track. To the extent the Fund invests in ETFs/ETNs that seek
to provide investment results that are the inverse of the performance of an
underlying index, the Fund will indirectly be subject to the risk that the
performance of such ETF/ETN will fall as the performance of that ETF or ETN’s
benchmark rises, a result that is the opposite from traditional mutual funds.
The Fund’s use of leveraged and inverse-leveraged ETFs and ETNs has the economic
effect of creating financial leverage. Financial leverage magnifies exposure to
the swings in prices of an asset class and results in increased volatility,
which means the Fund will have the potential for greater gains, as well as the
potential for greater losses, than if the Fund had not invested in these
instruments at all.
•Mortgage-
and Asset-Backed Securities Risk:
Mortgage- and asset-backed securities are subject to prepayment risk, which is
the risk that the borrower will prepay some or all of the principal owed to the
issuer. If that happens, the Fund may have to replace the security by investing
the proceeds in a less attractive security.
•Derivatives
Risk:
A derivative is an instrument with a value based on the performance of an
underlying currency, security, index or other reference asset. The use of
derivatives involves risks different from, or greater than, the risks associated
with investing in more traditional investments. Derivatives involve costs, may
create leverage, and may be illiquid, volatile, and difficult to value. The Fund
may not be able to close out or sell a derivative position at a particular time
or at an anticipated price. The use of derivatives could also result in a loss
if the counterparty to the transaction does not perform as promised, including
because of such counterparty’s bankruptcy or insolvency. The investment results
achieved by the use of derivatives by the Fund may not match or fully offset
changes in the value of the underlying currency, security, index or other
reference asset that it was attempting to hedge or the investment opportunity
the Fund was attempting to pursue.
•Credit
Risk: Individual
issues of fixed income securities may be subject to the credit risk of the
issuer. This means that the issuer of a fixed income security, or in the case of
a municipal security, the underlying municipality, may experience financial
problems, causing it to be unable to meet its payment
obligations.
•U.S.
Government Agency Obligations Risk: Government
agency obligations have different levels of credit support and, therefore,
different degrees of credit risk. Some securities issued by agencies and
instrumentalities of the U.S. Government are supported by the full faith and
credit of the United States, but others are neither insured nor guaranteed by
the U.S. Government. The U.S. Department of the Treasury has the authority to
provide financial support to these debt obligations, but no assurance can be
given that the U.S. Government will do so.
•Commodities
Risk: The
Fund’s investment in commodity-linked investments and other commodity/natural
resource-related securities may subject the Fund to greater volatility than
investments in traditional securities. Commodity-linked investments may have a
substantial risk of loss with respect to both principal and interest, and their
returns may deviate significantly from the return of the underlying commodity,
instruments, or measures. The ability of the Fund to invest in commodity-linked
investments without exposing
the
Fund to Fund-level tax is limited under the Internal Revenue Code of 1986, as
amended.
•Real
Estate Risk: The
value of real estate-linked derivative instruments and other real estate-related
securities such as real estate investment trusts (“REITs”) may be affected by
risks similar to those associated with direct ownership of real estate, in
addition to the risks of poor performance by a REIT’s manager, changes to tax
laws, and failure by the REIT to qualify for favorable treatment. To the extent
the Fund invests in REITs, you will indirectly bear fees and expenses of the
underlying REITs in addition to the Fund’s direct fees and expenses. REITs may
have limited diversification and may not exhibit the same (or any) correlation
with inflation that real estate or other real estate securities
exhibit.
•Debt/Fixed
Income Securities Risk: An
increase in interest rates typically causes a fall in the value of the debt
securities in which the Fund may invest. Conversely, very low or negative
interest rates may heighten the Fund's susceptibility to interest rate risk and
diminish yield and performance.The value of your investment in the Fund may
change in response to changes in the credit ratings of the debt securities in
the Fund's portfolio. Moreover, rising interest rates or lack of market
participants may lead to decreased liquidity in the bond and loan markets,
making it more difficult for the Fund to sell its holdings at a time when the
Fund's manager might wish to sell. Lower rated securities ("junk bonds") are
generally subject to greater risk of loss of your money than higher rated
securities. Issuers may (increase) decrease prepayments of principal when
interest rates (fall) increase, affecting the maturity of the debt security and
causing the value of the security to decline. To the extent the Fund or an
Underlying Fund invests in derivatives tied to fixed income markets, the Fund or
Underlying Fund may be more substantially exposed to these risks than a fund
that does not invest in derivatives.
•Portfolio
Turnover Risk: Depending
on market and other conditions, the Fund may experience a high portfolio
turnover, which may result in higher brokerage costs and transaction costs
(which could reduce investment returns). Distributions of net short-term capital
gains are taxable as ordinary income when Fund shares are held in a taxable
account. A fund with a high portfolio turnover rate (a measure of how frequently
assets within a fund are bought and sold) is more likely to generate short-term
capital gains than a fund with a low portfolio turnover
rate.
•Securities
Lending Risk:
When the Fund lends its portfolio securities, the Fund is subject to the risk
that the borrower may fail to return the securities in a timely manner or at
all, resulting in a loss to the Fund and/or a delay in recovering the loaned
securities. The Fund could also lose money in connection with securities lending
transactions if it does not recover the loaned securities and/or the value of
the collateral falls, including the value of investments made with cash
collateral. Securities lending also may have certain adverse tax consequences.
The Fund is not obligated to engage in securities lending, and may discontinue
its securities lending activities at any time.
Performance
The
bar chart and table that follow illustrate annual returns for Service Shares of
the Fund for the periods ended December 31. This information is intended to give you some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and how the Fund’s average annual returns over time compare
with those of a broad measure of market performance and an additional index with
characteristics relevant to the Fund's investments.
The Fund’s past performance (before and after taxes) is not
necessarily an indication of how the Fund will perform in the
future. The Fund changed its investment strategy on January 19,
2016 and again on November 22, 2019. The performance set forth below prior to
such dates is attributable to the previous investment
strategies.
GUIDEPATH®
TACTICAL
ALLOCATION FUND – SERVICE SHARES
Calendar
Year Returns as of 12/31
The
year-to-date performance of the Fund’s
Service Shares as of June 30, 2024 was
13.64%.
During
the period shown on the bar chart, the Fund’s best and worst quarters are shown
below:
|
|
|
|
|
|
|
| |
Best
Quarter: |
Quarter
ended December 31,
2023 |
10.42 |
% |
Worst
Quarter: |
Quarter
ended March 31,
2020 |
-14.32 |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns for Periods Ended December 31,
2023 |
| One
Year |
Five
Years |
Ten
Years |
Tactical
Allocation Fund – Service Shares |
|
| |
Return Before
Taxes |
14.86% |
8.46% |
5.22% |
Return
After Taxes on Distributions |
14.47% |
6.90% |
3.98% |
Return
After Taxes on Distributions and Sale of Fund
Shares |
8.98% |
6.22% |
3.77% |
S&P
500®
Daily Risk Control 10% Index
(reflects no deduction for fees, expenses or
taxes) |
17.35% |
8.74% |
7.88% |
S&P
500®
Index
(1)
(reflects no deduction for fees, expenses or
taxes) |
26.29% |
15.69% |
12.03% |
FTSE
3-Month Treasury Bill Index
(1)
(reflects no deduction for fees, expenses or
taxes) |
5.26% |
1.91% |
1.26% |
(1)
Effective
July 31, 2024, the Fund added this broad-based securities market index intended
to reflect the overall applicable securities market.
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 tax situation and may differ from those shown.
In addition, the after- tax returns shown are not relevant to investors who hold
their Fund shares through tax-advantaged arrangements such as 401(k) plans and
individual retirement accounts because such accounts are only subject to taxes
upon withdrawal.
Investment
Advisor
AssetMark,
Inc. (“AssetMark” or the “Advisor”) is the investment advisor for the Fund.
Portfolio
Managers:
The Fund’s investment decisions are made by the following portfolio
managers:
|
|
|
|
|
|
|
| |
Portfolio
Manager |
Title |
Length
of Service to the Fund |
Selwyn
Crews |
Director,
Investment Strategies |
Since
Inception |
Christian
Chan |
Senior
Vice President, Chief Investment Officer |
Since
2022 |
Purchase
and Sale of Fund Shares: Financial
institutions and intermediaries on behalf of their clients may purchase or sell
shares through U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank
Global Fund Services, the Fund’s transfer agent (or its authorized agent).
Institutions and intermediaries that use certain proprietary systems of the
Advisor may place orders to buy or sell electronically through those systems.
Transactions will only occur on days the New York Stock Exchange is open. The
Fund has no investment minimums, however, the financial institutions and
intermediaries that sell the Fund’s shares may have established minimum values
for the accounts that they handle.
Tax
Information: The
Fund’s distributions are taxable, and generally will be taxed as ordinary
income, capital gains, or some combination of both, unless you are investing
through a tax-advantaged arrangement, such as a 401(k) plan or an individual
retirement account. Withdrawals from such tax-advantaged arrangements may be
subject to tax.
Payments
to Broker-Dealers and Other Financial Intermediaries: If
you purchase Fund shares through a broker-dealer or other financial intermediary
(such as a bank), AssetMark and/or 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.
GUIDEPATH®
ABSOLUTE
RETURN ALLOCATION FUND
Investment
Objective
GuidePath® Absolute Return Allocation Fund (the “Fund”) seeks to achieve
consistent absolute positive returns over time regardless of the market
environment.
Fees and Expenses of the
Fund
The
following 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 example below:
|
|
|
|
| |
Shareholder
Fees
(fees paid directly from your investment) |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fees |
0.35% |
Distribution
and/or Service (12b-1) Fees |
None |
Other
Expenses |
0.49% |
Administrative
Service Fees |
0.25% |
All
Other Expenses |
0.24% |
Acquired
Fund Fees and Expenses(1) |
0.27% |
Total
Annual Fund Operating Expenses(2) |
1.11% |
Fee
Waiver and/or Expense Assumption(3) |
-0.09% |
Total
Annual Fund Operating Expenses (After Fee Waiver and/or Expense
Assumption)(2)(3) |
1.02% |
(1)“Acquired
Fund Fees and Expenses” (“AFFE”) are indirect fees and expenses that the Fund
incurs from investing in the shares of other investment companies, including
money market funds and other mutual funds, closed end funds, business
development companies or certain exchange-traded
funds.
(2)Note that the amount of Total Annual Fund Operating Expenses
shown in the above table will differ from the Ratio of Expenses to Average Net
Assets included in the “Financial Highlights” section of the Prospectus which
reflects the operating expenses of the Fund and does not include indirect
expenses such as AFFE, but includes the expense reductions generated when the
Fund loaned its portfolio securities.
(3)AssetMark,
Inc. (“AssetMark” or the “Advisor”) has contractually agreed through
July 31, 2025, to waive its advisory fees
and/or assume expenses otherwise payable by the Fund to the extent necessary to
ensure that Total Annual Fund Operating Expenses (excluding taxes, interest,
trading costs, acquired fund fees and expenses, expenses paid with securities
lending expense offset credits and non-routine expenses) do not exceed 0.69% of
average daily net assets. This expense limitation agreement may not be
terminated prior to July 31, 2025 unless the Board of Trustees consents to an
earlier revision or termination. Under the expense limitation agreement,
AssetMark may recoup waived fees and expenses borne for a three-year period
under specified conditions. No recoupment will be paid to AssetMark if the
Fund’s current Total Annual Fund Operating Expenses exceed the expense
limitation in effect at the time fees were waived or expenses were
reimbursed.
Example
The following Example is intended to help you compare the cost of
investing in Service Shares of the Fund with the cost of investing in other
mutual funds. The Example assumes that you invest $10,000 in Service Shares of
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
Example reflects adjustments made to the Fund’s operating expenses due to the
fee waiver and/or expense assumption by the Advisor for the 1-year number
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 |
$104 |
$344 |
$603 |
$1,344 |
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. The Fund does not pay
transaction costs when buying and selling shares of other mutual funds, however,
the underlying funds pay transaction costs when buying and selling securities
for their portfolio. 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 53.14% of the average value of
its portfolio.
Principal Investment
Strategies of the Fund
The
Fund operates as a fund of funds, investing primarily in registered mutual
funds, including exchange-traded funds (“ETFs”). The funds in which the Fund may
invest are referred to herein as the “Underlying Funds.” AssetMark, Inc.
(“AssetMark” or the “Advisor”) believes that investing in Underlying Funds
provides the Fund with an efficient means of creating a portfolio that provides
investors with indirect exposure to a broad range of securities. By investing in
the Fund, you will indirectly bear fees and expenses of the Underlying Funds in
addition to the Fund’s direct fees and expenses. In order to obtain exposure to
certain markets, asset classes or active management styles, the
Fund
may buy Underlying Funds managed by the Advisor or its affiliates, which, in
turn, invest in various securities, including ETFs. The Fund may also invest
directly in securities and other exchange-traded products, such as
exchange-traded notes (“ETNs”).
The
Advisor’s asset allocation decisions will be based on different factors and
analytical approaches, derived from absolute return asset allocation approaches
developed by various research providers and considered by the Advisor in
constructing the Fund’s portfolio. The research providers’ absolute return asset
allocation approaches typically utilize fundamental and quantitative analyses of
global market and economic conditions and assumptions regarding risks and
returns. The Advisor seeks to create a portfolio that is optimized to seek to
achieve consistent absolute positive returns over time regardless of the market
environment.
In
pursuing the Fund’s objective, the Fund invests, either directly or indirectly
via the Underlying Funds, in fixed income or equity-oriented investments across
global markets, using varying active asset allocation strategies among different
security types, asset classes, yield and duration, valuation analyses, and
currency exposure considerations.
The
Fund may utilize an absolute return asset allocation strategy that builds on a
foundation of alternative investments, such as long/short equity funds that seek
a modest positive return from equity investments, that attempts to stay
insulated from general stock market volatility, combined with opportunistic
equity and fixed income investments strategically selected to enhance returns.
The Fund may invest in Underlying Funds that use alternative strategies and/or
use derivatives for risk management purposes or engage in significant use of
derivatives as part of their investment strategies. The alternative strategies
used by Underlying Funds may include, among others, long/short strategies –
equity and fixed income, market-neutral strategies, absolute return/global macro
strategies, and risk premium strategies, including market risk transfer
strategies, alternative (marketplace) lending and real estate, reinsurance and
commodity-linked derivatives. An Underlying Fund may use derivatives to earn
income and enhance returns, to manage or adjust the risk profile of the
Underlying Fund, to replace more traditional direct investments, or to obtain
exposure to certain markets or asset classes, including digital assets such as
bitcoin.
The
Fund may also utilize absolute return asset allocation strategies that allocate
assets to various fixed income instruments and sectors using various passive
index-oriented ETFs focusing on instruments such as U.S. Government bonds and
notes, corporate bonds, bank loans, mortgage-related securities and asset-backed
securities, inflation-protected debt securities, corporate bonds of various
quality levels and maturity/duration, and cash equivalent investments. Using
this type of strategy, the Fund seeks to tactically avoid risk by reducing
exposure at the appropriate times, while increasing exposure to attractive
sectors on a timely basis.
The
Fund lends its portfolio securities to seek to generate additional
income.
Principal Risks of Investing
in the Fund
The
risks associated with an investment in the Fund can increase during times of
significant market volatility. There is the risk that you could lose all or a
portion of the money you have invested in the Fund. The Fund is
subject to a number of risks either directly or indirectly through its
investments in Underlying Funds. For purposes of this section, the term “Fund”
should be read to mean the Fund and the Underlying Funds. The following risks
could affect the value of your investment in the Fund:
•Fund
of Funds Risk:
The Fund is subject to fund of funds risk, which means that the ability of the
Fund to meet its investment objective is directly related to the ability of the
Underlying Funds to meet their investment objectives. There can be no
assurance that either the Fund or the Underlying Funds will achieve their
investment objectives. Additionally, each Fund may invest in other investment
companies for which the Advisor or an affiliate serves as investment advisor
(i.e., affiliated Underlying Funds). Such investments in the Underlying Funds
could create a conflict of interest for the Advisor in managing the Fund’s
assets. By investing in the Fund, you will indirectly bear fees and expenses of
the Underlying Funds in addition to the Fund’s direct fees and
expenses.
•Management
Risk:
An investment or allocation strategy used by the Advisor may fail to produce the
intended results.
•Market
Risk:
The value of the Fund’s investments and the net asset values of the shares of
the Fund will fluctuate in response to various market and economic factors
related to the equity and fixed income markets as well as the financial
condition and prospects of companies in which the Fund
invests.
•Exchange-Traded
Funds Risk: An ETF may represent a portfolio of securities, or may use
derivatives in pursuit of its stated objective. The risks of owning an ETF
generally reflect the risks of owning the underlying securities held by the ETF,
although a lack of liquidity in an ETF could result in it being more volatile.
In addition, ETF shares may trade at a premium or discount relative to their net
asset value. ETFs have management fees and other expenses which the Fund will
indirectly bear.
•Alternative
Strategies Risk:
Certain Underlying Funds that use alternative investment strategies may be
subject to risks including, but not limited to, derivatives risk, liquidity
risk, credit risk and commodities risk. Certain alternative strategies involve
the risk that a counterparty to a transaction will not perform as promised,
which could result in losses to the Fund. Furthermore, alternative strategies
may employ leverage, involve extensive short positions and/or focus on narrow
segments of the market, which may magnify the overall risks and volatility
associated with such investments.
•Value
Investment Risk:
The Fund’s investments in value-oriented securities may be out of favor and
potentially undervalued in the marketplace due to adverse business, industry or
other developments. The Fund’s investments in value-oriented securities may not
reach what the Fund’s Advisor believes are their full
value.
•Growth
Investment Risk: The Fund’s investments in growth-oriented securities may be subject
to greater price volatility and may be more sensitive to changes in the issuer’s
current or expected earnings than other equity securities.
•Foreign
Securities Risk:
The risks of investing in foreign securities (including ADRs and GDRs) can
increase the potential for losses in the Fund and may include currency
fluctuations, political and economic instability, less government regulation,
less publicly available information, limited trading markets, differences in
financial reporting standards, fewer protections for passive investors and less
stringent regulation of securities markets.
•Foreign
Exchange Trading Risk:
The trading of foreign currencies directly generates risks separate from those
faced from the risks of inactive or indirect exposures to non-dollar denominated
instruments, insofar as the Fund may experience a loss from the buying and
selling of currencies without any related exposure to non-dollar-denominated
assets.
•Emerging
Markets Risk:
In addition to the risks generally associated with investing in foreign
securities described above, countries with emerging markets may also have
relatively unstable governments, fewer shareholder protections, and more limited
economies and securities markets.
•Interest
Rate Risk: The market value of fixed income securities will fluctuate with
changes in interest rates. For example, when interest rates rise, the market
value of fixed income securities declines. If the market value of the Fund’s
investments decreases, investors in the Fund may lose money. The Fund may face a
heightened level of interest rate risk due to changes in general economic
conditions, inflation and monetary policy, including interest rate changes by
the Federal Reserve.
•High-Yield
Debt Securities Risk: High-yield debt securities or “junk bonds” are debt securities rated
below investment grade by an NRSRO. Junk bonds are subject to greater credit
risk than higher-grade securities, have a greater risk of default and are
considered speculative. Issuers of junk bonds are more likely to experience
financial difficulties that may impair their ability to make principal and
interest payments.
•Mortgage-
and Asset-Backed Securities Risk: Mortgage- and asset-backed securities are subject to prepayment
risk, which is the risk that the borrower will prepay some or all of the
principal owed to the issuer. If that happens, the Fund may have to replace the
security by investing the proceeds in a less attractive
security.
•Liquidity
Risk: Liquidity risk is the risk that certain investments may be difficult
or impossible to buy or sell at the time and price that a Fund would like to buy
or sell the security.
•Maturity
Risk:
The Fund may invest in fixed income securities with a range of maturities.
Generally, the longer a security’s maturity, the greater the risk that interest
rate fluctuations may adversely affect the value of the
security.
•Municipal
Securities Risk: The risk of a municipal security depends on the ability of the
issuer, or any entity providing a credit enhancement, to continue to meet its
obligations for the payment of interest and principal when
due.
•Loan
Risk:
Loans are subject to risk of loss as a result of borrower default, sensitivity
to interest rate and economic changes, valuation difficulties and potential
decreased liquidity to a greater extent than other types of investments. The
value of any collateral securing a loan may decline, be insufficient to meet the
borrower’s obligations, or be difficult or costly to liquidate. It may take
longer than 7 days for investments in loans to settle, which may adversely
affect an Underlying Fund’s ability to timely honor redemptions. Newly
originated variable rate securities (including reissuances and restructured
loans) may possess lower levels of credit document protections than has
historically been the case. Accordingly, in the event of default the Fund may
experience lower levels of recoveries than has historically been the
norm.
•Derivatives
Risk:
A derivative is an instrument with a value based on the performance of an
underlying currency, security, index or other reference asset. The use of
derivatives involves risks different from, or greater than, the risks associated
with investing in more traditional investments. Derivatives involve costs, may
create leverage, and may be illiquid, volatile, and difficult to value. The Fund
may not be able to close out or sell a derivative position at a particular time
or at an anticipated price. The use of derivatives could also result in a loss
if the counterparty to the transaction does not perform as promised, including
because of such counterparty’s bankruptcy or insolvency. The investment results
achieved by the use of derivatives by the Fund may not match or fully offset
changes in the value of the underlying currency, security, index or other
reference asset that it was attempting to hedge or the investment opportunity
the Fund was attempting to pursue.
•Credit
Risk: Individual issues of fixed income securities may be subject to the
credit risk of the issuer. This means that the issuer of a fixed income
security, or in the case of a municipal security, the underlying municipality,
may experience financial problems, causing it to be unable to meet its payment
obligations.
•U.S.
Government Agency Obligations Risk:
Government agency obligations have different levels of credit support and,
therefore, different degrees of credit risk. Some securities issued by agencies
and instrumentalities of the U.S. Government are supported by the full faith and
credit of the United States, but others are neither insured nor guaranteed by
the U.S. Government. The U.S. Department of the Treasury has the authority to
provide financial support to these debt obligations, but no assurance can be
given that the U.S. Government will do so.
•Debt/Fixed
Income Securities Risk: An
increase in interest rates typically causes a fall in the value of the debt
securities in which the Fund may invest. Conversely, very low or negative
interest rates may heighten the Fund's susceptibility to interest rate risk and
diminish yield and performance.The value of your investment in the Fund may
change in response to changes in the credit ratings of the debt securities in
the Fund's portfolio. Moreover, rising interest rates or lack of market
participants may lead to decreased liquidity in the bond and loan markets,
making it more difficult for the Fund to sell its holdings at a time when the
Fund's manager might wish to sell. Lower rated securities ("junk bonds") are
generally subject to greater risk of loss of your money than higher rated
securities. Issuers may
(increase)
decrease prepayments of principal when interest rates (fall) increase, affecting
the maturity of the debt security and causing the value of the security to
decline. To the extent the Fund or an Underlying Fund invests in derivatives
tied to fixed income markets, the Fund or Underlying Fund may be more
substantially exposed to these risks than a fund that does not invest in
derivatives.
•Bitcoin
Investments Risk: Certain
Underlying Funds may invest in bitcoin, bitcoin futures contracts and options on
bitcoin futures contracts (or options on ETFs that invest in bitcoin or bitcoin
futures contracts). Bitcoin operates without central authority (such as a bank)
and is not backed by any government, corporation, or other entity. Bitcoin is
not generally accepted as legal tender. Regulation of bitcoin and other
cryptocurrencies is still developing. Federal, state and/or foreign governments
may restrict the development, use, or exchange of bitcoin. The market price of
bitcoin has historically been highly volatile. The price of bitcoin could fall
sharply (potentially to zero) for various reasons, including, but not limited
to, regulatory changes, issues impacting the bitcoin network, events involving
entities that facilitate transactions in bitcoin, or changes in user preferences
in favor of alternative cryptocurrencies. Furthermore, events that impact other
cryptocurrencies may lead to a decline in the value of bitcoin. Cryptocurrency
exchanges and other trading venues on which cryptocurrencies trade are
relatively new and, in most cases, largely unregulated. Accordingly,
cryptocurrency exchanges may be more exposed to fraud and failure than
established, regulated exchanges for securities, derivatives and other
currencies. Cryptocurrency exchanges are also subject to cyber security risks.
Cryptocurrency exchanges have experienced cyber security breaches in the past
and may be breached in the future, which could result in the theft and/or loss
of bitcoin and impact the value of bitcoin futures. Furthermore, cyber security
events, legal or regulatory actions, fraud, and technical glitches, may cause a
cryptocurrency exchange to shut down temporarily or permanently, which may also
affect the value of bitcoin and/or bitcoin
futures.
Shares
of ETFs that hold bitcoin and/or bitcoin futures may trade in the secondary
market at a premium to or discount from their NAVs, and an Underlying Fund may
purchase or sell shares of bitcoin futures ETFs at prices above or below such
NAVs. Because the market price of ETF shares depends in part on the demand in
the market for the shares, as well as on the value of the ETF’s component
assets, and because the market price of ETF shares is subject to tracking error,
the market price of a bitcoin futures ETF may be more volatile than the
underlying bitcoin futures contracts in which the bitcoin futures ETF invests.
In addition, an Underlying Fund may not be able to liquidate bitcoin futures ETF
holdings at the time or price desired, which may adversely impact the Underlying
Fund’s performance and in turn, the value of the Fund’s investment. Furthermore,
there may be times when the exchange halts trading in the shares of a bitcoin
futures ETF, in which case the Underlying Fund would be unable to sell them
until trading is resumed.
•Bitcoin
Market Volatility Risk:
Bitcoin has historically exhibited higher price volatility than more traditional
asset classes. For instance, the two largest historical drawdowns were during
the period from June 8, 2011 to November 18, 2011 and the period from December
17, 2017 to December 14, 2018, when bitcoin experienced a decline of roughly 93%
and 84%, respectively. The price of bitcoin and therefore the value of an
investment in the Underlying Fund may be negatively impacted by unfavorable
investor sentiment resulting from recent developments in the broader digital
asset industry, including the fallout from the recent insolvency proceedings of
digital asset market participants such as digital asset exchange FTX Trading
Ltd., et al. (and its affiliated hedge fund Alameda Research LLC), digital asset
hedge fund Three Arrows Capital and digital asset lenders Celsius Network LLC,
et al., Voyager Digital Ltd., et al. and BlockFi Inc. The value of bitcoin and,
therefore, of an Underlying Fund’s bitcoin strategy, could decline rapidly,
including to zero, which would adversely affect the Underlying Fund’s NAV per
share.
•Insurance-Linked
Securities Risk: The
principal risk of investments in insurance-linked securities is that a
triggering event (which could include a natural disaster like an earthquake or
tornado or a commercial or industrial accident like an aviation disaster or oil
spill) occurs, resulting an Underlying Fund losing all or a significant portion
of the principal it has invested in the security and the right to additional
interest payments with respect to the security. If multiple triggering events
occur that impact a significant portion of the portfolio of the Underlying Fund,
the Underlying Fund could suffer substantial losses and an investor will lose
money. Event-linked or catastrophe bonds carry large uncertainties and major
risk exposures to adverse conditions. Certain reinsurance investments may be
difficult to value. There is no way to accurately predict whether a triggering
event will occur and, because of this significant uncertainty, insurance-linked
securities carry a high degree of risk.
•Marketplace
Loan Risk:
Investments by Underlying Funds in loans sourced through marketplace lending
platforms are subject to additional risks than those applicable to investments
in loans generally. If a borrower is unable or fails to make payments on a loan
for any reason, an Underlying Fund may not have direct recourse against the
borrower or may be otherwise limited in its ability to directly enforce its
rights under the loan, whether through the borrower or the marketplace lending
platform through which the loan was originated. Borrowings obtained through
marketplace lending platforms may not limit borrowers from incurring additional
debt which may impair the borrower’s ability to repay interest and principal of
the original loan. Default history for alternative lending platforms is limited.
Future defaults may be higher than historical defaults and the timing of
defaults may vary significantly from historical observations. An Underlying Fund
may have limited knowledge about the underlying loans to which it has exposure
and is dependent upon the platform for information regarding the loans and
borrowers’ credit information. Such information may be incomplete, inaccurate or
outdated and may, therefore, not accurately reflect the borrowers’ actual
creditworthiness. Disruptions in the business of a platform may also negatively
impact the value of loans sourced through that platform. Investments in loans
sourced through a marketplace lending platform may also be negatively impacted
if the platform or a third-party service provider becomes unable or unwilling to
fulfill its obligations in servicing the loans.
•Subordinated
Real Estate Loan Risk:
An Underlying Fund may acquire or originate subordinated real estate loans
secured by single family rental properties, including mezzanine loans in the
form of subordinated loans secured by a pledge of the ownership interests of
either the entity owning such properties or the entity that owns the interest in
the entity owning such properties. In the event a borrower
defaults
on a subordinated loan and lacks sufficient assets to satisfy such loan, the
Underlying Fund may suffer a loss of principal or interest. In the event a
borrower declares bankruptcy, the Underlying Fund may not have full recourse to
the assets of the borrower, or the assets of the borrower may not be sufficient
to satisfy the loan. If a borrower defaults on a loan owned by the Underlying
Fund or on debt senior to such loan, or in the event of a borrower bankruptcy,
such loan will be satisfied only after the senior debt is paid in full. These
types of investments may become unsecured as a result of foreclosure by the
senior lender.
•Real
Estate Risk:
The value of real estate-linked derivative instruments and other real
estate-related securities such as real estate investment trusts (“REITs”) may be
affected by risks similar to those associated with direct ownership of real
estate, in addition to the risks of poor performance by a REIT’s manager,
changes to tax laws, and failure by the REIT to qualify for favorable treatment.
To the extent the Fund invests in REITs, you will indirectly bear fees and
expenses of the underlying REITs in addition to the Fund’s direct fees and
expenses. REITs may have limited diversification and may not exhibit the same
(or any) correlation with inflation that real estate or other real estate
securities exhibit.
•Portfolio
Turnover Risk: Depending
on market and other conditions, the Fund may experience a high portfolio
turnover, which may result in higher brokerage costs and transaction costs
(which could reduce investment returns). Distributions of net short-term capital
gains are taxable as ordinary income when Fund shares are held in a taxable
account. A fund with a high portfolio turnover rate (a measure of how frequently
assets within a fund are bought and sold) is more likely to generate short-term
capital gains than a fund with a low portfolio turnover
rate.
•Securities
Lending Risk:
When the Fund lends its portfolio securities, the Fund is subject to the risk
that the borrower may fail to return the securities in a timely manner or at
all, resulting in a loss to the Fund and/or a delay in recovering the loaned
securities. The Fund could also lose money in connection with securities lending
transactions if it does not recover the loaned securities and/or the value of
the collateral falls, including the value of investments made with cash
collateral. Securities lending also may have certain adverse tax consequences.
The Fund is not obligated to engage in securities lending, and may discontinue
its securities lending activities at any time.
Performance
The bar chart and table that follow illustrate annual returns for
Service Shares of the Fund for the periods ended December 31. This information is intended to give you some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and how the Fund’s average annual returns over time compare
with those of a broad measure of market performance and an additional index with
characteristics relevant to the Fund's investments.
The Fund’s past performance (before and after taxes) is not
necessarily an indication of how the Fund will perform in the
future. The Fund changed its investment strategy on January 19,
2016. The performance set forth below prior to January 19, 2016 is attributable
to the previous investment strategies.
GUIDEPATH®
ABSOLUTE
RETURN ALLOCATION FUND – SERVICE SHARES
Calendar
Year Returns as of 12/31
The
year-to-date performance of the Fund’s
Service Shares as of June 30, 2024 was
1.32%.
During
the period shown on the bar chart, the Fund’s best and worst quarters are shown
below:
|
|
|
|
|
|
|
| |
Best
Quarter: |
Quarter
ended December 31,
2023 |
5.23 |
% |
Worst
Quarter: |
Quarter
ended June 30,
2022 |
-5.24 |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns for Periods Ended December 31,
2023 |
| One
Year |
Five
Years |
Ten
Years |
Absolute
Return Allocation Fund – Service Shares |
|
| |
Return
Before Taxes |
6.81% |
1.39% |
2.01% |
Return
After Taxes on Distributions |
4.82% |
0.24% |
0.96% |
Return
After Taxes on Distributions and Sale of Fund
Shares |
4.04% |
0.59% |
1.10% |
FTSE
3-Month Treasury Bill Index
(reflects no deduction for fees, expenses or
taxes) |
5.26% |
1.91% |
1.26% |
Bloomberg
Global Aggregate Bond Index
(1)
(reflects no deduction for fees, expenses or
taxes) |
5.72% |
-0.32% |
0.38% |
(1)
Effective
July 31, 2024, the Fund added this broad-based securities market index intended
to reflect the overall applicable securities
market.
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 tax situation and may differ from those
shown. In addition, the after-tax returns shown are not relevant to
investors who hold their Fund shares through tax-advantaged arrangements such as
401(k) plans and individual retirement accounts because such accounts are only
subject to taxes upon withdrawal. 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. A higher after-tax return results when a capital loss occurs upon
redemption and provides an assumed tax deduction that benefits the
investor.
Investment
Advisor
AssetMark,
Inc. (“AssetMark” or the “Advisor”) is the investment advisor for the Fund.
Portfolio
Managers:
The Fund’s investment decisions are made by the following portfolio
managers:
|
|
|
|
|
|
|
| |
Portfolio
Manager |
Title |
Length
of Service to the Fund |
Selwyn
Crews |
Director,
Investment Strategies |
Since
Inception |
Christian
Chan |
Senior
Vice President, Chief Investment Officer |
Since
2022 |
Purchase
and Sale of Fund Shares: Financial
institutions and intermediaries on behalf of their clients may purchase or sell
shares through U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank
Global Fund Services, the Fund’s transfer agent (or its authorized agent).
Institutions and intermediaries that use certain proprietary systems of the
Advisor may place orders to buy or sell electronically through those systems.
Transactions will only occur on days the New York Stock Exchange is open. The
Fund has no investment minimums, however, the financial institutions and
intermediaries that sell the Fund’s shares may have established minimum values
for the accounts that they handle.
Tax
Information: The
Fund’s distributions are taxable, and generally will be taxed as ordinary
income, capital gains, or some combination of both, unless you are investing
through a tax-advantaged arrangement, such as a 401(k) plan or an individual
retirement account. Withdrawals from such tax-advantaged arrangements may be
subject to tax.
Payments
to Broker-Dealers and Other Financial Intermediaries: If
you purchase Fund shares through a broker-dealer or other financial intermediary
(such as a bank), AssetMark and/or 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.
GUIDEPATH®
MULTI-ASSET
INCOME ALLOCATION FUND
Investment
Objective
GuidePath®
Multi-Asset Income Allocation Fund (the “Fund”) seeks to
maximize current income while moderating risk and volatility in the
portfolio. As a
secondary objective, the Fund seeks capital
appreciation.
Fees and Expenses of the
Fund
The
following 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 example below:
|
|
|
|
| |
Shareholder
Fees (fees
paid directly from your investment) |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fees |
0.35% |
Distribution
and/or Service (12b-1) Fees |
None |
Other
Expenses |
0.50% |
Administrative
Service Fees |
0.25% |
All
Other Expenses |
0.25% |
Acquired
Fund Fees and Expenses(1) |
0.27% |
Total
Annual Fund Operating Expenses(2) |
1.12% |
(1)“Acquired
Fund Fees and Expenses” (“AFFE”) are indirect fees and expenses that the Fund
incurs from investing in the shares of other investment companies, including
money market funds and other mutual funds, closed end funds, business
development companies or certain exchange-traded
funds.
(2)Note that the amount of Total Annual Fund Operating Expenses
shown in the above table will differ from the Ratio of Expenses to Average Net
Assets included in the “Financial Highlights” section of the Prospectus which
reflects the operating expenses of the Fund and does not include indirect
expenses such as AFFE, but includes the expense reductions generated when the
Fund loaned its portfolio securities.
Example
The following Example is intended to help you compare the cost of
investing in Service Shares of the Fund with the cost of investing in other
mutual funds. The Example assumes that you invest $10,000 in Service Shares of
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. 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 |
$114 |
$356 |
$617 |
$1,363 |
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. The Fund does
not pay transaction costs when buying and selling shares of other mutual funds,
however, the underlying funds pay transaction costs when buying and selling
securities for their portfolio. 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
27.54% of the average
value of its portfolio.
Principal Investment
Strategies of the Fund
The
Fund operates as a fund of funds, investing primarily in registered mutual funds
(both actively and passively managed) and exchange-traded funds (“ETFs”). The
funds in which the Fund may invest are referred to herein as the “Underlying
Funds.” AssetMark, Inc. (“AssetMark” or the “Advisor”) believes that investing
in Underlying Funds provides the Fund with an efficient means of creating a
portfolio that provides investors with indirect exposure to a broad range of
asset classes. By investing in the Fund, you will indirectly bear fees and
expenses of the Underlying Funds in addition to the Fund’s direct fees and
expenses. In order to obtain exposure to certain markets, asset classes or
active management styles, the Fund may buy Underlying Funds managed by the
Advisor or its affiliates, which, in turn, invest in various securities,
including ETFs. The Fund may also invest directly in securities and other
exchange-traded products, such as exchange-traded notes (“ETNs”).
The
Fund has broad flexibility to allocate its assets among a wide variety of debt
and equity securities and real estate investment trusts (“REITs”). As part of
its principal investment strategy or for temporary defensive purposes, any
portion of the Fund’s assets may also be invested in cash and cash equivalents.
The Fund may invest in such instruments directly or indirectly through its
investment in Underlying Funds. The Fund’s approach is flexible and allows the
Advisor to shift the Fund’s allocations in response to changing market
conditions. As a result, the Fund may at times be invested in a single or
multiple asset classes, markets or sectors. The Fund may also take positions in
various global currencies and may hold positions in instruments that are
denominated in currencies other than the U.S.
dollar.
The
Advisor’s asset allocation decisions are based on different factors and
analytical approaches, derived from asset allocation approaches developed by
various research providers and considered by the Advisor in constructing the
Fund’s portfolio. In attempting to achieve the Fund’s investment objective, the
Advisor monitors and adjusts the Fund’s asset allocations as necessary.
Under
normal circumstances, the Fund will be expected to allocate between 40% and 80%
of its assets to equity securities and investments that provide exposure to
equity securities and between 20% to 60% of its assets to fixed income
securities and investments that provide exposure to fixed income securities.
Over time, the asset allocation mix may change as a result of changing capital
market assumptions or short-term market opportunities. Under normal market
conditions, the Fund will be expected to allocate approximately 60% of its
assets to equity securities and investments that provide exposure to equity
securities and 40% of its assets to fixed income securities and investments that
provide exposure to fixed income securities, including cash
equivalents.
The
Fund’s fixed income allocation may include, but is not limited to, investments
made directly or indirectly via the Underlying Funds in debt securities of
governments, government agencies and supranational entities, debt securities of
corporations, preferred stock, bank loans, convertible securities, mortgage- or
asset-backed securities, inflation-linked securities and other securitized or
collateralized debt obligations. The Fund’s fixed income allocation may also
include higher-yielding bonds (sometimes referred to as “junk bonds”), including
emerging market debt. It is possible that a significant portion of the Fund’s
fixed income allocation may be invested, directly or indirectly, in
non-investment grade fixed income investments with varying maturities.
The
Fund may invest, directly or indirectly, in domestic and international equities
(including American Depositary Receipts (“ADRs”) and Global Depositary Receipts
(“GDRs”)). The Fund’s equity allocation may include investments made directly or
indirectly via the Underlying Funds in both small- and large-capitalization
companies and both growth and value stocks. The Fund’s equity allocation may
also include equity securities from emerging international markets, and both
domestic and international real estate securities.
The
Fund may invest in Underlying Funds that use alternative strategies (e.g.,
long/short strategies – equity and fixed income, market-neutral strategies, and
absolute return/global macro strategies) and/or use derivatives for risk
management purposes or as part of their investment strategies. An Underlying
Fund may use derivatives to earn income and enhance returns, to manage or adjust
the risk and duration exposure profile of the Underlying Fund, to replace more
traditional direct investments or to obtain exposure to certain markets,
interest rates, sectors or individual issuers. The derivatives used by an
Underlying Fund may allow the Underlying Fund to obtain net long or net negative
(short) exposures to selected interest rates, countries, duration or credit
risks. An Underlying Fund may also use derivatives to hedge or gain exposure to
currencies.
The
Fund lends its portfolio securities to seek to generate additional
income.
Principal Risks of Investing
in the Fund
The
risks associated with an investment in the Fund can increase during times of
significant market volatility. There is the risk that you could lose all or a
portion of the money you have invested in the Fund. The Fund is
subject to a number of risks either directly or indirectly through its
investments in Underlying Funds. For purposes of this section, the term “Fund”
should be read to mean the Fund and the Underlying Funds. The following risks
could affect the value of your investment in the Fund:
•Fund
of Funds Risk:
The Fund is subject to fund of funds risk, which means that the ability of the
Fund to meet its investment objective is directly related to the ability of the
Underlying Funds to meet their investment objectives. There can be no
assurance that either the Fund or the Underlying Funds will achieve their
investment objectives. Additionally, each Fund may invest in other investment
companies for which the Advisor or an affiliate serves as investment advisor
(i.e., affiliated Underlying Funds). Such investments in the Underlying Funds
could create a conflict of interest for the Advisor in managing the Fund’s
assets. By investing in the Fund, you will indirectly bear fees and expenses of
the Underlying Funds in addition to the Fund’s direct fees and
expenses.
•Management
Risk:
An investment or allocation strategy used by the Advisor may fail to produce the
intended results.
•Market
Risk:
The value of the Fund’s investments and the net asset values of the shares of
the Fund will fluctuate in response to various market and economic factors
related to the equity, fixed income and currency markets as well as the
financial condition and prospects of companies in which the Fund
invests.
•Exchange-Traded
Funds Risk: An ETF may represent a portfolio of securities, or may use
derivatives in pursuit of its stated objective. The risks of owning an ETF
generally reflect the risks of owning the underlying securities held by the ETF,
although a lack of liquidity in an ETF could result in it being more volatile.
In addition, ETF shares may trade at a premium or discount relative to their net
asset value. ETFs have management fees and other expenses which the Fund will
indirectly bear.
•Value
Investment Risk:
The Fund’s investments in value-oriented securities may be out of favor and
potentially undervalued in the marketplace due to adverse business, industry or
other developments. The Fund’s investments in value-oriented securities may not
reach what the Fund’s Advisor believes are their full
value.
•Growth
Investment Risk: The Fund’s investments in growth-oriented securities may be subject
to greater price volatility and may be more sensitive to changes in the issuer’s
current or expected earnings than other equity securities.
•Small
and Medium Capitalization Company Risk:
Small and medium capitalization companies often have narrower markets, fewer
products or services to offer and more limited managerial and financial
resources than do larger, more established companies. As a result, their
performance can be more volatile, and they face a greater risk of business
failure, which could increase the volatility and risk of loss of the Fund’s
assets.
•Foreign
Securities Risk:
The risks of investing in foreign securities (including ADRs and GDRs) can
increase the potential for losses in the Fund and may include currency
fluctuations, political and economic instability, less government regulation,
less publicly available information, limited trading markets, differences in
financial reporting standards, fewer protections for passive investors and less
stringent regulation of securities markets.
•Foreign
Exchange Trading Risk: The trading of foreign currencies directly generates risks separate
from those faced from the risks of inactive or indirect exposures to non-dollar
denominated instruments, insofar as the Fund may experience a loss from the
buying and selling of currencies without any related exposure to
non-dollar-denominated assets.
•Emerging
Markets Risk:
In addition to the risks generally associated with investing in foreign
securities described above, countries with emerging markets may also have
relatively unstable governments, fewer shareholder protections, and more limited
economies and securities markets. Additionally, trading in the currencies of
emerging market countries may face periods of limited liquidity or the political
risk of exchange controls or currency repatriation
restrictions.
•Interest
Rate Risk: The market value of fixed income securities will fluctuate with
changes in interest rates. For example, when interest rates rise, the market
value of fixed income securities declines. If the market value of the Fund’s
investments decreases, investors in the Fund may lose money. The Fund may face a
heightened level of interest rate risk due to changes in general economic
conditions, inflation and monetary policy, including interest rate changes by
the Federal Reserve.
•High-Yield
Debt Securities Risk: High-yield debt securities or “junk bonds” are debt securities rated
below investment grade by an NRSRO. Junk bonds are subject to greater credit
risk than higher-grade securities, have a greater risk of default and are
considered speculative. Issuers of junk bonds are more likely to experience
financial difficulties that may impair their ability to make principal and
interest payments.
•Mortgage-
and Asset-Backed Securities Risk: Mortgage- and asset-backed securities are subject to prepayment
risk, which is the risk that the borrower will prepay some or all of the
principal owed to the issuer. If that happens, the Fund may have to replace the
security by investing the proceeds in a less attractive
security.
•Derivatives
Risk:
A derivative is an instrument with a value based on the performance of an
underlying currency, security, index or other reference asset. The use of
derivatives involves risks different from, or greater than, the risks associated
with investing in more traditional investments. Derivatives involve costs, may
create leverage, and may be illiquid, volatile, and difficult to value. The Fund
may not be able to close out or sell a derivative position at a particular time
or at an anticipated price. The use of derivatives could also result in a loss
if the counterparty to the transaction does not perform as promised, including
because of such counterparty’s bankruptcy or insolvency. The investment results
achieved by the use of derivatives by the Fund may not match or fully offset
changes in the value of the underlying currency, security, index or other
reference asset that it was attempting to hedge or the investment opportunity
the Fund was attempting to pursue.
•Credit
Risk: Individual issues of fixed income securities may be subject to the
credit risk of the issuer. This means that the issuer of a fixed income
security, or in the case of a municipal security, the underlying municipality,
may experience financial problems, causing it to be unable to meet its payment
obligations.
•U.S.
Government Agency Obligations Risk:
Government agency obligations have different levels of credit support and,
therefore, different degrees of credit risk. Some securities issued by agencies
and instrumentalities of the U.S. Government are supported by the full faith and
credit of the United States, but others are neither insured nor guaranteed by
the U.S. Government. The U.S. Department of the Treasury has the authority to
provide financial support to these debt obligations, but no assurance can be
given that the U.S. Government will do so.
•Real
Estate Risk: The
value of real estate-linked derivative instruments and other real estate-related
securities such as real estate investment trusts (“REITs”) may be affected by
risks similar to those associated with direct ownership of real estate, in
addition to the risks of poor performance by a REIT’s manager, changes to tax
laws, and failure by the REIT to qualify for favorable treatment. To the extent
the Fund invests in REITs, you will indirectly bear fees and expenses of the
underlying REITs in addition to the Fund’s direct fees and expenses. REITs may
have limited diversification and may not exhibit the same (or any) correlation
with inflation that real estate or other real estate securities
exhibit.
•Liquidity
Risk: Liquidity risk is the risk that certain investments may be
difficult or impossible to buy or sell at the time and price that a Fund would
like to buy or sell the security.
•Maturity
Risk:
The Fund may invest in fixed income securities with a range of maturities.
Generally, the longer a security’s maturity, the greater the risk that interest
rate fluctuations may adversely affect the value of the
security.
•Convertible
Securities Risk: The value of convertible securities tends to decline as interest
rates rise and, because of the conversion feature, tends to vary with
fluctuations in the market value of the underlying securities.
•Municipal
Securities Risk: The risk of a municipal security depends on the ability of the
issuer, or any entity providing a credit enhancement, to continue to meet its
obligations for the payment of interest and principal when
due.
•Loan
Risk:
Loans are subject to risk of loss as a result of borrower default, sensitivity
to interest rate and economic changes, valuation difficulties and potential
decreased liquidity to a greater extent than other types of investments. The
value of any collateral securing a loan may decline, be insufficient to meet the
borrower’s obligations, or be difficult or costly to liquidate. It may take
longer than 7 days for investments in loans to settle, which may adversely
affect an Underlying Fund’s ability to timely honor
redemptions.
•Alternative
Strategies Risk:
Certain Underlying Funds that use alternative investment strategies may be
subject to risks including, but not limited to, derivatives risk, liquidity
risk, credit risk and commodities risk. Certain alternative strategies involve
the risk that a counterparty to a transaction will not perform as promised,
which could result in losses to the Fund. Furthermore, alternative strategies
may employ leverage, involve extensive short positions and/or focus on narrow
segments of the market, which may magnify the overall risks and volatility
associated with such investments.
•Equity
Risk:
Common stocks are susceptible to general stock market fluctuations and to
volatile increases and decreases in value. The stock market may experience
declines or stocks in the Fund’s portfolio may not increase their earnings at
the rate anticipated. The Fund’s NAV and investment return will fluctuate based
upon changes in the value of its portfolio
securities.
•Debt/Fixed
Income Securities Risk: An
increase in interest rates typically causes a fall in the value of the debt
securities in which the Fund may invest. Conversely, very low or negative
interest rates may heighten the Fund's susceptibility to interest rate risk and
diminish yield and performance.The value of your investment in the Fund may
change in response to changes in the credit ratings of the debt securities in
the Fund's portfolio. Moreover, rising interest rates or lack of market
participants may lead to decreased liquidity in the bond and loan markets,
making it more difficult for the Fund to sell its holdings at a time when the
Fund's manager might wish to sell. Lower rated securities ("junk bonds") are
generally subject to greater risk of loss of your money than higher rated
securities. Issuers may (increase) decrease prepayments of principal when
interest rates (fall) increase, affecting the maturity of the debt security and
causing the value of the security to decline. To the extent the Fund or an
Underlying Fund invests in derivatives tied to fixed income markets, the Fund or
Underlying Fund may be more substantially exposed to these risks than a fund
that does not invest in derivatives.
•Securities
Lending Risk:
When the Fund lends its portfolio securities, the Fund is subject to the risk
that the borrower may fail to return the securities in a timely manner or at
all, resulting in a loss to the Fund and/or a delay in recovering the loaned
securities. The Fund could also lose money in connection with securities lending
transactions if it does not recover the loaned securities and/or the value of
the collateral falls, including the value of investments made with cash
collateral. Securities lending also may have certain adverse tax consequences.
The Fund is not obligated to engage in securities lending, and may discontinue
its securities lending activities at any time.
Performance
The bar chart and table that follow illustrate annual returns for
Service Shares of the Fund for the periods ended December
31. This information is intended to give you some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and how the Fund’s average annual returns over time compare
with those of a broad measure of market performance and an additional index with
characteristics relevant to the Fund's
investments. The Fund’s
past performance (before and after taxes) is not necessarily an indication of
how the Fund will perform in the future. The Fund changed its
investment strategy on January 19, 2016. The performance set forth below prior
to January 19, 2016 is attributable to the previous investment
strategies.
GUIDEPATH®
MULTI-ASSET
INCOME ALLOCATION FUND – SERVICE SHARES
Calendar Year Returns as of 12/31
The
year-to-date performance of the Fund’s
Service Shares as of June 30, 2024 was
2.76%.
During
the period shown on the bar chart, the Fund’s best and worst quarters are shown
below:
|
|
|
|
|
|
|
| |
Best
Quarter: |
Quarter
ended June 30,
2020 |
9.71% |
Worst
Quarter: |
Quarter
ended March 31,
2020 |
-18.38% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns for Periods Ended December 31,
2023 |
|
| |
| One
Year |
Five
Years |
Ten
Years |
Multi-Asset
Income Allocation Fund – Service Shares |
|
| |
Return
Before Taxes |
9.44% |
4.66% |
3.41% |
Return
After Taxes on Distributions |
7.97% |
3.56% |
2.25% |
Return
After Taxes on Distributions and Sale of Fund
Shares |
5.85% |
3.29% |
2.25% |
Morningstar
Multi-Asset High Income Index
(reflects no deduction for fees, expenses or
taxes) |
11.09% |
1.95% |
2.95% |
Bloomberg
Global Aggregate Bond Index(1)
(reflects no deduction for fees, expenses or
taxes) |
5.72% |
-0.32% |
0.38% |
MSCI
All Country World Index (ACWI)(1)
(reflects no deduction for fees, expenses or
taxes) |
10.33% |
8.76% |
6.33% |
(1)
Effective
July 31, 2024, the Fund added this broad-based securities market index intended
to reflect the overall applicable securities
market.
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 tax situation and may differ from those
shown. In addition, the after-tax returns shown are not relevant to
investors who hold their Fund shares through tax-advantaged arrangements such as
401(k) plans and individual retirement accounts because such accounts are only
subject to taxes upon withdrawal. 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. A higher after-tax return results when a capital loss occurs upon
redemption and provides an assumed tax deduction that benefits the
investor.
Investment
Advisor
AssetMark,
Inc. (“AssetMark” or the “Advisor”) is the investment advisor for the Fund.
Portfolio
Managers:
The Fund’s investment decisions are made by the following portfolio
managers:
|
|
|
|
|
|
|
| |
Portfolio
Manager |
Title |
Length
of Service to the Fund |
Selwyn
Crews |
Director,
Investment Strategies |
Since
Inception |
Christian
Chan |
Senior
Vice President, Chief Investment Officer |
Since
2022 |
Purchase
and Sale of Fund Shares: Financial
institutions and intermediaries on behalf of their clients may purchase or sell
shares through U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank
Global Fund Services, the Fund’s transfer agent (or its authorized agent).
Institutions and intermediaries that use certain proprietary systems of the
Advisor may place orders to buy or sell electronically through those systems.
Transactions will only occur on days the New York Stock Exchange is open. The
Fund has no investment minimums, however, the financial institutions and
intermediaries that sell the Fund’s shares may have established minimum values
for the accounts that they handle.
Tax
Information: The
Fund’s distributions are taxable, and generally will be taxed as ordinary
income, capital gains, or some combination of both, unless you are investing
through a tax-advantaged arrangement, such as a 401(k) plan or an individual
retirement account. Withdrawals from such tax-advantaged arrangements may be
subject to tax.
Payments
to Broker-Dealers and Other Financial Intermediaries: If
you purchase Fund shares through a broker-dealer or other financial intermediary
(such as a bank), AssetMark and/or 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.
GUIDEPATH®
FLEXIBLE
INCOME ALLOCATION FUND
Investment
Objective
GuidePath®
Flexible Income Allocation Fund (the “Fund”) seeks to provide
current income while moderating risk and volatility in the
portfolio. As a
secondary objective, the Fund seeks capital
appreciation.
Fees and Expenses of the
Fund
The
following 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 example below:
|
|
|
|
| |
Shareholder
Fees
(fees paid directly from your investment) |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fees |
0.25% |
Distribution
and/or Service (12b-1) Fees |
None |
Other
Expenses |
0.46% |
Administrative
Service Fees |
0.25% |
All
Other Expenses |
0.21% |
Acquired
Fund Fees and Expenses(1) |
0.38% |
Total
Annual Fund Operating Expenses(2) |
1.09% |
(1)“Acquired
Fund Fees and Expenses” (“AFFE”) are indirect fees and expenses that the Fund
incurs from investing in the shares of other investment companies, including
money market funds and other mutual funds, closed end funds, business
development companies or certain exchange-traded
funds.
(2)Note that the amount of Total Annual Fund Operating Expenses
shown in the above table will differ from the Ratio of Expenses to Average Net
Assets included in the “Financial Highlights” section of the Prospectus which
reflects the operating expenses of the Fund and does not include indirect
expenses such as AFFE, but includes the expense reductions generated when the
Fund loaned its portfolio securities.
Example
The following Example is intended to help you compare the cost of
investing in Service Shares of the Fund with the cost of investing in other
mutual funds. The Example assumes that you invest $10,000 in Service Shares of
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. 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 |
$111 |
$347 |
$601 |
$1,329 |
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. The Fund does
not pay transaction costs when buying and selling shares of other mutual funds,
however, the underlying funds pay transaction costs when buying and selling
securities for their portfolio. 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
247.29% of the average
value of its portfolio.
Principal Investment
Strategies of the Fund
The
Fund operates as a fund of funds, investing primarily in registered mutual funds
(both actively and passively managed) and exchange-traded funds (“ETFs”). The
funds in which the Fund may invest are referred to herein as the “Underlying
Funds.” AssetMark, Inc. (“AssetMark” or the “Advisor”) believes that investing
in Underlying Funds provides the Fund with an efficient means of creating a
portfolio that provides investors with indirect exposure to a broad range of
fixed income and equity securities. By investing in the Fund, you will
indirectly bear fees and expenses of the Underlying Funds in addition to the
Fund’s direct fees and expenses. In order to obtain exposure to certain markets,
asset classes or active management styles, the Fund may buy Underlying Funds
managed by the Advisor or its affiliates, which, in turn, invest in various
securities, including ETFs. The Fund may also invest directly in securities and
other exchange-traded products, such as exchange-traded notes
(“ETNs”).
The
Advisor’s asset allocation decisions will be based on different factors and
analytical approaches, derived from volatility managed and income focused asset
allocation approaches developed by various research providers and considered by
the Advisor in constructing the Fund’s portfolio. The research providers’
volatility managed and income focused asset allocation approaches typically
utilize fundamental and quantitative analyses of global market and economic
conditions and assumptions regarding risks and returns. The Advisor seeks to
create a portfolio that is optimized to seek to achieve consistent returns over
time regardless of the market environment while also seeking to generate high
levels of income.
In
pursuing the Fund’s objective, the Fund invests, either directly or indirectly
via the Underlying Funds, in various types of domestic and international fixed
income securities, domestic and international equity securities (including
American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”))
and cash equivalent money market securities.
The
asset classes in which the Fund may invest, either directly or indirectly via
the Underlying Funds, include, but are not limited to, debt securities of
governments, government agencies and supranational entities, debt securities of
corporations, preferred stock, bank loans, convertible securities, mortgage- or
asset-backed securities, inflation-linked securities and other securitized or
collateralized debt obligations, higher-yielding bonds (sometimes referred to as
“junk bonds”), including emerging market debt, dividend-paying securities of
small- and large-capitalization companies, growth and value stocks, equity
securities from developed and emerging market countries, and both domestic and
international real estate securities. The Fund may also take positions in
various global currencies and may hold positions in instruments that are
denominated in currencies other than the U.S. dollar. It is possible that a
significant portion of the Fund’s assets may be invested, directly or
indirectly, in non-investment grade fixed income investments with varying
maturities.
The
Fund may allocate assets to passive index-oriented ETFs that provide exposure to
various fixed income and equity securities and sectors. Using this type of
strategy, the Fund seeks to tactically avoid risk by reducing exposure to
unattractive sectors at the appropriate times, while also increasing exposure to
attractive sectors on a timely basis. The Fund may also invest in inverse,
leveraged, and inverse-leveraged ETFs and ETNs. Inverse ETFs and ETNs are
designed to correlate inversely with the performance of an index. Leveraged and
inverse-leveraged ETFs and ETNs seek investment results that correspond to two
or more times the performance of an index or inverse of the performance of an
index, respectively.
The
Fund may utilize an asset allocation strategy that builds on a foundation of
alternative investments, such as long/short equity funds that seek a modest
positive return from equity investments, that attempts to stay insulated from
general stock market volatility, combined with opportunistic equity and fixed
income investments strategically selected to enhance returns. The Fund’s
alternative strategies may also include diversified risk premium strategies,
including market risk transfer strategies, alternative (marketplace) lending and
real estate, reinsurance and commodity-linked derivatives, including, but not
limited to, commodity futures contracts and bitcoin futures contracts and
options thereon.
The
Fund’s asset allocation mix among fixed income, equity and cash equivalent money
market securities is intended to change over time. The Fund does not have a set
target asset allocation mix. If the Advisor believes that market conditions are
unfavorable or overvalued, it may significantly increase the allocation to more
defensive asset classes. The Advisor also has broad latitude to allocate assets
to equity securities in pursuit of perceived opportunities for additional
return. Based on these judgments, the Fund’s asset allocation mix may
significantly change over time in response to opportunities as they are
identified.
The
Fund may invest in Underlying Funds that use derivatives for risk management
purposes or engage in significant use of derivatives as part of their investment
strategies. An Underlying Fund may use derivatives to earn income and enhance
returns, to manage or adjust the risk and duration exposure profile of the
Underlying Fund, to replace more traditional direct investments or to obtain
exposure to certain markets, interest rates, sectors or individual issuers. The
derivatives used by an Underlying Fund may allow the Underlying Fund to obtain
net long or net negative (short) exposures to selected interest rates,
countries, duration or credit risks. An Underlying Fund may also use derivatives
to hedge or gain exposure to currencies.
The
Fund lends its portfolio securities to seek to generate additional
income.
Principal Risks of Investing
in the Fund
The
risks associated with an investment in the Fund can increase during times of
significant market volatility. There is the risk that you could lose all or a
portion of the money you have invested in the Fund. The Fund is
subject to a number of risks either directly or indirectly through its
investments in Underlying Funds. For purposes of this section, the term “Fund”
should be read to mean the Fund and the Underlying Funds. The following risks
could affect the value of your investment in the Fund:
•Fund
of Funds Risk:
The Fund is subject to fund of funds risk, which means that the ability of the
Fund to meet its investment objective is directly related to the ability of the
Underlying Funds to meet their investment objectives. There can be no
assurance that either the Fund or the Underlying Funds will achieve their
investment objectives. Additionally, each Fund may invest in other investment
companies for which the Advisor or an affiliate serves as investment advisor
(i.e., affiliated Underlying Funds). Such investments in the Underlying Funds
could create a conflict of interest for the Advisor in managing the Fund’s
assets. By investing in the Fund, you will indirectly bear fees and expenses of
the Underlying Funds in addition to the Fund’s direct fees and
expenses.
•Management
Risk:
An investment or allocation strategy used by the Advisor may fail to produce the
intended results.
•Market
Risk:
The value of the Fund’s investments and the net asset values of the shares of
the Fund will fluctuate in response to various market and economic factors
related to the equity, fixed income and currency markets as well as the
financial condition and prospects of companies in which the Fund
invests.
•Value
Investment Risk:
The Fund’s investments in value-oriented securities may be out of favor and
potentially undervalued in the marketplace due to adverse business, industry or
other developments. The Fund’s investments in value-oriented securities may not
reach what the Fund’s Advisor believes are their full
value.
•Growth
Investment Risk: The Fund’s investments in growth-oriented securities may be
subject to greater price volatility and may be more sensitive to changes in the
issuer’s current or expected earnings than other equity
securities.
•Exchange-Traded
Funds Risk: An ETF may represent a portfolio of securities, or may use
derivatives in pursuit of its stated objective. The risks of owning an ETF
generally reflect the risks of owning the underlying securities held by the ETF,
although a lack of liquidity in an ETF could result in it being more volatile.
In addition, ETF shares may trade at a premium or discount relative to their net
asset value. ETFs have management fees and other expenses which the Fund will
indirectly bear.
•Foreign
Securities Risk:
The risks of investing in foreign securities (including ADRs and GDRs) can
increase the potential for losses in the Fund and may include currency
fluctuations, political and economic instability, less government regulation,
less publicly available information, limited trading markets, differences in
financial reporting standards, fewer protections for passive investors and less
stringent regulation of securities markets.
•Foreign
Exchange Trading Risk: The trading of foreign currencies directly generates risks separate
from those faced from the risks of inactive or indirect exposures to non-dollar
denominated instruments, insofar as the Fund may experience a loss from the
buying and selling of currencies without any related exposure to
non-dollar-denominated assets.
•Emerging
Markets Risk:
In addition to the risks generally associated with investing in foreign
securities described above, countries with emerging markets may also have
relatively unstable governments, fewer shareholder protections, and more limited
economies and securities markets. Additionally, trading in the currencies of
emerging market countries may face periods of limited liquidity or the political
risk of exchange controls or currency repatriation
restrictions.
•Interest
Rate Risk: The market value of fixed income securities will fluctuate with
changes in interest rates. For example, when interest rates rise, the market
value of fixed income securities declines. If the market value of the Fund’s
investments decreases, investors in the Fund may lose money. The Fund may face a
heightened level of interest rate risk due to changes in general economic
conditions, inflation and monetary policy, including interest rate changes by
the Federal Reserve.
•High-Yield
Debt Securities Risk: High-yield debt securities or “junk bonds” are debt securities rated
below investment grade by an NRSRO. Junk bonds are subject to greater credit
risk than higher-grade securities, have a greater risk of default and are
considered speculative. Issuers of junk bonds are more likely to experience
financial difficulties that may impair their ability to make principal and
interest payments.
•Mortgage-
and Asset-Backed Securities Risk: Mortgage- and asset-backed securities are subject to prepayment
risk, which is the risk that the borrower will prepay some or all of the
principal owed to the issuer. If that happens, the Fund may have to replace the
security by investing the proceeds in a less attractive
security.
•Alternative
Strategies Risk:
Certain Underlying Funds that use alternative investment strategies may be
subject to risks including, but not limited to, derivatives risk, liquidity
risk, credit risk and commodities risk. Certain alternative strategies involve
the risk that a counterparty to a transaction will not perform as promised,
which could result in losses to the Fund. Furthermore, alternative strategies
may employ leverage, involve extensive short positions and/or focus on narrow
segments of the market, which may magnify the overall risks and volatility
associated with such investments.
•Derivatives
Risk:
A derivative is an instrument with a value based on the performance of an
underlying currency, security, index or other reference asset. The use of
derivatives involves risks different from, or greater than, the risks associated
with investing in more traditional investments. Derivatives involve costs, may
create leverage, and may be illiquid, volatile, and difficult to value. The Fund
may not be able to close out or sell a derivative position at a particular time
or at an anticipated price. The use of derivatives could also result in a loss
if the counterparty to the transaction does not perform as promised, including
because of such counterparty’s bankruptcy or insolvency. The investment results
achieved by the use of derivatives by the Fund may not match or fully offset
changes in the value of the underlying currency, security, index or other
reference asset that it was attempting to hedge or the investment opportunity
the Fund was attempting to pursue. For example, with currency derivatives, there
may be an imperfect correlation between a Fund’s portfolio holdings of
securities denominated in a particular currency and the currencies underlying
the currency derivatives entered into by the Fund.
•Debt/Fixed
Income Securities Risk: An
increase in interest rates typically causes a fall in the value of the debt
securities in which the Fund may invest. Conversely, very low or negative
interest rates may heighten the Fund's susceptibility to interest rate risk and
diminish yield and performance.The value of your investment in the Fund may
change in response to changes in the credit ratings of the debt securities in
the Fund's portfolio. Moreover, rising interest rates or lack of market
participants may lead to decreased liquidity in the bond and loan markets,
making it more difficult for the Fund to sell its holdings at a time when the
Fund's manager might wish to sell. Lower rated securities ("junk bonds") are
generally subject to greater risk of loss of your money than higher rated
securities. Issuers may (increase) decrease prepayments of principal when
interest rates (fall) increase, affecting the maturity of the debt security and
causing the value of the security to decline. To the extent the Fund or an
Underlying Fund invests in derivatives tied to fixed income markets, the Fund or
Underlying Fund may be more substantially exposed to these risks than a fund
that does not invest in derivatives.
•Credit
Risk: Individual issues of fixed income securities may be subject to the
credit risk of the issuer. This means that the issuer of a fixed income
security, or in the case of a municipal security, the underlying municipality,
may experience financial problems, causing it to be unable to meet its payment
obligations.
•U.S.
Government Agency Obligations Risk:
Government agency obligations have different levels of credit support and,
therefore, different degrees of credit risk. Some securities issued by agencies
and instrumentalities of the U.S. Government are supported by the full faith and
credit of the United States, but others are neither insured nor guaranteed by
the U.S. Government. The U.S. Department of
the
Treasury has the authority to provide financial support to these debt
obligations, but no assurance can be given that the U.S. Government will do
so.
•Liquidity
Risk: Liquidity risk is the risk that certain investments may be
difficult or impossible to buy or sell at the time and price that a Fund would
like to buy or sell the security.
•Maturity
Risk:
The Fund may invest in fixed income securities with a range of maturities.
Generally, the longer a security’s maturity, the greater the risk that interest
rate fluctuations may adversely affect the value of the
security.
•Convertible
Securities Risk: The value of convertible securities tends to decline as interest
rates rise and, because of the conversion feature, tends to vary with
fluctuations in the market value of the underlying securities.
•Municipal
Securities Risk: The risk of a municipal security depends on the ability of the
issuer, or any entity providing a credit enhancement, to continue to meet its
obligations for the payment of interest and principal when
due.
•Loan
Risk:
Loans are subject to risk of loss as a result of borrower default, sensitivity
to interest rate and economic changes, valuation difficulties and potential
decreased liquidity to a greater extent than other types of investments. The
value of any collateral securing a loan may decline, be insufficient to meet the
borrower’s obligations, or be difficult or costly to liquidate. It may take
longer than 7 days for investments in loans to settle, which may adversely
affect an Underlying Fund’s ability to timely honor
redemptions.
•Leveraged
and Inverse ETF/ETN Risk:
Inverse ETFs/ETNs generally use derivatives and short sales that, in
combination, are designed to produce returns that move in the opposite direction
of the indices they track. To the extent the Fund invests in ETFs/ETNs that seek
to provide investment results that are the inverse of the performance of an
underlying index, the Fund will indirectly be subject to the risk that the
performance of such ETF/ETN will fall as the performance of that ETF or ETN’s
benchmark rises, a result that is the opposite from traditional mutual funds.
The Fund’s use of leveraged and inverse-leveraged ETFs and ETNs has the economic
effect of creating financial leverage. Financial leverage magnifies exposure to
the swings in prices of an asset class and results in increased volatility,
which means the Fund will have the potential for greater gains, as well as the
potential for greater losses, than if the Fund had not invested in these
instruments at all.
•Small
and Medium Capitalization Company Risk:
Small and medium capitalization companies often have narrower markets, fewer
products or services to offer and more limited managerial and financial
resources than do larger, more established companies. As a result, their
performance can be more volatile, and they face a greater risk of business
failure, which could increase the volatility and risk of loss of the Fund's
assets.
•Bitcoin
Investments Risk: Certain
Underlying Funds may invest in bitcoin, bitcoin futures contracts and options on
bitcoin futures contracts (or options on ETFs that invest in bitcoin or bitcoin
futures contracts). Bitcoin operates without central authority (such as a bank)
and is not backed by any government, corporation, or other entity. Bitcoin is
not generally accepted as legal tender. Regulation of bitcoin and other
cryptocurrencies is still developing. Federal, state and/or foreign governments
may restrict the development, use, or exchange of bitcoin. The market price of
bitcoin has historically been highly volatile. The price of bitcoin could fall
sharply (potentially to zero) for various reasons, including, but not limited
to, regulatory changes, issues impacting the bitcoin network, events involving
entities that facilitate transactions in bitcoin, or changes in user preferences
in favor of alternative cryptocurrencies. Furthermore, events that impact other
cryptocurrencies may lead to a decline in the value of bitcoin. Cryptocurrency
exchanges and other trading venues on which cryptocurrencies trade are
relatively new and, in most cases, largely unregulated. Accordingly,
cryptocurrency exchanges may be more exposed to fraud and failure than
established, regulated exchanges for securities, derivatives and other
currencies. Cryptocurrency exchanges are also subject to cyber security risks.
Cryptocurrency exchanges have experienced cyber security breaches in the past
and may be breached in the future, which could result in the theft and/or loss
of bitcoin and impact the value of bitcoin futures. Furthermore, cyber security
events, legal or regulatory actions, fraud, and technical glitches, may cause a
cryptocurrency exchange to shut down temporarily or permanently, which may also
affect the value of bitcoin and/or bitcoin
futures.
Shares
of ETFs that hold bitcoin and/or bitcoin futures may trade in the secondary
market at a premium to or discount from their NAVs, and an Underlying Fund may
purchase or sell shares of bitcoin futures ETFs at prices above or below such
NAVs. Because the market price of ETF shares depends in part on the demand in
the market for the shares, as well as on the value of the ETF’s component
assets, and because the market price of ETF shares is subject to tracking error,
the market price of a bitcoin futures ETF may be more volatile than the
underlying bitcoin futures contracts in which the bitcoin futures ETF invests.
In addition, an Underlying Fund may not be able to liquidate bitcoin futures ETF
holdings at the time or price desired, which may adversely impact the Underlying
Fund’s performance and in turn, the value of the Fund’s investment. Furthermore,
there may be times when the exchange halts trading in the shares of a bitcoin
futures ETF, in which case the Underlying Fund would be unable to sell them
until trading is resumed.
•Bitcoin
Market Volatility Risk:
Bitcoin has historically exhibited higher price volatility than more traditional
asset classes. For instance, the two largest historical drawdowns were during
the period from June 8, 2011 to November 18, 2011 and the period from December
17, 2017 to December 14, 2018, when bitcoin experienced a decline of roughly 93%
and 84%, respectively. The price of bitcoin and therefore the value of an
investment in the Underlying Fund may be negatively impacted by unfavorable
investor sentiment resulting from recent developments in the broader digital
asset industry, including the fallout from the recent insolvency proceedings of
digital asset market participants such as digital asset exchange FTX Trading
Ltd., et al. (and its affiliated hedge fund Alameda Research LLC), digital asset
hedge fund Three Arrows Capital and digital asset lenders Celsius Network LLC,
et al., Voyager Digital Ltd., et al. and BlockFi Inc. The value of bitcoin and,
therefore, of an Underlying Fund’s bitcoin strategy, could decline rapidly,
including to zero, which would adversely affect the Underlying Fund’s NAV per
share.
•Insurance-Linked
Securities Risk: The
principal risk of investments in insurance-linked securities is that a
triggering event (which could include a natural disaster like an earthquake or
tornado or a commercial or industrial accident like an aviation disaster or oil
spill) occurs, resulting an Underlying Fund losing all or a significant portion
of the principal it has invested in the security and the right to additional
interest payments with respect to the security. If multiple triggering events
occur that impact a significant portion of the portfolio of the Underlying Fund,
the Underlying Fund could suffer substantial losses and an investor will lose
money. Event-linked or catastrophe bonds carry large uncertainties and major
risk exposures to adverse conditions. Certain reinsurance investments may be
difficult to value. There is no way to accurately predict whether a triggering
event will occur and, because of this significant uncertainty, insurance-linked
securities carry a high degree of risk.
•Marketplace
Loan Risk:
Investments by Underlying Funds in loans sourced through marketplace lending
platforms are subject to additional risks than those applicable to investments
in loans generally. If a borrower is unable or fails to make payments on a loan
for any reason, an Underlying Fund may not have direct recourse against the
borrower or may be otherwise limited in its ability to directly enforce its
rights under the loan, whether through the borrower or the marketplace lending
platform through which the loan was originated. Borrowings obtained through
marketplace lending platforms may not limit borrowers from incurring additional
debt which may impair the borrower’s ability to repay interest and principal of
the original loan. Default history for alternative lending platforms is limited.
Future defaults may be higher than historical defaults and the timing of
defaults may vary significantly from historical observations. An Underlying Fund
may have limited knowledge about the underlying loans to which it has exposure
and is dependent upon the platform for information regarding the loans and
borrowers’ credit information. Such information may be incomplete, inaccurate or
outdated and may, therefore, not accurately reflect the borrowers’ actual
creditworthiness. Disruptions in the business of a platform may also negatively
impact the value of loans sourced through that platform. Investments in loans
sourced through a marketplace lending platform may also be negatively impacted
if the platform or a third-party service provider becomes unable or unwilling to
fulfill its obligations in servicing the loans.
•Subordinated
Real Estate Loan Risk:
An Underlying Fund may acquire or originate subordinated real estate loans
secured by single family rental properties, including mezzanine loans in the
form of subordinated loans secured by a pledge of the ownership interests of
either the entity owning such properties or the entity that owns the interest in
the entity owning such properties. In the event a borrower defaults on a
subordinated loan and lacks sufficient assets to satisfy such loan, the
Underlying Fund may suffer a loss of principal or interest. In the event a
borrower declares bankruptcy, the Underlying Fund may not have full recourse to
the assets of the borrower, or the assets of the borrower may not be sufficient
to satisfy the loan. If a borrower defaults on a loan owned by the Underlying
Fund or on debt senior to such loan, or in the event of a borrower bankruptcy,
such loan will be satisfied only after the senior debt is paid in full. These
types of investments may become unsecured as a result of foreclosure by the
senior lender.
•Real
Estate Risk:
The value of real estate-linked derivative instruments and other real
estate-related securities such as real estate investment trusts (“REITs”) may be
affected by risks similar to those associated with direct ownership of real
estate, in addition to the risks of poor performance by a REIT’s manager,
changes to tax laws, and failure by the REIT to qualify for favorable treatment.
To the extent the Fund invests in REITs, you will indirectly bear fees and
expenses of the underlying REITs in addition to the Fund’s direct fees and
expenses. REITs may have limited diversification and may not exhibit the same
(or any) correlation with inflation that real estate or other real estate
securities exhibit.
•Portfolio
Turnover Risk:
Depending on market and other conditions, the Fund may experience a high
portfolio turnover, which may result in higher brokerage costs and transaction
costs (which could reduce investment returns). Distributions of net short-term
capital gains are taxable as ordinary income when Fund shares are held in a
taxable account. A fund with a high portfolio turnover rate (a measure of how
frequently assets within a fund are bought and sold) is more likely to generate
short-term capital gains than a fund with a low portfolio turnover
rate.
•Securities
Lending Risk:
When the Fund lends its portfolio securities, the Fund is subject to the risk
that the borrower may fail to return the securities in a timely manner or at
all, resulting in a loss to the Fund and/or a delay in recovering the loaned
securities. The Fund could also lose money in connection with securities lending
transactions if it does not recover the loaned securities and/or the value of
the collateral falls, including the value of investments made with cash
collateral. Securities lending also may have certain adverse tax consequences.
The Fund is not obligated to engage in securities lending, and may discontinue
its securities lending activities at any time.
Performance
The bar chart and table that follow illustrate annual returns for
Service Shares of the Fund for the periods ended December
31. This information is intended to give you some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and how the Fund’s average annual returns over time compare
with those of a broad measure of market
performance. The Fund’s
past performance (before and after taxes) is not necessarily an indication of
how the Fund will perform in the future. The Fund changed its
investment strategy on January 19, 2016 and again on May 14, 2017. The
performance set forth below prior to such dates is attributable to the previous
investment strategies.
GUIDEPATH®
FLEXIBLE
INCOME ALLOCATION FUND – SERVICE SHARES
Calendar
Year Returns as of 12/31
The
year-to-date performance of the Fund’s
Service Shares as of June 30, 2024 was
0.85%.
During
the period shown on the bar chart, the Fund’s best and worst quarters are shown
below:
|
|
|
|
|
|
|
| |
Best
Quarter: |
Quarter
ended June 30,
2020 |
8.65 |
% |
Worst
Quarter: |
Quarter
ended June 30,
2022 |
-6.16 |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns for Periods Ended December 31,
2023 |
|
| |
| One
Year |
Five
Years |
Ten
Years |
Flexible
Income Allocation Fund – Service Shares |
|
| |
Return
Before Taxes |
7.11% |
2.71% |
2.31% |
Return
After Taxes on Distributions |
5.04% |
1.39% |
1.14% |
Return
After Taxes on Distributions and Sale of Fund
Shares |
4.20% |
1.55% |
1.29% |
Bloomberg
U.S. Aggregate Bond Index
(reflects no deduction for fees, expenses or
taxes) |
5.53% |
1.10% |
1.81% |
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 tax situation and may differ from those
shown. In addition, the after-tax returns shown are not relevant to
investors who hold their Fund shares through tax-advantaged arrangements such as
401(k) plans and individual retirement accounts because such accounts are only
subject to taxes upon withdrawal. 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. A higher after-tax return results when a capital loss occurs upon
redemption and provides an assumed tax deduction that benefits the
investor.
Investment
Advisor
AssetMark,
Inc. (“AssetMark” or the “Advisor”) is the investment advisor for the Fund.
Portfolio
Managers:
The Fund’s investment decisions are made by the following portfolio
managers:
|
|
|
|
|
|
|
| |
Portfolio
Manager |
Title |
Length
of Service to the Fund |
Selwyn
Crews |
Director,
Investment Strategies |
Since
Inception |
Christian
Chan |
Senior
Vice President, Chief Investment Officer |
Since
2022 |
Purchase
and Sale of Fund Shares: Financial
institutions and intermediaries on behalf of their clients may purchase or sell
shares through U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank
Global Fund Services, the Fund’s transfer agent (or its authorized agent).
Institutions and intermediaries that use certain proprietary systems of the
Advisor may place orders to buy or sell electronically through those systems.
Transactions will only occur on days the New York Stock Exchange is open. The
Fund has no investment minimums, however, the financial institutions and
intermediaries that sell the Fund’s shares may have established minimum values
for the accounts that they handle.
Tax
Information: The
Fund’s distributions are taxable, and generally will be taxed as ordinary
income, capital gains, or some combination of both, unless you are investing
through a tax-advantaged arrangement, such as a 401(k) plan or an individual
retirement account. Withdrawals from such tax-advantaged arrangements may be
subject to tax.
Payments
to Broker-Dealers and Other Financial Intermediaries: If
you purchase Fund shares through a broker-dealer or other financial intermediary
(such as a bank), AssetMark and/or 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.
GUIDEPATH®
MANAGED
FUTURES STRATEGY FUND
Investment
Objective
GuidePath®
Managed
Futures Strategy Fund (the “Fund”) seeks to generate a positive absolute return
over time.
Fees and Expenses of the
Fund
The
following 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 example below:
|
|
|
|
| |
Shareholder
Fees (fees
paid directly from your investment) |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fees |
1.05% |
Distribution
and/or Service (12b-1) Fees |
None |
Other
Expenses |
0.45% |
Administrative
Service Fees |
0.25% |
All
Other Expenses |
0.20% |
Acquired
Fund Fees and Expenses(1)
|
0.01% |
Total
Annual Fund Operating Expenses(2)
|
1.51% |
(1)
“Acquired
Fund Fees and Expenses” (“AFFE”) are indirect fees and expenses that the Fund
incurs from investing in the shares of other investment companies, including
money market funds and other mutual funds, closed end funds, business
development companies or certain exchange-traded funds.
(2)
Note that the amount of Total Annual Fund Operating Expenses
shown in the above table will differ from the Ratio of Expenses to Average Net
Assets included in the “Financial Highlights” section of the Prospectus which
reflects the operating expenses of the Fund and does not include indirect
expenses such as AFFE.
Example
The following Example is intended to help you compare the cost of
investing in Service Shares of the Fund with the cost of investing in other
mutual funds. The Example assumes that you invest $10,000 in Service Shares of
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. 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 |
$154 |
$477 |
$824 |
$1,802 |
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. The Fund does
not pay transaction costs when buying and selling shares of other mutual funds,
however, the underlying funds pay transaction costs when buying and selling
securities for their portfolio. 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
0% of the average
value of its portfolio. The portfolio turnover rate does not include purchases
and sales of securities or other instruments whose maturities or expiration
dates at the time of purchase were one year or less. If these were included, the
Fund’s portfolio turnover rate would be higher.
Principal Investment
Strategies of the Fund
Under
normal market conditions, the Fund seeks exposure to various asset classes,
which may vary significantly over time but is generally expected to include
exposure to equity markets, bond markets, interest rates, commodities, and
currencies. The sub-advisor uses proprietary quantitative models to identify
price trends in equity, fixed income, currency and commodity instruments across
time periods of various lengths. The sub-advisor believes that asset prices may
show persistent trading behavior due to a number of behavioral biases among
market participants as well as certain risk-management policies that will
identify assets to purchase in upward-trending markets and identify assets to
sell in downward-trending markets.
Although
the Fund seeks exposure across a variety of asset classes, it may emphasize one
or two of the asset classes or a limited number of exposures within an asset
class. There are no geographic limits on the asset class exposures and there is
great flexibility in looking for investments around the globe, including in
emerging markets. The Fund may have both “short” and “long”’ exposures within an
asset class based upon potential opportunities. A “short” exposure will benefit
when the underlying asset class decreases in price. A “long” exposure will
benefit when the underlying asset class increases in price.
The
Fund expects to pursue its investment strategies by making extensive use of a
variety of derivative instruments, including futures contracts, forward currency
contracts and swaps. A futures contract is a standard binding agreement to buy
or sell a specified quantity of an underlying reference asset, such as a
specific security, currency or commodity, at a specified price at a specified
later date. A forward currency contract involves an obligation to purchase or
sell a specific non-U.S. currency in exchange for another currency, which may be
U.S. dollars, at a future date, which may be any fixed number of days from the
date of the contract agreed upon by the parties, at a price set at
the
time of the contract. Generally, swap agreements are contracts between the Fund
and another party (the swap counterparty) involving the exchange of payments on
specified terms over periods ranging from a few days to multiple years.
The
Fund may also invest in exchange-traded funds (“ETFs”) or exchange-traded notes
(“ETNs”) through which the Fund can participate in the performance of one or
more asset classes.
In
connection with the Fund’s managed futures strategy, the Fund’s portfolio may be
concentrated in the financial services industry, which means the Fund may invest
more than 25% of its total assets in securities and other obligations (for
example, bank certificates of deposit, repurchase agreements and time deposits)
of issuers in such industry. A significant portion of the assets
of the Fund may be invested directly or indirectly in money market instruments,
which may include, but are not limited to, U.S. Government securities, U.S.
government agency securities, short-term fixed income securities, overnight
and/or fixed term repurchase agreements, money market mutual fund shares, and
cash and cash equivalents with one year or less term to maturity. These cash or
cash equivalent holdings serve as collateral for certain of the Fund’s
derivatives positions.
As
a result of the Fund’s use of derivatives, the Fund may have highly leveraged
exposure to one or more asset classes at times. The Investment Company Act of
1940, as amended (the “1940 Act”) and the rules and interpretations thereunder
impose certain limitations on the Fund’s ability to use leverage; however, the
Fund is not subject to any additional limitations on its net long and short
exposures. For example, the Fund, on average, could hold instruments that
provide three to four times the net return (positive or negative) of an
unleveraged investment in the equities, bonds, interest rates, commodities, or
currencies underlying such instruments. When taking into account derivative
instruments and instruments with a maturity of one year or less at the time of
acquisition, the Fund’s strategy will result in frequent portfolio trading and
high portfolio turnover (typically greater than 300% per year). The Advisor
expects the Fund’s net asset value over short term periods to be volatile
because of the significant use of instruments that have a leveraging effect.
Volatility is a statistical measurement of the dispersion of returns of a
security or fund or index, as measured by the annualized standard deviation of
its returns. Higher volatility generally indicates higher risk. The Fund lends
its portfolio securities to seek to generate additional income.
Although
the Fund does not intend to invest in physical commodities directly, the Fund
expects to obtain investment exposure to commodities and commodity related
derivatives by investing in a wholly-owned subsidiary organized under the laws
of the Cayman Islands that will make commodity-related investments (the
“Subsidiary”). Through the Subsidiary, the Fund may invest in “commodity-linked”
or “commodity index-linked” investments such as commodity futures contracts and
commodity swap agreements.
Principal Risks of Investing
in the Fund
The
risks associated with an investment in the Fund can increase during times of
significant market volatility. There is the risk that you could lose all or a
portion of the money you have invested in the Fund. Each risk
summarized below is considered a "principal risk" of investing in the Fund,
regardless of the order in which it appears. Different risks may be more
significant at different times depending on market conditions or other factors.
The following risks could affect the value of your investment in the
Fund:
•Alternative
Strategies Risk:
Certain Underlying Funds that use alternative investment strategies may be
subject to risks including, but not limited to, derivatives risk, liquidity
risk, credit risk and commodities risk. Certain alternative strategies involve
the risk that a counterparty to a transaction will not perform as promised,
which could result in losses to the Fund. Furthermore, alternative strategies
may employ leverage, involve extensive short positions and/or focus on narrow
segments of the market, which may magnify the overall risks and volatility
associated with such investments.
•Focus
Risk: To
the extent the Fund concentrates its investments in securities and other
obligations of issuers in the financial services industry, the Fund is
particularly vulnerable to events affecting companies in such industry. Examples
of risks affecting the financial services industry include changes in
governmental regulation, issues relating to the availability and cost of
capital, changes in interest rates and/or monetary policy and price competition.
In addition, financial services companies are often more highly leveraged than
other companies, making them inherently riskier.
•Commodities
Risk:
The Fund’s investment in commodity-linked investments and other
commodity/natural resource-related securities may subject the Fund to greater
volatility than investments in traditional securities. Commodity-linked
investments may have a substantial risk of loss with respect to both principal
and interest, and their returns may deviate significantly from the return of the
underlying commodity, instruments, or measures. The ability of the Fund to
invest in commodity-linked investments without exposing the Fund to Fund-level
tax is limited under the Internal Revenue Code of 1986, as
amended.
•Debt/Fixed
Income Securities Risk: An
increase in interest rates typically causes a fall in the value of the debt
securities in which the Fund may invest. Conversely, very low or negative
interest rates may heighten the Fund's susceptibility to interest rate risk and
diminish yield and performance.The value of your investment in the Fund may
change in response to changes in the credit ratings of the debt securities in
the Fund's portfolio. Moreover, rising interest rates or lack of market
participants may lead to decreased liquidity in the bond and loan markets,
making it more difficult for the Fund to sell its holdings at a time when the
Fund's manager might wish to sell. Lower rated securities ("junk bonds") are
generally subject to greater risk of loss of your money than higher rated
securities. Issuers may (increase) decrease prepayments of principal when
interest rates (fall) increase, affecting the maturity of the debt security and
causing the value of the security to decline. To the extent the Fund or an
Underlying Fund invests in derivatives tied to fixed income markets, the Fund or
Underlying Fund may be more substantially exposed to these risks than a fund
that does not invest in derivatives.
•Convertible
Securities Risk: The value of convertible securities tends to decline as interest
rates rise and, because of the conversion feature, tends to vary with
fluctuations in the market value of the underlying securities.
•Credit
Risk: Individual issues of fixed income securities may be subject to the
credit risk of the issuer. The issuer of a fixed income security may experience
financial problems, causing it to be unable to meet its payment
obligations.
•Derivatives
Risk:
A derivative is an instrument with a value based on the performance of an
underlying currency, security, index or other reference asset. The use of
derivatives involves risks different from, or greater than, the risks associated
with investing in more traditional investments. Derivatives involve costs, may
create leverage, and may be illiquid, volatile, and difficult to value. The Fund
may not be able to close out or sell a derivative position at a particular time
or at an anticipated price. The use of derivatives could also result in a loss
if the counterparty to the transaction does not perform as promised, including
because of such counterparty’s bankruptcy or insolvency. The investment results
achieved by the use of derivatives by the Fund may not match or fully offset
changes in the value of the underlying currency, security, index or other
reference asset that it was attempting to hedge or the investment opportunity
the Fund was attempting to pursue.
•Leverage
Risk: The Fund’s use of derivatives such as futures contracts, forward
contracts and swaps has the economic effect of creating financial leverage.
Financial leverage magnifies exposure to the swings in prices of an asset class
underlying a derivatives instrument and results in increased volatility, which
means the Fund will have the potential for greater gains, as well as the
potential for greater losses, than if the Fund had not invested in derivatives
at all.
•Emerging
Markets Risk:
In addition to the risks generally associated with investing in foreign
securities described below, countries with emerging markets may also have
relatively unstable governments, fewer shareholder protections, and more limited
economies and securities markets.
•Equity
Risk:
Common stocks are susceptible to general stock market fluctuations and to
volatile increases and decreases in value. The stock market may experience
declines or stocks in the Fund’s portfolio may not increase their earnings at
the rate anticipated. The Fund’s NAV and investment return will fluctuate based
upon changes in the value of its portfolio
securities.
•Exchange-Traded
Funds Risk: An ETF may represent a portfolio of securities, or may use
derivatives in pursuit of its stated objective. The risks of owning an ETF
generally reflect the risks of owning the underlying securities held by the ETF,
although a lack of liquidity in an ETF could result in it being more volatile.
In addition, ETF shares may trade at a premium or discount relative to their net
asset value. ETFs have management fees and other expenses which the Fund will
indirectly bear.
•Foreign
Exchange Trading Risk: The trading of foreign currencies directly generates risks
separate from those faced from the risks of inactive or indirect exposures to
non-dollar denominated instruments, insofar as the Fund may experience a loss
from the buying and selling of currencies without any related exposure to
non-dollar-denominated assets.
•Foreign
Securities Risk: The
risks of investing in foreign securities (including ADRs and GDRs) can increase
the potential for losses in the Fund and may include currency fluctuations,
political and economic instability, less government regulation, less publicly
available information, limited trading markets, differences in financial
reporting standards, fewer protections for passive investors and less stringent
regulation of securities markets.
•Interest
Rate Risk: The market value of fixed income securities will fluctuate with
changes in interest rates. For example, when interest rates rise, the market
value of fixed income securities declines. If the market value of the Fund’s
investments decreases, investors in the Fund may lose money. The Fund may face a
heightened level of interest rate risk due to changes in general economic
conditions, inflation and monetary policy, including interest rate changes by
the Federal Reserve.
•U.S.
Government Agency Obligations Risk: Government
agency obligations have different levels of credit support and, therefore,
different degrees of credit risk. Some securities issued by agencies and
instrumentalities of the U.S. Government are supported by the full faith and
credit of the United States, but others are neither insured nor guaranteed by
the U.S. Government. The U.S. Department of the Treasury has the authority to
provide financial support to these debt obligations, but no assurance can be
given that the U.S. Government will do so.
•Variable
Rate Securities Risk:
Changes in interest rates on variable rate securities may lag behind changes in
market rates, causing the value of such securities to decline during periods of
rising interest rates until their interest rates reset to market rates. During
periods of declining interest rates, interest rates on variable rate securities
generally reset downward, and their market value is unlikely to rise to the same
extent as the value of comparable fixed rate securities. Newly originated
variable rate securities (including reissuances and restructured loans) may
possess lower levels of credit document protections than has historically been
the case. Accordingly, in the event of default the Fund may experience lower
levels of recoveries than has historically been the
norm.
•Liquidity
Risk: Liquidity risk is the risk that certain investments may be difficult
or impossible to buy or sell at the time and price that a Fund would like to buy
or sell the security.
•Management
Risk: An
investment or allocation strategy used by the Advisor or the sub-advisor may
fail to produce the intended results.
•Market
Risk: The value of the Fund’s investments and the net asset values of the
shares of the Fund will fluctuate in response to various market and economic
factors related to the equity, fixed income and currency markets as well as the
financial condition and prospects of companies in which the Fund
invests.
•Short
Position Risk:
The Fund may engage in short position derivative activities. Short position
derivatives are speculative and more risky than "long" positions (purchases)
because the cost of the replacement security or derivative is unknown. You
should be aware that any strategy that includes selling securities short could
suffer significant losses. Shorting will also result in higher transaction costs
(such as interest and dividends), which reduce the Fund’s return, and may result
in higher taxes.
•Securities
Lending Risk: When
the Fund lends its portfolio securities, the Fund is subject to the risk that
the borrower may fail to return the securities in a timely manner or at all,
resulting in a loss to the Fund and/or a delay in recovering the loaned
securities. The Fund could also lose money in connection with securities lending
transactions if it does not recover the loaned securities and/or the value of
the collateral falls, including the value of investments made with cash
collateral. Securities lending also may have certain adverse tax consequences.
The Fund is not obligated to engage in securities lending, and may discontinue
its securities lending activities at any time.
•Valuation
Risk: The
Fund is subject to the risk that it has valued certain securities at a higher
price than the price at which they can be sold. The risk may be especially
pronounced for investments, such as derivatives, that may be classified as
illiquid or may become classified as illiquid.
•Wholly-Owned
Subsidiary Risk: The Subsidiary will not be subject to all of the investor
protections of the 1940 Act. Changes in the laws of the United States and/or the
Cayman Islands could affect the ability of the Fund and/or Subsidiary to operate
as described herein and could negatively affect the Fund and its shareholders.
By investing in the Fund, you indirectly bear the expenses of the Subsidiary.
Gains or losses from trading in commodity-linked derivatives, such as those held
by the Subsidiary, may be taxed, in part, as long term capital gains or losses
and, in part, as short term capital gains or losses. However, because the
Subsidiary is a controlled foreign corporation, any income received from its
investments will be passed through to the Fund as ordinary income and taxed to
Fund shareholders as such.
•Tax
Risk – Investment in Commodities: The
tax treatment of commodity-linked derivative instruments may be adversely
affected by changes in legislation, regulations or other legally binding
authority. If, as a result of any such adverse action, the income of the Fund
from certain commodity-linked derivatives or the Subsidiary was treated as
non-qualifying income for purposes of the Fund’s qualification as a regulated
investment company, the Fund might fail to qualify as such and be subject to
federal income tax at the Fund level.
Performance
The bar chart and table that follow illustrate annual returns for
the Service Shares of the Fund for the periods ended December 31. This information is intended to give you some indication of
the risks of investing in the Fund by showing changes in the Fund's performance
from year to year and how the Fund’s average annual returns over time compare
with those of a broad measure of market performance and an additional index with
characteristics relevant to the Fund's
investments. The Fund’s
past performance (before and after taxes) is not necessarily an indication of
how the Fund will perform in the future.
GUIDEPATH®
MANAGED
FUTURES STRATEGY FUND – SERVICE SHARES
Calendar Year Returns as of 12/31
The
year-to-date performance of the Fund’s
Service Shares as of June 30, 2024 was
6.19%.
During
the period shown on the bar chart, the Fund’s best and worst quarters are shown
below:
|
|
|
|
|
|
|
| |
Best
Quarter: |
Quarter
ended March 31,
2022 |
18.18 |
% |
Worst
Quarter: |
Quarter
ended March 31,
2023 |
-8.98 |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns for Periods Ended December 31,
2023 |
|
| |
| One
Year |
Five
Years |
Since
Inception
(January 19,
2016) |
Managed
Futures Strategy Fund – Service Shares |
|
| |
Return
Before Taxes |
-10.08% |
9.33% |
2.70% |
Return
After Taxes on Distributions |
-10.12% |
6.53% |
0.98% |
Return
After Taxes on Distributions and Sale of Fund
Shares |
-5.97% |
6.46% |
1.55% |
FTSE
3-Month Treasury Bill Index
(reflects no deduction for fees, expenses or
taxes) |
5.26% |
1.91% |
1.57% |
SG Trend Index
(reflects no deduction for fees, expenses or
taxes)
|
-4.17% |
9.10% |
3.28% |
FT
Wilshire 5000 Index (1)
(reflects no deduction for fees, expenses or
taxes)
|
26.10% |
15.40% |
14.35% |
(1)
Effective
July 31, 2024, the Fund added this broad-based securities market index intended
to reflect the overall applicable securities
market.
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 tax situation and may differ from those
shown. In addition, the after-tax returns shown are not relevant to
investors who hold their Fund shares through tax-advantaged arrangements such as
401(k) plans and individual retirement accounts because such accounts are only
subject to taxes upon withdrawal. 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. A higher after-tax return results when a capital loss occurs upon
redemption and provides an assumed tax deduction that benefits the
investor.
Investment
Advisor and Sub-Advisor
AssetMark,
Inc. (“AssetMark” or the “Advisor”) is the investment advisor for the Fund.
AlphaSimplex Group, LLC (“AlphaSimplex”) is the sub-advisor for the Fund.
Portfolio
Managers:
The Fund’s investment decisions are made by the following portfolio
managers:
|
|
|
|
|
|
|
| |
Portfolio
Manager |
Position
with AlphaSimplex |
Length
of Service to the Fund |
Robert
S. Rickard |
Portfolio
Manager |
Since
Inception |
Alexander
D. Healy, Ph.D. |
Chief
Investment Officer, Portfolio Manager |
Since
Inception |
John
C. Perry, Ph.D. |
Senior
Research Scientist, Portfolio Manager |
Since
2017 |
Philippe
P. Lüdi, Ph.D., CFA |
Senior
Research Scientist, Portfolio Manager |
Since
Inception |
Kathryn
M. Kaminski, Ph.D., CAIA |
Chief
Research Strategist, Portfolio Manager |
Since
2018 |
Purchase
and Sale of Fund Shares: Financial
institutions and intermediaries on behalf of their clients may purchase or sell
shares through U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank
Global Fund Services, the Fund’s transfer agent (or its authorized agent).
Institutions and intermediaries that use certain proprietary systems of the
Advisor may place orders to buy or sell electronically through those systems.
Transactions will only occur on days the New York Stock Exchange is open. The
Fund has no investment minimums, however, the financial institutions and
intermediaries that sell the Fund’s shares may have established minimum values
for the accounts that they handle.
Tax
Information: The
Fund’s distributions are taxable, and generally will be taxed as ordinary
income, capital gains, or some combination of both, unless you are investing
through a tax-advantaged arrangement, such as a 401(k) plan or an individual
retirement account. Withdrawals from such tax-advantaged arrangements may be
subject to tax.
Payments
to Broker-Dealers and Other Financial Intermediaries: If
you purchase Fund shares through a broker-dealer or other financial intermediary
(such as a bank), AssetMark and/or 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.
GUIDEPATH®
CONSERVATIVE
INCOME FUND
Investment
Objective
GuidePath®
Conservative Income Fund (the “Fund”) seeks to
generate current income. As a
secondary objective, the Fund seeks capital
preservation.
Fees and Expenses of the
Fund
The
following 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 example below:
|
|
|
|
| |
Shareholder
Fees
(fees paid directly from your investment) |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fees |
0.35% |
Distribution
and/or Service (12b-1) Fees |
None |
Other
Expenses |
0.57% |
Administrative
Service Fees |
0.25% |
All
Other Expenses |
0.32% |
Acquired
Fund Fees and Expenses(1) |
0.14% |
Total
Annual Fund Operating Expenses(2) |
1.06% |
Fee
Waiver and/or Expense Assumption(3) |
-0.12% |
Total
Annual Fund Operating Expenses (After Fee Waiver and/or Expense
Assumption)(2)(3) |
0.94% |
(1)"Acquired
Fund Fees and Expenses" (“AFFE”) are indirect fees and expenses that the Fund
incurs from investing in the shares of other investment companies, including
money market funds and other mutual funds, closed end funds, business
development companies or certain exchange-traded funds.
(2)Note that the amount of Total Annual Fund Operating Expenses
shown in the above table will differ from the Ratio of Expenses to Average Net
Assets included in the “Financial Highlights” section of the Prospectus which
reflects the operating expenses of the Fund and does not include indirect
expenses such as AFFE, but includes the expense reductions generated when the
Fund loaned its portfolio securities.
(3)AssetMark,
Inc. (“AssetMark” or the “Advisor”) has contractually agreed through
July 31, 2025 to waive its advisory fees
and/or assume expenses otherwise payable by the Fund to the extent necessary to
ensure that Total Annual Fund Operating Expenses (excluding taxes, interest,
trading costs, AFFE, expenses paid with securities lending expense offset
credits and non-routine expenses) do not exceed 0.64% of average daily net
assets. This expense limitation agreement may not be terminated prior to July
31, 2025 unless the Board of Trustees consents to an earlier revision or
termination. Under the expense limitation agreement, AssetMark may recoup waived
fees and expenses borne for a three-year period under specified conditions. No
recoupment will be paid to AssetMark if the Fund’s current Total Annual Fund
Operating Expenses exceed the expense limitation in effect at the time fees were
waived or expenses were reimbursed.
Example
The following Example is intended to help you compare the cost of
investing in Shares of the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in Shares of 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 Example reflects
adjustments made to the Fund’s operating expenses due to the fee waiver and/or
expense assumption by the Advisor for the 1-year number 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 |
$96 |
$325 |
$573 |
$1,283 |
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. The Fund does
not pay transaction costs when buying and selling shares of other mutual funds,
however, the underlying funds pay transaction costs when buying and selling
securities for their portfolio. 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
258.88% of the average
value of its portfolio.
Principal Investment
Strategies of the Fund
The
Fund invests primarily in a portfolio of actively and passively managed
registered mutual funds and exchange-traded funds (“ETFs”), in addition to
direct investments. The funds in which the Fund may invest are referred to
herein as the “Underlying Funds.” AssetMark, Inc. (“AssetMark” or the “Advisor”)
believes that investing in Underlying Funds provides the Fund with an efficient
means of creating a portfolio that provides investors with indirect exposure to
a broad range of investments. By investing in the Fund, you will indirectly bear
fees and expenses of the Underlying Funds in addition to the Fund’s direct fees
and expenses. In order to obtain exposure to certain markets, asset classes or
active management styles, the Fund may buy Underlying Funds managed by the
Advisor or its affiliates, which, in turn, invest in
various
securities, including ETFs. The Fund may also invest directly in securities and
other exchange-traded products, such as exchange-traded notes
(“ETNs”).
Under
normal circumstances, the Fund will make investments in fixed income securities,
including cash equivalents, that primarily have a maturity that is between 0 and
5 years. The asset classes in which the Fund may invest, either directly or
indirectly via the Underlying Funds, include, but are not limited to, debt
securities of governments, government agencies and supranational entities, debt
securities of corporations, preferred stock, bank loans, convertible securities,
mortgage- or asset-backed securities, inflation-linked securities and other
securitized or collateralized debt obligations and higher-yielding bonds
(sometimes referred to as “junk bonds”), including emerging market debt. The
Fund may also take positions in various global currencies and may hold positions
in instruments that are denominated in currencies other than the U.S. dollar. In
pursuit of the Fund’s secondary investment objective of capital preservation,
the Fund expects under normal circumstances to invest a significant portion of
its assets in cash and cash equivalents, including by investing approximately
25% to 50% of the Fund’s total assets in money market funds.
In
selecting debt securities for the Fund, the Advisor develops an outlook for
credit markets, interest rates, currency exchange rates and the economy,
analyzes individual credit and prepayment risks, and uses other security
selection techniques. The proportion of the Fund’s assets committed to
investment in securities with particular characteristics (such as quality,
sector, interest rate or maturity) varies based on the Advisor’s outlook for the
U.S. economy and the economies of other countries in the world, the financial
markets and other factors.
The
Fund may shift its investments from one asset class to another based on the
Advisor’s analysis of the best opportunities for the Fund’s portfolio in a given
market. The Fund may invest up to 20% of its total assets in bonds rated
below investment grade. The Fund may invest up to 20% of its total assets
in securities denominated in foreign currencies and may invest without limit in
U.S. dollar-denominated securities of foreign issuers.
The
Fund’s asset allocation mix may change periodically over time. The Fund does not
have a set target asset allocation mix. If the Advisor believes that market
conditions are unfavorable or overvalued, it may significantly increase the
allocation to more defensive asset classes. Based on these judgments, the Fund’s
asset allocation mix may significantly change over time in response to
opportunities as they are identified. In certain circumstances the Fund may be
fully invested in cash equivalents securities for an extended period of
time.
The
Fund may invest in Underlying Funds that use derivatives for risk management
purposes or as part of their investment strategies. An Underlying Fund may use
derivatives to earn income and enhance returns, to manage or adjust the risk and
duration exposure profile of the Underlying Fund, to replace more traditional
direct investments or to obtain exposure to certain markets, interest rates,
sectors or individual issuers. The derivatives used by an Underlying Fund may
allow the Underlying Fund to obtain net long or net negative (short) exposures
to selected interest rates, countries, duration or credit risks. An Underlying
Fund may also use derivatives to hedge or gain exposure to
currencies.
The
Fund lends its portfolio securities to seek to generate additional
income.
Principal Risks of Investing
in the Fund
The
risks associated with an investment in the Fund can increase during times of
significant market volatility. There is the risk that you could lose all or a
portion of the money you have invested in the Fund. The Fund is
subject to a number of risks either directly or indirectly through its
investments in Underlying Funds. For purposes of this section, the term “Fund”
should be read to mean the Fund and the Underlying Funds. The following risks
could affect the value of your investment in the Fund:
•Management
Risk:
An investment or allocation strategy used by the Advisor may fail to produce the
intended results.
•Market
Risk:
The value of the Fund’s investments and the net asset values of the shares of
the Fund will fluctuate in response to various market and economic factors
related to the equity, fixed income and currency markets as well as the
financial condition and prospects of companies in which the Fund
invests.
•Fund
of Funds Risk: The Fund is subject to fund of funds risk, which means that the
ability of the Fund to meet its investment objective is directly related to the
ability of the Underlying Funds to meet their investment
objectives. There can be no assurance that either the Fund or the
Underlying Funds will achieve their investment objectives. Additionally, the
Fund may invest in other investment companies for which the Advisor or an
affiliate serves as investment advisor (i.e., affiliated Underlying Funds). Such
investments in the Underlying Funds could create a conflict of interest for the
Advisor in managing the Fund’s assets. By investing in the Fund, you will
indirectly bear fees and expenses of the Underlying Funds in addition to the
Fund’s direct fees and expenses.
•Money
Market Funds Risk. Although
money market funds generally seek to preserve the value of an investment at
$1.00 per share, the Fund may lose money by investing in money market funds. A
money market fund’s sponsor has no legal obligation to provide financial support
to the money market fund. The credit quality of a money market fund’s holdings
can change rapidly in certain markets, and the default of a single holding could
have an adverse impact on the money market fund's share price. A money market
fund’s share price can also be negatively affected during periods of high
redemption pressures, illiquid markets and/or significant market
volatility.
•Exchange-Traded
Funds Risk: An ETF may represent a portfolio of securities, or may use
derivatives in pursuit of its stated objective. The risks of owning an ETF
generally reflect the risks of owning the underlying securities held by the ETF,
although a lack of liquidity in an ETF could result in it being more volatile.
In addition, ETF shares may trade at a premium or discount relative to their net
asset value. ETFs have management fees and other expenses which the Fund will
indirectly bear.
•Exchange-Traded
Notes Risk:
ETNs are debt securities that are traded on an exchange (e.g., the New York
Stock Exchange) whose returns are linked to the performance of a particular
market benchmark or strategy. An ETN generally reflects the risks associated
with
the
assets composing the underlying market benchmark or strategy it is designed to
track. ETNs also are subject to issuer and fixed-income
risks.
•Debt/Fixed
Income Securities Risk: An
increase in interest rates typically causes a fall in the value of the debt
securities in which the Fund may invest. Conversely, very low or negative
interest rates may heighten the Fund's susceptibility to interest rate risk and
diminish yield and performance.The value of your investment in the Fund may
change in response to changes in the credit ratings of the debt securities in
the Fund's portfolio. Moreover, rising interest rates or lack of market
participants may lead to decreased liquidity in the bond and loan markets,
making it more difficult for the Fund to sell its holdings at a time when the
Fund's manager might wish to sell. Lower rated securities ("junk bonds") are
generally subject to greater risk of loss of your money than higher rated
securities. Issuers may (increase) decrease prepayments of principal when
interest rates (fall) increase, affecting the maturity of the debt security and
causing the value of the security to decline. To the extent the Fund or an
Underlying Fund invests in derivatives tied to fixed income markets, the Fund or
Underlying Fund may be more substantially exposed to these risks than a fund
that does not invest in derivatives.
•Interest
Rate Risk:
The market value of fixed income securities will fluctuate with changes in
interest rates. For example, when interest rates rise, the market value of fixed
income securities declines. If the market value of the Fund’s investments
decreases, investors in the Fund may lose money. The Fund may face a heightened
level of interest rate risk due to changes in general economic conditions,
inflation and monetary policy, including interest rate changes by the Federal
Reserve.
•Credit
Risk: Individual issues of fixed income securities may be subject to the
credit risk of the issuer. This means that the issuer of a fixed income
security, or in the case of a municipal security, the underlying municipality,
may experience financial problems, causing it to be unable to meet its payment
obligations.
•High-Yield
Debt Securities Risk: High-yield debt securities or “junk bonds” are debt securities rated
below investment grade by a nationally recognized statistical rating
organizations (“NRSRO”). Junk bonds are subject to greater credit risk than
higher-grade securities, have a greater risk of default and are considered
speculative. Issuers of junk bonds are more likely to experience financial
difficulties that may impair their ability to make principal and interest
payments.
•U.S.
Government Agency Obligations Risk:
Government agency obligations have different levels of credit support and,
therefore, different degrees of credit risk. Some securities issued by agencies
and instrumentalities of the U.S. Government are supported by the full faith and
credit of the United States, but others are neither insured nor guaranteed by
the U.S. Government. For example, Connecticut Avenue Securities issued by the
Federal National Mortgage Association and Structured Agency Credit Risk debt
notes issued by the Federal Home Loan Mortgage Association carry no guarantee
whatsoever and the risk of default associated with these securities would be
borne by the Fund. The U.S. Department of the Treasury has the authority to
provide financial support to these debt obligations, but no assurance can be
given that the U.S. Government will do so.
•Non-U.S.
Government Obligations Risk:
For non-U.S. government obligations, there is the risk that payments on a
security will not be made when due, or the value of such security will decline,
because the security is not issued or guaranteed as to principal or interest by
the U.S. government or by agencies or authorities controlled or supervised by
and acting as instrumentalities of the U.S. government or supported by the right
of the issuer to borrow from the U.S. government.
•Foreign
Securities Risk:
The risks of investing in foreign securities can increase the potential for
losses in the Fund and may include currency fluctuations, political and economic
instability, less government regulation, less publicly available information,
limited trading markets, differences in financial reporting standards, fewer
protections for passive investors and less stringent regulation of securities
markets.
•Foreign
Exchange Trading Risk: The trading of foreign currencies directly generates risks separate
from those faced from the risks of inactive or indirect exposures to non-dollar
denominated instruments, insofar as the Fund may experience a loss from the
buying and selling of currencies without any related exposure to
non-dollar-denominated assets.
•Emerging
Markets Risk:
In addition to the risks generally associated with investing in foreign
securities described above, countries with emerging markets may also have
relatively unstable governments, fewer shareholder protections, and more limited
economies and securities markets. Additionally, trading in the currencies of
emerging market countries may face periods of limited liquidity or the political
risk of exchange controls or currency repatriation
restrictions.
•Collateralized
Debt Obligations Risk: Collateralized
debt obligations (“CDOs”) are subject to the following risks: (i) the
possibility that distributions from collateral securities will not be adequate
to make interest or other payments; (ii) the quality of the collateral may
decline in value or quality or go into default or be downgraded; (iii) a Fund
may invest in tranches of a CDO that are subordinate to other classes; and (iv)
the risk of disputes with the issuer, difficulty in valuing the security or
unexpected investment results.
•Preferred
Stock Risk: A
preferred stock may decline in price, or fail to pay dividends when expected,
because the issuer experiences a decline in its financial status. Preferred
stocks often behave like debt securities, but have a lower payment priority than
the issuer’s bonds or other debt securities. Therefore, they may be subject to
greater credit risk than those of debt securities. Preferred stocks also may be
significantly less liquid than many other securities, such as corporate debt or
common stock.
•Convertible
Securities Risk:
The value of convertible securities may fall when interest rates rise and
increase when interest rates fall. The prices of convertible securities with
longer maturities tend to be more volatile than those with shorter maturities.
Value also tends to change whenever the market value of the underlying common or
preferred stock fluctuates. The Fund could lose money if the issuer of a
convertible security is unable to meet its financial
obligations.
•Mortgage-
and Asset-Backed Securities Risk:
Payments on mortgage- and asset-backed securities depend upon assets held by the
issuer and collections on the underlying mortgages or loans. Issuers of
asset-backed securities may have limited ability to enforce the security
interest in the underlying assets, and credit enhancements provided to support
the securities, if any, may be inadequate to protect investors in the event of
default. Mortgage- and asset-backed securities are also subject to prepayment
risk, which is the risk that the borrower will prepay some or all of the
principal owed to the issuer. If that happens, a Fund may have to replace the
security by investing the proceeds in a less attractive security. In certain
market conditions, asset-backed securities may experience volatile fluctuations
in value and periods of illiquidity.
•Extension
Risk:
As interest rates rise, repayments of principal on certain debt securities,
including, but not limited to, floating rate loans and mortgage-related
securities, may occur at a slower rate than expected and the expected maturity
of those securities could lengthen as a result. Securities that are subject to
extension risk generally have a greater potential for loss when prevailing
interest rates rise, which could cause their values to fall sharply.
Interest-only and principal-only securities are especially sensitive to interest
rate changes, which can affect not only their prices but can also change the
income flows and repayment assumptions about those
investments.
•Inflation-Linked
Securities Risk: Unlike
traditional fixed income securities, the principal and interest payments of
inflation-linked securities are adjusted periodically based on the inflation
rate. The value of the Fund’s inflation-linked securities may be vulnerable to
changes in expectations of inflation or interest rates and there is no guarantee
that the Fund’s use of these instruments will be
successful.
•Liquidity
Risk: Liquidity risk is the risk that certain investments may be
difficult or impossible to buy or sell at the time and price that a Fund would
like to buy or sell the security.
•Maturity
Risk:
The Fund may invest in fixed income securities with a range of maturities.
Generally, the longer a security’s maturity, the greater the risk that interest
rate fluctuations may adversely affect the value of the
security.
•Municipal
Securities Risk: The risk of a municipal security depends on the ability of the
issuer, or any entity providing a credit enhancement, to continue to meet its
obligations for the payment of interest and principal when
due.
•Loan
Risk: Loans are subject to risk of loss as a result of borrower default,
sensitivity to interest rate and economic changes, valuation difficulties and
potential decreased liquidity to a greater extent than other types of
investments. The value of any collateral securing a loan may decline, be
insufficient to meet the borrower’s obligations, or be difficult or costly to
liquidate. It may take longer than 7 days for investments in loans to settle,
which may adversely affect an Underlying Fund’s ability to timely honor
redemptions.
•Alternative
Strategies Risk:
Certain Underlying Funds that use alternative investment strategies may be
subject to risks including, but not limited to, derivatives risk, liquidity
risk, credit risk and commodities risk. Certain alternative strategies involve
the risk that a counterparty to a transaction will not perform as promised,
which could result in losses to the Fund. Furthermore, alternative strategies
may employ leverage, involve extensive short positions and/or focus on narrow
segments of the market, which may magnify the overall risks and volatility
associated with such investments.
•Derivatives
Risk:
A derivative is an instrument with a value based on the performance of an
underlying currency, security, index or other reference asset. The use of
derivatives involves risks different from, or greater than, the risks associated
with investing in more traditional investments. Derivatives involve costs, may
create leverage, and may be illiquid, volatile, and difficult to value. The Fund
may not be able to close out or sell a derivative position at a particular time
or at an anticipated price. The use of derivatives could also result in a loss
if the counterparty to the transaction does not perform as promised, including
because of such counterparty’s bankruptcy or insolvency. The investment results
achieved by the use of derivatives by the Fund may not match or fully offset
changes in the value of the underlying currency, security, index or other
reference asset that it was attempting to hedge or the investment opportunity
the Fund was attempting to pursue.
•Portfolio
Turnover Risk:
Depending on market and other conditions, the Fund may experience a high
portfolio turnover, which may result in higher brokerage costs and transaction
costs (which could reduce investment returns). Distributions of net short-term
capital gains are taxable as ordinary income when Fund shares are held in a
taxable account. A fund with a high portfolio turnover rate (a measure of how
frequently assets within a fund are bought and sold) is more likely to generate
short-term capital gains than a fund with a low portfolio turnover
rate.
•Securities
Lending Risk:
When the Fund lends its portfolio securities, the Fund is subject to the risk
that the borrower may fail to return the securities in a timely manner or at
all, resulting in a loss to the Fund and/or a delay in recovering the loaned
securities. The Fund could also lose money in connection with securities lending
transactions if it does not recover the loaned securities and/or the value of
the collateral falls, including the value of investments made with cash
collateral. Securities lending also may have certain adverse tax consequences.
The Fund is not obligated to engage in securities lending, and may discontinue
its securities lending activities at any time.
Performance
The bar chart and table that follow illustrate annual returns for
the Fund for the periods ended December 31. This information is intended to give you some indication of
the risks of investing in the Fund by showing how the Fund’s average annual
returns over time compare with those of a broad measure of market performance
and an additional index with characteristics relevant to the Fund's
investments. The Fund’s
past performance (before and after taxes) is not necessarily an indication of
how the Fund will perform in the future.
GUIDEPATH®
CONSERVATIVE
INCOME FUND
Calendar Year Returns as of 12/31
The
year-to-date performance of the Fund as of
June 30,
2024 was 2.35%.
During
the period shown on the bar chart, the Fund’s best and worst quarters are shown
below:
|
|
|
|
|
|
|
| |
Best
Quarter: |
Quarter
ended December 31,
2023 |
1.64 |
% |
Worst
Quarter: |
Quarter
ended March 31,
2022 |
-1.25 |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns for Periods Ended December 31,
2023 |
|
| |
| One
Year |
Five
Years |
Since
Inception
(April 30,
2018) |
Conservative
Income Fund |
|
| |
Return
Before Taxes |
4.90% |
1.04% |
1.07% |
Return
After Taxes on Distributions |
3.11% |
0.35% |
0.37% |
Return
After Taxes on Distributions and Sale of Fund
Shares |
2.88% |
0.50% |
0.52% |
Bloomberg U.S. Treasury 1-3 Year Bond
Index
(reflects no deduction for fees, expenses or
taxes) |
4.29% |
1.28% |
1.46% |
Bloomberg
U.S. Aggregate Bond Index (1)
(reflects no deduction for fees, expenses or
taxes)
|
5.53% |
1.10% |
1.37% |
(1)
Effective
July 31, 2024, the Fund added this broad-based securities market index intended
to reflect the overall applicable securities
market.
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 tax situation and may differ from those
shown. In addition, the after-tax returns shown are not relevant to
investors who hold their Fund shares through tax-advantaged arrangements such as
401(k) plans and individual retirement accounts because such accounts are only
subject to taxes upon withdrawal. 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. A higher after-tax return results when a capital loss occurs
upon redemption and provides an assumed tax deduction that benefits the
investor.
Investment
Advisor
AssetMark,
Inc. (“AssetMark” or the “Advisor”) is the investment advisor for the Fund.
Portfolio
Managers:
The Fund’s investment decisions are made by the following portfolio
managers:
|
|
|
|
|
|
|
| |
Portfolio
Manager |
Title |
Length
of Service to the Fund |
Selwyn
Crews |
Director,
Investment Strategies |
Since
2022 |
Christian
Chan |
Senior
Vice President, Chief Investment Officer |
Since
2022 |
Purchase
and Sale of Fund Shares: Financial
institutions and intermediaries on behalf of their clients may purchase or sell
shares through U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank
Global Fund Services, the Fund’s transfer agent (or its authorized agent).
Institutions and intermediaries that use certain proprietary systems of the
Advisor may place orders to buy or sell electronically through those systems.
Transactions will only occur on days the New York Stock Exchange is open. The
Fund has no investment minimums, however, the financial institutions and
intermediaries that sell the Fund’s shares may have established minimum values
for the accounts that they handle.
Tax
Information: The
Fund’s distributions are taxable, and generally will be taxed as ordinary
income, capital gains, or some combination of both, unless you are investing
through a tax-advantaged arrangement, such as a 401(k) plan or an individual
retirement account. Withdrawals from such tax-advantaged arrangements may be
subject to tax.
Payments
to Broker-Dealers and Other Financial Intermediaries: If
you purchase Fund shares through a broker-dealer or other financial intermediary
(such as a bank), AssetMark and/or 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.
GUIDEPATH®
INCOME
FUND
Investment
Objective
GuidePath®
Income
Fund (the “Fund”) seeks to generate current income.
Fees and Expenses of the
Fund
The
following 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 example below:
|
|
|
|
| |
Shareholder
Fees
(fees paid directly from your investment) |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fees |
0.45% |
Distribution
and/or Service (12b-1) Fees |
None |
Other
Expenses |
0.39% |
Administrative
Service Fees |
0.25% |
All
Other Expenses |
0.14% |
Acquired
Fund Fees and Expenses(1) |
0.17% |
Expense
Recoupment(2) |
0.06% |
Total
Annual Fund Operating Expenses
(3) |
1.07% |
(1)"Acquired
Fund Fees and Expenses" (“AFFE”) are indirect fees and expenses that the Fund
incurs from investing in the shares of other investment companies, including
money market funds and other mutual funds, closed end funds, business
development companies or certain exchange-traded
funds.
(2)AssetMark,
Inc. (“AssetMark” or the “Advisor”) has contractually agreed through
July 31, 2025 to waive its advisory fees
and/or assume expenses otherwise payable by the Fund to the extent necessary to
ensure that Total Annual Fund Operating Expenses (excluding taxes, interest,
trading costs, AFFE, expenses paid with securities lending expense offset
credits and non-routine expenses) do not exceed 0.79% of average daily net
assets. This expense limitation agreement may not be terminated prior to July
31, 2025 unless the Board of Trustees consents to an earlier revision or
termination. Under the expense limitation agreement, AssetMark may recoup waived
fees and expenses borne for a three-year period under specified conditions. No
recoupment will be paid to AssetMark if the Fund’s current Total Annual Fund
Operating Expenses exceed the expense limitation in effect at the time fees were
waived or expenses were reimbursed.
(3)Note that the amount of Total Annual
Fund Operating Expenses shown in the above table will differ from the Ratio of
Expenses to Average Net Assets included in
the
“Financial
Highlights” section of the Prospectus which reflects the operating expenses of
the Fund and does not include indirect expenses such as AFFE, but includes
the
expense
reductions generated when the Fund loaned its portfolio
securities.
Example
The following Example is intended to help you compare the cost of
investing in Shares of the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in Shares of 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 Example reflects
adjustments made to the Fund’s operating expenses due to the expense recoupment
by the Advisor for the 1-year number 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 |
$109 |
$328 |
$564 |
$1,242 |
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. The Fund does
not pay transaction costs when buying and selling shares of other mutual funds,
however, the underlying funds pay transaction costs when buying and selling
securities for their portfolio. 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
288.92% of the average
value of its portfolio.
Principal Investment
Strategies of the Fund
The
Fund invests primarily in a portfolio of actively and passively managed
registered mutual funds, exchange-traded funds (“ETFs”) and closed-end funds, in
addition to direct investments in securities and certain derivatives. The funds
in which the Fund may invest are referred to herein as the “Underlying Funds.”
AssetMark, Inc. (“AssetMark” or the “Advisor”) believes that investing in
Underlying Funds provides the Fund with an efficient means of creating a
portfolio that provides investors with indirect exposure to a broad range of
investments. By investing in the Fund, you will indirectly bear fees and
expenses of the Underlying Funds in addition to the Fund’s direct fees and
expenses. In order to obtain exposure to certain markets, asset classes or
active management styles, the Fund may buy Underlying Funds managed by the
Advisor or its affiliates, which, in turn, invest in various securities,
including ETFs. The Fund may also invest directly in securities and other
exchange-traded products, such as exchange-traded notes
(“ETNs”).
The
Advisor’s asset allocation decisions will be based on different factors and
analytical approaches, derived from volatility-managed and income-focused asset
allocation approaches. These approaches typically utilize fundamental and
quantitative analyses of global market and economic conditions and assumptions
regarding risks and returns. The Advisor seeks to create a portfolio that is
optimized to seek high total return and income, managed to contain the potential
magnitude of drawdowns in high volatility markets. The Fund may invest up to 20%
of its total assets in securities denominated in foreign currencies and may
invest without limit in U.S. dollar-denominated securities of foreign
issuers.
In
pursuing the Fund’s objective, the Fund invests, either directly or indirectly
via the Underlying Funds, in various types of domestic and international fixed
income securities, domestic and international equity securities (including
American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”))
and cash equivalent money market securities. The Fund invests in fixed income
securities that primarily have a maturity that is between 1 and 10 years and are
rated BBB- or higher, or are unrated and deemed to be of comparable quality by
the Advisor; provided, however, that the Fund may invest up to 50% of its total
assets in bonds rated below investment grade. Under normal circumstances,
the Fund’s portfolio will have an average duration of 2 to 5 years. In some
instances, the Fund’s average duration may exceed this range but is not expected
to exceed that of the Bloomberg US Aggregate Bond Index. Duration is a
measurement of price sensitivity to interest rate changes.
The
asset classes in which the Fund may invest, either directly or indirectly via
the Underlying Funds, include, but are not limited to, debt securities of
governments, government agencies and supranational entities, debt securities of
corporations, bank loans, convertible securities, mortgage- or asset-backed
securities, inflation-linked securities and other securitized or collateralized
debt obligations, higher-yielding bonds (sometimes referred to as “junk bonds”),
including emerging market debt, preferred stock, dividend-paying securities of
small- and large-capitalization companies, business development companies
(“BDCs”), publicly traded real estate investment trusts (“REITs”), non-traded
unregistered REITs, ETFs, and pooled investment funds including private
investment funds that are not registered under the 1940 Act (“private funds”)
that provide exposure to pools of whole loans, including those sourced through
peer-to-peer or marketplace lending platforms. The Fund may also take positions
in various global currencies and may hold positions in instruments that are
denominated in currencies other than the U.S. dollar. Under normal
circumstances, the Fund will make investments in fixed income securities that
primarily have a maturity that is between 1 and 10 years.
In
selecting debt securities for the Fund, the Advisor develops an outlook for
credit markets, interest rates, currency exchange rates and the economy,
analyzes individual credit and prepayment risks, and uses other security
selection techniques. The proportion of the Fund’s assets committed to
investment in securities with particular characteristics (such as quality,
sector, interest rate or maturity) varies based on the Advisor’s outlook for the
U.S. economy and the economies of other countries in the world, the financial
markets and other factors.
The
Fund may allocate assets to ETFs that provide exposure to various fixed income
and equity securities and sectors. Using this type of strategy, the Fund seeks
to tactically avoid risk by reducing exposure to unattractive sectors at the
appropriate times, while also increasing exposure to attractive sectors on a
timely basis. The ETFs in which the Fund may invest include those that invest
primarily in senior bank loans (also referred to as leveraged loans). The Fund
may also invest in inverse, leveraged, and inverse-leveraged ETFs and ETNs.
Inverse ETFs and ETNs are designed to correlate inversely with the performance
of an index. Leveraged and inverse-leveraged ETFs and ETNs seek investment
results that correspond to two or more times the performance of an index or
inverse of the performance of an index, respectively.
The
Fund may engage in a strategy of purchasing and selling (writing) call and put
options on indexes or ETFs (hereafter referred to as "call options" and "put
options"). The writer of a call option receives cash (the “premium”) from the
purchaser. In return, the purchaser of a call option has the right to any
appreciation in the value of the underlying index or ETF over a fixed price (the
“exercise price”) on a certain date in the future (the “expiration date”). If
the purchaser does not exercise the option, the writer of the option retains the
premium. If the purchaser exercises the option, the writer of the option pays
the purchaser the difference between the value of the underlying index or ETF
and the exercise price of the option.
The
value of a call option generally increases as the prices of the stocks
constituting the underlying index or ETF increase, and decreases as those stocks
decrease in price. Conversely, the value of a put option generally increases as
the prices of the stocks constituting the underlying index or ETF decrease, and
decreases as those stocks increase in price. The premium, the exercise price and
the value of the underlying index or ETF will determine the gain or loss
realized by the Fund on a written or purchased option. When the Fund has written
an option, it generally can repurchase the option prior to the expiration date,
ending its obligation. In such case, the difference between the cost of
repurchasing the option and the premium received will determine the gain or loss
realized by the Fund. While writing call options may reduce the Fund’s
volatility and provide a source of steady cash flow, it may also reduce the
Fund’s ability to profit from increases in the value of the underlying index or
ETF.
Using
the proceeds from its written call options, the Fund may buy put options in an
attempt to hedge against a significant market decline in the underlying index or
ETF that may occur over a short period of time. In addition, the Fund may write
call options or put options on the underlying indexes of the ETFs in which the
Fund is invested.
The
Fund may invest in Underlying Funds that use derivatives for risk management
purposes or as part of their investment strategies. An Underlying Fund may use
derivatives to earn income and enhance returns, to manage or adjust the risk and
duration exposure profile of the Underlying Fund, to replace more traditional
direct investments or to obtain exposure to certain markets, interest rates,
sectors or individual issuers. The derivatives used by an Underlying Fund may
allow the Underlying Fund to obtain net long or net negative (short) exposures
to selected interest rates, countries, duration or credit risks. An Underlying
Fund may also use derivatives to hedge or gain exposure to currencies. The Fund
may also invest directly in futures contracts. It is anticipated that the Fund
may have net economic leverage of up to
30%
of the Fund’s total assets through its investments in closed-end funds,
leveraged ETFs and ETNs, and certain derivatives, such as options and futures
contracts.
The
Fund’s asset allocation mix among equity, fixed income and cash equivalent money
market securities is intended to change frequently over time. The Fund
does not have a set target asset allocation mix among equities, fixed income
securities and cash equivalent investments. If the Advisor believes that
the stock market conditions are unfavorable or overvalued, it may significantly
increase the allocation to more defensive asset classes such as fixed income or
cash equivalent securities. The Advisor also has broad latitude to
allocate assets to equity securities in pursuit of perceived opportunities for
additional return. Based on these judgments, the Fund’s asset allocation
mix may significantly change over time in response to opportunities as they are
identified. In certain circumstances the Fund may be fully invested in cash
equivalent securities for an extended period of time.
The
Fund lends its portfolio securities to seek to generate additional
income.
Principal Risks of Investing
in the Fund
The
risks associated with an investment in the Fund can increase during times of
significant market volatility. There is the risk that you could lose all or a
portion of the money you have invested in the Fund. The Fund is
subject to a number of risks either directly or indirectly through its
investments in Underlying Funds. For purposes of this section, the term “Fund”
should be read to mean the Fund and the Underlying Funds. The following risks
could affect the value of your investment in the Fund:
•Fund
of Funds Risk: The Fund is subject to fund of funds risk, which means that the
ability of the Fund to meet its investment objective is directly related to the
ability of the Underlying Funds to meet their investment
objectives. There can be no assurance that either the Fund or the
Underlying Funds will achieve their investment objectives. Additionally, each
Fund may invest in other investment companies for which the Advisor or an
affiliate serves as investment advisor (i.e., affiliated Underlying Funds). Such
investments in the Underlying Funds could create a conflict of interest for the
Advisor in managing the Fund’s assets. By investing in the Fund, you will
indirectly bear fees and expenses of the Underlying Funds in addition to the
Fund’s direct fees and expenses.
•Management
Risk:
An investment or allocation strategy used by the Advisor may fail to produce the
intended results.
•Market
Risk:
The value of the Fund’s investments and the net asset values of the shares of
the Fund will fluctuate in response to various market and economic factors
related to the equity, fixed income and currency markets as well as the
financial condition and prospects of companies in which the Fund
invests.
•Value
Investment Risk:
The Fund’s investments in value-oriented securities may be out of favor and
potentially undervalued in the marketplace due to adverse business, industry or
other developments. The Fund’s investments in value-oriented securities may not
reach what the Fund’s Advisor believes are their full
value.
•Closed-End
Fund Risk:
Closed-end funds involve investment risks different from those associated with
other investment companies. The shares of closed-end funds frequently trade at a
premium or discount relative to their net asset value, and many closed-end funds
use leverage, or borrowed money, to try to increase returns. In addition,
distributions by a closed-end fund may include a return of capital, which would
reduce the fund’s net asset value and its earnings capacity. Finally, closed-end
funds are allowed to invest in a greater amount of illiquid investments than
open-end mutual funds.
•Business
Development Company Risk: BDCs
are closed-end investment companies that have elected to register as BDCs.
Shareholders bear both their proportionate share of the Fund’s expenses and
similar expenses of the BDC when the fund invests in shares of the BDC. BDCs
primarily invest in privately-held and small- to medium- capitalization public
companies, and are generally considered to be non-rated or below investment
grade. The fair values of these investments often are not readily determinable.
This could cause the Fund’s investments in a BDC to be inaccurately valued,
including overvalued. BDC revenues, income (or losses) and valuations can, and
often do, fluctuate suddenly and dramatically, and they face considerable risk
of loss. In addition, BDCs often borrow funds to make investments and, as a
result, are exposed to the risks of leverage. Leverage magnifies the potential
loss on amounts invested and therefore increases the risks associated with an
investment in a BDC’s securities.
•Exchange-Traded
Funds Risk: An ETF may represent a portfolio of securities, or may use
derivatives in pursuit of its stated objective. The risks of owning an ETF
generally reflect the risks of owning the underlying securities held by the ETF,
although a lack of liquidity in an ETF could result in it being more volatile.
In addition, ETF shares may trade at a premium or discount relative to their net
asset value. ETFs have management fees and other expenses which the Fund will
indirectly bear.
•Exchange-Traded
Notes Risk:
ETNs are debt securities that are traded on an exchange (e.g., the New York
Stock Exchange) whose returns are linked to the performance of a particular
market benchmark or strategy. An ETN generally reflects the risks associated
with the assets composing the underlying market benchmark or strategy it is
designed to track. ETNs also are subject to issuer and fixed-income
risks.
•Leveraged
and Inverse ETF/ETN Risk:
Inverse ETFs/ETNs generally use derivatives and short sales that, in
combination, are designed to produce returns that move in the opposite direction
of the indices they track. To the extent the Fund invests in ETFs/ETNs that seek
to provide investment results that are the inverse of the performance of an
underlying index, the Fund will indirectly be subject to the risk that the
performance of such ETF/ETN will fall as the performance of that ETF or ETN’s
benchmark rises, a result that is the opposite from traditional mutual funds.
The Fund’s use of leveraged and inverse-leveraged ETFs and ETNs has the economic
effect of creating financial leverage. Financial leverage magnifies exposure to
the swings in prices of an asset class and results in increased volatility,
which means the Fund will have the potential for greater gains, as
well as the potential for greater losses, than if the Fund had not invested in
these instruments at all.
•Private
Funds Risk:
The Fund’s investment in private funds will require it to bear a pro rata share
of the vehicles’ expenses, including management and performance fees. The
fees the Fund pays to invest in a private fund may be higher than if the manager
of the private fund managed the Fund’s assets directly. Furthermore,
private funds, like the other Underlying Funds in which the Fund may invest, are
subject to specific risks, depending on the nature of the vehicle, and also may
employ leverage such that their returns are more than one times that of their
benchmark which could amplify losses suffered by the Fund when compared to
unleveraged investments. Shareholders of the private funds are not
entitled to the protections of the 1940 Act. The majority of private funds
permit redemptions only quarterly (although others are more frequent) and these
withdrawal limitations restrict the Advisor’s ability to terminate investments
in private funds. Additionally, because private funds are not publicly traded,
the Fund’s investments in them may be more difficult to value than the Fund’s
investments in publicly traded securities.
•Foreign
Securities Risk:
The risks of investing in foreign securities (including ADRs and GDRs) can
increase the potential for losses in the Fund and may include currency
fluctuations, political and economic instability, less government regulation,
less publicly available information, limited trading markets, differences in
financial reporting standards, fewer protections for passive investors and less
stringent regulation of securities markets.
•Foreign
Exchange Trading Risk: The trading of foreign currencies directly generates risks separate
from those faced from the risks of inactive or indirect exposures to non-dollar
denominated instruments, insofar as the Fund may experience a loss from the
buying and selling of currencies without any related exposure to
non-dollar-denominated assets.
•Emerging
Markets Risk:
In addition to the risks generally associated with investing in foreign
securities described above, countries with emerging markets may also have
relatively unstable governments, fewer shareholder protections, and more limited
economies and securities markets. Additionally, trading in the currencies of
emerging market countries may face periods of limited liquidity or the political
risk of exchange controls or currency repatriation
restrictions.
•Debt/Fixed
Income Securities Risk: An
increase in interest rates typically causes a fall in the value of the debt
securities in which the Fund may invest. Conversely, very low or negative
interest rates may heighten the Fund's susceptibility to interest rate risk and
diminish yield and performance.The value of your investment in the Fund may
change in response to changes in the credit ratings of the debt securities in
the Fund's portfolio. Moreover, rising interest rates or lack of market
participants may lead to decreased liquidity in the bond and loan markets,
making it more difficult for the Fund to sell its holdings at a time when the
Fund's manager might wish to sell. Lower rated securities ("junk bonds") are
generally subject to greater risk of loss of your money than higher rated
securities. Issuers may (increase) decrease prepayments of principal when
interest rates (fall) increase, affecting the maturity of the debt security and
causing the value of the security to decline. To the extent the Fund or an
Underlying Fund invests in derivatives tied to fixed income markets, the Fund or
Underlying Fund may be more substantially exposed to these risks than a fund
that does not invest in derivatives.
•Interest
Rate Risk:
The market value of fixed income securities will fluctuate with changes in
interest rates. For example, when interest rates rise, the market value of fixed
income securities declines. If the market value of the Fund’s investments
decreases, investors in the Fund may lose money. The Fund may face a heightened
level of interest rate risk due to changes in general economic conditions,
inflation and monetary policy, including interest rate changes by the Federal
Reserve.
•Credit
Risk: Individual issues of fixed income securities may be subject to the
credit risk of the issuer. This means that the issuer of a fixed income
security, or in the case of a municipal security, the underlying municipality,
may experience financial problems, causing it to be unable to meet its payment
obligations.
•High-Yield
Debt Securities Risk: High-yield debt securities or “junk bonds” are debt securities rated
below investment grade by a nationally recognized statistical rating
organizations (“NRSRO”). Junk bonds are subject to greater credit risk than
higher-grade securities, have a greater risk of default and are considered
speculative. Issuers of junk bonds are more likely to experience financial
difficulties that may impair their ability to make principal and interest
payments.
•Collateralized
Debt Obligations Risk: Collateralized
debt obligations (“CDOs”) are subject to the following risks: (i) the
possibility that distributions from collateral securities will not be adequate
to make interest or other payments; (ii) the quality of the collateral may
decline in value or quality or go into default or be downgraded; (iii) a Fund
may invest in tranches of a CDO that are subordinate to other classes; and (iv)
the risk of disputes with the issuer, difficulty in valuing the security or
unexpected investment results.
•Preferred
Stock Risk: A
preferred stock may decline in price, or fail to pay dividends when expected,
because the issuer experiences a decline in its financial status. Preferred
stocks often behave like debt securities, but have a lower payment priority than
the issuer’s bonds or other debt securities. Therefore, they may be subject to
greater credit risk than those of debt securities. Preferred stocks also may be
significantly less liquid than many other securities, such as corporate debt or
common stock.
•Convertible
Securities Risk:
The value of convertible securities may fall when interest rates rise and
increase when interest rates fall. The prices of convertible securities with
longer maturities tend to be more volatile than those with shorter maturities.
Value also tends to change whenever the market value of the underlying common or
preferred stock fluctuates. The Fund could lose money if the issuer of a
convertible security is unable to meet its financial
obligations.
•Mortgage-
and Asset-Backed Securities Risk:
Payments on mortgage- and asset-backed securities depend upon assets held by the
issuer and collections on the underlying mortgages or loans. Issuers of
asset-backed securities may have limited ability to enforce the security
interest
in the underlying assets, and credit enhancements provided to support the
securities, if any, may be inadequate to protect investors in the event of
default. Mortgage- and asset-backed securities are also subject to prepayment
risk, which is the risk that the borrower will prepay some or all of the
principal owed to the issuer. If that happens, a Fund may have to replace the
security by investing the proceeds in a less attractive security. In certain
market conditions, asset-backed securities may experience volatile fluctuations
in value and periods of illiquidity.
•Extension
Risk:
As interest rates rise, repayments of principal on certain debt securities,
including, but not limited to, floating rate loans and mortgage-related
securities, may occur at a slower rate than expected and the expected maturity
of those securities could lengthen as a result. Securities that are subject to
extension risk generally have a greater potential for loss when prevailing
interest rates rise, which could cause their values to fall sharply.
Interest-only and principal-only securities are especially sensitive to interest
rate changes, which can affect not only their prices but can also change the
income flows and repayment assumptions about those
investments.
•Inflation-Linked
Securities Risk: Unlike
traditional fixed income securities, the principal and interest payments of
inflation-linked securities are adjusted periodically based on the inflation
rate. The value of the Fund’s inflation-linked securities may be vulnerable to
changes in expectations of inflation or interest rates and there is no guarantee
that the Fund’s use of these instruments will be
successful.
•Equity
Risk.
Common stocks are susceptible to general stock market fluctuations and to
volatile increases and decreases in value. The stock market may experience
declines or stocks in the Fund’s portfolio may not increase their earnings at
the rate anticipated. The Fund’s NAV and investment return will fluctuate based
upon changes in the value of its portfolio
securities.
•Alternative
Strategies Risk:
Certain Underlying Funds that use alternative investment strategies may be
subject to risks including, but not limited to, derivatives risk, liquidity
risk, credit risk and commodities risk. Certain alternative strategies involve
the risk that a counterparty to a transaction will not perform as promised,
which could result in losses to the Fund. Furthermore, alternative strategies
may employ leverage, involve extensive short positions and/or focus on narrow
segments of the market, which may magnify the overall risks and volatility
associated with such investments.
•Derivatives
Risk:
A derivative is an instrument with a value based on the performance of an
underlying currency, security, index or other reference asset. The use of
derivatives involves risks different from, or greater than, the risks associated
with investing in more traditional investments. Derivatives involve costs, may
create leverage, and may be illiquid, volatile, and difficult to value. The Fund
may not be able to close out or sell a derivative position at a particular time
or at an anticipated price. The use of derivatives could also result in a loss
if the counterparty to the transaction does not perform as promised, including
because of such counterparty’s bankruptcy or insolvency. The investment results
achieved by the use of derivatives by the Fund may not match or fully offset
changes in the value of the underlying currency, security, index or other
reference asset that it was attempting to hedge or the investment opportunity
the Fund was attempting to pursue.
•Options
Risk:
The value of the Fund’s options positions will fluctuate in response to changes
in the value of the underlying securities. Writing call options limits the
opportunity to profit from an increase in the market value of stocks in exchange
for up-front cash at the time of selling the call option. In addition, the Fund
continues to bear the risk of declines in the underlying securities on which the
option is written. When purchasing put options, the Fund risks losing all or
part of the cash paid for purchasing the option. As the writer of a put option,
the Fund has a risk of loss should the underlying securities decline in value.
If the value of the underlying securities declines below the exercise price of
the put option and the put option is exercised, the Fund, as the writer of the
put option, will be required to buy the underlying securities at the exercise
price, and the Fund will incur a loss to the extent that the current market
value of the underlying securities is less than the exercise price of the put
option. However, the loss will be offset in part by the premium received from
the buyer of the put option. Unusual market conditions or the lack of a ready
market for any particular option at a specific time may reduce the effectiveness
of the Fund’s option strategies, and for these and other reasons the Fund’s
option strategies may not reduce the Fund’s volatility to the extent
desired.
•Leverage
Risk:
The Fund’s investments in closed-end funds, leveraged ETFs and ETNs, and
derivatives such as futures contracts, forward contracts and swaps have the
economic effect of creating financial leverage. Financial leverage magnifies
exposure to the swings in prices of an asset class underlying a derivatives
instrument and results in increased volatility, which means the Fund will have
the potential for greater gains, as well as the potential for greater losses,
than if the Fund had not invested in derivatives at
all.
•U.S.
Government Agency Obligations Risk:
Government agency obligations have different levels of credit support and,
therefore, different degrees of credit risk. Some securities issued by agencies
and instrumentalities of the U.S. Government are supported by the full faith and
credit of the United States, but others are neither insured nor guaranteed by
the U.S. Government. For example, Connecticut Avenue Securities issued by the
Federal National Mortgage Association and Structured Agency Credit Risk debt
notes issued by the Federal Home Loan Mortgage Association carry no guarantee
whatsoever and the risk of default associated with these securities would be
borne by the Fund. The U.S. Department of the Treasury has the authority to
provide financial support to these debt obligations, but no assurance can be
given that the U.S. Government will do so.
•Non-U.S.
Government Obligations Risk:
For non-U.S. government obligations, there is the risk that payments on a
security will not be made when due, or the value of such security will decline,
because the security is not issued or guaranteed as to principal or interest by
the U.S. government or by agencies or authorities controlled or supervised by
and acting as instrumentalities of the U.S. government or supported by the right
of the issuer to borrow from the U.S. government.
•Liquidity
Risk: Liquidity risk is the risk that certain investments may be
difficult or impossible to buy or sell at the time and price that a Fund would
like to buy or sell the security.
•Maturity
Risk:
The Fund may invest in fixed income securities with a range of maturities.
Generally, the longer a security’s maturity, the greater the risk that interest
rate fluctuations may adversely affect the value of the
security.
•Municipal
Securities Risk: The risk of a municipal security depends on the ability of the
issuer, or any entity providing a credit enhancement, to continue to meet its
obligations for the payment of interest and principal when
due.
•Small
and Medium Capitalization Company Risk:
Small and medium capitalization companies often have narrower markets, fewer
products or services to offer and more limited managerial and financial
resources than do larger, more established companies. As a result, their
performance can be more volatile, and they face a greater risk of business
failure, which could increase the volatility and risk of loss of the Fund’s
assets.
•Loan
Risk:
Loans are subject to risk of loss as a result of borrower default, sensitivity
to interest rate and economic changes, valuation difficulties and potential
decreased liquidity to a greater extent than other types of investments. The
value of any collateral securing a loan may decline, be insufficient to meet the
borrower’s obligations, or be difficult or costly to liquidate. It may take
longer than 7 days for investments in loans to settle, which may adversely
affect an Underlying Fund’s ability to timely honor
redemptions.
•Senior
Loan Risk: Investments
in senior loans are subject to loan risk generally. Senior loans typically are
below investment grade and are considered speculative because of the credit risk
of their issuers. Their issuers are more likely to default on their payments of
interest and principal owed, and such defaults could reduce the Fund’s NAV and
income distributions. In addition, the Fund may have to sell securities at lower
prices than it otherwise would to meet cash needs or it may have to maintain a
greater portion of its assets in cash equivalents than it otherwise would
because of impairments and limited liquidity of the collateral supporting a
senior loan, which could negatively affect the Fund’s performance. Newly
originated variable rate securities (including reissuances and restructured
loans) may possess lower levels of credit document protections than has
historically been the case. Accordingly, in the event of default the Fund may
experience lower levels of recoveries than has historically been the
norm.
•Marketplace
Loan Risk: Investments in loans sourced through marketplace lending platforms
are subject to additional risks than those applicable to investments in loans
generally. An Underlying Fund may not have direct recourse against the borrower
or may be otherwise limited in its ability to directly enforce its rights under
the loan. Default history for alternative lending platforms is limited. Future
defaults may be higher than historical defaults and the timing of defaults may
vary significantly from historical observations. An Underlying Fund may have
limited knowledge about the underlying loans to which it has exposure and is
dependent upon the platform for information regarding the loans and borrowers’
credit information. Such information may be incomplete, inaccurate or outdated
and may, therefore, not accurately reflect the borrowers’ actual
creditworthiness. In addition, investments in loans sourced through a
marketplace lending platform may also be negatively impacted if the platform or
a third-party service provider becomes unable or unwilling to fulfill its
obligations in servicing the loans.
•Real
Estate Risk: The
value of real estate-linked derivative instruments and other real estate-related
securities such as REITs may be affected by risks similar to those associated
with direct ownership of real estate, in addition to the risks of poor
performance by a REIT’s manager, changes to tax laws, and failure by the REIT to
qualify for favorable treatment. To the extent the Fund invests in REITs,
you will indirectly bear fees and expenses of the underlying REITs in addition
to the Fund’s direct fees and expenses. REITs may have limited
diversification and may not exhibit the same (or any) correlation with inflation
that real estate or other real estate securities
exhibit.
•Portfolio
Turnover Risk:
Depending on market and other conditions, the Fund may experience a high
portfolio turnover, which may result in higher brokerage costs and transaction
costs (which could reduce investment returns). Distributions of net short-term
capital gains are taxable as ordinary income when Fund shares are held in a
taxable account. A fund with a high portfolio turnover rate (a measure of how
frequently assets within a fund are bought and sold) is more likely to generate
short-term capital gains than a fund with a low portfolio turnover
rate.
•Securities
Lending Risk:
When the Fund lends its portfolio securities, the Fund is subject to the risk
that the borrower may fail to return the securities in a timely manner or at
all, resulting in a loss to the Fund and/or a delay in recovering the loaned
securities. The Fund could also lose money in connection with securities lending
transactions if it does not recover the loaned securities and/or the value of
the collateral falls, including the value of investments made with cash
collateral. Securities lending also may have certain adverse tax consequences.
The Fund is not obligated to engage in securities lending, and may discontinue
its securities lending activities at any time.
Performance
The bar chart and table that follow illustrate annual returns for
the Fund for the periods ended December 31. This information is intended to give you some indication of
the risks of investing in the Fund by showing how the Fund’s average annual
returns over time compare with those of a broad measure of market
performance. The Fund’s
past performance (before and after taxes) is not necessarily an indication of
how the Fund will perform in the future.
GUIDEPATH®
INCOME
FUND
Calendar Year Return as of 12/31
The
year-to-date performance of the Fund as of
June 30,
2024 was 1.12%.
During
the period shown on the bar chart, the Fund’s best and worst quarters are shown
below:
|
|
|
|
|
|
|
| |
Best
Quarter: |
Quarter
ended December 31,
2023 |
5.93 |
% |
Worst
Quarter: |
Quarter
ended March 31,
2022 |
-6.82 |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns for Periods Ended December 31,
2023 |
|
| |
| One
Year |
Five
Years |
Since
Inception
(April 30,
2018) |
Income
Fund |
|
| |
Return
Before Taxes |
5.27% |
-0.34% |
-0.53% |
Return
After Taxes on Distributions |
3.73% |
-1.26% |
-1.47% |
Return
After Taxes on Distributions and Sale of Fund
Shares |
3.09% |
-0.61% |
-0.76% |
Bloomberg
U.S. Aggregate Bond Index
(reflects no deduction for fees, expenses or
taxes)
|
5.53% |
1.10% |
1.37% |
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 tax situation and may differ from those
shown. In addition, the after-tax returns shown are not relevant to
investors who hold their Fund shares through tax-advantaged arrangements such as
401(k) plans and individual retirement accounts because such accounts are only
subject to taxes upon withdrawal. 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. A higher after-tax return results when a capital loss occurs
upon redemption and provides an assumed tax deduction that benefits the
investor.
Investment
Advisor
AssetMark,
Inc. (“AssetMark” or the “Advisor”) is the investment advisor for the Fund.
Portfolio
Managers:
The Fund’s investment decisions are made by the following portfolio
managers:
|
|
|
|
|
|
|
| |
Portfolio
Manager |
Title |
Length
of Service to the Fund |
Selwyn
Crews |
Director,
Investment Strategies |
Since
2022 |
Christian
Chan |
Senior
Vice President, Chief Investment Officer |
Since
2022 |
Purchase
and Sale of Fund Shares: Financial
institutions and intermediaries on behalf of their clients may purchase or sell
shares through U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank
Global Fund Services, the Fund’s transfer agent (or its authorized agent).
Institutions and intermediaries that use certain proprietary systems of the
Advisor may place orders to buy or sell electronically through those systems.
Transactions will only occur on days the New York Stock Exchange is open. The
Fund has no investment minimums, however, the financial institutions and
intermediaries that sell the Fund’s shares may have established minimum values
for the accounts that they handle.
Tax
Information: The
Fund’s distributions are taxable, and generally will be taxed as ordinary
income, capital gains, or some combination of both, unless you are investing
through a tax-advantaged arrangement, such as a 401(k) plan or an individual
retirement account. Withdrawals from such tax-advantaged arrangements may be
subject to tax.
Payments
to Broker-Dealers and Other Financial Intermediaries: If
you purchase Fund shares through a broker-dealer or other financial intermediary
(such as a bank), AssetMark and/or 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.
GUIDEPATH®
GROWTH
AND INCOME FUND
Investment
Objective
GuidePath®
Growth and Income Fund (the “Fund”) seeks capital
appreciation. As a
secondary objective, the Fund seeks to generate current
income.
Fees and Expenses of the
Fund
The
following 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 example below:
|
|
|
|
| |
Shareholder
Fees (fees
paid directly from your investment) |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fees |
0.45% |
Distribution
and/or Service (12b-1) Fees |
None |
Other
Expenses |
0.49% |
Administrative
Service Fees |
0.25% |
All
Other Expenses |
0.24% |
Acquired
Fund Fees and Expenses(1) |
0.06% |
Expense
Recoupment(2) |
0.08% |
Total
Annual Fund Operating Expenses(3) |
1.08% |
(1)"Acquired
Fund Fees and Expenses (“AFFE”) are indirect fees and expenses that the Fund
incurs from investing in the shares of other investment companies, including
money market funds and other mutual funds, closed end funds, business
development companies or certain exchange-traded
funds.
(2)AssetMark,
Inc. (“AssetMark” or the “Advisor”) has contractually agreed through
July 31, 2025 to waive its advisory fees
and/or assume expenses otherwise payable by the Fund to the extent necessary to
ensure that Total Annual Fund Operating Expenses (excluding taxes, interest,
trading costs, AFFE, expenses paid with securities lending expense offset
credits and non-routine expenses) do not exceed 0.79% of average daily net
assets. This expense limitation agreement may not be terminated prior to July
31, 2025 unless the Board of Trustees consents to an earlier revision or
termination. Under the expense limitation agreement, AssetMark may recoup waived
fees and expenses borne for a three-year period under specified conditions. No
recoupment will be paid to AssetMark if the Fund’s current Total Annual Fund
Operating Expenses exceed the expense limitation in effect at the time fees were
waived or expenses were reimbursed.
(3)Note that the amount of Total Annual Fund Operating Expenses
shown in the above table will differ from the Ratio of Expenses to Average Net
Assets included in the “Financial Highlights” section of the Prospectus which
reflects the operating expenses of the Fund and does not include indirect
expenses such as AFFE, but includes the expense reductions generated when the
Fund loaned its portfolio securities.
Example
The following Example is intended to help you compare the cost of
investing in Shares of the Fund with the cost of investing in other mutual
funds. The Example assumes that you invest $10,000 in Shares of 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 Example reflects
adjustments made to the Fund's operating expenses due to the expense recoupment
by the Advisor for the 1-year number 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 |
$110 |
$326 |
$560 |
$1,232 |
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. The Fund does
not pay transaction costs when buying and selling shares of other mutual funds,
however, the underlying funds pay transaction costs when buying and selling
securities for their portfolio. 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
122.79% of the average
value of its portfolio.
Principal Investment
Strategies of the Fund
The
Fund invests primarily in a portfolio of actively and passively managed
registered mutual funds, exchange-traded funds (“ETFs”), closed-end funds and
business development companies (“BDCs”), in addition to direct investments. The
funds in which the Fund may invest are referred to herein as the “Underlying
Funds.” AssetMark, Inc. (“AssetMark” or the “Advisor”) believes that investing
in Underlying Funds provides the Fund with an efficient means of creating a
portfolio that provides investors with indirect exposure to a broad range of
investments. By investing in the Fund, you will indirectly bear fees and
expenses of the Underlying Funds in addition to the Fund’s direct fees and
expenses. In order to obtain exposure to certain markets, asset classes or
active management styles, the Fund may buy Underlying Funds managed by the
Advisor or its affiliates, which, in turn, invest in various securities,
including ETFs. The Fund may also invest directly in securities and other
exchange-traded products, such as exchange-traded notes
(“ETNs”).
The
Advisor may invest in securities of companies of various market capitalizations.
The Fund considers “large capitalization companies” to be companies, at the time
of purchase, whose market capitalizations are within the range of the market
capitalizations in the Russell 1000®
Index. The Fund considers “small-to-medium capitalization companies” to be
companies, at the time of purchase, whose market capitalizations are within the
range of the market capitalizations in the Russell 2500TM
Index.
The
Advisor’s asset allocation decisions will be based on different factors and
analytical approaches, derived from volatility-managed and income-focused asset
allocation approaches. These approaches typically utilize fundamental and
quantitative analyses of global market and economic conditions and assumptions
regarding risks and returns. The Advisor seeks to create a portfolio that is
optimized to seek high total return and income, managed to contain the potential
magnitude of drawdowns in high volatility markets.
In
pursuing the Fund’s objective, the Fund invests, either directly or indirectly
via the Underlying Funds, in various types of domestic and international fixed
income securities, domestic and international equity securities (including
American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”))
and cash equivalent money market securities.
The
asset classes in which the Fund may invest, either directly or indirectly via
the Underlying Funds, include, but are not limited to, debt securities of
governments, government agencies and supranational entities, debt securities of
corporations, bank loans, convertible securities, mortgage- or asset-backed
securities, inflation-linked securities and other securitized or collateralized
debt obligations and higher-yielding bonds (sometimes referred to as “junk
bonds”), including emerging market debt. The Fund may invest in debt securities
of any maturity or quality. The Fund may invest in equity securities which
include domestic and foreign common and preferred stock, convertible debt
securities, American Depositary Receipts (“ADRs”), business development
companies (“BDCs”), Master Limited Partnerships (“MLPs”), publicly traded real
estate investment trusts (“REITs”), non-traded unregistered REITs, ETFs and
pooled investment funds including private investment funds that are not
registered under the 1940 Act (“private funds”) that provide exposure to pools
of whole loans, including those sourced through peer-to-peer or marketplace
lending platforms.
MLPs
are businesses organized as limited partnerships that trade their proportionate
shares of the partnership (units) on a public exchange. MLPs are required
to pay out most or all of their earnings in distributions. The Fund may invest
up to 30% of its total assets in securities denominated in foreign currencies
and may invest without limit in U.S. dollar-denominated securities of foreign
issuers.
In
selecting debt securities for the Fund, the Advisor develops an outlook for
credit markets, interest rates, currency exchange rates and the economy,
analyzes individual credit and prepayment risks, and uses other security
selection techniques. The proportion of the Fund’s assets committed to
investment in securities with particular characteristics (such as quality,
sector, interest rate or maturity) varies based on the Advisor’s outlook for the
U.S. economy and the economies of other countries in the world, the financial
markets and other factors.
The
Fund may allocate assets to ETFs that provide exposure to various fixed income
and equity securities and sectors. Using this type of strategy, the Fund seeks
to tactically avoid risk by reducing exposure to unattractive sectors at the
appropriate times, while also increasing exposure to attractive sectors on a
timely basis. The Fund may also invest in inverse, leveraged, and
inverse-leveraged ETFs and ETNs. Inverse ETFs and ETNs are designed to correlate
inversely with the performance of an index. Leveraged and inverse-leveraged ETFs
and ETNs seek investment results that correspond to two or more times the
performance of an index or inverse of the performance of an index, respectively.
The
Fund may, at the discretion of the Advisor, engage in a strategy of purchasing
and selling (writing) call and put options on indexes or ETFs (hereafter
referred to as "call options" and "put options"). The writer of a call option
receives cash (the “premium”) from the purchaser. In return, the purchaser of a
call option has the right to any appreciation in the value of the underlying
index or ETF over a fixed price (the “exercise price”) on a certain date in the
future (the “expiration date”). If the purchaser does not exercise the option,
the writer of the option retains the premium. If the purchaser exercises the
option, the writer of the option pays the purchaser the difference between the
value of the underlying index or ETF and the exercise price of the option.
The
value of a call option generally increases as the prices of the stocks
constituting the underlying index or ETF increase, and decreases as those stocks
decrease in price. Conversely, the value of a put option generally increases as
the prices of the stocks constituting the underlying index or ETF decrease, and
decreases as those stocks increase in price. The premium, the exercise price and
the value of the underlying index or ETF will determine the gain or loss
realized by the Fund on a written or purchased option. When the Fund has written
an option, it generally can repurchase the option prior to the expiration date,
ending its obligation. In such case, the difference between the cost of
repurchasing the option and the premium received will determine the gain or loss
realized by the Fund. While writing call options may reduce the Fund’s
volatility and provide a source of steady cash flow, it may also reduce the
Fund’s ability to profit from increases in the value of the underlying index or
ETF.
Using
the proceeds from its written call options, the Fund may buy put options in an
attempt to hedge against a significant market decline in the underlying index or
ETF that may occur over a short period of time. In addition, the Fund may write
call options or put options on the underlying indexes of the ETFs in which the
Fund is invested.
The
Fund may invest in Underlying Funds that use derivatives for risk management
purposes or as part of their investment strategies. An Underlying Fund may use
derivatives to earn income and enhance returns, to manage or adjust the risk and
duration exposure profile of the Underlying Fund, to replace more traditional
direct investments or to obtain exposure to certain markets, interest rates,
sectors or individual issuers. The derivatives used by an Underlying Fund may
allow the Underlying Fund to obtain net long or net negative (short) exposures
to selected interest rates, countries, duration or credit risks. An Underlying
Fund may also use derivatives to hedge or gain exposure to currencies. The Fund
may also invest directly in futures contracts. The Fund may, at the discretion
of the Advisor, use futures contracts as a means to implement a
volatility-managed strategy. The Fund's volatility targeting component attempts
to balance upside return potential
during
periods of relative market stability while seeking to mitigate losses during
periods of heightened market volatility.It is anticipated that the Fund may have
net economic leverage of up to 30% of the Fund’s total assets through its
investments in closed-end funds, leveraged ETFs and ETNs, and certain
derivatives, such as options and futures contracts.
The
Fund’s asset allocation mix among equity, fixed income and cash equivalent money
market securities is intended to change frequently over time. The Fund
does not have a set target asset allocation mix among equities, fixed income
securities and cash equivalent investments. If the Advisor believes that
the stock market conditions are unfavorable or overvalued, it may significantly
increase the allocation to more defensive asset classes such as fixed income or
cash equivalent securities. The Advisor also has broad latitude to
allocate assets to equity securities in pursuit of perceived opportunities for
additional return. Based on these judgments, the Fund’s asset allocation
mix may significantly change over time in response to opportunities as they are
identified. In certain circumstances the Fund may be substantially or fully
invested in cash equivalent securities for an extended period of time.
The
Fund lends its portfolio securities to seek to generate additional
income.
Principal Risks of Investing
in the Fund
The
risks associated with an investment in the Fund can increase during times of
significant market volatility. There is the risk that you could lose all or a
portion of the money you have invested in the Fund. The Fund is
subject to a number of risks either directly or indirectly through its
investments in Underlying Funds. For purposes of this section, the term “Fund”
should be read to mean the Fund and the Underlying Funds. The following risks
could affect the value of your investment in the Fund:
•Fund
of Funds Risk: The Fund is subject to fund of funds risk, which means that the
ability of the Fund to meet its investment objective is directly related to the
ability of the Underlying Funds to meet their investment
objectives. There can be no assurance that either the Fund or the
Underlying Funds will achieve their investment objectives. Additionally, each
Fund may invest in other investment companies for which the Advisor or an
affiliate serves as investment advisor (i.e., affiliated Underlying Funds). Such
investments in the Underlying Funds could create a conflict of interest for the
Advisor in managing the Fund’s assets. By investing in the Fund, you will
indirectly bear fees and expenses of the Underlying Funds in addition to the
Fund’s direct fees and expenses.
•Management
Risk:
An investment or allocation strategy used by the Advisor may fail to produce the
intended results.
•Market
Risk:
The value of the Fund’s investments and the net asset values of the shares of
the Fund will fluctuate in response to various market and economic factors
related to the equity, fixed income and currency markets as well as the
financial condition and prospects of companies in which the Fund
invests.
•Growth
Investment Risk:
The Fund’s investments in growth-oriented securities may be subject to greater
price volatility and may be more sensitive to changes in the issuer’s current or
expected earnings than other equity securities.
•Value
Investment Risk:
The Fund’s investments in value-oriented securities may be out of favor and
potentially undervalued in the marketplace due to adverse business, industry or
other developments. The Fund’s investments in value-oriented securities may not
reach what the Fund’s Advisor believes are their full
value.
•Closed-End
Fund Risk:
Closed-end funds involve investment risks different from those associated with
other investment companies. The shares of closed-end funds frequently trade at a
premium or discount relative to their net asset value, and many closed-end funds
use leverage, or borrowed money, to try to increase returns. In addition,
distributions by a closed-end fund may include a return of capital, which would
reduce the fund’s net asset value and its earnings capacity. Finally, closed-end
funds are allowed to invest in a greater amount of illiquid investments than
open-end mutual funds.
•Business
Development Company Risk: BDCs
are closed-end investment companies that have elected to register as BDCs.
Shareholders bear both their proportionate share of the Fund’s expenses and
similar expenses of the BDC when the fund invests in shares of the BDC. BDCs
primarily invest in privately-held and small- to medium- capitalization public
companies, and are generally considered to be non-rated or below investment
grade. The fair values of these investments often are not readily determinable.
This could cause the Fund’s investments in a BDC to be inaccurately valued,
including overvalued. BDC revenues, income (or losses) and valuations can, and
often do, fluctuate suddenly and dramatically, and they face considerable risk
of loss. In addition, BDCs often borrow funds to make investments and, as a
result, are exposed to the risks of leverage. Leverage magnifies the potential
loss on amounts invested and therefore increases the risks associated with an
investment in a BDC’s securities.
•Exchange-Traded
Funds Risk: An ETF may represent a portfolio of securities, or may use
derivatives in pursuit of its stated objective. The risks of owning an ETF
generally reflect the risks of owning the underlying securities held by the ETF,
although a lack of liquidity in an ETF could result in it being more volatile.
In addition, ETF shares may trade at a premium or discount relative to their net
asset value. ETFs have management fees and other expenses which the Fund will
indirectly bear.
•Exchange-Traded
Notes Risk: ETNs
are debt securities that are traded on an exchange (e.g., the New York Stock
Exchange) whose returns are linked to the performance of a particular market
benchmark or strategy. An ETN generally reflects the risks associated with the
assets composing the underlying market benchmark or strategy it is designed to
track. ETNs also are subject to issuer and fixed-income
risks.
•Leveraged
and Inverse ETF/ETN Risk:
Inverse ETFs/ETNs generally use derivatives and short sales that, in
combination, are designed to produce returns that move in the opposite direction
of the indices they track. To the extent the Fund invests in ETFs/ETNs that seek
to provide investment results that are the inverse of the performance of an
underlying index, the Fund will indirectly be subject to the risk that the
performance of such ETF/ETN will fall as the performance of that ETF or ETN’s
benchmark rises, a result that is the opposite
from traditional mutual funds. The Fund’s use of leveraged and
inverse-leveraged ETFs and ETNs has the economic effect of creating financial
leverage. Financial leverage magnifies exposure to the swings in prices of an
asset class and results in increased volatility, which means the Fund will have
the potential for greater gains, as well as the potential for greater losses,
than if the Fund had not invested in these instruments at all.
•Private
Funds Risk:
The Fund’s investment in private funds will require it to bear a pro rata share
of the vehicles’ expenses, including management and performance fees. The
fees the Fund pays to invest in a private fund may be higher than if the manager
of the private fund managed the Fund’s assets directly. Furthermore,
private funds, like the other Underlying Funds in which the Fund may invest, are
subject to specific risks, depending on the nature of the vehicle, and also may
employ leverage such that their returns are more than one times that of their
benchmark which could amplify losses suffered by the Fund when compared to
unleveraged investments. Shareholders of the private funds are not
entitled to the protections of the 1940 Act. The majority of private funds
permit redemptions only quarterly (although others are more frequent) and these
withdrawal limitations restrict the Advisor’s ability to terminate investments
in private funds. Additionally, because private funds are not publicly traded,
the Fund’s investments in them may be more difficult to value than the Fund’s
investments in publicly traded securities.
•Foreign
Securities Risk:
The risks of investing in foreign securities (including ADRs and GDRs) can
increase the potential for losses in the Fund and may include currency
fluctuations, political and economic instability, less government regulation,
less publicly available information, limited trading markets, differences in
financial reporting standards, fewer protections for passive investors and less
stringent regulation of securities markets.
•Foreign
Exchange Trading Risk: The trading of foreign currencies directly generates risks separate
from those faced from the risks of inactive or indirect exposures to non-dollar
denominated instruments, insofar as the Fund may experience a loss from the
buying and selling of currencies without any related exposure to
non-dollar-denominated assets.
•Emerging
Markets Risk:
In addition to the risks generally associated with investing in foreign
securities described above, countries with emerging markets may also have
relatively unstable governments, fewer shareholder protections, and more limited
economies and securities markets. Additionally, trading in the currencies of
emerging market countries may face periods of limited liquidity or the political
risk of exchange controls or currency repatriation
restrictions.
•Debt/Fixed
Income Securities Risk: An
increase in interest rates typically causes a fall in the value of the debt
securities in which the Fund may invest. Conversely, very low or negative
interest rates may heighten the Fund's susceptibility to interest rate risk and
diminish yield and performance.The value of your investment in the Fund may
change in response to changes in the credit ratings of the debt securities in
the Fund's portfolio. Moreover, rising interest rates or lack of market
participants may lead to decreased liquidity in the bond and loan markets,
making it more difficult for the Fund to sell its holdings at a time when the
Fund's manager might wish to sell. Lower rated securities ("junk bonds") are
generally subject to greater risk of loss of your money than higher rated
securities. Issuers may (increase) decrease prepayments of principal when
interest rates (fall) increase, affecting the maturity of the debt security and
causing the value of the security to decline. To the extent the Fund or an
Underlying Fund invests in derivatives tied to fixed income markets, the Fund or
Underlying Fund may be more substantially exposed to these risks than a fund
that does not invest in derivatives.
•Interest
Rate Risk: The market value of fixed income securities will fluctuate with
changes in interest rates. For example, when interest rates rise, the market
value of fixed income securities declines. If the market value of the Fund’s
investments decreases, investors in the Fund may lose money. The Fund may face a
heightened level of interest rate risk due to changes in general economic
conditions, inflation and monetary policy, including interest rate changes by
the Federal Reserve.
•Credit
Risk: Individual issues of fixed income securities may be subject to the
credit risk of the issuer. This means that the issuer of a fixed income
security, or in the case of a municipal security, the underlying municipality,
may experience financial problems, causing it to be unable to meet its payment
obligations.
•High-Yield
Debt Securities Risk: High-yield debt securities or “junk bonds” are debt securities rated
below investment grade by a nationally recognized statistical rating
organizations (“NRSRO”). Junk bonds are subject to greater credit risk than
higher-grade securities, have a greater risk of default and are considered
speculative. Issuers of junk bonds are more likely to experience financial
difficulties that may impair their ability to make principal and interest
payments.
•Collateralized
Debt Obligations Risk: Collateralized
debt obligations (“CDOs”) are subject to the following risks: (i) the
possibility that distributions from collateral securities will not be adequate
to make interest or other payments; (ii) the quality of the collateral may
decline in value or quality or go into default or be downgraded; (iii) a Fund
may invest in tranches of a CDO that are subordinate to other classes; and (iv)
the risk of disputes with the issuer, difficulty in valuing the security or
unexpected investment results.
•Preferred
Stock Risk: A
preferred stock may decline in price, or fail to pay dividends when expected,
because the issuer experiences a decline in its financial status. Preferred
stocks often behave like debt securities, but have a lower payment priority than
the issuer’s bonds or other debt securities. Therefore, they may be subject to
greater credit risk than those of debt securities. Preferred stocks also may be
significantly less liquid than many other securities, such as corporate debt or
common stock.
•Convertible
Securities Risk:
The value of convertible securities may fall when interest rates rise and
increase when interest rates fall. The prices of convertible securities with
longer maturities tend to be more volatile than those with shorter maturities.
Value also tends to change whenever the market value of the underlying common or
preferred stock fluctuates. The Fund could lose money if the issuer of a
convertible security is unable to meet its financial
obligations.
•Mortgage-
and Asset-Backed Securities Risk:
Payments on mortgage- and asset-backed securities depend upon assets held by the
issuer and collections on the underlying mortgages or loans. Issuers of
asset-backed securities may have limited ability to enforce the security
interest in the underlying assets, and credit enhancements provided to support
the securities, if any, may be inadequate to protect investors in the event of
default. Mortgage- and asset-backed securities are also subject to prepayment
risk, which is the risk that the borrower will prepay some or all of the
principal owed to the issuer. If that happens, a Fund may have to replace the
security by investing the proceeds in a less attractive security. In certain
market conditions, asset-backed securities may experience volatile fluctuations
in value and periods of illiquidity.
•Extension
Risk:
As interest rates rise, repayments of principal on certain debt securities,
including, but not limited to, floating rate loans and mortgage-related
securities, may occur at a slower rate than expected and the expected maturity
of those securities could lengthen as a result. Securities that are subject to
extension risk generally have a greater potential for loss when prevailing
interest rates rise, which could cause their values to fall sharply.
Interest-only and principal-only securities are especially sensitive to interest
rate changes, which can affect not only their prices but can also change the
income flows and repayment assumptions about those
investments.
•Inflation-Linked
Securities Risk: Unlike
traditional fixed income securities, the principal and interest payments of
inflation-linked securities are adjusted periodically based on the inflation
rate. The value of the Fund’s inflation-linked securities may be vulnerable to
changes in expectations of inflation or interest rates and there is no guarantee
that the Fund’s use of these instruments will be
successful.
•Real
Estate Risk: The
value of real estate-linked derivative instruments and other real estate-related
securities such as REITs may be affected by risks similar to those associated
with direct ownership of real estate, in addition to the risks of poor
performance by a REIT’s manager, changes to tax laws, and failure by the REIT to
qualify for favorable treatment. To the extent the Fund invests in REITs, you
will indirectly bear fees and expenses of the underlying REITs in addition to
the Fund’s direct fees and expenses. REITs may have limited diversification and
may not exhibit the same (or any) correlation with inflation that real estate or
other real estate securities exhibit.
•Equity
Risk.
Common stocks are susceptible to general stock market fluctuations and to
volatile increases and decreases in value. The stock market may experience
declines or stocks in the Fund’s portfolio may not increase their earnings at
the rate anticipated. The Fund’s NAV and investment return will fluctuate based
upon changes in the value of its portfolio
securities.
•Alternative
Strategies Risk:
Certain Underlying Funds that use alternative investment strategies may be
subject to risks including, but not limited to, derivatives risk, liquidity
risk, credit risk and commodities risk. Certain alternative strategies involve
the risk that a counterparty to a transaction will not perform as promised,
which could result in losses to the Fund. Furthermore, alternative strategies
may employ leverage, involve extensive short positions and/or focus on narrow
segments of the market, which may magnify the overall risks and volatility
associated with such investments.
•Derivatives
Risk:
A derivative is an instrument with a value based on the performance of an
underlying currency, security, index or other reference asset. The use of
derivatives involves risks different from, or greater than, the risks associated
with investing in more traditional investments. Derivatives involve costs, may
create leverage, and may be illiquid, volatile, and difficult to value. The Fund
may not be able to close out or sell a derivative position at a particular time
or at an anticipated price. The use of derivatives could also result in a loss
if the counterparty to the transaction does not perform as promised, including
because of such counterparty’s bankruptcy or insolvency. The investment results
achieved by the use of derivatives by the Fund may not match or fully offset
changes in the value of the underlying currency, security, index or other
reference asset that it was attempting to hedge or the investment opportunity
the Fund was attempting to pursue.
•Options
Risk:
The value of the Fund’s options positions will fluctuate in response to changes
in the value of the underlying securities. Writing call options limits the
opportunity to profit from an increase in the market value of stocks in exchange
for up-front cash at the time of selling the call option. In addition, the Fund
continues to bear the risk of declines in the underlying securities on which the
option is written. When purchasing put options, the Fund risks losing all or
part of the cash paid for purchasing the option. As the writer of a put option,
the Fund has a risk of loss should the underlying securities decline in value.
If the value of the underlying securities declines below the exercise price of
the put option and the put option is exercised, the Fund, as the writer of the
put option, will be required to buy the underlying securities at the exercise
price, and the Fund will incur a loss to the extent that the current market
value of the underlying securities is less than the exercise price of the put
option. However, the loss will be offset in part by the premium received from
the buyer of the put option. Unusual market conditions or the lack of a ready
market for any particular option at a specific time may reduce the effectiveness
of the Fund’s option strategies, and for these and other reasons the Fund’s
option strategies may not reduce the Fund’s volatility to the extent
desired.
•Leverage
Risk:
The Fund’s investments in closed-end funds, leveraged ETFs and ETNs, and
derivatives such as futures contracts, forward contracts and swaps have the
economic effect of creating financial leverage. Financial leverage magnifies
exposure to the swings in prices of an asset class underlying a derivatives
instrument and results in increased volatility, which means the Fund will have
the potential for greater gains, as well as the potential for greater losses,
than if the Fund had not invested in derivatives at
all.
•U.S.
Government Agency Obligations Risk:
Government agency obligations have different levels of credit support and,
therefore, different degrees of credit risk. Some securities issued by agencies
and instrumentalities of the U.S. Government are supported by the full faith and
credit of the United States, but others are neither insured nor guaranteed by
the U.S. Government. For example, Connecticut Avenue Securities issued by the
Federal National Mortgage Association and Structured Agency Credit Risk debt
notes issued by the Federal Home Loan Mortgage Association carry no guarantee
whatsoever and the risk of default associated with these
securities
would be borne by the Fund. The U.S. Department of the Treasury has the
authority to provide financial support to these debt obligations, but no
assurance can be given that the U.S. Government will do
so.
•Non-U.S.
Government Obligations Risk:
For non-U.S. government obligations, there is the risk that payments on a
security will not be made when due, or the value of such security will decline,
because the security is not issued or guaranteed as to principal or interest by
the U.S. government or by agencies or authorities controlled or supervised by
and acting as instrumentalities of the U.S. government or supported by the right
of the issuer to borrow from the U.S. government.
•Liquidity
Risk: Liquidity risk is the risk that certain investments may be
difficult or impossible to buy or sell at the time and price that a Fund would
like to buy or sell the security.
•Maturity
Risk:
The Fund may invest in fixed income securities with a range of maturities.
Generally, the longer a security’s maturity, the greater the risk that interest
rate fluctuations may adversely affect the value of the
security.
•Municipal
Securities Risk: The risk of a municipal security depends on the ability of the
issuer, or any entity providing a credit enhancement, to continue to meet its
obligations for the payment of interest and principal when
due.
•Small
and Medium Capitalization Company Risk:
Small and medium capitalization companies often have narrower markets, fewer
products or services to offer and more limited managerial and financial
resources than do larger, more established companies. As a result, their
performance can be more volatile, and they face a greater risk of business
failure, which could increase the volatility and risk of loss of the Fund’s
assets.
•Loan
Risk:
The value of an investment in a loan is entirely dependent on the borrower’s
continued and timely payments. If a borrower fails to make interest payments or
repay principal when due on a loan in which the Fund has direct or indirect
investment exposure, or if the value of a loan decreases, the value of the
Fund’s investment will be adversely affected. Loans are subject to risk of loss
as a result of borrower default, sensitivity to interest rate and economic
changes, valuation difficulties and potential decreased liquidity to a greater
extent than other types of investments. The value of any collateral securing a
loan may decline, be insufficient to meet the borrower’s obligations, or be
difficult or costly to liquidate. It may take longer than 7 days for investments
in loans to settle, which may adversely affect an Underlying Fund’s ability to
timely honor redemptions.
•Marketplace
Loan Risk: Investments in loans sourced through marketplace lending platforms
are subject to additional risks than those applicable to investments in loans
generally. An Underlying Fund may not have direct recourse against the borrower
or may be otherwise limited in its ability to directly enforce its rights under
the loan. Default history for alternative lending platforms is limited. Future
defaults may be higher than historical defaults and the timing of defaults may
vary significantly from historical observations. An Underlying Fund may have
limited knowledge about the underlying loans to which it has exposure and is
dependent upon the platform for information regarding the loans and borrowers’
credit information. Such information may be incomplete, inaccurate or outdated
and may, therefore, not accurately reflect the borrowers’ actual
creditworthiness. In addition, investments in loans sourced through a
marketplace lending platform may also be negatively impacted if the platform or
a third-party service provider becomes unable or unwilling to fulfill its
obligations in servicing the loans.
•Master
Limited Partnership Risk.
Investing in Master Limited Partnerships (“MLPs”) entails risk related to
fluctuations in energy prices, decreases in supply of or demand for energy
commodities, unique tax consequences due to the partnership structure and
various other risks.
•Portfolio
Turnover Risk:
Depending on market and other conditions, the Fund may experience a high
portfolio turnover, which may result in higher brokerage costs and transaction
costs (which could reduce investment returns). Distributions of net short-term
capital gains are taxable as ordinary income when Fund shares are held in a
taxable account. A fund with a high portfolio turnover rate (a measure of how
frequently assets within a fund are bought and sold) is more likely to generate
short-term capital gains than a fund with a low portfolio turnover
rate.
•Securities
Lending Risk:
When the Fund lends its portfolio securities, the Fund is subject to the risk
that the borrower may fail to return the securities in a timely manner or at
all, resulting in a loss to the Fund and/or a delay in recovering the loaned
securities. The Fund could also lose money in connection with securities lending
transactions if it does not recover the loaned securities and/or the value of
the collateral falls, including the value of investments made with cash
collateral. Securities lending also may have certain adverse tax consequences.
The Fund is not obligated to engage in securities lending, and may discontinue
its securities lending activities at any time.
Performance
The bar chart and table that follow illustrate annual returns for
the Fund for the periods ended December 31. This information is intended to give you some indication of
the risks of investing in the Fund by showing how the Fund’s average annual
returns over time compare with those of a broad measure of market performance
and an additional index with characteristics relevant to the Fund's
investments. The Fund’s
past performance (before and after taxes) is not necessarily an indication of
how the Fund will perform in the future.
GUIDEPATH®
GROWTH
AND INCOME FUND
Calendar Year Return as of 12/31
The
year-to-date performance of the Fund as of
June 30,
2024 was 9.84%.
During
the period shown on the bar chart, the Fund’s best and worst quarters are shown
below:
|
|
|
|
|
|
|
| |
Best
Quarter: |
Quarter
ended June 30,
2020 |
11.74 |
% |
Worst
Quarter: |
Quarter
ended March 31,
2020 |
-16.96 |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns for Periods Ended December 31,
2023 |
|
| |
| One
Year |
Five
Years |
Since
Inception
(April 30,
2018) |
Growth
and Income Fund |
|
| |
Return
Before Taxes |
9.51% |
8.35% |
6.22% |
Return
After Taxes on Distributions |
8.63% |
7.11% |
5.03% |
Return
After Taxes on Distributions and Sale of Fund
Shares |
5.89% |
6.31% |
4.61% |
MSCI
USA High Dividend Yield Index
(reflects no deduction for fees, expenses or
taxes) |
6.83% |
9.32% |
8.22% |
S&P
500®
Index (1)
(reflects no deduction for fees, expenses or
taxes) |
26.29% |
15.69% |
12.89% |
(1)
Effective
July 31, 2024, the Fund added this broad-based securities market index intended
to reflect the overall applicable securities market.
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 tax situation and may differ from those
shown. In addition, the after-tax returns shown are not relevant to
investors who hold their Fund shares through tax-advantaged arrangements such as
401(k) plans and individual retirement accounts because such accounts are only
subject to taxes upon
withdrawal.
Investment
Advisor
AssetMark,
Inc. (“AssetMark” or the “Advisor”) is the investment advisor for the Fund.
Portfolio
Managers:
The Fund’s investment decisions are made by the following portfolio
managers:
|
|
|
|
|
|
|
| |
Portfolio
Manager |
Title |
Length
of Service to the Fund |
Selwyn
Crews |
Director,
Investment Strategies |
Since
2022 |
Christian
Chan |
Senior
Vice President, Chief Investment Officer |
Since
2022 |
Purchase
and Sale of Fund Shares: Financial
institutions and intermediaries on behalf of their clients may purchase or sell
shares through U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank
Global Fund Services, the Fund’s transfer agent (or its authorized agent).
Institutions and intermediaries that use certain proprietary systems of the
Advisor may place orders to buy or sell electronically through those systems.
Transactions will only occur on days the New York Stock Exchange is open. The
Fund has no investment minimums, however, the financial institutions and
intermediaries that sell the Fund’s shares may have established minimum values
for the accounts that they handle.
Tax
Information: The
Fund’s distributions are taxable, and generally will be taxed as ordinary
income, capital gains, or some combination of both, unless you are investing
through a tax-advantaged arrangement, such as a 401(k) plan or an individual
retirement account. Withdrawals from such tax-advantaged arrangements may be
subject to tax.
Payments
to Broker-Dealers and Other Financial Intermediaries: If
you purchase Fund shares through a broker-dealer or other financial intermediary
(such as a bank), AssetMark and/or 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.
MORE
INFORMATION ABOUT THE INVESTMENT OBJECTIVES AND
PRINCIPAL
INVESTMENT STRATEGIES OF THE FUNDS
In
the case of a Fund that has a policy of investing, under normal circumstances,
either at least 80% or substantially all of its assets in a particular type of
investment as of the time of purchase (a “Names Rule Policy”), the Fund’s Names
Rule Policy may be changed without shareholder approval. No change to a Fund’s
Names Rule Policy will be made without a minimum of 60 days advance notice being
provided to the shareholders of the Fund. For purposes of a Fund’s Names Rule
Policy, the Fund’s assets include net assets plus borrowings for investment
purposes, if any.
GUIDEMARK®
LARGE
CAP CORE FUND
Investment
Objective and Principal Investment Strategies
Investment
Objective
The
investment objective of the GuideMark®
Large
Cap Core Fund is capital appreciation over the long term. This objective is
fundamental, meaning it cannot be changed without shareholder approval. The
investment strategies described below are non-fundamental, meaning they may be
changed by action of the Board of Trustees of the Fund without shareholder
approval.
Principal
Investment Strategies
Under
normal circumstances, the Fund invests at least 80% of its assets in the
securities of large capitalization companies. The Fund considers “large
capitalization companies” to be companies, at the time of purchase, whose market
capitalizations are within the range of the market capitalizations in the
Russell 1000®
Index.
The
Fund also may invest in derivatives such as futures, forwards and other similar
instruments in order to “equitize” cash balances by gaining exposure to relevant
equity markets. To the extent that derivatives have economic characteristics
similar to the securities of large capitalization companies, they will be
counted as such for purposes of the Fund’s 80% investment policy.
The
sub-advisor uses a rules-based methodology that emphasizes quantitatively-based
stock selection, portfolio construction and efficient implementation. The Fund
seeks to capture common sources of active equity returns, including the
following factors: value (i.e., how attractively a stock is priced relative to
its “fundamentals,” such as book value and free cash flow), momentum (i.e.,
whether a company’s share price is trending up or down) and quality (i.e.,
profitability). The sub-advisor seeks to capitalize on the low correlations in
returns across these factors by diversifying exposure to securities selected
based on such factors. The sub-advisor may, in its discretion, make changes to
its quantitative techniques, or use other quantitative techniques that are based
on the sub-advisor’s proprietary research.
The
sub-advisor constructs the Fund’s portfolio by investing in the securities
comprising the Russell 1000®
Index
and adjusting the relative weight of each security based on the security’s
attractiveness when evaluated based on the factors as described above, subject
to the Fund being constrained to long-only positions. Based on the sub-advisor’s
judgment, the Fund expects that its portfolio will be overweight with respect to
certain securities (i.e., the Fund will hold a greater percentage of those
securities than the index) and underweight with respect to others (i.e., the
Fund will hold a lesser percentage of those securities than the index), and that
such weightings may change over time. The percentage of the Fund’s portfolio
exposed to any single security will vary from time to time as the weightings of
the securities within the Fund change. The degree to which components of the
Fund represent certain sectors or industries may change over time.
The
Fund lends its portfolio securities to seek to generate additional
income.
GUIDEMARK®
EMERGING
MARKETS FUND
Investment
Objective and Principal Investment Strategies
Investment
Objective
The
investment objective of the GuideMark®
Emerging
Markets Fund is capital appreciation over the long term. This objective is
fundamental, meaning it cannot be changed without shareholder approval. The
investment strategies described below are non-fundamental, meaning they may be
changed by action of the Board of Trustees of the Fund without shareholder
approval.
Principal
Investment Strategies
Under
normal circumstances, the Fund invests at least 80% of its assets in securities
and other instruments that provide exposure to emerging market countries. For
purposes of this policy, securities and other instruments that provide exposure
to emerging market countries include: (i) securities issued by entities which
are located, incorporated or have significant business activities in or are
impacted by economic developments in developing or emerging market countries,
(ii) securities denominated in, or linked to, currencies or interest rates of an
emerging market country or countries, and (iii) derivatives or pooled structures
(such as exchange-traded funds (“ETFs”)) that are linked to emerging markets.
The Fund considers emerging market countries to be those defined by the MSCI
Emerging Markets Index. The Fund will, under normal circumstances, seek exposure
to a minimum of three emerging market countries.
The
Fund mainly invests in equity securities of issuers in emerging market
countries. The Fund’s investments in equity securities may include common
stocks, unit stocks, stapled securities, ETFs and preferred stocks of companies
of any size capitalization. The Fund also may invest in depositary receipts,
including American Depositary Receipts (“ADRs”) of foreign companies and Global
Depositary Receipts (“GDRs”). Depositary receipts are typically issued by a U.S.
or foreign bank or trust company and evidence ownership of underlying securities
issued by a foreign corporation.
The
Fund also may invest in derivatives such as futures, forwards and other similar
instruments in order to (i) “equitize” cash balances by gaining exposure to
relevant equity markets; and (ii) hedge exposure to foreign currencies. The Fund
may engage in currency futures and currency forwards for the purpose of hedging
exposures within the Fund to non-dollar-denominated assets. In general, the use
of currency derivatives for hedging may reduce the overall risk level of the
Fund, albeit at a cost that may lower overall performance.
The
sub-advisor uses a rules-based methodology that emphasizes quantitatively-based
stock selection, portfolio construction and efficient implementation. The Fund
seeks to capture common sources of active equity returns, including the
following factors: value (i.e., how attractively a stock is priced relative to
its “fundamentals,” such as book value and free cash flow), momentum (i.e.,
whether a company’s share price is trending up or down) and quality (i.e.,
profitability). The sub-advisor seeks to capitalize on the low correlations in
returns across these factors by diversifying exposure to securities selected
based on such factors. The sub-advisor may, in its discretion, make changes to
its quantitative techniques, or use other quantitative techniques that are based
on the sub-advisor’s proprietary research.
The
sub-advisor constructs the Fund’s portfolio by investing in the securities
comprising the MSCI Emerging Markets
Index
and adjusting the relative weight of each security based on the security’s
attractiveness when evaluated based on the factors as described above, subject
to the Fund being constrained to long-only positions. Based on the sub-advisor’s
judgment, the Fund expects that its portfolio will be overweight with respect to
certain securities (i.e., the Fund will hold a greater percentage of those
securities than the index) and underweight with respect to others (i.e., the
Fund will hold a lesser percentage of those securities than the index), and that
such weightings may change over time. The percentage of the Fund’s portfolio
exposed to any single security will vary from time to time as the weightings of
the securities within the Fund change. The degree to which components of the
Fund represent certain sectors or industries may change over time.
The
Fund lends its portfolio securities to seek to generate additional
income.
GUIDEMARK®
SMALL/MID
CAP CORE FUND
Investment
Objective and Principal Investment Strategies
Investment
Objective
The
investment objective of the GuideMark®
Small/Mid
Cap Core Fund is capital appreciation over the long term. This objective is
fundamental, meaning it cannot be changed without shareholder approval. The
investment strategies described below are non-fundamental, meaning they may be
changed by action of the Board of Trustees of the Fund without shareholder
approval.
Principal
Investment Strategies
Under
normal circumstances, the Fund invests at least 80% of its assets in the
securities of small-to-medium capitalization companies. The Fund considers
“small-to-medium capitalization companies” to be companies, at the time of
purchase, whose market capitalizations are within the range of the market
capitalizations in the Russell 2500TM
Index.
The
Fund may invest in derivatives such as futures, forwards and other similar
instruments in order to “equitize” cash balances by gaining exposure to relevant
equity markets. To the extent that derivatives have economic characteristics
similar to the securities of small-to-medium capitalization companies, they will
be counted as such for purposes of the Fund’s 80% investment
policy.
The
sub-advisor uses a rules-based methodology that emphasizes quantitatively-based
stock selection, portfolio construction and efficient implementation. The Fund
seeks to capture common sources of active equity returns, including the
following factors: value (i.e., how attractively a stock is priced relative to
its “fundamentals,” such as book value and free cash flow), momentum (i.e.,
whether a company’s share price is trending up or down) and quality (i.e.,
profitability). The sub-advisor seeks to capitalize on the low correlations in
returns across these factors by diversifying exposure to securities selected
based on such factors. The sub-advisor may, in its discretion, make changes to
its quantitative techniques, or use other quantitative techniques that are based
on the sub-advisor’s proprietary research.
The
sub-advisor constructs the Fund’s portfolio by investing in the securities
comprising the Russell 2500TM
Index
and adjusting the relative weight of each security based on the security’s
attractiveness when evaluated based on the factors as described above, subject
to the Fund being constrained to long-only positions. Based on the sub-advisor’s
judgment, the Fund expects that its portfolio will be overweight with respect to
certain securities (i.e., the Fund will hold a greater percentage of those
securities than the index) and underweight with respect to others (i.e., the
Fund will hold a lesser percentage of those securities than the index), and that
such weightings may change over time. The percentage of the Fund’s portfolio
exposed to any single security will vary from time to time as the weightings of
the securities within the Fund change. The degree to which components of the
Fund represent certain sectors or industries may change over time.
The
Fund lends its portfolio securities to seek to generate additional
income.
GUIDEMARK®
WORLD
EX-US FUND
Investment
Objective and Principal Investment Strategies
Investment
Objective
The
investment objective of the GuideMark®
World
ex-US Fund is to provide capital appreciation over the long term. This objective
is fundamental, meaning it cannot be changed without shareholder approval. The
investment strategies described below are non-fundamental, meaning they may be
changed by action of the Board of Trustees of the Fund without shareholder
approval.
Principal
Investment Strategies
Under
normal circumstances, the Fund invests at least 80% of its assets in equity
securities. The Fund invests primarily in equity securities incorporated or
traded outside the United States. Generally, the Fund’s assets will be invested
in securities of companies located in developed countries. The Fund considers
developed countries to be those defined by the MSCI World ex-USA Index. The Fund
will, under normal circumstances, invest in a minimum of three countries outside
of the United States.
The
Fund’s investments in equity securities may include common stocks, unit stocks,
stapled securities, exchange-traded funds (“ETFs”) and preferred stocks of
companies of any size capitalization. The Fund also may invest in depositary
receipts, including American Depositary Receipts (“ADRs”) of foreign companies
and Global Depositary Receipts (“GDRs”). Depositary receipts are typically
issued by a U.S. or foreign bank or trust company and evidence ownership of
underlying securities issued by a foreign corporation.
The
Fund also may invest in derivatives such as futures, forwards and other similar
instruments in order to (i) “equitize” cash balances by gaining exposure to
relevant equity markets; and (ii) hedge exposure to foreign currencies. The Fund
may engage in currency futures and currency forwards for the purpose of hedging
exposures within the Fund to non-dollar-denominated assets. In general, the use
of currency derivatives for hedging may reduce the overall risk level of the
Fund, albeit at a cost that may lower overall performance. To the extent that
derivatives have economic characteristics similar to equity securities, they
will be counted as such for purposes of the Fund’s 80% investment
policy.
The
sub-advisor uses a rules-based methodology that emphasizes quantitatively-based
stock selection, portfolio construction and efficient implementation. The Fund
seeks to capture common sources of active equity returns, including the
following factors: value (i.e., how attractively a stock is priced relative to
its “fundamentals,” such as book value and free cash flow), momentum (i.e.,
whether a company’s share price is trending up or down) and quality (i.e.,
profitability). The sub-advisor seeks to capitalize on the low correlations in
returns across these factors by diversifying exposure to securities selected
based on such factors. The sub-advisor may, in its discretion, make changes to
its quantitative techniques, or use other quantitative techniques that are based
on the sub-advisor’s proprietary research.
The
sub-advisor constructs the Fund’s portfolio by investing in the securities
comprising the MSCI World ex-USA Index and adjusting the relative weight of each
security based on the security’s attractiveness when evaluated based on the
factors as described above, subject to the Fund being constrained to long-only
positions. Based on the sub-advisor’s judgment, the Fund expects that its
portfolio will be overweight with respect to certain securities (i.e., the Fund
will hold a greater percentage of those securities than the index) and
underweight with respect to others (i.e., the Fund will hold a lesser percentage
of those securities than the index), and that such weightings may change over
time. The percentage of the Fund’s portfolio exposed to any single security will
vary from time to time as the weightings of the securities within the Fund
change. The degree to which components of the Fund represent certain sectors or
industries may change over time.
The
Fund lends its portfolio securities to seek to generate additional
income.
GUIDEMARK®
CORE
FIXED INCOME FUND
Investment
Objective and Principal Investment Strategies
Investment
Objective
The
investment objective of the GuideMark®
Core
Fixed Income Fund is to provide current income consistent with low volatility of
principal. This objective is fundamental, meaning that it cannot be changed
without shareholder approval. The Fund will also seek capital
appreciation.
Principal
Investment Strategies
Under
normal circumstances, the Fund will invest at least 80% of its assets in fixed
income securities.
The
Fund will primarily invest in fixed income securities that are rated investment
grade or better (i.e., rated in one of the four highest rating categories by an
NRSRO or determined to be of comparable quality by the Fund’s sub-advisor if the
security is unrated). The fixed income securities in which the Fund invests may
have maturities of any length. The Fund intends to invest in the following types
of fixed income securities:
•Obligations
issued or guaranteed by the U.S. Federal Government, U.S. Federal agencies or
U.S. government sponsored corporations and agencies
•Obligations
of U.S. and non-U.S. corporations denominated in U.S. dollars, such as mortgage
bonds, convertible and non-convertible notes and debentures, preferred stocks,
commercial paper, certificates of deposit and bankers acceptances used by
industrial, utility, finance, commercial banking or bank holding company
organizations.
•Mortgage-backed
and asset-backed securities (including adjustable rate mortgage loans, fixed
rate mortgage loans, collateralized mortgage obligations, multiple class
mortgage-backed securities, privately issued mortgage-backed securities and
stripped mortgage-backed securities).
•Obligations,
including the securities of emerging market issuers, denominated in U.S. dollars
of international agencies, supranational entities and foreign governments (or
their subdivisions or agencies).
•Obligations
issued or guaranteed by U.S. local, city and state governments and
agencies.
•Zero
Coupon, Deferred Interest, Pay-in-Kind and Capital Appreciation
bonds.
•Repurchase
Agreements & Reverse Repurchase Agreements
•To
Be Announced (TBA)/When Issued (WI) Securities.
•Securities
offered pursuant to Rule 144A and Commercial Paper defined under Section 4(2) of
the Securities Act of 1933.
The
Fund may use exchange-traded and over-the-counter derivatives to manage or
adjust the risk profile or duration exposure of the Fund, to replace more
traditional direct investments, or to obtain exposure to certain markets.
Generally, derivatives are financial contracts whose value depends upon, or is
derived from, the value of an underlying asset, reference rate, or index, and
may relate to, among other things, stocks, bonds, debt obligations, interest
rates, currencies or currency exchange rates, and related indexes. The use of
these derivatives transactions may allow the Fund to obtain net long or net
negative (short) exposure to selected interest rates, durations or credit risks.
The derivatives in which the Fund may invest include, but are not limited to,
futures contracts (including, but not limited to, interest rate, credit and
index futures), swap agreements (including, but not limited to, interest rate,
total return, index and credit default swaps), options (such as interest
rate/bond options and options on swaps), and “to-be-announced” securities. The
sub-advisor considers various factors, such as availability and cost, in
deciding whether, when and to what extent to enter into derivative transactions.
The Fund’s investments in derivatives will be made in accordance with applicable
regulatory requirements and limitations.
The
Fund is designed to allow the sub-advisor to invest in the core sectors of the
U.S. domestic fixed income market (as defined by the Fund’s benchmark index)
while seeking to maintain the Fund’s duration within a relatively close range to
the duration of the Fund’s benchmark index. Duration is a measure of the
sensitivity of the price of a debt security (or a portfolio of debt securities)
to changes in interest rates. The prices of debt securities with shorter
durations generally will be less affected by changes in interest rates than the
prices of debt securities with longer durations.
The
sub-advisor combines top-down views with bottom-up driven research to manage the
Fund’s assets. Top-down views set by the portfolio management team determine
risk targets, sector allocation, duration and yield curve positioning. Sector
teams are responsible for credit research and building bottom-up driven sector
portfolios that meet the targets set by the portfolio management
team.
The
Fund lends its portfolio securities to seek to generate additional
income.
GUIDEPATH®
GROWTH
ALLOCATION FUND
Investment
Objective and Principal Investment Strategies
Investment
Objective
GuidePath®
Growth
Allocation Fund seeks to maximize total return, consisting of a combination of
long-term capital appreciation and current income, while moderating risk and
volatility in the portfolio. The Fund’s investment objective is non-fundamental
and may be changed by the Board of Trustees of the Fund without shareholder
approval (although the Fund would provide notice to shareholders regarding any
change).
Principal
Investment Strategies
The
Fund operates as a fund of funds, investing primarily in registered mutual
funds, including ETFs. The Advisor believes that investing in Underlying Funds
provides the Fund with an efficient means of creating a portfolio that provides
investors with indirect exposure to a broad range of securities. By investing in
the Fund, you will indirectly bear fees and expenses of the Underlying Funds in
addition to the Fund’s direct fees and expenses. In order to obtain exposure to
certain markets, asset classes or active management styles, the Fund may buy
Underlying Funds managed by the Advisor or its affiliates, which, in turn,
invest in various securities, including ETFs. The Fund may also invest directly
in securities and other exchanged-traded products, such as ETNs.
In
seeking to maximize total return, under normal circumstances, the Fund’s assets
are allocated, either directly or indirectly via the Underlying Funds, into a
diversified portfolio of domestic and international equity securities (including
ADRs and GDRs) and domestic and international fixed income securities. The
intention is to capture broad capital market returns, while seeking to balance
the pursuit of maximum total return against the control of risk in the
portfolio.
In
addition to the general allocation into equity, fixed income and cash equivalent
asset classes, the Fund’s assets are also typically allocated among a variety of
sub-asset classes. The Fund’s equity investments typically include, either
directly or indirectly via the Underlying Funds, a mix of weightings of larger
and smaller capitalization equity securities, growth and value stocks, and
equity securities from developed and emerging international markets. The Fund’s
fixed income investments may be expected to be allocated, either directly or
indirectly via the Underlying Funds, among corporate bonds, mortgage-backed or
asset-backed securities; securities issued by the U.S. and foreign governments
or their agencies and instrumentalities, and to higher-yielding bonds (sometimes
referred to as “junk bonds”), including emerging market debt. Typically, a
significant portion of the Fund’s fixed income allocation will be in
non-investment grade fixed income investments with varying
maturities.
The
Advisor’s asset allocation decisions are based on different factors and
analytical approaches, derived from asset allocation approaches developed by
various research providers and considered by the Advisor in constructing the
Fund’s portfolio. The research providers’ asset allocation approaches typically
utilize fundamental and quantitative analysis regarding long-term capital market
expectations, the economic outlook, and assumptions regarding risks and returns.
The
Fund’s asset allocation mix among equity, fixed income and cash equivalent money
market securities is intended to generally remain consistent for longer periods
of time. Under normal circumstances, the Fund is expected to allocate between
65% and 100% of its assets to equity securities or investments that provide
exposure to equity securities. Over time, the asset allocation mix may change as
a result of changing capital market assumptions. Under normal market conditions,
the Fund is expected to allocate approximately 99% of its assets to equity
securities or investments that provide exposure to equity securities and 1% of
its assets to fixed income securities or investments that provide exposure to
fixed income securities, including cash equivalents. The Fund also may allocate
significant assets to international equity markets: up to 45% to developed
international markets and up to 35% to emerging markets.
The
Fund may invest in Underlying Funds that use derivatives for risk management
purposes or as part of their investment strategies. An Underlying Fund may use
derivatives to enhance returns, to manage or adjust the risk profile of the
Underlying Fund, to replace more traditional direct investments, or to obtain
exposure to certain markets.
The
Fund lends its portfolio securities to seek to generate additional
income.
GUIDEPATH®
CONSERVATIVE
ALLOCATION FUND
Investment
Objective and Principal Investment Strategies
Investment
Objective
GuidePath®
Conservative
Allocation Fund seeks to maximize total return, consisting of a combination of
long-term capital appreciation and current income, while moderating risk and
volatility in the portfolio. The Fund’s investment objective is non-fundamental
and may be changed by the Board of Trustees of the Fund without shareholder
approval (although the Fund would provide notice to shareholders regarding any
change).
Principal
Investment Strategies
The
Fund operates as a fund of funds, investing primarily in registered mutual
funds, including ETFs. The Advisor believes that investing in Underlying Funds
provides the Fund with an efficient means of creating a portfolio that provides
investors with indirect exposure to a broad range of securities. By investing in
the Fund, you will indirectly bear fees and expenses of the Underlying Funds in
addition to the Fund’s direct fees and expenses. In order to obtain exposure to
certain markets, asset classes or active management styles, the Fund may buy
Underlying Funds managed by the Advisor or its affiliates, which, in turn,
invest in various securities, including ETFs. The Fund may also invest directly
in securities and other exchange-traded products, such as ETNs.
In
seeking to maximize total return, under normal circumstances, the Fund’s assets
are allocated, either directly or indirectly via the Underlying Funds, into a
diversified portfolio consisting of domestic and international equity securities
(including ADRs and GDRs) and domestic and international fixed income
securities. The intention is to capture broad capital market returns over the
long term, while seeking to balance the pursuit of maximum total return against
the control of risk in the portfolio.
In
addition to the general strategic allocation into equity, fixed income and cash
equivalent asset classes, the Fund’s assets are also typically allocated among a
variety of sub-asset classes. The Fund’s equity investments typically include,
either directly or indirectly via the Underlying Funds, a mix of weightings of
larger and smaller capitalization equity securities, growth and value stocks,
and equity securities from developed and emerging international markets. The
Fund’s fixed income investments may be expected to be allocated, either directly
or indirectly via the Underlying Funds, among corporate bonds, mortgage-backed
or asset-backed securities, securities issued by the U.S. and foreign
governments or their agencies and instrumentalities, and to higher-yielding
bonds (sometimes referred to as “junk bonds”), including emerging market debt. A
significant portion of the Fund’s fixed income allocation will be in
non-investment grade fixed income investments with varying maturities. The Fund
may also allocate a portion of its assets to commodities related
investments.
The
Advisor’s asset allocation decisions will be based on different factors and
analytical approaches, derived from asset allocation approaches developed by
various research providers and considered by the Advisor in constructing the
Fund’s portfolio. The research providers’ asset allocation approaches typically
utilize fundamental and quantitative analysis regarding long-term capital market
expectations, the economic outlook, and assumptions regarding risks and returns.
Under
normal circumstances, the Fund is expected to allocate between 15% and 55% of
its assets to equity securities and investments that provide exposure to equity
securities and between 45% and 85% of its assets to fixed income securities and
investments that provide exposure to fixed income securities. Over time, the
asset allocation mix may change as a result of changing capital market
assumptions or short-term market opportunities. Under normal market conditions,
the Fund is expected to allocate approximately 35% of its assets to equity
securities and investments that provide exposure to equity securities and 65% of
its assets to fixed income securities and investments that provide exposure to
fixed income securities, including cash equivalents. For example, if the Advisor
believes that the stock market is undervalued, it may increase the equity
allocation, or if the Advisor believes that the stock market is overvalued, it
may decrease the equity allocation. Within these ranges, the Advisor has the
ability to overweight or underweight certain asset classes in pursuit of
increased return or reduced risk in the short to intermediate term. The Fund’s
portfolio will be rebalanced periodically as a result of asset class performance
causing drift away from the targeted asset allocation mix.
The
Fund may invest in Underlying Funds that use derivatives for risk management
purposes or as part of their investment strategies. Generally, derivatives are
financial contracts whose value depends upon, or is derived from, the value of
an underlying asset, reference rate, or index, and may relate to stocks, bonds,
interest rates, currencies or currency exchange rates, and related indexes.
Examples of derivatives that the Underlying Funds may use include options,
futures, forward agreements, swap agreements (including, but not limited to,
interest rate, total return and credit default swaps), credit-linked securities,
equity participation notes and equity-linked notes. An Underlying Fund may use
derivatives to earn income and enhance returns, to manage or adjust the risk
profile of the Underlying Fund, to replace more traditional direct investments,
or to obtain exposure to certain markets.
The
Fund lends its portfolio securities to seek to generate additional
income.
GUIDEPATH®
TACTICAL
ALLOCATION FUND
Investment
Objective and Principal Investment Strategies
Investment
Objective
GuidePath®
Tactical Allocation Fund seeks to maximize total return, consisting of a
combination of long-term capital appreciation and current income, while
moderating risk and volatility in the portfolio. The Fund’s investment objective
is non-fundamental and may be changed by the Board of Trustees of the Fund
without shareholder approval (although the Fund would provide notice to
shareholders regarding any change).
Principal
Investment Strategies
In
seeking to maximize total return, under normal circumstances, the Fund’s assets
are allocated into a diversified portfolio consisting of domestic and
international equity securities (including ADRs and GDRs), domestic and
international fixed income securities, ETFs, mutual funds and cash equivalent
money market securities. The Fund’s percentage allocation to individual
securities may range from 0% - 90% of the Fund’s assets. The intention is to
allow the Advisor broad flexibility to seek to take advantage of shorter-term
opportunities to increase returns or to aggressively mitigate risks, through
tactical, and potentially frequent, allocation shifts among asset
classes.
The
asset classes in which the Fund may invest include growth and value stocks,
equity securities from developed and emerging international markets,
commodity-related securities and domestic and international real estate
securities, corporate bonds, mortgage- backed or asset-backed securities,
securities issued by the U.S. and foreign governments or their agencies and
instrumentalities, and higher-yielding bonds sometimes referred to as “junk
bonds”), including emerging market debt. The Fund may invest in debt obligations
of any maturity. A significant portion of the Fund’s fixed income allocation may
be in non-investment grade fixed income investments with varying maturities, but
these allocations may vary significantly over time.
The
Fund may allocate assets to various fixed income and equity securities and
sectors. Using this type of strategy, the Fund seeks to tactically avoid risk by
reducing exposure to unattractive sectors at the appropriate times, while also
increasing exposure to attractive sectors on a timely basis.
The
Fund may invest in Underlying Funds when the Advisor believes such investments
will provide the Fund with an efficient means of creating exposure to a broad
range of securities. The percentage allocation to Underlying Funds may range
from 10% - 100% of the Fund’s assets. The Fund may also invest in other
exchange-traded products, such as ETNs. The ETFs and ETNs in which the Fund
invests include inverse, leveraged, and inverse-leveraged ETFs and ETNs. Inverse
ETFs and ETNs are designed to correlate inversely with the performance of an
index. Leveraged and inverse-leveraged ETFs and ETNs seek investment results
that correspond to two or more times the performance of an index or inverse of
the performance of an index, respectively. By investing in the Fund, you will
indirectly bear fees and expenses of the Underlying Funds in which the Fund may
invest in addition to the Fund’s direct fees and expenses. In order to obtain
exposure to certain markets, asset classes or active management styles, the Fund
may buy Underlying Funds managed by the Advisor or its affiliates, which, in
turn, invest in various securities, including ETFs.
The
Fund may also invest in Underlying Funds that use alternative strategies and/or
use derivatives for risk management purposes or as part of their investment
strategies. The alternative strategies that the Underlying Funds may use
include, among others, long/short strategies - equity and fixed income,
market-neutral strategies, and absolute return/global macro strategies.
Generally, derivatives are financial contracts whose value depends upon, or is
derived from, the value of an underlying asset, reference rate, or index, and
may relate to stocks, bonds, interest rates, currencies or currency exchange
rates, and related indexes. Examples of derivatives that the Underlying Funds
may use include options, futures, forward agreements, swap agreements
(including, but not limited to, interest rate, total return and credit default
swaps), credit-linked securities, equity participation notes and equity-linked
notes. An Underlying Fund may use derivatives to earn income and enhance
returns, to manage or adjust its risk profile, to replace more traditional
direct investments, or to obtain exposure to certain markets.
The
Advisor’s asset allocation decisions will be based on different factors and
analytical approaches, including tactical volatility managed asset allocation
approaches developed by various research providers selected by the Advisor. The
Advisor may rely on a combination of internal and external research in
constructing the Fund’s portfolio. The asset allocation approaches considered by
the Advisor typically utilize fundamental and quantitative analysis regarding
capital market expectations, the economic outlook, and assumptions regarding
risks and returns. The Advisor seeks to create a portfolio that is optimized to
seek the maximum total return, while maintaining diversification and limiting
risk and volatility.
The
Fund’s asset allocation mix among equity, fixed income and cash equivalent money
market securities is intended to change frequently over time. The Fund does not
have a set target asset allocation mix among equities, fixed income securities
and cash equivalent investments. If the Advisor believes that the stock market
conditions are unfavorable or overvalued, it may significantly increase the
allocation to more defensive asset classes such as fixed income or cash
equivalent securities. The Advisor also has broad latitude to allocate assets to
equity securities in pursuit of perceived opportunities for additional return.
Based on these judgments, the Fund’s asset allocation mix may
significantly
change over time in response to opportunities as they are
identified.
The
Fund lends its portfolio securities to seek to generate additional
income.
GUIDEPATH®
ABSOLUTE
RETURN ALLOCATION FUND
Investment
Objective and Principal Investment Strategies
Investment
Objective
GuidePath®
Absolute
Return Allocation Fund seeks to achieve consistent absolute positive returns
over time regardless of the market environment. The Fund’s investment objective
is non-fundamental and may be changed by the Board of Trustees of the Fund
without shareholder approval (although the Fund would provide notice to
shareholders regarding any change).
Principal
Investment Strategies
The
Fund operates as a fund of funds, investing primarily in registered mutual
funds, including ETFs. The Advisor believes that investing in Underlying Funds
provides the Fund with an efficient means of creating a portfolio that provides
investors with indirect exposure to a broad range of securities. By investing in
the Fund, you will indirectly bear fees and expenses of the Underlying Funds in
addition to the Fund’s direct fees and expenses. In order to obtain exposure to
certain markets, asset classes or active management styles, the Fund may buy
Underlying Funds managed by the Advisor or its affiliates, which, in turn,
invest in various securities, including ETFs. The Fund may also invest directly
in securities and other exchange-traded products, such as ETNs.
The
Advisor’s asset allocation decisions will be based on different factors and
analytical approaches, derived from absolute return asset allocation approaches
developed by various research providers and considered by the Advisor in
constructing the Fund’s portfolio. The research providers’ absolute return asset
allocation approaches typically utilize fundamental and quantitative analyses of
global market and economic conditions and assumptions regarding risks and
returns. The Advisor seeks to create a portfolio that is optimized to seek to
achieve consistent absolute positive returns over time regardless of the market
environment.
In
pursuing the Fund’s objective, the Fund invests, either directly or indirectly
via the Underlying Funds, in fixed income or equity-oriented investments across
global markets, using varying active asset allocation strategies among different
security types, asset classes, yield and duration, valuation analyses, and
currency exposure considerations.
The
Fund may utilize an absolute return asset allocation strategy that builds on a
foundation of alternative investments, such as long/short equity funds that seek
a modest positive return from equity investments, that attempts to stay
insulated from general stock market volatility, combined with opportunistic
equity and fixed income investments strategically selected to enhance returns.
Using qualitative and quantitative techniques, the Fund’s assets may be oriented
more or less toward alternative investments, or toward various types of
opportunistic investments.
The
Fund may invest in Underlying Funds that use alternative strategies, including
Underlying Funds that engage in significant use of derivatives for risk
management purposes or engage in significant use of derivatives as part of their
investment strategies. The alternative strategies that the Underlying Funds may
use include, among others, long/short strategies – equity and fixed income,
market-neutral strategies, absolute return/global macro strategies, and risk
premium strategies, including market risk transfer strategies, alternative
(marketplace) lending and real estate, reinsurance and commodity-linked
derivatives. Generally, derivatives are financial contracts whose value depends
upon, or is derived from, the value of an underlying asset, reference rate, or
index, and may relate to stocks, bonds, interest rates, commodities, currencies
or currency exchange rates, and related indexes. Examples of derivatives that
the Underlying Funds may use include options, futures (including, but not
limited to, commodity futures contracts and bitcoin futures contracts) and
options thereon, forward agreements, swap agreements (including, but not limited
to, interest rate, total return and credit default swaps), credit-linked
securities, equity participation notes and equity linked notes. An Underlying
Fund may use derivatives to earn income and enhance returns, to manage or adjust
the risk profile of the Underlying Fund, to replace more traditional direct
investments, or to obtain exposure to certain markets or asset classes,
including digital assets such as bitcoin.
Marketplace
lending, which is sometimes also referred to as alternative lending,
peer-to-peer lending and online lending, is an alternative to more traditional
debt financing done through a bank. There are several different models of
marketplace lending platforms, but generally, a platform typically matches
consumers, small or medium-sized businesses or other types of borrowers with
investors (such as private funds in which the Fund may invest) that are
interested in gaining investment exposure to the loans made to such borrowers.
Such loans may be secured or unsecured. They are not rated by a nationally
recognized statistical rating organization (“NRSRO”) and may constitute a
high-risk and speculative investment.
The
Fund may also utilize absolute return asset allocation strategies that allocate
assets to various fixed income instruments and sectors using various passive
index-oriented ETFs focusing on instruments such as U.S. Government bonds and
notes, corporate bonds, bank loans, mortgage-related securities and asset-backed
securities, inflation-protected debt securities, corporate bonds of various
quality levels and maturity/duration, and cash equivalent investments. Using
this type of strategy, the Fund seeks to tactically avoid risk by reducing
exposure at the appropriate times, while increasing exposure to attractive
sectors on a timely basis.
The
Fund lends its portfolio securities to seek to generate additional
income.
GUIDEPATH®
MULTI-ASSET
INCOME ALLOCATION FUND
Investment
Objective and Principal Investment Strategies
Investment
Objective
GuidePath®
Multi-Asset
Income Allocation Fund seeks to
maximize
current income while moderating risk and volatility in the portfolio. As a
secondary objective, the Fund seeks capital appreciation. The Fund’s investment
objectives are non-fundamental and may be changed by the Board of Trustees of
the Fund without shareholder approval (although the Fund would provide notice to
shareholders regarding any change).
Principal
Investment Strategies
The
Fund operates as a fund of funds, investing primarily in registered mutual funds
(both actively and passively managed) and ETFs. The Advisor believes that
investing in Underlying Funds provides the Fund with an efficient means of
creating a portfolio that provides investors with indirect exposure to a broad
range of asset classes. By investing in the Fund, you will indirectly bear fees
and expenses of the Underlying Funds in addition to the Fund’s direct fees and
expenses. In order to obtain exposure to certain markets, asset classes or
active management styles, the Fund may buy Underlying Funds managed by the
Advisor or its affiliates, which, in turn, invest in various securities,
including ETFs. The Fund may also invest directly in securities and other
exchange-traded products, such as ETNs.
The
Fund has broad flexibility to allocate its assets among a wide variety of debt
and equity securities and REITs. As part of its principal investment strategy or
for temporary defensive purposes, any portion of the Fund’s assets may also be
invested in cash and cash equivalents. The Fund may invest in such instruments
directly or indirectly through its investment in Underlying Funds. The Fund’s
approach is flexible and allows the Advisor to shift the Fund’s allocations in
response to changing market conditions. As a result, the Fund may at times be
invested in a single or multiple asset classes, markets or sectors. The Fund may
also take positions in various global currencies and may hold positions in
instruments that are denominated in currencies other than the U.S.
dollar.
The
Advisor’s asset allocation decisions are based on different factors and
analytical approaches, derived from asset allocation approaches developed by
various research providers and considered by the Advisor in constructing the
Fund’s portfolio. In attempting to achieve the Fund’s investment objective, the
Advisor monitors and adjusts the Fund’s asset allocations as necessary.
Under
normal circumstances, the Fund will be expected to allocate between 40% and 80%
of its assets to equity securities and investments that provide exposure to
equity securities and between 20% to 60% of its assets to fixed income
securities and investments that provide exposure to fixed income securities.
Over time, the asset allocation mix may change as a result of changing capital
market assumptions or short-term market opportunities. Under normal market
conditions, the Fund will be expected to allocate approximately 60% of its
assets to equity securities and investments that provide exposure to equity
securities and 40% of its assets to fixed income securities and investments that
provide exposure to fixed income securities, including cash equivalents.
The
Fund’s fixed income allocation may include, but is not limited to, investments
made directly or indirectly via the Underlying Funds in debt securities of
governments, government agencies and supranational entities, debt securities of
corporations, preferred stock, bank loans, convertible securities, mortgage- or
asset-backed securities, inflation-linked securities and other securitized or
collateralized debt obligations. The Fund’s fixed income allocation may also
include higher-yielding bonds (sometimes referred to as “junk bonds”), including
emerging market debt. It is possible that a significant portion of the Fund’s
fixed income allocation may be invested, directly or indirectly, in
non-investment grade fixed income investments with varying maturities.
The
Fund may invest, directly or indirectly, in domestic and international equities
(including ADRs and GDRs). The Fund’s equity allocation may include investments
made directly or indirectly via the Underlying Funds in both small- and
large-capitalization companies and both growth and value stocks. The Fund’s
equity allocation may also include equity securities from emerging international
markets, and both domestic and international real estate
securities.
The
Fund may invest in Underlying Funds that use alternative strategies (e.g.,
long/short strategies – equity and fixed income, market-neutral strategies, and
absolute return/global macro strategies) and/or use derivatives for risk
management purposes or as part of their investment strategies. An Underlying
Fund may use derivatives to earn income and enhance returns, to manage or adjust
the risk and duration exposure profile of the Underlying Fund, to replace more
traditional direct investments or to obtain exposure to certain markets,
interest rates, sectors or individual issuers. The derivatives used by an
Underlying Fund may allow the Underlying Fund to obtain net long or net negative
(short) exposures to selected interest rates, countries, duration or credit
risks. An Underlying Fund may also use derivatives to hedge or gain exposure to
currencies.
The
derivative instruments in which the Underlying Funds may take positions include
fixed income and/or currency futures, forwards, options, swaps (including, among
others, credit default swaps), credit derivatives and similar instruments. The
Underlying Funds may enter into currency-related transactions in both developed
and emerging markets involving certain derivative instruments, in an attempt to
generate
total
return and manage risk from differences in global short-term interest rates.
These instruments may include currency and cross-currency forwards, currency and
cross-currency swaps, and currency index futures contracts.
The
Fund lends its portfolio securities to seek to generate additional
income.
GUIDEPATH®
FLEXIBLE
INCOME ALLOCATION FUND
Investment
Objective and Principal Investment Strategies
Investment
Objective
GuidePath®
Flexible Income Allocation Fund seeks to provide current income while moderating
risk and volatility in the portfolio. As a secondary objective, the Fund seeks
capital appreciation. The Fund’s investment objectives are non-fundamental and
may be changed by the Board of Trustees of the Fund without shareholder approval
(although the Fund would provide notice to shareholders regarding any change).
Principal
Investment Strategies
The
Fund operates as a fund of funds, investing primarily in registered mutual funds
(both actively and passively managed) and ETFs. The Advisor believes that
investing in Underlying Funds provides the Fund with an efficient means of
creating a portfolio that provides investors with indirect exposure to a broad
range of fixed income and equity securities. By investing in the Fund, you will
indirectly bear fees and expenses of the Underlying Funds in addition to the
Fund’s direct fees and expenses. In order to obtain exposure to certain markets,
asset classes or active management styles, the Fund may buy Underlying Funds
managed by the Advisor or its affiliates, which, in turn, invest in various
securities, including ETFs. The Fund may also invest directly in securities and
other exchange-traded products, such as ETNs.
The
Advisor’s asset allocation decisions will be based on different factors and
analytical approaches, derived from volatility managed and income focused asset
allocation approaches developed by various research providers and considered by
the Advisor in constructing the Fund’s portfolio. The research providers’
volatility managed and income focused asset allocation approaches typically
utilize fundamental and quantitative analyses of global market and economic
conditions and assumptions regarding risks and returns. The Advisor seeks to
create a portfolio that is optimized to seek to achieve consistent returns over
time regardless of the market environment while also seeking to generate high
levels of income.
In
pursuing the Fund’s objective, the Fund invests, either directly or indirectly
via the Underlying Funds, in various types of domestic and international fixed
income securities, domestic and international equity securities (including ADRs
and GDRs) and cash equivalent money market securities.
The
asset classes in which the Fund may invest, either directly or indirectly via
the Underlying Funds, include, but are not limited to, debt securities of
governments, government agencies and supranational entities, debt securities of
corporations, preferred stock, bank loans, convertible securities, mortgage- or
asset-backed securities, inflation-linked securities and other securitized or
collateralized debt obligations, higher-yielding bonds (sometimes referred to as
“junk bonds”), including emerging market debt, dividend-paying securities of
small- and large-capitalization companies, growth and value stocks, equity
securities from developed and emerging market countries, and both domestic and
international real estate securities. The Fund may also take positions in
various global currencies and may hold positions in instruments that are
denominated in currencies other than the U.S. dollar. It is possible that a
significant portion of the Fund’s assets may be invested, directly or
indirectly, in non-investment grade fixed income investments with varying
maturities.
The
Fund may allocate assets to passive index-oriented ETFs that provide exposure to
various fixed income and equity securities and sectors. Using this type of
strategy, the Fund seeks to tactically avoid risk by reducing exposure to
unattractive sectors at the appropriate times, while also increasing exposure to
attractive sectors on a timely basis. The Fund may also invest in inverse,
leveraged, and inverse-leveraged ETFs and ETNs. Inverse ETFs and ETNs are
designed to correlate inversely with the performance of an index. Leveraged and
inverse-leveraged ETFs and ETNs seek investment results that correspond to two
or more times the performance of an index or inverse of the performance of an
index, respectively.
The
Fund may utilize an asset allocation strategy that builds on a foundation of
alternative investments, such as long/short equity funds that seek a modest
positive return from equity investments, that attempts to stay insulated from
general stock market volatility, combined with opportunistic equity and fixed
income investments strategically selected to enhance returns. The Fund’s
alternative strategies may also include diversified risk premium strategies,
including market risk transfer strategies, alternative (marketplace) lending and
real estate, reinsurance and commodity-linked derivatives, including, but not
limited to, commodity futures contracts and bitcoin futures contracts and
options thereon.
Marketplace
lending, which is sometimes also referred to as alternative lending,
peer-to-peer lending and online lending, is an alternative to more traditional
debt financing done through a bank. There are several different models of
marketplace lending platforms, but generally, a platform typically matches
consumers, small or medium-sized businesses or other types of borrowers with
investors (such as private funds in which the Fund may invest) that are
interested in gaining investment exposure to the loans made to such borrowers.
Such loans may be secured or unsecured. They are not rated by a nationally
recognized statistical rating organization (“NRSRO”) and may constitute a
high-risk and speculative investment.
The
Fund’s asset allocation mix among fixed income, equity and cash equivalent money
market securities is intended to change over time. The Fund does not have a set
target asset allocation mix. If the Advisor believes that market conditions are
unfavorable or overvalued, it may significantly increase the allocation to more
defensive asset classes. The Advisor also has broad latitude to allocate assets
to equity securities in pursuit of perceived opportunities for additional
return. Based on these judgments, the Fund’s asset allocation mix may
significantly change over time in response to opportunities as they are
identified.
The
Fund may invest in Underlying Funds that use derivatives for risk management
purposes or engage in significant use of derivatives as part of their investment
strategies. An Underlying Fund may use derivatives to earn income and enhance
returns, to manage or adjust the risk and duration exposure profile of the
Underlying Fund, to replace more traditional direct investments or to obtain
exposure to certain markets, interest rates, sectors or individual issuers. The
derivatives used by an Underlying Fund may allow the Underlying Fund to obtain
net long or net negative (short) exposures to selected interest rates,
countries, duration or credit risks. An Underlying Fund may also use derivatives
to hedge or gain exposure to currencies.
The
derivative instruments in which the Underlying Funds may take positions include
fixed income and/or currency futures, forwards, options, swaps (including, among
others, credit default swaps), credit derivatives and similar instruments. The
Underlying Funds may enter into currency-related transactions in both developed
and emerging markets involving certain derivative instruments, in an attempt to
generate total return and manage risk from differences in global short-term
interest rates. These instruments may include currency and cross-currency
forwards, currency and cross-currency swaps, and currency index futures
contracts.
The
Fund lends its portfolio securities to seek to generate additional
income.
GUIDEPATH®
MANAGED
FUTURES STRATEGY FUND
Investment
Objective and Principal Investment Strategies
Investment
Objective
GuidePath®
Managed
Futures Strategy Fund seeks to generate a positive absolute return over time.
The Fund’s investment objective is non-fundamental and may be changed by the
Board of Trustees of the Fund without shareholder approval (although the Fund
would provide notice to shareholders regarding any change).
Principal
Investment Strategies
Under
normal market conditions, the Fund seeks exposure to various asset classes,
which may vary significantly over time but is generally expected to include
exposure to equity markets, bond markets, interest rates, commodities, and
currencies. The sub-advisor uses proprietary quantitative models to identify
price trends in equity, fixed income, currency and commodity instruments across
time periods of various lengths. The sub-advisor believes that asset prices may
show persistent trading behavior due to a number of behavioral biases among
market participants as well as certain risk-management policies that will
identify assets to purchase in upward-trending markets and identify assets to
sell in downward-trending markets.
Although
the Fund seeks exposure across a variety of asset classes, it may emphasize one
or two of the asset classes or a limited number of exposures within an asset
class. There are no geographic limits on the asset class exposures and there is
great flexibility in looking for investments around the globe, including in
emerging markets. The Fund may have both “short” and “long”’ exposures within an
asset class based upon potential opportunities. A “short” exposure will benefit
when the underlying asset class decreases in price. A “long” exposure will
benefit when the underlying asset class increases in price.
The
Fund expects to pursue its investment strategies by making extensive use of a
variety of derivative instruments, including futures contracts, forward currency
contracts and swaps. A futures contract is a standard binding agreement to buy
or sell a specified quantity of an underlying reference asset, such as a
specific security, currency or commodity, at a specified price at a specified
later date. A forward currency contract involves an obligation to purchase or
sell a specific non-U.S. currency in exchange for another currency, which may be
U.S. dollars, at a future date, which may be any fixed number of days from the
date of the contract agreed upon by the parties, at a price set at the time of
the contract. Generally, swap agreements are contracts between the Fund and
another party (the swap counterparty) involving the exchange of payments on
specified terms over periods ranging from a few days to multiple years.
The
Fund lends its portfolio securities to seek to generate additional
income.
The
Fund may also invest in ETFs or ETNs through which the Fund can participate in
the performance of one or more asset classes.
In
connection with the Fund’s managed futures strategy, the Fund’s portfolio may be
concentrated in the financial services industry, which means the Fund may invest
more than 25% of its total assets in securities and other obligations (for
example, bank certificates of deposit, repurchase agreements and time deposits)
of issuers in such industry. A significant portion of the assets of the Fund may
be invested directly or indirectly in money market instruments, which may
include, but are not limited to, U.S. Government securities, U.S. government
agency securities, short-term fixed income securities, overnight and/or fixed
term repurchase agreements, money market mutual fund shares, and cash and cash
equivalents with one year or less term to maturity. These cash or cash
equivalent holdings serve as collateral for certain of the Fund’s derivatives
positions.
As
a result of the Fund’s use of derivatives, the Fund may have highly leveraged
exposure to one or more asset classes at times. The 1940 Act and the rules and
interpretations thereunder impose certain limitations on the Fund’s ability to
use leverage; however, the Fund is not subject to any additional limitations on
its net long and short exposures. For example, the Fund, on average, could hold
instruments that provide three to four times the net return (positive or
negative) of an unleveraged investment in the equities, bonds, interest rates,
commodities, or currencies underlying such instruments. When taking into account
derivative instruments and instruments with a maturity of one year or less at
the time of acquisition, the Fund’s strategy will result in frequent portfolio
trading and high portfolio turnover (typically greater than 300% per year). The
Advisor expects the Fund’s net asset value over short-term periods to be
volatile because of the significant use of instruments that have a leveraging
effect. Volatility is a statistical measurement of the dispersion of returns of
a security or fund or index, as measured by the annualized standard deviation of
its returns. Higher volatility generally indicates higher risk. The Fund lends
its portfolio securities to seek to generate additional income.
Although
the Fund does not intend to invest in physical commodities directly, the Fund
expects to obtain investment exposure to commodities and commodity related
derivatives by investing in the Subsidiary. Through the Subsidiary, the Fund may
invest in “commodity-linked” or “commodity index-linked” investments such as
commodity futures contracts and commodity swap agreements. To the extent the
Fund invests through the Subsidiary, the Fund will comply with the provisions of
the Investment Company Act of 1940, as amended, governing investment policies
and capital structure and leverage on an aggregate basis with the
Subsidiary.
GUIDEPATH®
CONSERVATIVE
INCOME FUND
Investment
Objective and Principal Investment Strategies
Investment
Objective
GuidePath®
Conservative Income Fund (the “Fund”) seeks to
generate
current income. As a secondary objective, the Fund seeks capital preservation.
The Fund’s investment objectives are non-fundamental and may be changed by the
Board of Trustees of the Fund without shareholder approval (although the Fund
would provide notice to shareholders regarding any change).
Principal
Investment Strategies
The
Fund invests primarily in a portfolio of actively and passively managed
registered mutual funds and exchange-traded funds (“ETFs”), in addition to
direct investments. The funds in which the Fund may invest are referred to
herein as the “Underlying Funds.” AssetMark, Inc. believes that investing in
Underlying Funds provides the Fund with an efficient means of creating a
portfolio that provides investors with indirect exposure to a broad range of
investments. By investing in the Fund, you will indirectly bear fees and
expenses of the Underlying Funds in addition to the Fund’s direct fees and
expenses. In order to obtain exposure to certain markets, asset classes or
active management styles, the Fund may buy Underlying Funds managed by the
Advisor or its affiliates, which, in turn, invest in various securities,
including ETFs. The Fund may also invest directly in securities and other
exchange-traded products, such as exchange-traded notes (“ETNs”).
Under
normal circumstances, the Fund will make investments in fixed income securities,
including cash equivalents, that primarily have a maturity that is between 0 and
5 years. The asset classes in which the Fund may invest, either directly or
indirectly via the Underlying Funds, include, but are not limited to, debt
securities of governments, government agencies and supranational entities, debt
securities of corporations, preferred stock, bank loans, convertible securities,
mortgage- or asset-backed securities, inflation-linked securities and other
securitized or collateralized debt obligations and higher-yielding bonds
(sometimes referred to as “junk bonds”), including emerging market debt. The
Fund may also take positions in various global currencies and may hold positions
in instruments that are denominated in currencies other than the U.S. dollar. In
pursuit of the Fund’s secondary investment objective of capital preservation,
the Fund expects under normal circumstances to invest a significant portion of
its assets in cash and cash equivalents, including by investing approximately
25% to 50% of the Fund’s total assets in money market funds.
In
selecting debt securities for the Fund, the Advisor develops an outlook for
credit markets, interest rates, currency exchange rates and the economy,
analyzes individual credit and prepayment risks, and uses other security
selection techniques. The proportion of the Fund’s assets committed to
investment in securities with particular characteristics (such as quality,
sector, interest rate or maturity) varies based on the Advisor’s outlook for the
U.S. economy and the economies of other countries in the world, the financial
markets and other factors.
The
Fund may shift its investments from one asset class to another based on the
Advisor’s analysis of the best opportunities for the Fund’s portfolio in a given
market. The Fund may invest up to 20% of its total assets in bonds rated
below investment grade. The Fund may invest up to 20% of its total assets
in securities denominated in foreign currencies and may invest without limit in
U.S. dollar-denominated securities of foreign issuers.
The
Fund’s asset allocation mix may change periodically over time. The Fund does not
have a set target asset allocation mix. If the Advisor believes that market
conditions are unfavorable or overvalued, it may significantly increase the
allocation to more defensive asset classes. Based on these judgments, the Fund’s
asset allocation mix may significantly change over time in response to
opportunities as they are identified. In certain circumstances the Fund may be
fully invested in cash equivalents securities for an extended period of
time.
The
Fund may invest in Underlying Funds that use derivatives for risk management
purposes or as part of their investment strategies. Generally, derivatives are
financial contracts whose value depends upon, or is derived from, the value of
an underlying asset, reference rate, or index, and may relate to, among other
things, stocks, bonds, debt obligations, interest rates, currencies or currency
exchange rates, and related indexes. Examples of derivatives that the Underlying
Funds may use include options, futures, forward agreements, swap agreements
(including, but not limited to, interest rate, total return and credit default
swaps), credit-linked securities, equity participation notes and equity-linked
notes. An Underlying Fund may use derivatives to earn income and enhance
returns, to manage or adjust the risk and duration exposure profile of the
Underlying Fund, to replace more traditional direct investments or to obtain
exposure to certain markets, interest rates, sectors or individual issuers. The
derivatives used by an Underlying Fund may allow the Underlying Fund to obtain
net long or net negative (short) exposures to selected interest rates,
countries, duration or credit risks. An Underlying Fund may also use derivatives
to hedge or gain exposure to currencies.
The
Fund lends its portfolio securities to seek to generate additional
income.
GUIDEPATH®
INCOME
FUND
Investment
Objective and Principal Investment Strategies
Investment
Objective
GuidePath®
Income
Fund (the “Fund”) seeks to generate current income. The Fund’s investment
objective is non-fundamental and may be changed by the Board of Trustees of the
Fund without shareholder approval (although the Fund would provide notice to
shareholders regarding any change).
Principal
Investment Strategies
The
Fund invests primarily in a portfolio of actively and passively managed
registered mutual funds, exchange-traded funds (“ETFs”), and closed-end funds,
in addition to direct investments in securities and certain derivatives. The
funds in which the Fund may invest are referred to herein as the “Underlying
Funds.” AssetMark, Inc. (“AssetMark” or the “Advisor”) believes that investing
in Underlying Funds provides the Fund with an efficient means of creating a
portfolio that provides investors with indirect exposure to a broad range of
investments. By investing in the Fund, you will indirectly bear fees and
expenses of the Underlying Funds in addition to the Fund’s direct fees and
expenses. In order to obtain exposure to certain markets, asset classes or
active management styles, the Fund may buy Underlying Funds managed by the
Advisor or its affiliates, which, in turn, invest in various securities,
including ETFs. The Fund may also invest directly in securities and other
exchange-traded products, such as exchange-traded notes (“ETNs”).
The
Advisor’s asset allocation decisions will be based on different factors and
analytical approaches, derived from volatility-managed and income-focused asset
allocation approaches. These approaches typically utilize fundamental and
quantitative analyses of global market and economic conditions and assumptions
regarding risks and returns. The Advisor seeks to create a portfolio that is
optimized to seek high total return and income, managed to contain the potential
magnitude of drawdowns in high volatility markets. The Fund may invest up to 20%
of its total assets in securities denominated in foreign currencies and may
invest without limit in U.S. dollar-denominated securities of foreign
issuers.
In
pursuing the Fund’s objective, the Fund invests, either directly or indirectly
via the Underlying Funds, in various types of domestic and international fixed
income securities, domestic and international equity securities (including
American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”))
and cash equivalent money market securities. The Fund invests in fixed income
securities that primarily have a maturity that is between 1 and 10 years and are
rated BBB- or higher, or are unrated and deemed to be of comparable quality by
the Advisor; provided, however, that the Fund may invest up to 50% of its total
assets in bonds rated below investment grade. Under normal circumstances,
the Fund’s portfolio will have an average duration of 2 to 5 years. In some
instances, the Fund’s average duration may exceed this range but is not expected
to exceed that of the Bloomberg US Aggregate Bond Index. Duration is a
measurement of price sensitivity to interest rate changes.
The
asset classes in which the Fund may invest, either directly or indirectly via
the Underlying Funds, include, but are not limited to, debt securities of
governments, government agencies and supranational entities, debt securities of
corporations, bank loans, convertible securities, mortgage- or asset-backed
securities, inflation-linked securities and other securitized or collateralized
debt obligations, higher-yielding bonds (sometimes referred to as “junk bonds”),
including emerging market debt, preferred stock, dividend-paying securities of
small- and large-capitalization companies, business development companies
(“BDCs”), publicly traded real estate investment trusts (“REITs”), non-traded
unregistered REITs, ETFs and pooled investment funds including private
investment funds that are not registered under the 1940 Act (“private funds”)
that provide exposure to pools of whole loans, including those sourced through
peer-to-peer or marketplace lending platforms.
Marketplace
lending, which is sometimes also referred to as alternative lending,
peer-to-peer lending and online lending, is an alternative to more traditional
debt financing done through a bank. There are several different models of
marketplace lending platforms, but generally, a platform typically matches
consumers, small or medium-sized businesses or other types of borrowers with
investors (such as private funds in which the Fund may invest) that are
interested in gaining investment exposure to the loans made to such borrowers.
Such loans may be secured or unsecured. They are not rated by a nationally
recognized statistical rating organization (“NRSRO”) and may constitute a
high-risk and speculative investment.
The
Fund may also take positions in various global currencies and may hold positions
in instruments that are denominated in currencies other than the U.S. dollar.
Under normal circumstances, the Fund will make investments in fixed income
securities that primarily have a maturity that is between 1 and 10
years.
In
selecting debt securities for the Fund, the Advisor develops an outlook for
credit markets, interest rates, currency exchange rates and the economy,
analyzes individual credit and prepayment risks, and uses other security
selection techniques. The proportion of the Fund’s assets committed to
investment in securities with particular characteristics (such as quality,
sector, interest rate or maturity) varies based on the Advisor’s outlook for the
U.S. economy and the economies of other countries in the world, the financial
markets and other factors.
The
Fund may allocate assets to ETFs that provide exposure to various fixed income
and equity securities and sectors. Using this type of strategy, the Fund seeks
to tactically avoid risk by reducing exposure to unattractive sectors at the
appropriate times, while also increasing exposure to attractive sectors on a
timely basis. The ETFs in which the Fund may invest include those that invest
primarily in senior bank loans (also referred to as leveraged loans).
The
Fund may also invest in inverse, leveraged, and inverse-leveraged ETFs and ETNs.
Inverse ETFs and ETNs are designed to correlate inversely with the performance
of an index. Leveraged and inverse-leveraged ETFs and ETNs seek investment
results that correspond to two or more times the performance of an index or
inverse of the performance of an index, respectively.
The
Fund may engage in a strategy of purchasing and selling (writing) call and put
options on indexes or ETFs (hereafter referred to as "call options" and "put
options"). The writer of a call option receives cash (the “premium”) from the
purchaser. In return, the purchaser of a call option has the right to any
appreciation in the value of the underlying index or ETF over a fixed price (the
“exercise price”) on a certain date in the future (the “expiration date”). If
the purchaser does not exercise the option, the writer of the option retains the
premium. If the purchaser exercises the option, the writer of the option pays
the purchaser the difference between the value of the underlying index or ETF
and the exercise price of the option.
The
value of a call option generally increases as the prices of the stocks
constituting the underlying index or ETF increase, and decreases as those stocks
decrease in price. Conversely, the value of a put option generally increases as
the prices of the stocks constituting the underlying index or ETF decrease, and
decreases as those stocks increase in price. The premium, the exercise price and
the value of the underlying index or ETF will determine the gain or loss
realized by the Fund on a written or purchased option. When the Fund has written
an option, it generally can repurchase the option prior to the expiration date,
ending its obligation. In such case, the difference between the cost of
repurchasing the option and the premium received will determine the gain or loss
realized by the Fund. While writing call options may reduce the Fund’s
volatility and provide a source of steady cash flow, it may also reduce the
Fund’s ability to profit from increases in the value of the underlying index or
ETF.
Using
the proceeds from its written call options, the Fund may buy put options in an
attempt to hedge against a significant market decline in the underlying index or
ETF that may occur over a short period of time. In addition, the Fund may write
call options or put options on the underlying indexes of the ETFs in which the
Fund is invested.
The
Fund may invest in Underlying Funds that use derivatives for risk management
purposes or as part of their investment strategies. Generally, derivatives are
financial contracts whose value depends upon, or is derived from, the value of
an underlying asset, reference rate, or index, and may relate to, among other
things, stocks, bonds, debt obligations, interest rates, currencies or currency
exchange rates, and related indexes. Examples of derivatives that the Underlying
Funds may use include options, futures, forward agreements, swap agreements
(including, but not limited to, interest rate, total return and credit default
swaps), credit-linked securities, equity participation notes and equity-linked
notes. An Underlying Fund may use derivatives to earn income and enhance
returns, to manage or adjust the risk and duration exposure profile of the
Underlying Fund, to replace more traditional direct investments or to obtain
exposure to certain markets, interest rates, sectors or individual issuers. The
derivatives used by an Underlying Fund may allow the Underlying Fund to obtain
net long or net negative (short) exposures to selected interest rates,
countries, duration or credit risks. An Underlying Fund may also use derivatives
to hedge or gain exposure to currencies. The Fund may also invest directly in
futures contracts. It is anticipated that the Fund may have net economic
leverage of up to 30% of the Fund’s total assets through its investments in
closed-end funds, leveraged ETFs and ETNs, and certain derivatives, such as
options and futures contracts.
The
Fund’s asset allocation mix among equity, fixed income and cash equivalent money
market securities is intended to change frequently over time. The Fund
does not have a set target asset allocation mix among equities, fixed income
securities and cash equivalent investments. If the Advisor believes that
the stock market conditions are unfavorable or overvalued, it may significantly
increase the allocation to more defensive asset classes such as fixed income or
cash equivalent securities. The Advisor also has broad latitude to
allocate assets to equity securities in pursuit of perceived opportunities for
additional return. Based on these judgments, the Fund’s asset allocation
mix may significantly change over time in response to opportunities as they are
identified. In certain circumstances the Fund may be fully invested in cash
equivalents securities for an extended period of time.
The
Fund lends its portfolio securities to seek to generate additional
income.
GUIDEPATH®
GROWTH
AND INCOME FUND
Investment
Objective and Principal Investment Strategies
Investment
Objective
GuidePath®
Growth
and Income Fund (the “Fund”) seeks capital appreciation. As a secondary
objective, the Fund seeks to generate current income. The Fund’s investment
objectives are non-fundamental and may be changed by the Board of Trustees of
the Fund without shareholder approval (although the Fund would provide notice to
shareholders regarding any change).
Principal
Investment Strategies
The
Fund invests primarily in a portfolio of actively and passively managed
registered mutual funds, exchange-traded funds (“ETFs”), closed-end funds and
business development companies (“BDCs”), in addition to direct investments. The
funds in which the Fund may invest are referred to herein as the “Underlying
Funds.” AssetMark, Inc. (“AssetMark” or the “Advisor”) believes that investing
in Underlying Funds provides the Fund with an efficient means of creating a
portfolio that provides investors with indirect exposure to a broad range of
investments. By investing in the Fund, you will indirectly bear fees and
expenses of the Underlying Funds in addition to the Fund’s direct fees and
expenses. In order to obtain exposure to certain markets, asset classes or
active management styles, the Fund may buy Underlying Funds managed by the
Advisor or its affiliates, which, in turn, invest in various securities,
including ETFs. The Fund may also invest directly in securities and other
exchange-traded products, such as exchange-traded notes (“ETNs”).
The
Advisor may invest in securities of companies of various market capitalizations.
The Fund considers “large capitalization companies” to be companies, at the time
of purchase, whose market capitalizations are within the range of the market
capitalizations in the Russell 1000®
Index. The Fund considers “small-to-medium capitalization companies” to be
companies, at the time of purchase, whose market capitalizations are within the
range of the market capitalizations in the Russell 2500TM
Index.
The
Advisor’s asset allocation decisions will be based on different factors and
analytical approaches, derived from volatility-managed and income-focused asset
allocation approaches. These approaches typically utilize fundamental and
quantitative analyses of global market and economic conditions and assumptions
regarding risks and returns. The Advisor seeks to create a portfolio that is
optimized to seek high total return and income, managed to contain the potential
magnitude of drawdowns in high volatility markets.
In
pursuing the Fund’s objective, the Fund invests, either directly or indirectly
via the Underlying Funds, in various types of domestic and international fixed
income securities, domestic and international equity securities (including
American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”))
and cash equivalent money market securities.
The
asset classes in which the Fund may invest, either directly or indirectly via
the Underlying Funds, include, but are not limited to, debt securities of
governments, government agencies and supranational entities, debt securities of
corporations, bank loans, convertible securities, mortgage- or asset-backed
securities, inflation-linked securities and other securitized or collateralized
debt obligations and higher-yielding bonds (sometimes referred to as “junk
bonds”), including emerging market debt. The Fund may invest in debt securities
of any maturity or quality. The Fund may invest in equity securities which
include domestic and foreign common and preferred stock, convertible debt
securities, ADRs, business development companies (“BDCs”), Master Limited
Partnerships (“MLPs”), publicly traded real estate investment trusts (“REITs”),
non-traded unregistered REITs, ETFs and pooled investment funds including
private investment funds that are not registered under the 1940 Act (“private
funds”) that provide exposure to pools of whole loans, including those sourced
through peer-to-peer or marketplace lending platforms.
Marketplace
lending, which is sometimes also referred to as alternative lending,
peer-to-peer lending and online lending, is an alternative to more traditional
debt financing done through a bank. There are several different models of
marketplace lending platforms, but generally, a platform typically matches
consumers, small or medium-sized businesses or other types of borrowers with
investors (such as private funds in which the Fund may invest) that are
interested in gaining investment exposure to the loans made to such borrowers.
Such loans may be secured or unsecured. They are not rated by a nationally
recognized statistical rating organization (“NRSRO”) and may constitute a
high-risk and speculative investment.
MLPs
are businesses organized as limited partnerships that trade their proportionate
shares of the partnership (units) on a public exchange. MLPs are required
to pay out most or all of their earnings in distributions. The Fund may invest
up to 30% of its total assets in securities denominated in foreign currencies
and may invest without limit in U.S. dollar-denominated securities of foreign
issuers.
In
selecting debt securities for the Fund, the Advisor develops an outlook for
credit markets, interest rates, currency exchange rates and the economy,
analyzes individual credit and prepayment risks, and uses other security
selection techniques. The proportion of the Fund’s assets committed to
investment in securities with particular characteristics (such as quality,
sector, interest rate or maturity) varies based on the Advisor’s outlook for the
U.S. economy and the economies of other countries in the world, the financial
markets and other factors.
The
Fund may allocate assets to ETFs that provide exposure to various fixed income
and equity securities and sectors. Using this type of strategy, the Fund seeks
to tactically avoid risk by reducing exposure to unattractive sectors at the
appropriate times, while also increasing exposure to attractive sectors on a
timely basis. The Fund may also invest in inverse, leveraged, and
inverse-leveraged ETFs and ETNs. Inverse ETFs and ETNs are designed to correlate
inversely with the performance of an index. Leveraged and inverse-leveraged ETFs
and ETNs seek investment results that correspond to two or more times the
performance of an index or inverse of the performance of an index,
respectively.
The
Fund may, at the discretion of the Advisor, engage in a strategy of purchasing
and selling (writing) call and put options on indexes or ETFs (hereafter
referred to as "call options" and "put options"). The writer of a call option
receives cash (the “premium”) from the purchaser. In return, the purchaser of a
call option has the right to any appreciation in the value of the underlying
index or ETF over a fixed price (the “exercise price”) on a certain date in the
future (the “expiration date”). If the purchaser does not exercise the option,
the writer of the option retains the premium. If the purchaser exercises the
option, the writer of the option pays the purchaser the difference between the
value of the underlying index or ETF and the exercise price of the option.
The
value of a call option generally increases as the price of the stocks
constituting the underlying index or ETF increase, and decreases as those stocks
decrease in price. Conversely, the value of a put option generally increases as
the prices of the stocks constituting the underlying index or ETF decrease, and
decreases as those stocks increase in price. The premium, the exercise price and
the value of the underlying index or ETF will determine the gain or loss
realized by the Fund on a written or purchased option. When the Fund has written
an option, it generally can repurchase the option prior to the expiration date,
ending its obligation. In such case, the difference between the cost of
repurchasing the option and the premium received will determine the gain or loss
realized by the Fund. While writing call options may reduce the Fund’s
volatility and provide a source of steady cash flow, it may also reduce the
Fund’s ability to profit from increases in the value of the underlying index or
ETF.
Using
the proceeds from its written call options, the Fund may buy put options in an
attempt to hedge against a significant market decline in the underlying index or
ETF that may occur over a short period of time. In addition, the Fund may write
call options or put options on the underlying indexes of the ETFs in which the
Fund is invested.
The
Fund may invest in Underlying Funds that use derivatives for risk management
purposes or as part of their investment strategies. Generally, derivatives are
financial contracts whose value depends upon, or is derived from, the value of
an underlying asset, reference rate, or index, and may relate to, among other
things, stocks, bonds, debt obligations, interest rates, currencies or currency
exchange rates, and related indexes. Examples of derivatives that the Underlying
Funds may use include options, futures, forward agreements, swap agreements
(including, but not limited to, interest rate, total return and credit default
swaps), credit-linked securities, equity participation notes and equity-linked
notes. An Underlying Fund may use derivatives to earn income and enhance
returns, to manage or adjust the risk and duration exposure profile of the
Underlying Fund, to replace more traditional direct investments or to obtain
exposure to certain markets, interest rates, sectors or individual issuers. The
derivatives used by an Underlying Fund may allow the Underlying Fund to obtain
net long or net negative (short) exposures to selected interest rates,
countries, duration or credit risks. An Underlying Fund may also use derivatives
to hedge or gain exposure to currencies. The Fund may also invest directly in
futures contracts. The Fund may, at the discretion of the Advisor, use futures
contracts as a means to implement a volatility-managed strategy. The Fund's
volatility targeting component attempts to balance upside return potential
during periods of relative market stability while seeking to mitigate losses
during periods of heightened market volatility. It is anticipated that the Fund
may have net economic leverage of up to 30% of the Fund’s total assets through
its investments in closed-end funds, leveraged ETFs and ETNs, and certain
derivatives, such as options and futures contracts.
The
Fund’s asset allocation mix among equity, fixed income and cash equivalent money
market securities is intended to change frequently over time. The Fund
does not have a set target asset allocation mix among equities, fixed income
securities and cash equivalent investments. If the Advisor believes that
the stock market conditions are unfavorable or overvalued, it may significantly
increase the allocation to more defensive asset classes such as fixed income or
cash equivalent securities. The Advisor also has broad latitude to
allocate assets to equity securities in pursuit of perceived opportunities for
additional return. Based on these judgments, the Fund’s asset allocation
mix may significantly change over time in response to opportunities as they are
identified. In certain circumstances the Fund may be substantially or fully
invested in cash equivalent securities for an extended period of time.
The
Fund lends its portfolio securities to seek to generate additional
income.
FURTHER
DETAILS ABOUT THE FUNDS
Cash
and Short-Term Investments. Each
Fund may from time to time have a portion of its assets invested in money market
mutual funds, cash and short-term, high-quality money market investments. The
Funds may invest in money market investments while waiting to invest cash
received from purchases of Fund shares, the sale of portfolio securities or
other sources. Money market investments purchased by a Fund will be rated in one
of the four highest ratings categories by an NRSRO. Under normal circumstances,
each Fund may hold cash or money market securities such as money market mutual
funds, commercial paper, certificates of deposit, demand and time deposits and
banker’s acceptances, U.S. Government securities (such as U.S. Treasury
obligations) and repurchase agreements. The Funds may also hold cash in a money
market deposit account at U.S. Bank, N.A, the Funds’ custodian. In rising
markets, holding cash or cash equivalents will negatively affect a Fund's
performance relative to its benchmark.
Investments
in Other Investment Companies and Exchange-Traded Funds.
Each Fund may invest in other investment companies (including business
development companies), ETFs and similarly structured pooled investments for the
purpose of gaining exposure to certain markets while maintaining liquidity. A
Fund’s investments in shares of other investment companies (including certain
ETFs) are limited by the federal securities laws and regulations governing
mutual funds. The Fund’s investments in securities of other investment
companies, including ETFs, may result in the duplication of certain fees and
expenses.
Ordinarily,
the 1940 Act prohibits a mutual fund from buying more than 3% of the shares of
any other single mutual fund, investing more than 5% of its assets in any other
single mutual fund, or investing more than 10% of its assets in other mutual
funds generally. However, GPS Funds I and GPS Funds II (each a
“Trust” and, together, the “Trusts”) may rely on provisions of the 1940 Act and
applicable rules, regulations and SEC guidance thereunder, including Rule
12d1-4, that permit a Fund to invest in other investment companies beyond
statutory limitations, subject to certain terms and conditions.
Liquidity
of Investments.
Adverse market developments or unfavorable investor perceptions may cause the
securities held by an Underlying Fund, or the Underlying Fund itself, to become
less liquid. When there is no willing buyer and investments cannot be readily
sold at the desired time or price, a Fund or an Underlying Fund may have to
accept a lower price or may not be able to sell the security at all. An
inability to sell a security can adversely affect a Fund’s or an Underlying
Fund’s value or prevent a Fund or an Underlying Fund from being able to take
advantage of other investment opportunities. Additionally, in order to meet
redemption requests, a Fund or an Underlying Fund may be forced to sell liquid
securities at an unfavorable time and in unfavorable conditions causing a loss
to the Fund or Underlying Fund.
Proprietary
Methodologies. GSAM
and its affiliates may manage, develop, own and operate stock and other indexes
which are based on the same, or substantially similar, proprietary rules-based
methodologies (“Proprietary Methodologies”) as those that are used to manage the
GuideMark®
Large Cap Core Fund, GuideMark®
Emerging
Markets Fund, GuideMark®
Small/Mid Cap Core Fund and GuideMark®
World ex-US Fund. Changes to the Proprietary Methodologies are subject to
certain internal approvals that may delay the implementation of such changes for
a Fund. GSAM also may, in its discretion, make investment decisions based on
market or other events that deviate from the Proprietary
Methodologies.
Contractual
Arrangements.
The Trusts enter into contractual arrangements with various parties
(collectively, “service providers”), including, among others, the Advisor,
sub-advisor, custodian, fund administrator, fund accountant and shareholder
servicing agents, transfer agent and distributor, who provide services to the
Funds. Shareholders are not parties to, or intended (or “third-party”)
beneficiaries of, any of those contractual arrangements, and those contractual
arrangements are not intended to create in any individual shareholder or group
of shareholders any right to enforce them against the service providers or to
seek any remedy under them against the service providers, either directly or on
behalf of a Trust.
This
Prospectus provides information concerning the Trusts and the Funds that you
should consider in determining whether to purchase shares of the Funds. Neither
this Prospectus, nor the related Statement of Additional Information, is
intended, or should be read, to be or to give rise to an agreement or contract
between the Trusts or the Funds and any shareholder, or to give rise to any
rights to any shareholder or other person other than any rights under federal or
state law that may not be waived.
MORE
INFORMATION ABOUT THE PRINCIPAL RISKS OF INVESTMENT
Mutual
funds, using professional investment managers, invest shareholders’ money in
securities. As all investment securities are subject to inherent market risks
and fluctuations in value due to earnings, economic and political conditions and
other factors, no Fund can give any assurance that its investment objective will
be achieved. Because the value of your investment in a Fund will fluctuate,
there is also a risk that you may lose money.
The
alphabetized table below, and the descriptions that follow, describe the
principal risks of investing in the Funds. These risks could adversely affect
the net asset value and total return of a Fund and your investment. For purposes
of this section, the term “Fund” should be read to mean the Funds and the
Underlying Funds.
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
•
Applicable
—
Not Applicable |
GuideMark®
Large
Cap Core
Fund |
GuideMark®
Emerging
Markets
Fund |
GuideMark®
Small/Mid
Cap Core
Fund |
GuideMark®
World
ex-US
Fund |
Alternative
Strategies Risk |
— |
— |
— |
— |
Bitcoin
Investments Risk |
— |
— |
— |
— |
Bitcoin
Market Volatility Risk |
— |
— |
— |
— |
Business
Development Company Risk |
— |
— |
— |
— |
Closed-End
Fund Risk |
— |
— |
— |
— |
Collateralized
Debt Obligations Risk |
— |
— |
— |
— |
Commodities
Risk |
— |
— |
— |
— |
Convertible
Securities Risk |
— |
— |
— |
— |
Credit
Risk |
— |
— |
— |
— |
Debt/Fixed
Income Securities Risk |
— |
— |
— |
— |
Derivatives
Risk |
• |
• |
• |
• |
Emerging
Markets Risk |
— |
• |
— |
— |
Equity
Risk |
• |
• |
• |
• |
Exchange-Traded
Funds Risk |
— |
• |
— |
• |
Exchange-Traded
Notes Risk |
— |
— |
— |
— |
Extension
Risk |
— |
— |
— |
— |
Focus
Risk |
— |
— |
— |
— |
Foreign
Exchange Trading Risk |
— |
— |
— |
— |
Foreign
Securities Risk |
— |
• |
— |
• |
Fund
of Funds Risk |
— |
-- |
— |
— |
Growth
Investment Risk |
• |
• |
• |
• |
High-Yield
Debt Securities Risk |
— |
— |
— |
— |
Inflation-Indexed
Securities Risk |
— |
— |
— |
— |
Inflation-Linked
Securities Risk |
— |
— |
— |
— |
Information
Technology Sector Risk |
• |
— |
— |
— |
Insurance-Linked
Securities Risk |
— |
— |
— |
— |
Interest
Rate Risk |
— |
— |
— |
— |
Investments
in Underlying Funds Risk |
— |
— |
— |
— |
Leverage
Risk |
— |
— |
— |
— |
Leveraged
and Inverse ETF/ETN Risk |
— |
— |
— |
— |
Liquidity
Risk |
— |
• |
• |
• |
Loan
Risk |
— |
— |
— |
— |
Management
Risk |
• |
• |
• |
• |
Market
Risk |
• |
• |
• |
• |
Marketplace
Loan Risk |
— |
— |
— |
— |
Master
Limited Partnership Risk |
— |
— |
— |
— |
Maturity
Risk |
— |
— |
— |
— |
Money
Market Funds Risk |
— |
— |
— |
— |
Mortgage-
and Asset-Backed Securities Risk |
— |
— |
— |
— |
Municipal
Securities Risk |
— |
— |
— |
— |
Non-U.S.
Government Obligations Risk |
— |
— |
— |
— |
Options
Risk |
— |
— |
— |
— |
Portfolio
Turnover Risk |
— |
— |
— |
— |
Preferred
Stock Risk |
— |
— |
— |
— |
Private
Funds Risk |
— |
— |
— |
— |
Quantitative
Investment Techniques Risk |
• |
• |
• |
• |
Real
Estate Risk |
— |
— |
— |
— |
Regional
Risk |
— |
• |
— |
— |
Securities
Lending Risk |
• |
• |
• |
• |
Senior
Loan Risk |
— |
— |
— |
— |
Short
Position Risk |
— |
— |
— |
— |
Small
and Medium Capitalization Company Risk |
— |
• |
• |
• |
Subordinated
Real Estate Loan Risk |
— |
— |
— |
— |
Tax
Risk – Inflated-Index Securities |
— |
— |
— |
— |
Tax
Risk –Investment in Commodities |
— |
— |
— |
— |
U.S.
Government Agency Obligations Risk |
— |
— |
— |
— |
Valuation
Risk |
— |
— |
— |
— |
Value
Investment Risk |
• |
• |
• |
• |
Variable
Rate Securities Risk |
— |
— |
— |
— |
Wholly-Owned
Subsidiary Risk |
— |
— |
— |
— |
|
|
|
|
|
|
|
|
|
|
| |
•
Applicable
—
Not Applicable |
GuideMark®
Core
Fixed Income Fund |
GuidePath®
Growth
Allocation Fund |
GuidePath®
Conservative
Allocation Fund |
Alternative
Strategies Risk |
— |
— |
— |
Bitcoin
Investments Risk |
— |
— |
— |
Bitcoin
Market Volatility Risk |
— |
— |
— |
Business
Development Company Risk |
— |
— |
— |
Closed-End
Fund Risk |
— |
— |
— |
Collateralized
Debt Obligations Risk |
• |
— |
— |
Commodities
Risk |
— |
— |
• |
Convertible
Securities Risk |
— |
— |
— |
Credit
Risk |
• |
• |
• |
Debt/Fixed
Income Securities Risk |
• |
• |
• |
Derivatives
Risk |
• |
• |
• |
Emerging
Markets Risk |
— |
• |
• |
Equity
Risk |
— |
• |
• |
Exchange-Traded
Funds Risk |
— |
• |
• |
Exchange-Traded
Notes Risk |
— |
— |
— |
Extension
Risk |
• |
— |
— |
Focus
Risk |
— |
— |
— |
Foreign
Exchange Trading Risk |
— |
• |
• |
Foreign
Securities Risk |
— |
• |
• |
Fund
of Funds Risk |
— |
• |
• |
Growth
Investment Risk |
— |
• |
• |
High-Yield
Debt Securities Risk |
— |
• |
• |
Inflation-Indexed
Securities Risk |
• |
— |
— |
Inflation-Linked
Securities Risk |
— |
— |
— |
Information
Technology Sector Risk |
— |
— |
— |
Insurance-Linked
Securities Risk |
— |
— |
— |
Interest
Rate Risk |
• |
• |
• |
Investments
in Underlying Funds Risk |
— |
— |
— |
Leverage
Risk |
— |
— |
— |
Leveraged
and Inverse ETF/ETN Risk |
— |
— |
— |
Liquidity
Risk |
• |
— |
— |
Loan
Risk |
— |
— |
— |
Management
Risk |
• |
• |
• |
Market
Risk |
• |
• |
• |
Marketplace
Loan Risk |
— |
— |
— |
Master
Limited Partnership Risk |
— |
— |
— |
Maturity
Risk |
• |
— |
— |
Money
Market Funds Risk |
— |
— |
— |
Mortgage-
and Asset-Backed Securities Risk |
• |
• |
• |
Municipal
Securities Risk |
— |
— |
— |
Non-U.S.
Government Obligations Risk |
— |
— |
— |
Options
Risk |
— |
— |
— |
Portfolio
Turnover Risk |
• |
— |
— |
Preferred
Stock Risk |
— |
— |
— |
Private
Funds Risk |
— |
— |
— |
Quantitative
Investment Techniques Risk |
— |
— |
— |
Real
Estate Risk |
— |
— |
— |
Regional
Risk |
— |
— |
— |
Securities
Lending Risk |
• |
• |
• |
Senior
Loan Risk |
— |
— |
— |
Short
Position Risk |
— |
— |
— |
Small
and Medium Capitalization Company Risk |
— |
• |
• |
Subordinated
Real Estate Loan Risk |
— |
— |
— |
Tax
Risk – Inflated-Index Securities |
• |
— |
— |
Tax
Risk – Investment in Commodities |
— |
— |
— |
U.S.
Government Agency Obligations Risk |
• |
• |
• |
Valuation
Risk |
— |
— |
— |
|
|
|
|
|
|
|
|
|
|
| |
Value
Investment Risk |
— |
• |
• |
Variable
Rate Securities Risk |
• |
— |
— |
Wholly-Owned
Subsidiary Risk |
— |
— |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
•
Applicable
—
Not Applicable |
GuidePath®
Tactical
Allocation Fund |
GuidePath®
Absolute
Return Allocation Fund |
GuidePath®
Multi-Asset
Income Allocation Fund |
GuidePath®
Flexible
Income Allocation Fund |
GuidePath®
Managed Futures Strategy Fund
|
Alternative
Strategies Risk |
• |
• |
• |
• |
• |
Bitcoin
Investments Risk |
— |
• |
— |
• |
— |
Bitcoin
Market Volatility Risk |
— |
• |
— |
• |
— |
Business
Development Company Risk |
— |
— |
— |
— |
— |
Closed-End
Fund Risk |
— |
— |
— |
— |
— |
Collateralized
Debt Obligations Risk |
— |
— |
— |
— |
— |
Commodities
Risk |
• |
— |
— |
— |
• |
Convertible
Securities Risk |
-- |
— |
• |
• |
• |
Credit
Risk |
• |
• |
• |
• |
• |
Debt/Fixed
Income Securities Risk |
• |
• |
• |
• |
• |
Derivatives
Risk |
• |
• |
• |
• |
• |
Emerging
Markets Risk |
• |
• |
• |
• |
• |
Equity
Risk |
• |
— |
• |
— |
• |
Exchange-Traded
Funds Risk |
• |
• |
• |
• |
• |
Exchange-Traded
Notes Risk |
• |
— |
— |
— |
— |
Extension
Risk |
— |
— |
— |
— |
— |
Focus
Risk |
— |
— |
— |
— |
• |
Foreign
Exchange Trading Risk |
• |
• |
• |
• |
• |
Foreign
Securities Risk |
• |
• |
• |
• |
• |
Fund
of Funds Risk |
— |
• |
• |
• |
— |
Growth
Investment Risk |
• |
• |
• |
• |
— |
High-Yield
Debt Securities Risk |
• |
• |
• |
• |
— |
Inflation-Indexed
Securities Risk |
— |
— |
— |
— |
— |
Inflation-Linked
Securities Risk |
— |
— |
— |
— |
— |
Information
Technology Sector Risk |
— |
— |
— |
— |
— |
Insurance-Linked
Securities Risk |
— |
• |
— |
• |
— |
Interest
Rate Risk |
• |
• |
• |
• |
• |
Investments
in Underlying Funds Risk |
• |
— |
— |
— |
— |
Leverage
Risk |
— |
— |
— |
— |
• |
Leveraged
and Inverse ETF/ETN Risk |
• |
— |
— |
• |
— |
Liquidity
Risk |
— |
• |
• |
• |
• |
Loan
Risk |
— |
• |
• |
• |
— |
Management
Risk |
• |
• |
• |
• |
• |
Market
Risk |
• |
• |
• |
• |
• |
Marketplace
Loan Risk |
— |
• |
— |
• |
— |
Master
Limited Partnership Risk |
— |
— |
— |
— |
— |
Maturity
Risk |
— |
• |
• |
• |
— |
Money
Market Funds Risk |
— |
— |
— |
— |
— |
Mortgage-
and Asset-Backed Securities Risk |
• |
• |
• |
• |
— |
Municipal
Securities Risk |
— |
• |
• |
• |
— |
Non-U.S.
Government Obligations Risk |
— |
— |
— |
— |
— |
Options
Risk |
— |
— |
— |
— |
— |
Portfolio
Turnover Risk |
• |
• |
— |
— |
— |
Preferred
Stock Risk |
— |
— |
— |
— |
— |
Private
Funds Risk |
— |
— |
— |
— |
— |
Quantitative
Investment Techniques Risk |
— |
— |
— |
— |
• |
Real
Estate Risk |
• |
• |
• |
• |
— |
Regional
Risk |
— |
— |
— |
— |
— |
Securities
Lending Risk |
• |
• |
• |
• |
• |
Senior
Loan Risk |
— |
— |
— |
— |
— |
Short
Position Risk |
— |
— |
— |
— |
• |
Small
and Medium Capitalization Company Risk |
• |
— |
• |
• |
— |
Subordinated
Real Estate Loan Risk |
— |
• |
— |
• |
— |
Tax
Risk – Inflated-Index Securities |
— |
— |
— |
— |
— |
Tax
Risk – Investment in Commodities |
— |
— |
— |
— |
• |
U.S.
Government Agency Obligations Risk |
• |
• |
• |
• |
• |
Valuation
Risk |
— |
— |
— |
— |
• |
Value
Investment Risk |
• |
• |
• |
• |
— |
Variable
Rate Securities Risk |
— |
— |
— |
— |
• |
Wholly-Owned
Subsidiary Risk |
— |
— |
— |
— |
• |
|
|
|
|
|
|
|
|
|
|
| |
•
Applicable
—
Not Applicable |
GuidePath®
Conservative
Income
Fund |
GuidePath®
Income
Fund |
GuidePath®
Growth
and
Income Fund |
Alternative
Strategies Risk |
• |
• |
• |
Bitcoin
Investments Risk |
— |
— |
— |
Bitcoin
Market Volatility Risk |
— |
— |
— |
Business
Development Company Risk |
— |
• |
• |
Closed-End
Fund Risk |
— |
• |
• |
Collateralized
Debt Obligations Risk |
• |
• |
• |
Commodities
Risk |
— |
— |
— |
Convertible
Securities Risk |
• |
• |
• |
Credit
Risk |
• |
• |
• |
Debt/Fixed
Income Securities Risk |
• |
• |
• |
Derivatives
Risk |
• |
• |
• |
Emerging
Markets Risk |
• |
• |
• |
Equity
Risk |
— |
• |
• |
Exchange-Traded
Funds Risk |
• |
• |
• |
Exchange-Traded
Notes Risk |
• |
• |
• |
Extension
Risk |
• |
• |
• |
Focus
Risk |
— |
— |
— |
Foreign
Exchange Trading Risk |
• |
• |
• |
Foreign
Securities Risk |
• |
• |
• |
Fund
of Funds Risk |
• |
• |
• |
Growth
Investment Risk |
— |
— |
• |
High-Yield
Debt Securities Risk |
• |
• |
• |
Inflation-Indexed
Securities Risk |
— |
— |
— |
Inflation-Linked
Securities Risk |
• |
• |
• |
Information
Technology Sector Risk |
— |
— |
— |
Insurance-Linked
Securities Risk |
— |
— |
— |
Interest
Rate Risk |
• |
• |
• |
Investments
in Underlying Funds Risk |
— |
— |
— |
Leverage
Risk |
— |
• |
• |
Leveraged
and Inverse ETF/ETN Risk |
— |
• |
• |
Liquidity
Risk |
• |
• |
• |
Loan
Risk |
• |
• |
• |
Management
Risk |
• |
• |
• |
Market
Risk |
• |
• |
• |
Marketplace
Loan Risk |
— |
• |
• |
Master
Limited Partnership Risk |
— |
— |
• |
Maturity
Risk |
• |
• |
• |
Money
Market Funds Risk |
• |
— |
— |
Mortgage-
and Asset-Backed Securities Risk |
• |
• |
• |
Municipal
Securities Risk |
• |
• |
• |
Non-U.S.
Government Obligations Risk |
• |
• |
• |
Options
Risk |
— |
• |
• |
Portfolio
Turnover Risk |
— |
— |
— |
Preferred
Stock Risk |
• |
• |
• |
Private
Funds Risk |
— |
• |
• |
Quantitative
Investment Techniques Risk |
— |
— |
— |
Real
Estate Risk |
— |
• |
• |
Regional
Risk |
— |
— |
— |
Securities
Lending Risk |
• |
• |
• |
Senior
Loan Risk |
— |
• |
— |
Short
Position Risk |
— |
— |
— |
Small
and Medium Capitalization Company Risk |
— |
• |
• |
Subordinated
Real Estate Loan Risk |
— |
— |
— |
Tax
Risk – Inflated-Index Securities |
— |
— |
— |
Tax
Risk – Investment in Commodities |
— |
— |
— |
U.S.
Government Agency Obligations Risk |
• |
• |
• |
Valuation
Risk |
— |
— |
— |
Value
Investment Risk |
— |
• |
• |
Variable
Rate Securities Risk |
— |
— |
— |
Wholly-Owned
Subsidiary Risk |
— |
— |
— |
•Alternative
Strategies Risk:
Certain Underlying Funds may invest in asset categories or use investment
strategies that are alternative or non-traditional, and may be subject to risks
not associated with more traditional investments. Depending on the particular
alternative strategies used by an Underlying Fund, these risks may include, but
are not limited to, derivatives risk, liquidity risk, credit risk and
commodities risk. Certain alternative strategies may also expose the Fund to the
risk that a counterparty to a transaction will not perform as promised,
including because of such counterparty’s bankruptcy or insolvency, which could
result in losses to the Fund. Furthermore, alternative strategies may employ
leverage, involve extensive short positions and/or focus on narrow segments of
the market, which may magnify the overall risks and volatility associated with
such Underlying Funds’ investments.
•Bitcoin
Investments Risk: Certain
Underlying Funds may invest in bitcoin, bitcoin futures contracts and options on
bitcoin futures contracts (or options on ETFs that invest in bitcoin or bitcoin
futures contracts). Cryptocurrencies such as bitcoin are digital assets designed
to act as a medium of exchange. Bitcoin operates without central authority (such
as a bank) and is not backed by any government, corporation, or other entity.
Bitcoin is not generally accepted as legal tender. Regulation of bitcoin and
other cryptocurrencies is still developing. Federal, state and/or foreign
governments may restrict the development, use, or exchange of bitcoin. The
market price of bitcoin has historically been highly volatile. The price of
bitcoin could fall sharply (potentially to zero) for various reasons, including,
but not limited to, regulatory changes, issues impacting the bitcoin network,
events involving entities that facilitate transactions in bitcoin, or changes in
user preferences in favor of alternative cryptocurrencies. Furthermore, events
that impact other cryptocurrencies may lead to a decline in the value of
bitcoin. Cryptocurrency exchanges and other trading venues on which
cryptocurrencies trade are relatively new and, in most cases, largely
unregulated. Accordingly, cryptocurrency exchanges may be more exposed to fraud
and failure than established, regulated exchanges for securities, derivatives
and other currencies. Additionally, cryptocurrency exchanges may not have the
same features as traditional exchanges to enhance the stability of trading on
the exchange, such as measures designed to prevent sudden price swings. As a
result, the prices of bitcoin traded on exchanges, and bitcoin futures, may be
subject to more volatility than traditional assets traded on regulated
exchanges. Cryptocurrency exchanges are also subject to cyber security risks.
Cryptocurrency exchanges have experienced cyber security breaches in the past
and may be breached in the future, which could result in the theft and/or loss
of bitcoin and impact the value of bitcoin futures. Furthermore, cyber security
events, legal or regulatory actions, fraud, and technical glitches, may cause a
cryptocurrency exchange to shut down temporarily or permanently, which may also
affect the value of bitcoin and/or bitcoin futures.
Shares
of ETFs that hold bitcoin and/or bitcoin futures may trade in the secondary
market at a premium to or discount from their NAVs, and an Underlying Fund may
purchase or sell shares of bitcoin futures ETFs at prices above or below such
NAVs. Because the market price of ETF shares depends in part on the demand in
the market for the shares, as well as on the value of the ETF’s component
assets, and because the market price of ETF shares is subject to tracking error,
the market price of a bitcoin futures ETF may be more volatile than the
underlying bitcoin futures contracts in which the bitcoin futures ETF invests.
In addition, an Underlying Fund may not be able to liquidate bitcoin futures ETF
holdings at the time or price desired, which may adversely impact the Underlying
Fund’s performance and in turn, the value of the Fund’s investment. Furthermore,
there may be times when the exchange halts trading in the shares of a bitcoin
futures ETF, in which case the Underlying Fund would be unable to sell them
until trading is resumed.
Additionally,
futures exchanges may limit the amount of fluctuation permitted in the price of
bitcoin futures contracts during a single trading day. Once the daily limit (up
or down) has been reached in a bitcoin futures contract subject to the limit, no
more trades may be made on that day at a price above or below that limit, which
may prevent an Underlying Fund or a bitcoin futures ETF from trading its futures
contracts on that day. If a bitcoin futures ETF in which an Underlying Fund
invests is unable to trade its bitcoin futures contracts, it will be unable to
create or redeem shares, and as a result the bitcoin futures ETF’s market price
may deviate significantly from its NAV. This could increase the volatility of
the market price of the relevant bitcoin futures ETF. If this were to occur at a
time that the Underlying Fund wished to sell shares of that bitcoin futures ETF,
the Underlying Fund could incur a loss on such sale or the Underlying Fund’s
bitcoin strategy could underperform the performance of bitcoin futures contracts
generally if the market price of the relevant bitcoin futures ETF is less than
its NAV.
•Bitcoin
Market Volatility Risk:
Bitcoin has historically exhibited higher price volatility than more traditional
asset classes. For instance, the two largest historical drawdowns were during
the period from June 8, 2011 to November 18, 2011 and the
period from December 17, 2017 to December 14, 2018, when bitcoin
experienced a decline of roughly 93% and 84%, respectively. The price of bitcoin
and therefore the value of an investment in the Underlying Fund may be
negatively impacted by unfavorable investor sentiment resulting from recent
developments in the broader digital asset industry, including the fallout from
the recent insolvency proceedings of digital asset market participants such as
digital asset exchange FTX Trading Ltd., et al. (and its affiliated hedge
fund Alameda Research LLC), digital asset hedge fund Three Arrows Capital and
digital asset lenders Celsius Network LLC, et al., Voyager Digital Ltd., et al.
and BlockFi Inc. The
value of bitcoin and, therefore, of an Underlying Fund’s bitcoin strategy, could
decline rapidly, including to zero, which would adversely affect the Underlying
Fund’s NAV per share.
•Business
Development Company Risk: Business
development companies (“BDCs”) are closed-end investment companies that have
elected to register as BDCs. Shareholders bear both their proportionate share of
the Fund’s expenses and similar expenses of the BDC when the fund invests in
shares of the BDC. The Fund’s portfolio will be affected by the performance of
the BDCs in which it invests and the
performance
of the BDCs’ portfolio companies, as well as the overall economic environment.
The Fund may be exposed to greater risk and experience higher volatility than
would a portfolio that was not investing in BDCs. The types of securities in
which BDCs invest are generally considered to be non-rated or below investment
grade. The revenues, income (or losses) and valuations of these companies can,
and often do, fluctuate suddenly and dramatically, and they face considerable
risk of loss. BDCs primarily invest in privately-held and small and mid-size
capitalization public companies. The fair values of these investments often are
not readily determinable. Although each BDC’s board of directors is responsible
for determining the fair value of these securities, the uncertainty regarding
fair value may adversely affect the determination of the BDC’s net asset value.
This could cause the Fund’s investments in a BDC to be inaccurately valued,
including overvalued. Little public information generally exists for the type of
companies in which a BDC may invest and, therefore, there is a risk that
investors may not be able to make a fully informed evaluation of the BDC and its
portfolio of investments. A BDC’s loan portfolio may consist of investments
which are unsecured with minimal, if any, collateral or cash flow coverage,
making this type of investment typically higher risk compared to an asset-based
loan. BDCs often borrow funds to make investments and, as a result, are exposed
to the risks of leverage. Leverage magnifies the potential loss on amounts
invested and therefore increases the risks associated with an investment in a
BDC’s securities. Leverage is generally considered a speculative investment
technique. Further, externally-managed BDCs’ management fees, which may be
substantially higher than the management fees charged to other funds, are
normally payable on gross assets, including those assets acquired through the
use of leverage. This may give a BDC’s investment adviser a financial incentive
to incur leverage. General interest rate fluctuations may have a substantial
negative impact on an underlying BDC’s investments and investment opportunities
and, therefore may have a material adverse effect on the BDC’s investment
objectives and rate of return on invested capital. In addition, investments made
by BDCs are typically illiquid and are difficult to value for purposes of
determining a BDC’s net asset value. If the Fund invests in a BDC that is
privately placed, the investment also may be subject to additional liquidity
risks because it may be difficult for the Fund to liquidate its investment in a
privately placed BDC.
•Closed-End
Fund Risk:
Closed-end funds involve investment risks different from those associated with
other investment companies. The shares of closed-end funds frequently trade at a
premium or discount relative to their net asset value. There can be no assurance
that any such discount will decrease, and it is possible that the discount may
increase and affect whether the Fund will a realize gain or loss on the
investment. Many closed-end funds use leverage, or borrowed money, to try to
increase returns. If a closed-end fund uses leverage, increases and decreases in
the value of its share price will be magnified. The closed-end fund will also
have to pay interest or dividends on its leverage, reducing the closed-end
fund’s return. In addition, many closed-end funds have a policy of distributing
a fixed percentage of net assets regardless of the fund’s actual interest income
and capital gains. Consequently, distributions by a closed-end fund may include
a return of capital, which would reduce the fund’s net asset value and its
earnings capacity. Finally, closed-end funds are allowed to invest in a greater
amount of illiquid investments than open-end mutual funds. Investments in
illiquid investments pose risks related to uncertainty in valuations, volatile
market prices, and limitations on resale that may have an adverse effect on the
ability of the fund to dispose of the securities promptly or at reasonable
prices.
•Collateralized
Debt Obligations Risk: Collateralized
debt obligations and similarly structured securities, sometimes known generally
as CDOs, are interests in a trust or other special purpose entity and are
typically backed by a diversified pool of bonds, loans or other debt
obligations. CDOs are generally subject to the normal risks associated with debt
securities and asset backed securities (e.g.,
interest rate risk, credit risk and default risk), in addition to the following
risks: (i) the possibility that distributions from collateral securities will
not be adequate to make interest or other payments; (ii) the quality of the
collateral may decline in value or quality or go into default or be downgraded;
(iii) a Fund may invest in tranches of a CDO that are subordinate to other
classes; and (iv) the complex structure of the security may not be fully
understood at the time of investment and may produce disputes with the issuer,
difficulty in valuing the security or unexpected investment
results.
•Commodities
Risk:
A Fund’s investment in commodity-linked investments and other commodity/natural
resource-related securities may subject the Fund to greater volatility than
investments in traditional securities. The value of commodity-linked investments
may be affected by changes in overall market movements, commodity index
volatility, changes in interest rates, or factors affecting a particular
industry or commodity, such as drought, flood, weather, livestock disease,
embargoes, tariffs and international economic, political and regulatory
developments. Commodity-linked investments may be hybrid instruments that can
have substantial risk of loss with respect to both principal and interest.
Commodity-linked investments may be more volatile and less liquid than the
underlying commodity, instruments, or measures, are subject to the credit risks
associated with the issuer, and their values may decline substantially if the
issuer’s creditworthiness deteriorates. As a result, returns of commodity-linked
investments may deviate significantly from the return of the underlying
commodity, instruments, or measures.
The
ability of the Fund to invest in commodity-linked investments without exposing
the Fund to Fund-level tax is limited under the Internal Revenue Code of 1986,
as amended. See, “Tax Risk – Investment in Commodities” below.
•Convertible
Securities Risk:
Investing in convertible bonds and securities includes credit risk and interest
rate risk. Changes in the financial condition of an issuer or counterparty, or
circumstances that affect a particular type of security or issuer may increase
the risk of default by an issuer or counterparty. The value of convertible
securities tends to decline as interest rates rise and, because of the
conversion feature, tends to vary with fluctuations in the market value of the
underlying securities.
•Credit
Risk: Individual
issues of fixed income securities may be subject to the credit risk of the
issuer. This means that the issuer of a fixed income security, or in the case of
a municipal security, the underlying municipality, may experience financial
problems, causing it to be unable to meet its payment obligations. This could
result in a decline of the income available for distribution to shareholders as
well as a decline in the value of the Fund’s shares.
•Debt/Fixed
Income Securities Risk:
The value of your investment in a Fund may change in response to changes in
interest rates. Interest rates across the financial system may change, sometimes
unpredictably, as a result of a variety of factors, including fiscal and
monetary policy changes, inflation rates and general economic conditions. For
example, very low or negative interest rates may heighten a Fund’s
susceptibility to interest rate risk and diminish yield and performance.
Conversely, an increase in interest rates typically causes a fall in the value
of the debt securities in which a Fund invests. Moreover, rising interest rates
or lack of market participants may lead to decreased liquidity in the bond and
loan markets, making it more difficult for a Fund to sell its holdings at a time
when the Fund’s manager might wish to sell. The longer the duration of a debt
security, the more its value typically falls in response to an increase in
interest rates. The value of your investment in a Fund may change in response to
the credit ratings of the debt securities in the Fund's portfolio. The degree of
risk for a particular security may be reflected in its credit rating. Generally,
investment risk and price volatility increase as a security’s credit rating
declines. The financial condition of an issuer of a debt security held by a Fund
may cause it to default or become unable to pay interest or principal due on the
security. A Fund cannot collect interest and principal payments on a debt
security if the issuer defaults. Prepayment and extension risks may occur when
interest rates decline and issuers of debt securities experience acceleration in
prepayments. The acceleration can shorten the maturity of the debt security and
force the Fund to invest in securities with lower interest rates, reducing the
Fund’s return. Issuers may decrease prepayments of principal when interest rates
increase, extending the maturity of the debt security and causing the value of
the security to decline. Distressed debt securities (“junk bonds”) involve
greater risk of default or downgrade and are more volatile than investment grade
securities. Distressed debt securities may also be less liquid than higher
quality debt securities. A Fund that invests in derivatives tied to fixed-income
markets may be more substantially exposed to these risks than a fund that does
not invest in derivatives.
•Derivatives
Risk:
A derivative is an instrument with a value based on the performance of an
underlying currency, security, index or other reference asset. The types of
derivatives that may be used by certain Funds include futures and forward
contracts, options, swaps and other similar instruments. The use of derivatives
may involve risks different from, or greater than, the risks associated with
investing in more traditional investments, such as stocks and bonds. Derivatives
can be complex and may perform in ways unanticipated by the Advisor or a
sub-advisor. Derivatives may be illiquid, volatile, difficult to value, and a
Fund may not be able to close out or sell a derivative position at a particular
time or at an anticipated price. In addition, changes in government regulation
of derivatives could affect the character, timing and amount of the Fund’s
taxable income or gains. The Fund’s use of derivatives may be limited by the
requirements for taxation of the Fund as a regulated investment
company.
The
performance of derivatives depends largely on the performance of the underlying
currency, security, index or other reference asset, and derivatives often have
risks similar to the underlying asset, in addition to other risks. The
successful use of derivatives will usually depend on the Advisor’s or
sub-advisor’s ability to accurately forecast movements in the market relating to
the underlying asset. If the Advisor or sub-advisor is not successful in using
derivatives, a Fund’s performance may be worse than if the Advisor or
sub-advisor did not use such derivatives at all. Funds that invest in
derivatives in excess of a limited specified exposure threshold are required to
establish and maintain a derivatives risk management program and appoint a
derivatives risk manager. The derivatives risk management program may limit the
ability of the Funds to invest in derivatives.
The
investment results achieved by the use of derivatives by a Fund may not match or
fully offset changes in the value of the underlying currency, security, index or
other reference asset they were attempting to hedge or the investment
opportunity the Fund was attempting to pursue, thereby failing to achieve, to an
extent, the original purpose for using the derivatives. For example, with
currency derivatives, there may be an imperfect correlation between a Fund’s
portfolio holdings of securities denominated in a particular currency and the
currencies underlying the currency derivatives entered into by the Fund. This
imperfect correlation may cause the Fund to sustain losses that will prevent the
Fund from achieving a complete hedge or expose the Fund to risk of foreign
exchange loss. There is also the risk, especially under extreme market
conditions, that an instrument, which usually would operate as a hedge, provides
no hedging benefits at all.
Derivatives
involve costs and may create leverage insofar as a Fund may receive returns (or
suffer losses) in an amount that significantly exceeds the amount that the Fund
committed as initial margin. The use of derivatives can result in losses or
gains to a Fund that exceed the amount the Fund would have experienced in the
absence of using derivatives. A relatively small price movement in a derivative
may result in an immediate and substantial loss, or gain, to a Fund. Certain
derivatives have the potential for unlimited loss, regardless of the size of the
initial investment. The use of leverage may cause a Fund to liquidate portfolio
positions to satisfy its obligations or to meet asset segregation requirements
when it may not be advantageous to do so.
Certain
Funds may engage in over-the-counter (“OTC”) transactions. The use of OTC
derivatives could also result in a loss if the counterparty to the transaction
does not perform as promised, including because of such counterparty’s
bankruptcy or insolvency. This risk may be heightened during volatile market
conditions. Other risks include the inability to close out a position because
the trading market becomes illiquid (particularly in the OTC markets) or the
availability of counterparties becomes limited for a period of time. To the
extent that a Fund is unable to close out a position because of market
illiquidity, the Fund may not be able to prevent further losses of value in its
derivatives holdings. The Fund may also be required to take or make delivery of
an underlying instrument that the Advisor or sub-advisor would otherwise have
attempted to avoid.
Certain
types of derivatives (i.e.,
certain swaps) are, and others are expected to eventually be, required to be
cleared through a central counterparty. Central clearing is designed to reduce
counterparty risk and increase liquidity compared to OTC derivatives, but it
does not eliminate those risks entirely and may involve additional costs and
risks not involved with OTC derivatives. With swaps that are cleared through a
central counterparty, there is also a risk of loss by a Fund of its initial and
variation margin deposits in the event of bankruptcy of a futures commission
merchant with which the Fund has an open position, or the central counterparty
in a swap contract.
•Emerging
Markets Risk:
In addition to the risks generally associated with investing in foreign
securities, countries with emerging markets may also have relatively unstable
governments, social and legal systems that do not protect shareholders,
economies based on only a few industries and securities markets that trade a
small number of issues. The prices of investments in emerging markets can
experience sudden and sharp price swings. Accordingly, these investments may be
more volatile in price and less liquid than investments in developed markets,
resulting in greater risk to investors. Emerging markets may lack rigorous
government supervision and regulation of securities markets as compared to more
developed markets. Investors may face difficulties in enforcing legal claims
with respect to securities of emerging market issuers, including in the event of
bankruptcy. There may be limited public information available regarding
companies in emerging markets and the quality of financial reporting and
disclosures may vary significantly. Differences in accounting and audit
standards may make it difficult to determine the financial condition of an
issuer. Emerging markets may also present the risk of delayed settlement and
heightened risk of loss due to custody practices. Additionally, a Fund trading
in the currencies of emerging market countries may face periods of limited
liquidity or the political risk of exchange controls or currency repatriation
restrictions.
•Equity
Risk:
A Fund’s investments in equity securities may subject the Fund to volatility and
the following risks:
◦prices
of stock may fall over short or extended periods of time;
◦cyclical
movements of the equity market may cause the value of the Fund’s securities to
fluctuate drastically from day to day; and
◦individual
companies may report poor results or be negatively affected by industry and or
economic trends and developments.
In
general, stock values are affected by activities specific to the company as well
as general market, economic and political conditions. The net asset
value (“NAV”) of a Fund and investment return will fluctuate based upon changes
in the value of its portfolio securities. The market value of
securities in which a Fund invests is based upon the market’s perception of
value and is not necessarily an objective measure of the securities’
value. Other general market risks include:
◦the
market may not recognize what the Advisor believes to be the true value or
growth potential of the stocks held by a Fund;
◦the
earnings of the companies in which a Fund invests will not continue to grow at
expected rates, thus causing the price of the underlying stocks to
decline;
◦the
smaller a company’s market capitalization, the greater the potential for price
fluctuations and volatility of its stock due to lower trading volume for the
stock, less publicly available information about the company and less liquidity
in the market for the stock. The potential for price fluctuations in
the stock of a medium capitalization company may be greater than that of a large
capitalization company;
◦the
Advisor’s or sub-advisor's judgment as to the growth potential or value of a
stock may prove to be wrong; and
◦a
decline in investor demand for the stocks held by a Fund also may adversely
affect the value of the securities.
•Exchange-Traded
Funds Risk:
ETFs are a type of investment company bought and sold on a securities exchange.
An ETF may represent a portfolio of securities, or may use derivatives in
pursuit of its stated objective. The risks of owning an ETF generally reflect
the risks of owning the underlying securities held by the ETF, although a lack
of liquidity in an ETF could result in it being more volatile. ETFs have
management fees and other expenses which the Fund will indirectly bear. The
market price of an ETF may be different from the net asset value of such ETF
(i.e., an ETF may trade at a discount or premium to its net asset value) and the
Fund’s performance may be adversely affected by such a differential. In some
cases, an ETF may seek to replicate the performance of a particular index by
identifying and holding only a subset of the securities in the index or by
holding one or more derivative instruments related to the index. In such
cases, an investment in the ETF is subject to the risk that the replication
strategy used by the ETF will fail to accurately track the performance of the
index. In addition, ETFs that use derivatives may be subject to
counterparty risk, liquidity risk, and other risks commonly associated with
investments in derivatives.
•Exchange-Traded
Notes Risk:
ETNs are debt securities that are traded on an exchange (e.g., the New York
Stock Exchange) whose returns are linked to the performance of a particular
market benchmark or strategy. An ETN generally reflects the risks associated
with the assets
composing
the underlying market benchmark or strategy it is designed to track. ETNs also
are subject to issuer and fixed-income risks. ETNs are subject to credit risk,
including the credit risk of the issuer. The value of an ETN may drop due to a
downgrade in the issuer’s credit rating, even when the underlying benchmark or
strategy remains unchanged. An ETN may trade at a premium or discount to its
benchmark or strategy. The value of an ETN may be influenced by time to
maturity, level of supply and demand for the ETN, volatility and lack of
liquidity in underlying assets, changes in the applicable interest rates,
changes in the issuer’s credit rating, and economic, legal, political, or
geographic events that affect the referenced underlying assets. When a Fund
invests in ETNs, it will bear its proportionate share of any fees and expenses
borne by the ETN.
•Extension
Risk: As
interest rates rise, repayments of principal on certain debt securities,
including, but not limited to, floating rate loans and mortgage-related
securities, may occur at a slower rate than expected and the expected maturity
of those securities could lengthen as a result. Securities that are subject to
extension risk generally have a greater potential for loss when prevailing
interest rates rise, which could cause their values to fall sharply.
Interest-only and principal-only securities are especially sensitive to interest
rate changes, which can affect not only their prices but can also change the
income flows and repayment assumptions about those investments.
•Focus
Risk: To
the extent the Fund concentrates its investments in securities and other
obligations of issuers in the financial services industry, the Fund is
particularly vulnerable to events affecting companies in such industry. Examples
of risks affecting the financial services industry include changes in
governmental regulation, issues relating to the availability and cost of
capital, changes in interest rates and/or monetary policy and price competition.
In addition, financial services companies are often more highly leveraged than
other companies, making them inherently riskier. As a result, the Fund’s shares
may rise and fall in value more rapidly and to a greater extent than shares of a
fund that does not concentrate or focus in a particular industry or economic
sector. The risk associated with investing in the Fund may be increased as
compared to a fund that does not concentrate in the financial services
industry.
•Foreign
Exchange Trading Risk:
Certain Funds may actively trade in spot and forward currency positions and
related currency derivatives in an attempt to increase the value of the Fund.
The trading of foreign currencies directly generates risks separate from those
faced from the risks of inactive or indirect exposures to non-dollar denominated
instruments, insofar as the Fund may directly experience a loss from the buying
and selling of currencies without any related exposure to non-dollar-denominated
assets.
•Foreign
Securities Risk:
The risks of investing in foreign securities (including ADRs and GDRs) can
increase the potential for losses in a Fund and may include currency
fluctuations, political and economic instability, less government regulation,
less publicly available information, limited trading markets, differences in
financial reporting standards, fewer protections for passive investors and less
stringent regulation of securities markets. To the extent that a Fund invests in
sovereign debt instruments, then investing in the debt obligations of foreign
governments and its agencies may result in unique risks. The ability or
willingness to repay principal and interest may be influenced by, but not
limited to, the economic, financial, monetary, trade, balance of payments,
political, and social situations or events in a country. Repayment may also be
affected by expected support from foreign governments, multilateral
organizations, or other entities. In the case of a default, recourse, including
legal action, will likely involve much more time and complexity as compared to
similar proceedings in the United States.
•Fund
of Funds Risk:
Certain Funds are subject to fund of funds risk, which means that the ability of
a Fund to meet its investment objective is directly related to the ability of
the Underlying Funds to meet their investment objectives, and a Fund’s
shareholders will be affected by the investment policies of the Underlying Funds
in direct proportion to the amount of assets that a Fund allocates to the
Underlying Funds. There can be no assurance that either a Fund or the
Underlying Funds will achieve their investment objectives. Additionally, each
Fund may invest in other investment companies for which the Advisor or an
affiliate serves as investment advisor (i.e., affiliated Underlying Funds).
Because the Advisor and/or its affiliates receive asset-based fees for providing
services to the affiliated Underlying Funds, the Fund’s investments in such
affiliated Underlying Funds would benefit the Advisor and/or its affiliates.
Such investments in the Underlying Funds could create a conflict of interest for
the Advisor in managing the Fund’s assets. By investing in the Fund, you will
indirectly bear fees and expenses of the Underlying Funds in addition to the
Fund’s direct fees and expenses.
•Growth
Investment Risk:
Growth investment risk is the risk that a Fund’s investment in growth-oriented
securities may be subject to greater price volatility and may be more sensitive
to changes in the issuer’s current or expected earnings than other equity
securities. In addition, a Fund’s investment in growth-oriented securities, at
times, may not perform as well as value-oriented securities or the stock market
in general, and may be out of favor with investors for extended periods of
time.
•High-Yield
Debt Securities Risk: High-yield
debt securities or “junk bonds” are debt securities rated below investment grade
by an NRSRO. Although junk bonds generally pay higher rates of interest than
more highly-rated securities, they are subject to a greater risk of loss of
income and principal. Junk bonds are subject to greater credit risk than higher
grade securities, have a greater risk of default and are considered speculative.
Issuers of high-yield junk bonds are more likely to experience financial
difficulties that may lead to a weakened capacity to make principal and interest
payments than issuers of higher grade securities. Issuers of junk bonds are
often highly leveraged and are more vulnerable to changes in the economy, such
as a recession or rising interest rates, which may affect their ability to meet
their interest or principal payment obligations. In addition, the purchase of
debt securities which have previously fallen from
investment
grade to sub-investment grade status – and in particular the purchase of such
instruments that have already been declared in default as to either income or
principal – is particularly speculative and may lead to a loss of Fund
value.
•Inflation-Indexed
Securities Risk:
Inflation-indexed securities have a tendency to react to changes in real
interest rates. Real interest rates represent nominal (stated) interest rates
lowered by the anticipated effect of inflation. In general, the price of an
inflation-indexed security can decrease when real interest rates increase, and
can increase when real interest rates decrease. Interest payments on
inflation-indexed securities will fluctuate as the principal and/or interest is
adjusted for inflation and can be unpredictable.
•Inflation-Linked
Securities Risk: As
inflation increases, the value of the Fund’s assets can decline as can the value
of the Fund’s distributions. Although the Fund invests in inflation-linked
securities, the value of its securities may be vulnerable to changes in
expectations of inflation or interest rates. Although inflation-linked
securities are expected to be protected from long-term inflationary trends,
short-term increases in inflation may lead to a decline in value. If interest
rates rise because of reasons other than inflation (for example, because of
changes in currency exchange rates), investors in these securities may not be
protected to the extent that the increase is not reflected in the security’s
inflation measure. There is no guarantee that the Fund will generate returns
that exceed the rate of inflation in the U.S. economy over time. There is no
guarantee that the Fund’s use of inflation-linked securities will be successful.
Furthermore, during periods of deflation or periods when the actual rate of
inflation is lower than anticipated, the Fund is likely to underperform funds
that hold fixed income securities similar to those held by the Fund but do not
hold inflation-linked securities.
•Information
Technology Sector Risk.
The information technology (IT) sector has historically been relatively volatile
due to the rapid pace of product development within the sector. Products and
services of IT companies may not achieve commercial success or may become
obsolete quickly. Stock prices of companies operating within this sector may be
subject to abrupt or erratic movements. Additionally, these companies are
subject to significant competitive pressures, such as new market entrants,
aggressive pricing and tight profit margins. The activities of these companies
may also be adversely affected by changes in government
regulations.
•Insurance-Linked
Securities Risk:
The principal risk of investments in insurance-linked securities is that a
triggering event (which could include a natural disaster like an earthquake or
tornado or a commercial or industrial accident like an aviation disaster or oil
spill) occurs, resulting an Underlying Fund losing all or a significant portion
of the principal it has invested in the security and the right to additional
interest payments with respect to the security. If multiple triggering events
occur that impact a significant portion of the portfolio of the Underlying Fund,
the Underlying Fund could suffer substantial losses and an investor will lose
money. Event-linked or catastrophe bonds carry large uncertainties and major
risk exposures to adverse conditions. If the likelihood and severity of natural
and other large disasters increase, the risk of significant losses to reinsurers
may increase. Certain reinsurance investments may be difficult to value. A
substantial amount of the Underlying Fund’s assets will be invested in
insurance-linked securities tied to natural events and/or non‑natural disasters
and there is inherent uncertainty as to whether, when or where such events will
occur. There is no way to accurately predict whether a triggering event will
occur and, because of this significant uncertainty, insurance-linked securities
carry a high degree of risk.
•Interest
Rate Risk:
The market value of fixed income securities will fluctuate with changes in
interest rates. For example, when interest rates rise, the market value of fixed
income securities declines. If the market value of a Fund’s investments
decreases, investors in those Funds may lose money. Changes in interest rates
may also affect the liquidity of a Fund’s investments in fixed income
securities. The Fund may face a heightened level of interest rate risk due to
changes in general economic conditions, inflation and monetary policy, including
interest rate changes by the Federal Reserve. Changing interest rates could have
unpredictable effects on the markets and may expose fixed-income and related
markets to heightened volatility and potential illiquidity. The value of a
security with a longer duration (whether positive or negative) will be more
sensitive to increases in interest rates than a similar security with a shorter
duration. Duration is a measure of the expected life of a bond that is used to
determine the sensitivity of a security’s price to changes in interest rates.
•Investments
in Underlying Funds Risk: To
the extent that the Fund invests a substantial portion of its assets in
Underlying Funds, the ability of the Fund to meet its investment objective will
depend on the ability of the Underlying Funds to meet their investment
objectives. The Fund’s shareholders will be affected by the investment policies
of the Underlying Funds in direct proportion to the amount of assets that a Fund
allocates to the Underlying Funds. There can be no assurance that either the
Fund or the Underlying Funds will achieve their investment objectives.
Additionally, the Fund may invest in other investment companies for which the
Advisor or an affiliate serves as investment advisor (i.e., affiliated
Underlying Funds). Because the Advisor and/or its affiliates receive asset-based
fees for providing services to the affiliated Underlying Funds, the Fund’s
investments in such affiliated Underlying Funds would benefit the Advisor and/or
its affiliates. Such investments in the Underlying Funds could create a conflict
of interest for the Advisor in managing the Fund’s assets. By investing in the
Fund, you will indirectly bear fees and expenses of the Underlying Funds in
addition to the Fund’s direct fees and expenses.
•Leverage
Risk:
A Fund’s investments in closed-end funds, leveraged ETFs and ETNs, and
derivatives such as futures contracts, forward contracts and swaps have the
economic effect of creating financial leverage. Financial leverage magnifies
exposure to the swings in prices of an asset class underlying a derivatives
instrument and results in increased volatility, which means the Fund will have
the potential for greater gains, as well as the potential for greater losses,
than if the Fund had not invested in derivatives at all. Leveraging tends to
magnify,
sometimes
significantly, the effect of any increase or decrease in the Fund’s exposure to
an asset class and may cause the Fund’s net asset value to be volatile. For
example, if the Advisor seeks to gain enhanced exposure to a specific asset
class through an Instrument providing leveraged exposure to the asset class and
that instrument increases in value, the gain to the Fund will be magnified;
however, if that investment decreases in value, the loss to the Fund will be
magnified. A decline in the Fund’s assets due to losses magnified by the
derivatives providing leveraged exposure may require the Fund to liquidate
portfolio positions (for example, to satisfy its obligations, or to meet
redemption requests) when it may not be advantageous to do so. There is no
assurance that the Fund’s use of derivatives providing enhanced exposure will
enable the Fund to achieve its investment objective.
•Leveraged
and Inverse ETF/ETN Risk:
Inverse ETFs/ETNs generally use derivatives and short sales that, in
combination, are designed to produce returns that move in the opposite direction
of the indices they track. To the extent the Fund invests in ETFs/ETNs that seek
to provide investment results that are the inverse of the performance of an
underlying index, the Fund will indirectly be subject to the risk that the
performance of such ETF/ETN will fall as the performance of that ETF or ETN’s
benchmark rises, a result that is the opposite from traditional mutual funds.
The Fund’s use of leveraged and inverse-leveraged ETFs and ETNs has the economic
effect of creating financial leverage. Financial leverage magnifies exposure to
the swings in prices of an asset class and results in increased volatility,
which means the Fund will have the potential for greater gains, as well as the
potential for greater losses, than if the Fund had not invested in these
instruments at all. Most leveraged and inverse-leveraged ETFs and ETNs “reset”
daily, meaning that they are designed to achieve their stated objectives on a
daily basis. Due to the effect of compounding, their performance over longer
periods of time can differ significantly from the performance of their
underlying index or benchmark during the same period of time.
•Liquidity
Risk:
Liquidity risk is the risk that certain investments may be difficult or
impossible to buy or sell at the time and price that a Fund would like to buy or
sell the security or without significant dilution to remaining investors
interests. This may cause a Fund to buy or sell securities at less favorable
prices or in different quantities, which may negatively affect the Fund’s
ability to achieve its objectives. For example, investments that may be
difficult or impossible to sell include those that: (i) are subject to
restrictions on resale, (ii) trade in the OTC market (including OTC
derivatives), or (iii) may not have an active trading market due to adverse
market, economic, industry, political, regulatory, geopolitical, and other
conditions. The Securities and Exchange Commission’s rules intended to limit,
assess and manage liquidity risk may materially affect the securities in which a
Fund invests and a Fund’s investment strategies.
•Loan
Risk: Loans
are subject to risk of loss as a result of borrower default, sensitivity to
interest rate and economic changes, valuation difficulties and potential
decreased liquidity to a greater extent than other types of investments.
Additional risks may include the risk of subordination to the interests of other
creditors, limited or no collateral, the lack of a secondary market, extended
settlement periods, the risk of prepayment and the lack of publicly available
information. The value of any collateral securing a loan may decline, be
insufficient to meet the borrower’s obligations, or be difficult or costly to
liquidate. It may take longer than 7 days for investments in loans to settle,
which may adversely affect an Underlying Fund’s ability to timely honor
redemptions.
•Management
Risk:
An investment or allocation strategy used by the Advisor or a sub-advisor may
fail to produce the intended results. Regulatory restrictions, actual or
potential conflicts of interest or other considerations may cause the Advisor or
a sub-advisor to restrict or prohibit participation in certain investments.
•Market
Risk:
The value of the Fund’s investments and the net asset values of the shares of
the Fund will fluctuate in response to various market and economic factors
related to the equity, fixed income and currency markets as well as the
financial condition and prospects of companies or issuers in which the Fund
invests. Periods of unusually high financial market volatility and restrictive
credit conditions, at times limited to a particular sector or geographic area,
have occurred in the past and may be expected to recur in the future.
Furthermore, events involving limited liquidity, defaults, non-performance or
other adverse developments that affect one industry, such as the financial
services industry, or concerns or rumors about any events of these kinds, have
in the past and may in the future lead to market-wide liquidity problems, may
spread to other industries, and could negatively affect the value and liquidity
of the Fund’s investments. In addition, unexpected events and their aftermaths,
such as the spread of diseases; natural, environmental or man-made disasters;
financial, political or social disruptions; terrorism and war; and other
tragedies or catastrophes, can cause investor fear and panic, which can
adversely affect the economies of many companies, sectors, nations, regions and
the market in general, in ways that cannot necessarily be foreseen. During a
general downturn in the securities markets, multiple asset classes may decline
in value. In addition, geopolitical and other risks, including environmental and
public health risks, may add to instability in the world economy and markets
generally. As a result of increasingly interconnected global economies and
financial markets, the value and liquidity of a Fund’s investments may be
negatively affected by events impacting a country or region, regardless of
whether the Fund invests in issuers located in or with significant exposure to
such country or region.
•Marketplace
Loan Risk: Investments
by Underlying Funds in loans sourced through marketplace lending platforms are
subject to additional risks than those applicable to investments in loans
generally. If a borrower is unable or fails to make payments on a loan for any
reason, an Underlying Fund may not have direct recourse against the borrower or
may be otherwise limited in its ability to directly enforce its rights under the
loan, whether through the borrower or the marketplace lending platform through
which the loan was originated. Borrowings obtained through marketplace lending
platforms may not limit borrowers from incurring additional debt which may
impair the
borrower’s
ability to repay interest and principal of the original loan. Default history
for alternative lending platforms is limited. Future defaults may be higher than
historical defaults and the timing of defaults may vary significantly from
historical observations. The credit profile and interest rates available to
certain borrowers who seek credit through marketplace lending platforms may
result in a higher rate of default for such loans as compared with the debt
instruments issued through more traditional lending models. An Underlying Fund
may have limited knowledge about the underlying loans to which it has exposure
and is dependent upon the platform for information regarding the loans and
borrowers’ credit information. Such information may be incomplete, inaccurate or
outdated and may, therefore, not accurately reflect the borrowers’ actual
creditworthiness.
In
addition, the success of loans sourced through marketplace lending platforms may
be affected by the success of the platforms themselves. Disruptions in the
business of a platform may also negatively impact the value of loans sourced
through that platform. Investments in loans sourced through a marketplace
lending platform may also be negatively impacted if the platform or a
third-party service provider becomes unable or unwilling to fulfill its
obligations in servicing the loans.
Finally,
a number of judicial decisions have upheld judgments of borrowers against
lending institutions on the basis of various evolving legal theories,
collectively termed “lender liability.” If a loan held directly or indirectly by
an Underlying Fund were found to have been made or serviced under circumstances
that give rise to lender liability, the borrower’s obligation to repay that loan
could be reduced or eliminated, or the Underlying Fund’s recovery on its
investment could be otherwise impaired.
•Master
Limited Partnership Risk:
A
Fund’s investments in MLPs entail risks, including fluctuations in energy
prices, decreases in the supply of or demand for energy commodities, decreases
in demand for MLPs in rising interest rate environments, unique tax
consequences, such as treatment as a qualifying security investment by the Fund
only to a limited extent, due to the partnership structure, and potentially
limited liquidity in thinly traded issues.
•Maturity
Risk:
Certain Funds may invest in fixed income securities with a range of maturities.
Generally, the longer a security’s maturity, the greater the risk that interest
rate fluctuations may adversely affect the value of the security.
•Money
Market Funds Risk:
Although
money market funds generally seek to preserve the value of an investment at
$1.00 per share, there is no guarantee a money market fund will be able to do
so, and a Fund may lose money by investing in money market funds. A money market
fund’s sponsor has no legal obligation to provide financial support to the money
market fund, and it should not be expected that the sponsor will provide
financial support to the money market fund at any time. An investment in a money
market fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The credit quality of a money market
fund’s holdings can change rapidly in certain markets, and the default of a
single holding could have an adverse impact on the money market fund’s share
price. A money market fund’s share price can also be negatively affected during
periods of high redemption pressures, illiquid markets and/or significant market
volatility. Certain money market funds may impose a fee upon the sale of money
market fund shares or temporarily suspend the Fund’s ability to sell its shares
if the money market fund’s liquidity falls below required minimums because of
market conditions or other factors.
•Mortgage-
and Asset-Backed Securities Risk:
Mortgage- and asset-backed securities are subject to prepayment risk, which is
the risk that the borrower will prepay some or all of the principal owed to the
issuer. If that happens, a Fund may have to replace the security by investing
the proceeds in a less attractive security. This may reduce the Fund’s share
price and its income distributions. Issuers of asset-backed securities may have
limited ability to enforce the security interest in the underlying assets, and
credit enhancements provided to support the securities, if any, may be
inadequate to protect investors in the event of default.
•Municipal
Securities Risk:
The risk of a municipal security depends on the ability of the issuer, or any
entity providing a credit enhancement, to continue to meet its obligations for
the payment of interest and principal when due. Any adverse economic conditions
or developments affecting the states or municipalities that issue the municipal
securities in which a Fund invests could negatively impact the Fund.
•Non-U.S.
Government Obligations Risk:
For non-U.S. government obligations, there is the risk that payments on a
security will not be made when due, or the value of such security will decline,
because the security is not issued or guaranteed as to principal or interest by
the U.S. government or by agencies or authorities controlled or supervised by
and acting as instrumentalities of the U.S. government or supported by the right
of the issuer to borrow from the U.S. government.
•Options
Risk.
The Fund’s options investments involve certain risks, including general risks
related to derivative instruments. There can be no assurance that a liquid
secondary market on an exchange will exist for any particular option, or at any
particular time, and the Fund may have difficulty effecting closing transactions
in particular options. Therefore, the Fund would have to exercise the options it
purchased in order to realize any profit, thus taking or making delivery of the
underlying reference instrument when not desired. The Fund could then incur
transaction costs upon the sale of the underlying reference instruments.
Similarly, when the Fund cannot effect a closing transaction with respect to a
put option it wrote, and the buyer exercises, the Fund would be required to take
delivery and would incur transaction costs upon the sale of the underlying
reference instruments purchased. If the Fund, as a covered call option writer,
is unable to effect a closing
purchase
transaction in a secondary market, it will not be able to sell the underlying
reference instrument until the option expires, it delivers the underlying
instrument upon exercise, or it segregates enough liquid assets to purchase the
underlying reference instrument at the marked-to-market price during the term of
the option.
The
effectiveness of an options strategy for hedging depends on the degree to which
price movements in the underlying reference instruments correlate with price
movements in the relevant portion of the Fund’s portfolio that is being hedged.
In addition, the Fund bears the risk that the prices of its portfolio
investments will not move in the same amount as the option it has purchased or
sold for hedging purposes, or that there may be a negative correlation that
would result in a loss on both the investments and the option. If the Advisor is
not successful in using options in managing the Fund’s investments, the Fund’s
performance will be worse than if the Advisor did not employ such
strategies.
•Portfolio
Turnover Risk:
Depending on market and other conditions, a Fund may experience a high portfolio
turnover, which may result in higher brokerage costs and transaction costs
(which could reduce investment returns). Distributions of net short-term capital
gains are taxable as ordinary income when Fund shares are held in a taxable
account. A fund with a high portfolio turnover rate (a measure of how frequently
assets within a Fund are bought and sold) is more likely to generate short-term
capital gains than a fund with a low portfolio turnover rate. A Fund may
experience an increase in its portfolio turnover rate when the Fund’s portfolio
is modified in connection with a change in a sub-advisor.
•Preferred
Stock Risk:
Preferred stocks are equity securities that pay dividends at a specific rate or
that have a preference over common stocks in dividend payments or the
liquidation of assets. A preferred stock may decline in price, or fail to pay
dividends when expected, because the issuer experiences a decline in its
financial status. In addition to this credit risk, investment in preferred
stocks involves certain other risks, including skipping or deferring
distributions, and redemption in the event of certain legal or tax changes or at
the issuer’s call. Preferred stocks are also subordinated to bonds and other
debt instruments in a company’s capital structure in terms of priority to
corporate income and liquidation payments, and therefore will be subject to
greater credit risk than those debt instruments. Preferred stocks may be
significantly less liquid than many other securities, such as U.S. government
obligations, corporate debt or common stock.
•Private
Funds Risk:
The Fund’s investment in private funds will require it to bear a pro rata share
of the vehicles’ expenses, including management and performance fees. The fees
the Fund pays to invest in a private fund may be higher than if the manager of
the private fund managed the Fund’s assets directly. The performance fees
charged by certain private funds may create an incentive for its manager to make
investments that are riskier and/or more speculative than those it might have
made in the absence of a performance fee. Furthermore, private funds, like the
other Underlying Funds in which the Fund may invest, are subject to specific
risks, depending on the nature of the vehicle, and also may employ leverage such
that their returns are more than one times that of their benchmark which could
amplify losses suffered by the Fund when compared to unleveraged investments.
Shareholders of the private funds are not entitled to the protections of the
1940 Act. For example, private funds need not have independent boards,
shareholder approval of advisory contracts may not be required, the funds may
leverage to an unlimited extent, and the funds may engage in joint transactions
with affiliates. The majority of private funds permit redemptions only quarterly
(although others are more frequent) and these withdrawal limitations restrict
the Advisor’s ability to terminate investments in private funds. If values are
falling, the Fund will not be able to sell its private funds and the value of
Fund shares will decline. Additionally, because private funds are not publicly
traded, the Fund’s investments in them may be more difficult to value than the
Fund’s investments in publicly traded securities.
•Quantitative
Investment Techniques Risk:
Quantitative models may contain design flaws. In addition, quantitative
investment techniques may rely on inaccurate assumptions or data inputs, and the
Fund may be adversely affected by errors or limitations in the construction and
implementation of these techniques.
•Real
Estate Risk: The
value of real estate-linked derivative instruments and other real estate-related
securities such as real estate investment trusts (“REITs”) may be affected by
risks similar to those associated with direct ownership of real estate, in
addition to the risks of poor performance by a REIT’s manager, changes to tax
laws, and failure by the REIT to qualify for favorable treatment. To the extent
an Underlying Fund invests in REITs, investors in the Underlying Fund, such as
the Fund, will indirectly bear fees and expenses of the underlying REITs in
addition to the Underlying Fund’s direct fees and expenses. REITs may have
limited diversification and may not exhibit the same (or any) correlation with
inflation that real estate or other real estate securities exhibit. To the
extent an Underlying Fund invests in REITs, the Fund’s distributions may be
taxable to investors as ordinary income because most REIT distributions come
from mortgage interest and rents as opposed to long-term capital gains. Fund
distributions taxable as ordinary income are taxed at higher ordinary income tax
rates rather than the lower tax rates that apply to capital gains and qualified
dividend income.
•Regional
Risk:
To the extent that the Fund invests a significant portion of its assets in a
specific geographic region, the Fund will have increased exposure to the risks
affecting that specific geographic region. In the event of economic or political
turmoil or a deterioration of diplomatic relations in a region where a
substantial portion of the Fund’s assets are invested, the Fund may experience
substantial illiquidity or reduction in the value of the Fund’s investments. In
addition, adverse economic events in a certain region can impact securities of
issuers in other countries whose economies appear to be unrelated. There are
special risks associated with investments in
China,
Hong Kong and Taiwan, including exposure to currency fluctuations, less
liquidity, expropriation, confiscatory taxation, nationalization and exchange
control regulations (including currency blockage). Inflation and rapid
fluctuations in inflation and interest rates have had, and may continue to have,
negative effects on the economy and securities markets of China, Hong Kong and
Taiwan. In addition, investments in Taiwan could be adversely affected by a
deterioration in its political and economic relationship with China. The Chinese
economy is heavily dependent on its large export sector and its economic growth
may be adversely affected by trade disputes with key trading partners and
escalating tariffs imposed on goods and services it produces. A national
economic slowdown in the export sector may also affect companies that are not
heavily dependent on exports. Companies that rely on imported products may
experience increased costs of production or reduced profitability, which may
harm consumers, investors and the domestic economy as a whole. Trade disputes
and retaliatory actions may include embargoes and other trade limitations, which
may trigger a significant reduction in international trade and impact the global
economy. Trade disputes may also lead to increased currency exchange rate
volatility, which can adversely affect the prices of Fund securities valued in
US dollars. The potential threat of trade disputes may also negatively affect
investor confidence in the markets generally and investment growth.
Investments
in Chinese companies may be made through a special structure known as a variable
interest entity (“VIE”). In a VIE structure, foreign investors, such as a Fund,
will only own stock in a shell company rather than directly in the Chinese
company, known as the VIE. The VIE must be owned by Chinese nationals (and/or
Chinese companies), which are typically the VIE’s founders, to obtain the
licenses and/or assets required to operate in certain restricted and/or
prohibited sectors in China. The value of the shell company is therefore derived
from its ability to consolidate the VIE into its financials pursuant to
contractual arrangements that allow the shell company to exert a degree of
control over, and obtain economic benefits arising from, the VIE without formal
legal ownership. The shell company is typically set up in an offshore
jurisdiction, such as the Cayman Islands, and enters into the service and other
contracts with the VIE through a wholly foreign-owned enterprise based in China.
The VIE structure is designed to provide foreign investors with exposure to
Chinese companies that operate in certain sectors in which China restricts
and/or prohibits foreign investments, such as internet, media, education and
telecommunications.
VIEs
are common and are are well known to Chinese officials and regulators, but
historically the VIE structure has not been formally recognized under Chinese
law. There is uncertainty as to whether Chinese courts or arbitration bodies
would enforce the contractual rights of foreign investors in a VIE structure and
whether Chinese officials and regulators will reverse their acceptance of the
VIE structure generally, or with respect to certain industries. Each of these
potential events could cause significant and possibly permanent losses to the
value of such investments.
•Securities
Lending Risk: The
Fund lends its portfolio securities to seek to earn additional income. When the
Fund lends its portfolio securities, it receives collateral (including cash
collateral), at least equal to the value of securities loaned. The Fund may earn
income by investing this collateral in one or more registered money market funds
and/or unregistered, privately offered cash management vehicles that principally
invest in high quality, short term debt obligations, such as securities of the
U.S. government, its agencies or instrumentalities, instruments of U.S. and
foreign banks, corporate debt obligations, municipal obligations, debt
obligations of foreign governments, their agencies or instrumentalities,
repurchase agreements, funding agreements, asset-backed securities, including
asset-backed commercial paper, and money market funds. As a result of their
securities lending activities, the Funds collectively may own a significant
percentage of the interests of a cash management vehicle. A decline in the value
of a cash management vehicle in which collateral is invested may cause the Fund
may to lose money. Lending portfolio securities also involves the risk that the
securities may not be returned on a timely basis, and the Fund may experience
delays and costs in recovering the securities or gaining access to the
collateral provided to the Fund to collateralize the loan. If the Fund is unable
to recover a security on loan, the Fund may use the collateral to purchase
replacement securities in the market. There is a risk that the value of the
collateral could decrease below the cost of the replacement security by the time
the replacement investment is made, resulting in a loss to the Fund. Securities
lending may also result in the Fund being unable to vote shares in a proxy
solicitation by the issuer of a loaned security and/or may cause the Fund to be
ineligible to receive a distribution from the issuer of a loaned security. The
Fund is not obligated to engage in securities lending, and may discontinue its
securities lending activities at any time.
•Senior
Loan Risk:
The risks associated with senior loans are similar to the risks of junk bonds,
although senior loans typically are senior and secured, whereas junk bonds often
are subordinated and unsecured. Investments in senior loans typically are below
investment grade and are considered speculative because of the credit risk of
their issuers. Such companies are more likely to default on their payments of
interest and principal owed, and such defaults could reduce the Fund’s NAV and
income distributions. An economic downturn generally leads to a higher
non-payment rate, and a senior loan may lose significant value before a default
occurs. There is no assurance that the liquidation of the collateral would
satisfy the claims of the borrower’s obligations in the event of the non-payment
of scheduled interest or principal, or that the collateral could be readily
liquidated. Economic and other events (whether real or perceived) can reduce the
demand for certain senior loans or senior loans generally, which may reduce
market prices. Senior loans and other debt securities also are subject to the
risk of price declines and to increases in prevailing interest rates, although
floating-rate debt instruments such as senior loans in which the Fund may be
expected to invest are substantially less exposed to this risk than fixed-rate
debt instruments. No active trading market may exist for certain senior loans,
which may impair the ability of the Fund to realize full value in the event of
the need to liquidate such assets. Adverse market conditions may impair the
liquidity of some actively traded senior loans. Longer interest rate reset
periods generally
increase
fluctuations in value as a result of changes in market interest rates. Newly
originated variable rate securities (including reissuances and restructured
loans) may possess lower levels of credit document protections than has
historically been the case. Accordingly, in the event of default the Fund may
experience lower levels of recoveries than has historically been the
norm.
•Short
Position Risk:
The Fund may engage in short position derivative activities. Short position
derivatives are speculative and more risky than "long" positions (purchases)
because the cost of the replacement security or derivative is unknown. You
should be aware that any strategy that includes selling securities short could
suffer significant losses. Shorting will also result in higher transaction costs
(such as interest and dividends), which reduce the Fund’s return, and may result
in higher taxes.
•Small
and Medium Capitalization Company Risk:
Small and medium capitalization companies often have narrower markets, fewer
products or services to offer and more limited managerial and financial
resources than do larger, more established companies. As a result, their
performance can be more volatile, and they face a greater risk of business
failure, which could increase the volatility and risk of loss of a Fund’s
assets.
•Subordinated
Real Estate Loan Risk: An
Underlying Fund may acquire or originate subordinated real estate loans secured
by single family rental properties, including mezzanine loans in the form of
subordinated loans secured by a pledge of the ownership interests of either the
entity owning such properties or the entity that owns the interest in the entity
owning such properties. In the event a borrower defaults on a subordinated loan
and lacks sufficient assets to satisfy such loan, the Underlying Fund may suffer
a loss of principal or interest. In the event a borrower declares bankruptcy,
the Underlying Fund may not have full recourse to the assets of the borrower, or
the assets of the borrower may not be sufficient to satisfy the loan. If a
borrower defaults on a loan owned by the Underlying Fund or on debt senior to
such loan, or in the event of a borrower bankruptcy, such loan will be satisfied
only after the senior debt is paid in full. These types of investments may
become unsecured as a result of foreclosure by the senior
lender.
•Tax
Risk – Inflation-Indexed Securities: Any
increase in the principal amount of an inflation-indexed security may be
included for tax purposes in the Fund’s gross income, even though no cash
attributable to such gross income has been received by the Fund. In such event,
the Fund may be required to make annual distributions to shareholders that
exceed the cash it has otherwise received. In order to pay such distributions,
the Fund may be required to raise cash by selling portfolio investments. The
sale of such investments could result in capital gains to the Fund and
additional capital gain distributions to shareholders. In addition, adjustments
during the taxable year for deflation to an inflation-indexed bond held by the
Fund may cause amounts previously distributed to shareholders in the taxable
year as income to be characterized as a return of capital.
•Tax
Risk – Investment in Commodities: The
tax treatment of commodity-linked derivative instruments may be adversely
affected by changes in legislation, regulations or other legally binding
authority. If, as a result of any such adverse action, the income of the Fund
from certain commodity-linked derivatives was treated as non-qualifying income
the Fund might fail to qualify as a regulated investment company and/or be
subject to federal income tax at the Fund level. As a regulated investment
company, the Fund must derive at least 90% of its gross income for each taxable
year from sources treated as qualifying income under the Internal Revenue Code
of 1986, as amended, including income from any financial instrument or position
that constitutes a security under 2(a)(36) of the 1940 Act. In September 2016,
the Internal Revenue Service announced that it will no longer issue private
letter rulings on questions relating to the treatment of a corporation as a
regulated investment company that require a determination of whether a financial
instrument or position is a security under section 2(a)(36) of the 1940 Act. (A
financial instrument or position that constitutes a security under section
2(a)(36) of the 1940 Act generates qualifying income for a corporation taxed as
a regulated investment company.) The IRS also has revoked the portion of rulings
issued to some funds regarding the treatment of commodity-linked notes held
directly by such funds. Should the Internal Revenue Service issue guidance, or
Congress enact legislation, that adversely affects the tax treatment of the
Fund’s use of commodity-linked instruments or the Subsidiary (which guidance
might be applied to the Fund retroactively), it could, among other consequences,
limit the Fund’s ability to pursue its investment strategy.
•U.S.
Government Agency Obligations Risk:
Government agency obligations have different levels of credit support and,
therefore, different degrees of credit risk. Securities issued by agencies and
instrumentalities of the U.S. Government that are supported by the full faith
and credit of the United States, such as the Federal Housing Administration and
Ginnie Mae, present little credit risk. Government agency obligations also
include instruments issued by certain instrumentalities established or sponsored
by the U.S. Government, including the Federal Home Loan Banks, the Federal
National Mortgage Association (“FNMA” or “Fannie Mae”), and the Federal Home
Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). Although these securities
are issued, in general, under the authority of an Act of Congress, the U.S.
Government is not obligated to provide financial support to the issuing
instrumentalities and these securities are neither insured nor guaranteed by the
U.S. Government. The U.S. Department of the Treasury has the authority to
support FNMA and FHLMC by purchasing limited amounts of their respective
obligations. In addition, the U.S. Government has, in the past, provided
financial support to FNMA and FHLMC with respect to their debt obligations.
However, no assurance can be given that the U.S. Government will always do
so or would do so yet again.
•Valuation
Risk: The
Fund is subject to the risk that it has valued certain securities at a higher
price than the price at which they can be sold. The risk may be especially
pronounced for investments, such as derivatives, that may be classified as
illiquid or may become classified as illiquid.
•Value
Investment Risk:
A Fund’s investment in value-oriented securities may be out of favor and
potentially undervalued in the marketplace due to adverse business, industry or
other developments. A Fund’s investment in value-oriented securities, at times,
may not perform as well as growth-oriented securities or the stock market in
general, may be out of favor with investors for extended periods of time, or may
not reach what the Advisor or a Fund’s sub-advisor believes are their full
value.
•Variable
Rate Securities Risk:
Changes in interest rates on variable rate securities may lag behind changes in
market rates, causing the value of such securities to decline during periods of
rising interest rates until their interest rates reset to market rates. During
periods of declining interest rates, interest rates on variable rate securities
generally reset downward, and their market value is unlikely to rise to the same
extent as the value of comparable fixed rate securities. Newly originated
variable rate securities (including reissuances and restructured loans) may
possess lower levels of credit document protections than has historically been
the case. Accordingly, in the event of default the Fund may experience lower
levels of recoveries than has historically been the norm.
•Wholly-Owned
Subsidiary Risk: The
Subsidiary will not be subject to all of the investor protections of the
Investment Company Act of 1940, as amended. Changes in the laws of the United
States and/or the Cayman Islands could affect the ability of the Fund and/or
Subsidiary to operate as described herein and could negatively affect the Fund
and its shareholders. By investing in the Fund, you indirectly bear the expenses
of the Subsidiary. Gains or losses from trading in commodity-linked derivatives,
such as those held by the Subsidiary, may be taxed, in part, as long term
capital gains or losses and, in part, as short term capital gains or losses.
However, because the Subsidiary is a controlled foreign corporation, any income
received from its investments will be passed through to the Fund as ordinary
income and taxed to Fund shareholders as such.
TEMPORARY
DEFENSIVE POSITIONS
Each
Fund is permitted to invest up to 100% of its assets in cash or cash equivalents
as a temporary defensive position during adverse market, economic, political or
other conditions in order to protect the value of its assets or maintain
liquidity. A Fund may not achieve its investment objectives to the extent that
it engages in such a temporary defensive strategy.
PORTFOLIO
TURNOVER
Generally,
the Funds will not invest for short-term trading purposes. A Fund’s annual
portfolio turnover rate shows changes in portfolio investments. Buying and
selling securities generally involves expenses to the Funds, such as broker
commissions and other transaction costs. A high turnover rate (100% or more) in
any year will result in higher transaction costs to the Funds. A higher turnover
rate also could result in more realization of taxable capital gains within the
Funds, which would increase taxes payable by shareholders. Frequent buying and
selling of securities could result in the distribution of short-term capital
gains that are taxed at ordinary income rates. The trading costs and tax
consequences associated with a Fund’s portfolio turnover may affect its overall
investment performance.
The
Funds cannot accurately predict future annual portfolio turnover rates. Each
Fund’s portfolio turnover rate may vary substantially from year-to-year since
portfolio adjustments are made when conditions affecting relevant markets,
particular industries or individual issues warrant such adjustments. A Fund may
experience an increase in its portfolio turnover rate when the Fund’s portfolio
is modified in connection with a change in the Fund’s sub-advisor.
DISCLOSURE
OF PORTFOLIO HOLDINGS
The
Funds disclose their portfolio holdings semi-annually in shareholder reports and
as an exhibit to their reports on Form N-PORT. The Funds also post their
respective portfolio holdings on www.AssetMark.com/info/funds,
subject to a month’s lag, on approximately the first business day following the
calendar month end. A further description of the Funds’ policies and procedures
regarding the disclosure of portfolio holdings can be found in the Funds’
Statement of Additional Information, which can be obtained free of charge by
contacting the Funds’ transfer agent at (888) 278-5809.
MANAGEMENT
OF THE FUNDS
Investment
Advisor
AssetMark,
Inc., 1655 Grant Street, 10th Floor, Concord, CA 94520-2445, serves as the
investment advisor to each of the Funds under an investment advisory agreement
with each Trust (the “Investment Advisory Agreement”). AssetMark is registered
as an investment advisor with the SEC. AssetMark is a wholly-owned indirect
subsidiary of AssetMark Financial Holdings, Inc. In turn, AssetMark Financial
Holdings, Inc. is an indirect subsidiary of Huatai Securities, Co., Ltd., the
controlling shareholder. AssetMark Financial Holdings, Inc., is publicly listed
on the New York Stock Exchange. On April 25, 2024, AssetMark Financial Holdings,
Inc., the parent company of the Advisor, announced that it signed a definitive
agreement pursuant to which Chicago-based private equity firm GTCR LLC will
acquire a
100%
interest in AssetMark Financial and its subsidiaries, including AssetMark (the
“Transaction”). The Transaction is expected to close in the fourth quarter of
2024, subject to certain conditions and requisite regulatory
approvals.
The
Advisor has overall supervisory responsibility for the general management and
investment of each Fund’s securities portfolio, and subject to review and
approval by the Board of Trustees of a Trust (the “Board of Trustees” or the
“Board”) sets each Fund’s overall investment strategies. For Funds that are not
sub-advised or, in the case of the GuidePath®
Managed Futures Strategy Fund, the portion of the Fund that is not allocated to
a sub-advisor, the Advisor also manages the Fund’s portfolio of investments (or
applicable portion thereof). For sub-advised Funds, the Advisor: (i) evaluates,
selects and recommends sub‑advisors to manage all or part of a Fund’s assets;
(ii) when appropriate, allocates and reallocates a Fund’s assets among
sub‑advisors; (iii) monitors and evaluates the performance of sub‑advisors,
including their compliance with the investment objectives, policies and
restrictions of the Fund; and (iv) implements procedures to ensure that the
sub‑advisors comply with the Fund’s investment objectives, policies and
restrictions. The
Advisor has ultimate responsibility (subject to oversight by a Trust’s Board of
Trustees) to oversee any sub‑advisors and recommends their hiring, termination
and replacement. Selwyn Crews
and Christian Chan are responsible for the day-to-day management of the
GuidePath®
Growth
Allocation Fund, the GuidePath®
Conservative
Allocation Fund, the GuidePath®
Tactical
Allocation Fund, the GuidePath®
Absolute
Return Allocation Fund, the GuidePath®
Multi-Asset
Income Allocation Fund, and the GuidePath®
Flexible
Income Allocation Fund. Mr. Crews and Mr. Chan are responsible for the
day-to-day management of the GuidePath®
Conservative Income Fund, the GuidePath®
Income
Fund, and the GuidePath®
Growth and Income Fund. The Funds’ Statement of Additional Information provides
additional information about the portfolio managers’ compensation, other
accounts managed by the portfolio managers and the portfolio managers’ ownership
of shares of the Funds they manage.
•Selwyn
Crews
Director,
Investment Strategies
Mr.
Crews is Director of Portfolio Management for AssetMark, responsible for
managing specific portfolios and solutions for the firm. Mr. Crews joined the
firm in 2011. Mr. Crews has served as a portfolio manager for the GuidePath®
Growth Allocation Fund, the GuidePath® Conservative Allocation Fund, the
GuidePath® Tactical Allocation Fund, the GuidePath® Absolute Return Allocation
Fund, the GuidePath® Multi-Asset Income Allocation Fund and the GuidePath®
Flexible Income Allocation Fund since their inception. Mr. Crews has served as a
portfolio manager for the GuidePath® Conservative Income Fund, GuidePath® Income
Fund, and GuidePath® Growth and Income Fund since 2022. Prior to 2011, Mr. Crews
was a leader at Genworth Financial where he was responsible for oversight of
mutual funds in Variable Annuity products.
•Christian
Chan
Senior
Vice President, Chief Investment Officer
Mr.
Chan is a Senior Vice President and serves as Chief Investment Officer of
AssetMark, and serves as Portfolio Manager for the GuidePath®
Growth Allocation Fund, GuidePath®
Conservative Allocation Fund, GuidePath®
Tactical Allocation Fund, GuidePath®
Absolute Return Allocation Fund, GuidePath®
Multi-Asset Income Allocation Fund, GuidePath®
Flexible Income Allocation Fund, GuidePath®
Conservative Income Fund, GuidePath®
Income Fund, and GuidePath®
Growth and Income Fund. Prior to becoming AssetMark’s CIO in 2022, Mr. Chan was
a Managing Director and Head of US Portfolio Management for Allspring Global
Investment’s Multi-Asset Solutions team, where he managed several multi-asset
mutual funds and institutional accounts from 2021 to 2022. Previously, he was
Head of Investments for Wells Fargo Funds Management Group from 2002 to 2021.
The
Advisor receives an annual fee from each Fund for its services according to the
following table:
|
|
|
|
| |
Fund |
Management
Fee (as a percentage of average daily net assets) |
GuideMark®
Large
Cap Core Fund |
0.45% |
GuideMark®
Emerging
Markets Fund |
0.59% |
GuideMark®
Small/Mid
Cap Core Fund |
0.57% |
GuideMark®
World
ex-US Fund |
0.50% |
GuideMark®
Core
Fixed Income Fund |
0.40% |
GuidePath®
Growth
Allocation Fund |
0.25% |
GuidePath®
Conservative
Allocation Fund |
0.25% |
GuidePath®
Tactical
Allocation Fund |
0.35% |
GuidePath®
Absolute
Return Allocation Fund |
0.35% |
GuidePath®
Multi-Asset
Income Allocation Fund |
0.35% |
GuidePath®
Flexible
Income Allocation Fund |
0.25% |
GuidePath®
Managed
Futures Strategy Fund |
1.05% |
GuidePath®
Conservative
Income Fund |
0.35% |
GuidePath®
Income
Fund |
0.45% |
GuidePath®
Growth
and Income Fund |
0.45% |
The
Advisor has entered into a Fee Waiver Agreement with GPS Funds I designed to
provide the Funds’ shareholders with the economic benefits of economies of scale
that may be realized as Fund assets increase. Under the Fee Waiver Agreement,
the Advisor has contractually agreed to waive 0.025% of each of the Fund’s
annual advisory fee on GPS Funds I assets in excess of $6 billion and an
additional 0.025% of each of the Fund’s annual advisory fee on GPS Funds I
assets in excess of $12 billion. Please note that the aforementioned waiver does
not apply to GPS Funds II, which includes the GuidePath®
Growth
Allocation Fund, GuidePath®
Conservative
Allocation Fund, GuidePath®
Tactical
Allocation Fund, GuidePath®
Absolute
Return Allocation Fund, GuidePath®
Multi-Asset
Income Allocation Fund, GuidePath®
Flexible
Income Allocation Fund, GuidePath®
Managed Futures Strategy Fund, GuidePath®
Conservative
Income Fund, GuidePath®
Income
Fund, and GuidePath®
Growth
and Income Fund.
The
Advisor has entered into Expense Limitation Agreements in which it has agreed to
waive fees and/or assume expenses otherwise payable by each Fund to the extent
necessary to ensure that each Fund’s Total Annual Fund Operating Expenses do not
exceed a stated maximum percentage (excluding taxes, interest, trading costs,
acquired fund expenses, expenses paid with securities lending expense offset
credits and non-routine expenses) (“expense cap”), for the period from August 1,
2024 through July 31, 2025. Under the Agreements, the Advisor may recoup waived
fees and expenses it assumed for a three-year period under specified conditions.
The expense cap for each Fund is as follows:
|
|
|
|
| |
Fund |
Expense
Cap |
GuideMark®
Large
Cap Core Fund |
0.99% |
GuideMark®
Emerging
Markets Fund |
1.40% |
GuideMark®
Small/Mid
Cap Core Fund |
1.20% |
GuideMark®
World
ex-US Fund |
1.14% |
GuideMark®
Core
Fixed Income Fund |
0.94% |
GuidePath®
Growth
Allocation Fund |
0.75% |
GuidePath®
Conservative
Allocation Fund |
0.75% |
GuidePath®
Tactical
Allocation Fund |
0.85% |
GuidePath®
Absolute
Return Allocation Fund |
0.69% |
GuidePath®
Multi-Asset
Income Allocation Fund |
0.85% |
GuidePath®
Flexible
Income Allocation Fund |
0.80% |
GuidePath®
Managed
Futures Strategy Fund |
1.65% |
GuidePath®
Conservative
Income Fund |
0.64% |
GuidePath®
Income
Fund |
0.79% |
GuidePath®
Growth
and Income Fund |
0.79% |
Effective
as of April 1, 2023, the Advisor has elected to implement a voluntary fee waiver
with respect to certain Funds as indicated below. The voluntary waiver may be
discontinued by the Advisor at any time. Fees waived pursuant to the voluntary
waiver are not subject to recoupment by the Advisor in future
periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Fund
|
|
Voluntary
Waiver Amount
(as
a percentage of daily net assets): |
GuideMark®
Large Cap Core Fund |
|
|
|
|
| 0.02 |
% |
GuideMark®
Emerging Markets Fund |
|
|
|
|
| 0.06 |
% |
GuideMark®
Small/Mid Cap Core Fund |
|
|
|
|
| 0.035 |
% |
GuideMark®
World Ex-US Fund |
|
|
|
|
| 0.041 |
% |
The
Advisor’s primary business is to operate the AssetMark, Inc. investment platform
(the “AssetMark Platform”), a managed account platform that is used by financial
advisors and financial services firms, such as investment advisors and financial
intermediaries, including broker-dealers, banks and/or trust companies to
deliver investment advisory, asset allocation and back office administrative
services to their clients. Through the AssetMark Platform, investors can invest
in, among other things, a variety of asset allocation portfolios using open-end
mutual funds and other investment vehicles. The GuideMark®
and
GuidePath®
Funds
are included among the many investment solutions made available through the
AssetMark Platform. AssetMark advised or administered in excess of $104.9
billion in investor assets as of March 31, 2024, including mutual funds, ETFs
and privately managed accounts.
AssetMark
also provides certain administrative services to the Service Shares of the Funds
and the Shares of the GuidePath®
Conservative Income Fund, GuidePath®
Income Fund and GuidePath®
Growth and Income Fund in connection with the operation of the Platform,
pursuant to Administrative Services Agreements between the Funds and AssetMark,
for which AssetMark receives a fee of 0.25% of the average daily net assets of
the applicable Shares of the Funds. Investors holding the applicable Shares of
the Funds outside of the AssetMark Platform are subject to these administrative
services fees, but may not receive all of the related services.
The
Advisor has entered into a sub-advisory agreement with each sub-advisor (on
behalf of the applicable Funds) and compensates each sub-advisor out of the
management fees it receives from the applicable Fund. The Advisor may, from time
to time, engage one or more consultants to provide research, including
statistical information and economic data that the Advisor uses when
(i) selecting sub-advisors for the Funds; (ii) monitoring the ongoing
performance and operations of the sub-advisors; (iii) making
recommendations to the Board of Trustees about hiring and changing sub-advisors;
and (iv) determining asset allocation strategies to be used for the Funds. The
Advisor pays any such consultant fees from its own resources.
Each
sub-advisor makes investment decisions for the portion of the applicable Fund’s
assets that it has been allocated to manage. The Advisor oversees the
sub-advisors for compliance with each Fund’s investment policies and guidelines,
and monitors each sub-advisor’s adherence to its investment style. The Board of
Trustees supervises the Advisor and the sub-advisors, establishes policies that
they must
follow
in their management activities and oversees the hiring and termination of
sub-advisors recommended by the Advisor. Pursuant to exemptive order relief and
related no-action guidance issued by the SEC staff, AssetMark is permitted,
subject to certain conditions and approval by the Board of Trustees, but without
shareholder approval, to hire new sub-advisors for new or existing Funds, change
the terms of particular agreements with sub-advisors or continue the employment
of existing sub-advisors after events that would otherwise cause an automatic
termination of a sub-advisory agreement. Within 90 days of retaining a new
sub-advisor, shareholders of any affected Fund will receive notification of the
change. The exemptive order relieves the Funds from the requirement to disclose
certain fees paid to sub-advisors (except to any sub-advisors affiliated with
the Advisor) in documents filed with the SEC and provided to
shareholders.
A
discussion regarding the basis for the approval by the Board of the applicable
Investment Advisory Agreement and Sub-Advisory Agreement for each Fund is
available in the Funds’ annual report, (GPS
Funds I Annual Report)
and (GPS
Funds II Annual Report),
to shareholders for the fiscal year ended March 31, 2024.
Sub-Advisors
and Portfolio Managers
The
sub-advisors and portfolio managers set forth below are responsible for the
day-to-day portfolio management of the respective Funds. The Funds’ Statement of
Additional Information provides additional information about the portfolio
managers’ compensation, other accounts managed by the portfolio managers and the
portfolio managers’ ownership of shares of the Funds they manage.
Large
Cap Core Fund, Emerging Markets Fund, Small/Mid Cap Core Fund and World ex-US
Fund:
Goldman
Sachs Asset Management, L.P.
(“GSAM”) is the sub-advisor to the Funds. GSAM is a Delaware limited partnership
with principal offices at 200 West Street, New York, New York 10282. GSAM is an
indirect wholly-owned subsidiary of The Goldman Sachs Group, Inc. (together with
its affiliates, directors, partners, trustees, managers, members, officers and
employees, “Goldman Sachs”), a financial holding company. GSAM has been
registered with the SEC as an investment advisor since 1990. As of March 31,
2024, Goldman Sachs had approximately $2.6 trillion in assets under supervision.
Assets under supervision include assets under management and other client assets
for which GSAM does not have full discretion. The following portfolio managers
are primarily responsible for the day-to-day management of the Fund’s
portfolio:
•Andrew
Alford
Managing
Director
Andrew
is a managing director in Quantitative Investment Strategies (QIS) within
Goldman Sachs Asset Management, serving as co head of equity research. He joined
Goldman Sachs in 1998 on the QIS equity alpha research team and became head of
equity alpha research in 2000. Andrew became a senior portfolio manager in 2005,
and joined the Quantitative Equity Solutions team in 2011 as head of research.
He became head of environmental, social, and governance (ESG) research in 2019,
and assumed his current role in 2022. Andrew was named managing director in
2004.
•Karhan
E. Akcoglu
Vice
President
Mr.
Akcoglu is head of portfolio management for the ActiveBeta Equity Strategies
business within Goldman Sachs Asset Management’s Rules-Based Factor Investing
Strategies platform. He is responsible for portfolio management, including
portfolio construction and risk management of global developed and emerging
market equity portfolios and custom indexes. Mr. Akcoglu has held a variety of
roles within the Global Markets Division and more recently within Goldman Sachs
Asset Management, focused on the development of mathematical and analytical
tools across a variety of factor-based strategies.
Immediately
prior to joining the ActiveBeta team, Mr. Akcoglu served as Head of Strats for
the ActiveBeta, Alternative Investment Strategies, and Macro Alpha businesses
within Goldman Sachs Asset Management’s Quantitative Investment Strategies
platform, where he oversaw the development of quantitative analytical tools
driving portfolio construction and risk management of long-only and long-short
factor-based portfolios investing in global equities, commodities, currencies,
and fixed-income instruments.
Prior
to joining Goldman Sachs Asset Management in 2018, Mr. Akcoglu was head of
Trading Strats for the macro Systematic Trading Strategies (STS) business within
the Global Markets Division of Goldman Sachs, where he oversaw the development
and risk management of rules-based index products for factor exposures across
currencies, commodities, and fixed income, a role he held since 2011 initially
based out of London and subsequently New York. Prior to this, Mr. Akcoglu
oversaw the development of the analytics underpinning the Goldman Sachs
Commodity Index (GSCI) and developed customized, enhanced commodity index
products for exposure to commodity market factor dynamics in long-only and
beta-neutral long-short formats. In this capacity, Mr. Akcoglu has previously
served on the S&P GSCI Index Advisory Panel. Mr. Akcoglu originally joined
Goldman Sachs in 2002 upon earning a Ph.D. in Computer Science from Yale
University and an Hon.B.Sc. in Computer Science and Mathematics from the
University of Toronto.
Core
Fixed Income Fund:
Wellington
Management Company LLP
(“Wellington Management”) is a sub-advisor to the Core Fixed Income Fund.
Wellington Management is a Delaware limited liability partnership with principal
offices at 280 Congress Street, Boston, Massachusetts 02210.
Wellington
Management is a professional investment counseling firm which provides
investment services to investment companies, employee benefit plans, endowments,
foundations and other institutions. Wellington Management and its predecessor
organizations have provided investment advisory services for over 90 years.
Wellington Management is owned by the partners of Wellington Management Group
LLP, a Massachusetts limited liability partnership. As of June 30, 2024,
Wellington Management had approximately $1.25 trillion in client assets under
management. The following portfolio managers are primarily responsible for the
day-to-day management of Wellington Management’s allocated portion of the Fund’s
portfolio:
•Campe
Goodman, CFA
Senior
Managing Director and Fixed Income Portfolio Manager
Mr.
Goodman is a fixed income portfolio manager on the Broad Markets Team and is
lead portfolio manager on the Multi Sector Credit and Impact Bond portfolios.
His focus is sector rotation - asset allocation across the major fixed income
sectors - and he leads the specialist team responsible for the development of
the top-down sector rotation strategy that is utilized in Core Bond, Core Bond
Plus, Impact Bond, Intermediate Bond, Long Bond, and Multi Sector Credit
portfolios. Prior to joining Wellington Management in 2000, Mr. Goodman spent
four years at the Massachusetts Institute of Technology studying macroeconomics
and finance in a doctoral program in economics. He received his AB in
mathematics, magna cum laude, from Harvard College (1995). In addition, Mr.
Goodman holds the Chartered Financial Analyst designation.
•Joseph
F. Marvan, CFA
Senior
Managing Director and Fixed Income Portfolio Manager
Mr.
Marvan is a fixed income portfolio manager and serves as chair of the Broad
Markets Team. As chair, Mr. Marvan is responsible for setting aggregate risk
levels and investment strategy in Core Bond Plus, Core Bond, Intermediate Bond,
and Long Bond portfolios. Prior to joining Wellington Management in 2003, Mr.
Marvan was a senior portfolio manager and head of US Fixed Income at State
Street Global Advisors, working on a wide range of fixed income portfolios,
including those concentrating on total return, mortgage-backed securities,
non-dollar bonds, and investment grade credit (1996 – 2003). Prior to that, he
worked at both The Boston Company and Shearson Lehman Brothers in Fixed Income
Portfolio Management and Trading (1988 – 1996). Mr. Marvan earned his MBA, magna
cum laude, from Babson College (Olin, 2001) and his BS in finance from Ithaca
College (1987). Additionally, he holds the Chartered Financial Analyst
designation and is a member of the CFA Institute.
•Robert
D. Burn, CFA
Senior
Managing Director and Fixed Income Portfolio Manager
As
a fixed income portfolio manager, Mr. Burn develops strategic and tactical
investment strategies using both fundamental and quantitative analysis and
implements those strategies in portfolios. He also focuses on portfolio
construction and risk management, and is a member of the Broad Markets Team.
Prior to joining Wellington Management in 2007, Mr. Burn worked as a senior
mechanical engineer modeling high power lasers at Lockheed Martin Corporation
(2003 - 2005). Before that, he held engineering positions in the telecom and
manufacturing industries (1998 - 2003). Mr. Burn earned his MBA with high honors
from the University of Chicago (2007) and his MS and BS in mechanical
engineering from MIT (1998, 1997). Additionally, he holds the Chartered
Financial Analyst designation and is a member of the CFA Institute and the CFA
Society of Boston.
GuidePath®
Managed Futures Strategy Fund:
AlphaSimplex
Group, LLC
(“AlphaSimplex”), 200 State Street, Boston, MA 02109, serves as the sub-advisor
to the GuidePath®
Managed Futures Strategy Fund. As of June 30, 2024, AlphaSimplex had
approximately $4.6 billion in assets under management. The following portfolio
managers are responsible for the day-to-day management of the Fund’s
portfolio:
•Robert
S. Rickard
Portfolio
Manager
As
a Portfolio Manager at AlphaSimplex, Mr. Rickard is responsible for managing the
cash portion of the firm’s strategies. Mr. Rickard joined AlphaSimplex in 2015.
Prior to this, Mr. Rickard served as the Senior Vice President, Head of
Portfolio Management and Trading, and Portfolio Manager at Reich & Tang
Asset Management, LLC. Mr. Rickard joined Reich & Tang Asset Management in
1992, and focused on the management of short-term assets. Mr. Rickard began
managing the money market portion of AlphaSimplex’s products while at Reich
& Tang Asset Management, and continues that work at AlphaSimplex. Mr.
Rickard earned a B.S. in Accounting from Siena College and an M.B.A. from Pace
University.
•Alexander
D. Healy, Ph.D.
Chief
Investment Officer, Portfolio Manager
As
Chief Investment Officer of AlphaSimplex, Dr. Healy is responsible for the
day-to-day supervision of the research team and the implementation of the firm’s
investment strategies. Dr. Healy is a member of the Investment Committee and
Risk Committee. Dr. Healy joined AlphaSimplex in 2007 and has held the roles of
Senior Research Scientist, Director of Strategic Research, and Deputy Chief
Investment Officer. He has developed various key elements of AlphaSimplex’s
investment platform, including non-parametric
investment
models, volatility management overlays, and dynamic approaches to portfolio
construction. Dr. Healy earned an A.B. in Mathematics and Computer Science from
Harvard University, where he also received a Ph.D. in Theoretical Computer
Science.
•John
C. Perry, Ph.D.
Senior
Research Scientist, Portfolio Manager
As
a Senior Research Scientist at AlphaSimplex, Dr. Perry focuses on portfolio
management, applied research, and overall capability development. Dr. Perry
joined AlphaSimplex in 2012. Prior to this, he worked for Soros Fund Management,
where he researched and developed quantitative equity trading strategies and
risk models. Previously, he worked on the proprietary trading desk at J.P.
Morgan. Dr. Perry earned a B.S. in Computer Engineering from the University of
Utah, an M.S. in Management and a Ph.D. in Electrical Engineering and Computer
Science from MIT.
•Philippe
P. Lüdi, Ph.D., CFA
Senior
Research Scientist, Portfolio Manager
As
a Senior Research Scientist at AlphaSimplex, Dr. Lüdi focuses on portfolio
management, applied research, and overall capability development. Dr. Lüdi
joined AlphaSimplex in 2006. He has been involved in system engineering as well
as global macro strategies. Dr. Lüdi earned the equivalent of an M.A. in
Molecular and Computational Biology from the University of Basel. He also
received a M.Sc. in Statistics and a Ph.D. in Bioinformatics, both from Duke
University.
•Kathryn
M. Kaminski, Ph.D., CAIA
Chief
Research Strategist, Portfolio Manager
As
Chief Research Strategist of AlphaSimplex, Dr. Kaminski conducts applied
research, leads strategic research initiatives, focuses on portfolio
construction and risk management, and engages in product development. Dr.
Kaminski is a member of the Investment Committee. Dr. Kaminski joined
AlphaSimplex in 2018 after being a visiting scientist at the Massachusetts
Institute of Technology (“MIT”) Laboratory for Financial Engineering. Prior to
this, she held portfolio management positions as a director, investment
strategies at Campbell and Company and as a senior investment analyst at RPM, a
CTA fund of funds. Dr. Kaminski is a Senior Lecturer at the MIT Sloan School of
Management and has taught at the Stockholm School of Economics, and the Swedish
Royal Institute of Technology, KTH. Dr. Kaminski earned a B.S. in Electrical
Engineering and a Ph.D. in Operations Research from MIT.
VALUATION
OF FUND SHARES
Shares
of each Fund are sold at the net asset value per share (“NAV”), which is
determined by each Fund generally as of 4:00 p.m. Eastern time on each day that
the Fund is open for business. Each Fund is generally open on days that the New
York Stock Exchange (“NYSE”) is open for trading. Purchase and redemption
requests are priced at the next NAV calculated after receipt of such requests.
The NAV is determined by dividing the value of a Fund’s securities, cash and
other assets, minus all expenses and liabilities, by the number of shares
outstanding (assets - liabilities / # of shares = NAV). The NAV of each Fund
that operates as a fund of funds is generally based on the NAV of the Underlying
Funds. The NAV takes into account the expenses and fees of each Fund, including
management, administration and shareholder servicing fees, which are accrued
daily. Each Fund’s daily NAV is available by calling
1-888-278-5809.
Each
Fund’s and Underlying Fund’s securities are generally valued each day at their
current market value. If market quotations are not readily available as defined
by Rule 2a-5, securities will be valued at their fair value as determined in
good faith in accordance with the requirements of Rule 2a-5 pursuant to
procedures approved by a Trust’s Board of Trustees. The Board has designated the
Advisor as Valuation Designee of the Trusts to perform fair valuations pursuant
to Rule 2a-5. The Valuation Designee has established a Valuation Committee to
oversee the implementation of the valuation procedures on behalf of the
Funds.
Trading
in Foreign Securities
The
securities markets on which the foreign securities owned by a Fund or Underlying
Fund are traded may be open on days that a Fund or Underlying Fund does not
calculate its NAV. Because foreign markets may be open at different times than
the NYSE, the value of a Fund’s or Underlying Fund’s shares may change on days
when shareholders are not able to buy or sell them. The Funds and Underlying
Funds translate prices for their investments quoted in foreign currencies into
U.S. dollars at current exchange rates. As a result, changes in the value of
those currencies in relation to the U.S. dollar may affect a Fund’s or
Underlying Fund’s NAV.
If
events materially affecting the values of a Fund’s or Underlying Fund’s foreign
investments (in the opinion of the Advisor and the appropriate sub-advisor or
the Underlying Fund’s investment advisor) occur between the close of foreign
markets and the close of regular trading on the NYSE, or if reported prices are
believed by the Advisor or the sub-advisors or the Underlying Fund’s investment
advisor to be unreliable, these investments will be valued at their fair value
in accordance with the requirements of Rule 2a-5 pursuant to procedures adopted
by the Board. The Funds and Underlying Funds may utilize third-party pricing
vendors to monitor for events materially affecting the values of the Funds’ and
Underlying Funds’ foreign investments during the period between the close of
foreign markets and the close of regular trading on the NYSE. In certain
circumstances, if events occur that materially affect the values of the Funds’
or Underlying Funds’ foreign investments, the third-party pricing vendors will
provide revised values to the Funds or Underlying Funds.
The
use of fair value pricing by the Funds or Underlying Funds may cause the NAVs of
their shares to differ from the NAVs that would be calculated by using closing
market prices. Also, due to the subjective nature of fair value pricing, a
Fund’s or Underlying Fund’s value for a particular security may be different
from the last quoted market price.
PURCHASING
FUND SHARES
How
to Purchase Fund Shares
Financial
institutions and intermediaries on behalf of their clients may purchase shares
on any day that the NYSE is open for business by placing orders with U.S.
Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services
(“Fund Services”), the Funds’ transfer agent (or its authorized agent).
Institutions and intermediaries that use certain proprietary systems of the
Advisor may place orders electronically through those systems. Cash investments
must be transmitted or delivered in federal funds to the Funds’ wire agent by
the close of business on the day after the order is placed. Each Fund reserves
the right to refuse any purchase requests, particularly those that would not be
in the best interests of the Fund or its shareholders and could adversely affect
the Fund or its operations. The Funds generally do not accept investments from
non-U.S. investors and reserve the right to decline such
investments.
The
Funds have entered into an agreement with certain financial intermediaries
authorizing them to accept orders or designate third parties to accept orders on
behalf of the Funds. Investors may be charged a fee if they effect transactions
through an intermediary, broker or agent. If
you place your order through these financial intermediaries, the order will be
considered received when they accept the order. Those orders will be priced at
the next NAV calculated after acceptance of the order by the financial
intermediary or its agent. If you place an order through an account at an
intermediary, please consult with the intermediary to determine when your order
will be executed, as some intermediaries may require that they receive orders
prior to a specified cut-off time.
Certain
other intermediaries, including certain broker-dealers and shareholder
organizations, have been designated as agents authorized to accept purchase,
redemption and exchange orders for Fund shares. These intermediaries are
required by contract and applicable law to ensure that orders are executed at
the NAV next determined after the intermediary receives the request in good
form. These authorized intermediaries are responsible for transmitting requests
and delivering funds on a timely basis.
In
accordance with the USA PATRIOT Act of 2001, please note that the financial
institution or intermediary will verify certain information on your account as
part of the Funds’ Anti-Money Laundering Program. As requested by your financial
intermediary, you should supply your full name, date of birth, social security
number and permanent street address. Mailing addresses containing a P.O. Box
will not be accepted.
Minimum
Purchases
The
Funds have no investment minimums, however, the financial institutions and
intermediaries that sell the Funds’ shares may have established minimum values
for the accounts that they handle.
SELLING
(REDEEMING) FUND SHARES
How
to Sell Your Fund Shares
Shareholders
may sell (redeem) their Fund shares through their financial institutions or
intermediaries on any business day by following the procedures established when
they opened their account or accounts. The sale price of each share will be the
next NAV determined after a Fund (or authorized intermediary) receives a request
to sell or redeem Fund shares. Normally, a Fund will pay for redeemed shares on
the next business day after receiving a request, but it could take as long as
seven days.
Redemption-In-Kind
Each
Fund generally pays sale (redemption) proceeds in cash. Each Fund typically
expects to meet redemption requests by using available cash (or cash
equivalents) and/or selling portfolio assets to generate cash. However, under
unusual conditions where the payment of cash is not in the best interest of a
Fund or its remaining shareholders, a Fund might pay all or part of a
shareholder’s redemption proceeds in liquid investments with a market value
equal to the redemption price (redemption-in-kind). If shares are redeemed in
kind, a shareholder is likely to pay brokerage costs to sell the securities
distributed, as well as taxes on any capital gains from the sale as with any
redemption.
Suspension
of Your Right to Sell Your Shares
Each
Fund may suspend a shareholder’s right to sell shares if the NYSE restricts
trading, the SEC declares an emergency or for other reasons as permitted by law.
EXCHANGE
PRIVILEGE
Shareholders
of record may exchange shares of any Fund for shares of any other Fund on any
business day by contacting their financial institution or intermediary. The
financial institution or intermediary will contact the Funds’ transfer agent to
complete the exchange. This exchange privilege may be changed or canceled by a
Fund at any time upon 60 days notice. Exchanges are generally made only between
identically
registered accounts. Any exchange involving a change in ownership will require a
written request with signature(s) guaranteed. 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 NYSE
Medallion Signature Program and the Securities Transfer Agents Medallion
Program. A notary public is not an acceptable signature guarantor. Exercising
the exchange privilege consists of two transactions: a sale of shares in one
Fund and the purchase of shares in another; as a result, there may be tax
consequences of the exchange. A shareholder could realize short- or long-term
capital gains or losses. An exchange request received prior to the close of the
NYSE will be made at that day’s closing NAV per share. The Funds reserve the
right to refuse the purchase side of any exchange that would not be in the best
interests of a Fund or its shareholders and could adversely affect the Fund or
its operations.
Unclaimed
Property.
It is important that a Fund maintain a correct address for each shareholder. An
incorrect address may cause a shareholder's account statements and other
mailings to be returned to the Fund. Based upon statutory requirements for
returned mail, the Funds will attempt to locate the shareholder or rightful
owner of the account. If a Fund is unable to locate the shareholder, then it
will determine whether the shareholder's account is considered abandoned
pursuant to applicable laws. The Funds are legally obligated to escheat (or
transfer) abandoned property to the appropriate state's unclaimed property
administrator in accordance with statutory requirements. The shareholder's last
known address of record determines which state has jurisdiction. Please
proactively contact the Transfer Agent toll-free at (888) 278-5809 at least
annually to ensure your account remains in active status.
If
you are a resident of the state of Texas, you may designate a representative to
receive notifications that, due to inactivity, your mutual fund account assets
may be delivered to the Texas Comptroller. Please contact the Transfer Agent if
you wish to complete a Texas Designation of Representative form.
MARKET
TIMING POLICY
Excessive
or short-term purchases and redemptions of Fund shares have the potential to
harm the Funds and their long-term shareholders. Such frequent trading of Fund
shares may lead to, among other things, dilution in the value of Fund shares
held by long-term shareholders, interference with the efficient management of
the Funds’ portfolios and increased brokerage and administrative costs. In
addition to these generally applicable risks, Funds that invest a substantial
portion of their assets in certain types of securities may be subject to
additional risks. For example, Funds that invest in foreign securities that
trade in overseas markets may be subject to the risk of a particular form of
frequent trading called time-zone arbitrage, where shareholders of the Fund seek
to take advantage of time-zone differences between the close of the overseas
markets in which the Fund’s securities are traded, and the close of U.S.
markets. Arbitrage opportunities also may occur in Funds that hold small
capitalization or small company securities or in Funds that invest in thinly
traded securities.
The
Funds are not designed to serve as vehicles for frequent trading in response to
short-term fluctuations in the securities markets. Accordingly, the Funds’
Boards of Trustees have adopted policies and procedures that are designed to
deter such excessive or short-term trading. The Funds reserve the right to take
appropriate action as they deem necessary to combat excessive or short-term
trading of Fund shares, including, but not limited to, refusing to accept
purchase orders. The Funds may also work, as necessary, with intermediaries that
sell or facilitate the sale of Fund shares to prevent abusive trading practices
in omnibus accounts. At a Fund’s request, investors’ taxpayer identification
numbers and a record of their transactions may be turned over to the Fund by
brokers and/or financial intermediaries.
Under
no circumstances will the Funds, the Advisor or the distributor enter into any
agreements with any investor to encourage, accommodate or facilitate excessive
or short-term trading in the Funds. Although the Funds and the Advisor take
steps to prevent abusive trading practices, there is no guarantee that all such
practices will be detected or prevented.
Due
to the nature of the AssetMark Platform, where Fund purchase and redemption
transactions are submitted on behalf of clients invested in the AssetMark
Platform in connection with an asset allocation model, it is highly unlikely
that individual investment advisors or investors could engage in abusive trading
strategies within the platform.
DISTRIBUTION
OF FUND SHARES
Distributor
AssetMark
Brokerage®,
LLC, 1655 Grant Street, 10th Floor, Concord, California 94520, an affiliate of
the Advisor, is the distributor for the shares of each of the Funds. Shares of
each Fund are offered on a continuous basis.
COUNSEL,
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM AND SERVICE PROVIDERS
Legal
Counsel and Independent Registered Public Accounting Firm
Stradley
Ronon Stevens & Young, LLP, 2005 Market Street, Suite 2600, Philadelphia,
Pennsylvania 19103, serves as legal counsel to the Funds. Cohen & Company,
Ltd., 342 North Water Street, Suite 830, Milwaukee, Wisconsin 53202, serves as
the independent registered public accounting firm for the Funds.
Custodian,
Fund Administrator, Transfer Agent, Fund Accountant and Shareholder Servicing
Agents
U.S.
Bank N.A. serves as custodian for the cash and securities of each Fund and the
Subsidiary of the GuidePath®
Managed Futures Strategy Fund. U.S. Bank N.A. does not assist in, and is
not responsible for, investment decisions involving assets of the Funds. Fund
Services acts as each Fund’s administrator, transfer agent and fund
accountant. In addition, certain other organizations that provide
recordkeeping and other shareholder services may be entitled to receive fees
from a Fund for shareholder support. Such support may include, among other
things, assisting investors in processing their purchase, exchange or redemption
requests, or processing dividend and distribution payments.
DIVIDENDS,
DISTRIBUTIONS AND TAXES
DISTRIBUTIONS
Dividends
and Distributions.
Each Fund has elected and intends to continue to qualify each year as a
regulated investment company under the Code. As a regulated investment company,
a Fund generally pays no federal income tax on the income and gains it
distributes to you. Each Fund, other than the Core Fixed Income Fund, the
Multi-Asset Income Allocation Fund, the Flexible Income Allocation Fund, the
Conservative Income Fund, the Income Fund, and the Growth and Income Fund,
expects to declare and distribute all of its net investment income, if any, to
shareholders as dividends at least annually. The Core Fixed Income Fund, the
Multi-Asset Income Allocation Fund, the Flexible Income Allocation Fund, the
Conservative Income Fund, the Income Fund, and the Growth and Income Fund each
expect to declare and distribute all of its net investment income, if any, to
shareholders as dividends at least quarterly. Each Fund will distribute net
realized capital gains, if any, at least annually, usually in December. A Fund
may distribute such income dividends and capital gains more frequently, if
necessary, in order to reduce or eliminate federal excise or income taxes on the
Fund. The amount of any distribution will vary, and there is no guarantee a Fund
will pay either an income dividend or a capital gains distribution. We
automatically reinvest all dividends and any capital gains, unless you direct us
to do otherwise.
Annual
Statements. Each
year, the Funds will send you an annual statement (Form 1099) of your account
activity to assist you in completing your federal, state and local tax returns.
Distributions declared in October, November or December to shareholders of
record in such month, but paid in January, are taxable as if they were paid in
December. Prior to issuing your statement, the Funds make every effort to reduce
the number of corrected forms mailed to you. However, if a Fund finds it
necessary to reclassify its distributions or adjust the cost basis of any
covered shares (defined below) sold or exchanged after you receive your tax
statement, the Fund will send you a corrected Form 1099.
Avoid
“Buying a Dividend.” At
the time you purchase your Fund shares, a Fund’s net asset value may reflect
undistributed income, undistributed capital gains, or net unrealized
appreciation in value of portfolio securities held by the Fund. For taxable
investors, a subsequent distribution to you of such amounts, although
constituting a return of your investment, would be taxable. Buying shares in a
Fund just before it declares an income dividend or capital gains distribution is
sometimes known as “buying a dividend.”
TAX
CONSIDERATIONS
Fund
Distributions. Each
Fund expects, based on its investment objective and strategies, that its
distributions, if any, will be taxable as ordinary income, capital gains, or
some combination of both.
This
is true whether you reinvest your distributions in additional Fund shares or
receive them in cash.
For
federal income tax purposes, Fund distributions of short-term capital gains are
taxable to you as ordinary income. Fund distributions of long-term capital gains
are taxable to you as long-term capital gains no matter how long you have owned
your shares. A portion of income dividends reported by a Fund may be qualified
dividend income eligible for taxation by individual shareholders at long-term
capital gain rates provided certain holding period requirements are met. Income
derived from investments in derivatives, fixed-income securities, U.S. real
estate investment trusts, passive foreign investment companies, and income
received “in lieu of” dividends in a securities lending transaction generally is
not eligible for treatment as qualified dividend income.
The
use of derivatives by a Fund may cause the Fund to realize higher amounts of
ordinary income or short-term capital gain, distributions from which are taxable
to individual shareholders at ordinary income tax rates rather than at the more
favorable tax rates for long-term capital gain.
If
a Fund qualifies to pass through to you the tax benefits from foreign taxes it
pays on its investments, and elects to do so, then any foreign taxes it pays on
these investments may be passed through to you as a foreign tax credit.
Portfolio
turnover. For
investors that hold their Fund shares in a taxable account, a Fund with a high
portfolio turnover rate may result in higher taxes for shareholders. This is
because a Fund with a high portfolio turnover rate may accelerate the
recognition of capital gains to the Fund, which the Fund, in turn, will
distribute to shareholders and more of such gains are likely to be taxable as
short-term (ordinary income) rather than long-term capital gains in contrast to
a comparable fund with a low turnover rate. Any such higher taxes would reduce
the Fund’s after-tax performance.
Sale
or Redemption of Fund Shares.
A sale or redemption of Fund shares is a taxable event and, accordingly, a
capital gain or loss may be recognized. Your broker-dealer or other financial
intermediary (such as a bank or financial advisor) (collectively,
“broker-dealers”) will be required to report to you and the IRS annually on Form
1099-B not only the gross proceeds of Fund shares you sell or redeem but also
the cost basis for shares you sell or redeem that were purchased or acquired on
or after January 1, 2012 (“covered shares”). Cost basis will be calculated using
the broker-dealer’s default method unless you instruct your broker-dealer to use
a different calculation method. Shareholders should carefully review the cost
basis information provided by the broker-dealer and make any additional basis,
holding period or other adjustments that are required when reporting these
amounts on their federal income tax returns. Please contact your broker-dealer
with respect to reporting of cost basis and available elections for your
account. Tax-advantaged retirement accounts will not be affected.
Medicare
Tax.
A 3.8% Medicare tax is imposed on certain net investment income (including
ordinary dividends and capital gain distributions received from a Fund and net
gains from redemptions or other taxable dispositions of Fund shares) of U.S.
individuals, estates and trusts to the extent that such person’s “modified
adjusted gross income” (in the case of an individual) or “adjusted gross income”
(in the case of an estate or trust) exceeds a threshold amount. This Medicare
tax, if applicable, is reported by you on, and paid with, your federal income
tax return.
Backup
Withholding.
By law, if you do not provide a Fund with your proper taxpayer identification
number and certain required certifications, you may be subject to backup
withholding on any distributions of income, capital gains, or proceeds from the
sale of your shares. A Fund also must withhold if the IRS instructs
it to do so. When withholding is required, the amount will be 24% of any
distributions or proceeds paid.
State
and Local Taxes. Fund
distributions and gains from the sale or exchange of your Fund shares generally
are subject to state and local taxes. State and local tax laws vary; please
consult your tax advisor.
Non-U.S.
Investors. Non-U.S.
investors may be subject to U.S. withholding tax at a 30% or lower treaty rate
and U.S. estate tax and are subject to special U.S. tax certification
requirements to avoid backup withholding and claim any treaty benefits.
Exemptions from U.S. withholding tax are provided for certain capital gain
dividends paid by a Fund from net long-term capital gains, interest-related
dividends paid by the Fund from its qualified net interest income from US
sources and short-term capital gain dividends, if such amounts are reported by a
Fund. However, notwithstanding such exemptions from U.S. withholding at the
source, any such dividends and distributions of income and capital gains will be
subject to backup withholding at a rate of 24% if you fail to properly certify
that you are not a U.S. person.
The
Fund reserves the right to not report interest-related dividends or short-term
capital gain dividends. Additionally, the Fund’s reporting of interest-related
dividends or short-term capital gain dividends may not be passed through to
shareholders by intermediaries who have assumed tax reporting responsibilities
for this income in managed or omnibus accounts due to systems limitations or
operational constraints.
Other
Reporting and Withholding Requirements. Under
the Foreign Account Tax Compliance Act (“FATCA”), a Fund will be required to
withhold a 30% tax on income dividends made by the Fund to certain foreign
entities, referred to as foreign financial institutions or nonfinancial foreign
entities, that fail to comply (or be deemed compliant) with extensive reporting
and withholding requirements designed to inform the U.S. Department of the
Treasury of U.S.-owned foreign investment accounts. After Dec. 31, 2018, FATCA
withholding would have applied to certain capital gain distributions, return of
capital distributions and the proceeds arising from the sale of Fund shares;
however, based on proposed regulations issued by the IRS which can be relied
upon currently, such withholding is no longer required unless final regulations
provide otherwise (which is not expected). A Fund may disclose the information
that it receives from its shareholders to the IRS, non-U.S. taxing authorities
or other parties as necessary to comply with FATCA or similar laws. Withholding
also may be required if a foreign entity that is a shareholder of a Fund fails
to provide the Fund with appropriate certifications or other documentation
concerning its status under FATCA.
This
discussion of “DIVIDENDS, DISTRIBUTIONS AND TAXES” is not intended or written to
be used as tax advice. Because everyone’s tax situation is unique, you should
consult your tax professional about federal, state, local or foreign tax
consequences before making an investment in a Fund.
OTHER
INFORMATION
Commodity
Pool Operator Exclusion and Regulation
The
Advisor has claimed an exclusion from the definition of commodity pool operator
under the Commodity Exchange Act (“CEA”) and the rules of the Commodity Futures
Trading Commission (the “CFTC”) with respect to the GuideMark®
and GuidePath®
Funds, other than the GuidePath®
Managed Futures Strategy Fund. The Funds for which such exclusion has been
claimed are referred to herein as the “Excluded Funds.” The Advisor is therefore
not subject to registration or regulation as a commodity pool operator under the
CEA with respect to the Excluded Funds. The Excluded Funds are not intended as
vehicles for trading in the futures, commodity options or swaps markets. In
addition,
the Advisor is relying upon a related exclusion from the definition of commodity
trading advisor under the CEA and the rules of the CFTC. The CFTC has neither
reviewed nor approved the Advisor's reliance on these exclusions, or the Funds,
their investment strategies or this prospectus.
Each
Excluded Fund's investments in futures, commodity options or swaps will be
limited in accordance with the terms of the exclusion upon which the Advisor
relies.
GuidePath®
Managed
Futures Strategy Fund
The
Advisor is registered as a commodity pool operator under the CEA and the rules
of the CFTC and, with respect to the GuidePath®
Managed Futures Strategy Fund and its Subsidiary (together, the “Non-Excluded
Fund”) is subject to regulation as a commodity pool operator under the CEA. The
Advisor is also a member of the National Futures Association (“NFA”) and is
subject to certain NFA rules and bylaws as they apply to commodity pool
operators of registered investment companies. The CFTC has adopted rules
regarding the disclosure, reporting and recordkeeping requirements that apply
with respect to the Non-Excluded Fund as a result of the Advisor's registration
as a commodity pool operator. Generally, these rules allow for substituted
compliance with CFTC disclosure and shareholder reporting requirements, based on
the Advisor's compliance with comparable SEC requirements. This means that for
most of the CFTC's disclosure and shareholder reporting requirements applicable
to the Advisor as the commodity pool operator of the Non-Excluded Fund, the
Advisor's compliance with SEC disclosure and shareholder reporting requirements
will be deemed to fulfill the Advisor's CFTC compliance obligations. As the
Non-Excluded Fund is operated subject to CFTC regulation, the Fund may incur
additional compliance and related expenses. The CFTC has neither reviewed nor
approved the Funds, their investment strategies or this prospectus.
INDEX
DESCRIPTIONS
Each
of the following indexes is unmanaged and cannot be invested in directly. The
indexes do not reflect any deductions for fees, expenses or taxes.
Bloomberg
Global Aggregate Bond Index
The
Bloomberg Global Aggregate Bond Index is a broad-based measure of the global
investment grade fixed-rate debt from twenty-eight local currency markets. This
multi-currency benchmark includes treasury, government-related, corporate and
securitized fixed-rate bonds from both developed and emerging markets issuers.
All securities contained in the Bloomberg Global Aggregate Bond Index have a
minimum term to maturity of one year.
Bloomberg
U.S. Aggregate Bond Index
The
Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the
investment‑grade, U.S. dollar-denominated, fixed-rate taxable bond market,
including Treasuries, government‑related and corporate debt securities,
mortgage- and asset-backed securities. All securities contained in the Bloomberg
U.S. Aggregate Bond Index have a minimum term to maturity of one
year.
Bloomberg
U.S. Treasury 1-3 Year Bond Index
The
Bloomberg U.S. Treasury 1-3 Year Bond Index measures the performance of the U.S.
government bond market and includes public obligations of the U.S. Treasury with
a maturity between 1 and up to (but not including) 3 years. Certain special
issues, such as state and local government series bonds (SLGs), as well as U.S.
Treasury TIPS, are excluded. Separate trading of registered interest and
principal securities (STRIPS) are excluded from the Index because their
inclusion would result in double-counting.
FT
Wilshire 5000 Index
FT
Wilshire 5000 Index is a comprehensive, float adjusted measure of the U.S. stock
market, designed to reflect the performance of all U.S. equity securities that
have readily available prices.
FTSE
3-Month Treasury Bill Index
FTSE
3-Month Treasury Bill Index tracks the performance of U.S. Treasury Bills with a
remaining maturity of three months.
Morningstar
Multi-Asset High Income Index
The
Morningstar Multi-Asset High Income Index is a broadly diversified index that
seeks to deliver high current income while maintaining long-term capital
appreciation.
MSCI
All Country World Index (ACWI) Index
The
MSCI All Country World Index (ACWI) is a free float-adjusted market
capitalization weighted index that is designed to measure equity market
performance in the large- and mid-cap segments across 23 developed markets and
24 emerging markets countries.
MSCI
Emerging Markets Index
The
MSCI Emerging Markets Index measures the equity market performance of countries
considered to represent emerging markets. The emerging market country indices
included are: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece,
Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines,
Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United
Arab Emirates.
MSCI
World ex-USA Index
The
MSCI World ex-USA Index captures large and mid-cap representation across 22 of
23 developed markets countries, excluding the U.S. The developed market country
indices included are: Australia, Austria, Belgium, Canada, Denmark, Finland,
France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New
Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United
Kingdom.
MSCI
USA High Dividend Yield Index
The
MSCI USA High Dividend Yield Index is based on the MSCI USA Index, its parent
index, and includes large and mid cap stocks. The index is designed to reflect
the performance of equities in the parent index (excluding REITs) with higher
dividend income and quality characteristics than average dividend yields that
are both sustainable and persistent. The index also applies quality screens and
reviews 12-month past performance to omit stocks with potentially deteriorating
fundamentals that could force them to cut or reduce dividends.
Russell
1000®
Index
The
Russell 1000®
Index measures the performance of the large-cap segment of the U.S. equity
universe. It includes approximately 1,000 of the largest securities based on a
combination of their market cap and current index membership. As of May 31,
2024, the market capitalization of the companies in the Russell 1000® Index
ranged from $351 million to $3.1 trillion.
Russell
2500TM
Index
The
Russell 2500TM
Index measures the performance of the small- to mid-cap segment of the U.S.
equity universe, commonly referred to as “smid” cap. It includes approximately
2,500 of the smallest securities based on a combination of their market cap and
current index membership. As of May 31, 2024, the market capitalization of the
companies in the Russell 2500TM
Index
ranged from $700 million to $59.6 billion.
Russell
3000®
Index
The
Russell 3000®
Index measures the performance of the largest 3,000 US companies representing
approximately 96% of the investable US equity market, as of the most recent
reconstitution. As of May 31, 2024, the market capitalization of the companies
in the Russell 3000® Index ranged from $11.1 million to $3.1
trillion.
SG
Trend Index
The
SG Trend Index is designed to track the 10 largest (by AUM) trend following
commodity trading advisors and be representative of the trend followers in the
managed futures space. Managers must meet the following criteria: must be open
to new investment, must report returns on a daily basis, must be an industry
recognized trend follower as determined at the discretion of the SG Index
Committee, and must exhibit significant correlation to trend following peers and
the SG Trend Indicator. Currently, one of the ten managers whose performance is
tracked by the index is AlphaSimplex Group LLC, sub-advisor to the GuidePath®
Managed Futures Strategy Fund.
S&P
500 Daily Risk Control 10% Index
The
S&P 500®
Daily Risk Control 10% Index represents a portfolio of the S&P 500® Low
Volatility Index plus an interest accruing cash component. The index is
dynamically rebalanced to target a 10% level of volatility. Volatility is
calculated as a function of historical returns.
The
S&P 500®
Index
The
S&P 500®
Index
is
a float-adjusted market capitalization weighted index representing approximately
500 large-capitalization companies that generally represent the large-cap
segment of the U.S. equity market.
S&P®
Target Risk Aggressive Index
The
S&P®
Target Risk Aggressive Index is designed to measure the performance of an
investment benchmark strategy which seeks to emphasize exposure to equity
securities, maximizing opportunities for long-term capital accumulation, while
also allocating a portion of exposure to fixed income to enhance portfolio
efficiency.
S&P®
Target Risk Conservative Index
The
S&P®
Target Risk Conservative Index seeks to emphasize exposure to fixed income
securities in order to produce a current income stream and avoid excessive
volatility of returns. Equity securities are included to protect long-term
purchasing power.
FINANCIAL
HIGHLIGHTS
The
financial highlights tables are intended to help you understand the financial
performance for each Fund for the past five years, or if shorter, the period of
each Fund’s operations. Certain information reflects financial results for a
single Fund share. The total returns in the tables represent the rate that an
investor would have earned or lost on an investment in the Fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by Cohen & Company, Ltd., each Fund’s independent registered public
accounting firm, whose report, along with the Funds’ financial statements, is
included in the Funds’ most recent Form N-CSR filed with the SEC.
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|
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| |
| Large
Cap Core Fund |
Service |
Year Ended March
31, 2024 |
| Year Ended March
31, 2023 |
| Year
Ended March 31, 2022 |
| Year
Ended March 31, 2021 |
| Year
Ended March 31, 2020 |
Per
share data for a share of capital stock outstanding for the entire year
and selected information for the year are as follows: |
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
$23.820 |
|
| $28.797 |
|
| $26.584 |
|
| $16.106 |
|
| $18.401 |
|
Income
from investment operations: |
|
|
|
|
|
|
|
| |
Net
investment income1
|
0.168 |
|
| 0.205 |
|
| 0.096 |
|
| 0.059 |
|
| 0.114 |
|
Net
realized and unrealized gains (losses) on investments |
7.150 |
|
| (2.879) |
|
| 3.045 |
|
| 10.515 |
|
| (2.202) |
|
Total
from investment operations |
7.318 |
|
| (2.674) |
|
| 3.141 |
|
| 10.574 |
|
| (2.088) |
|
Less
distributions: |
|
|
|
|
|
|
|
| |
Distributions
from net investment income |
(0.198) |
|
| (0.161) |
|
| (0.121) |
|
| (0.096) |
|
| (0.021) |
|
Distributions
from net realized gains |
(0.011) |
|
| (2.142) |
|
| (0.807) |
|
| — |
|
| (0.186) |
|
Total
distributions |
(0.209) |
|
| (2.303) |
|
| (0.928) |
|
| (0.096) |
|
| (0.207) |
|
|
|
|
|
|
|
|
|
| |
Net
asset value, end of year |
$30.929 |
|
| $23.820 |
|
| $28.797 |
|
| $26.584 |
|
| $16.106 |
|
Total
return |
30.82 |
% |
| (8.81) |
% |
| 11.59 |
% |
| 65.69 |
% |
| (11.59) |
% |
Supplemental
data and ratios: |
|
|
|
|
|
|
|
| |
Net
assets, end of year |
$723,890,113 |
|
| $607,841,824 |
|
| $691,938,719 |
|
| $602,158,947 |
|
| $326,952,939 |
|
Ratio
of expenses to average net assets |
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending
credit
including
interest expense2,3 |
0.89 |
% |
| 0.90 |
% |
| 0.89 |
% |
| 1.15 |
% |
| 1.18 |
% |
After
expense reimbursement (recapture) and securities lending
credit
including
interest expense2,3 |
0.82 |
% |
| 0.87 |
% |
| 0.89 |
% |
| 1.10 |
% |
| 1.14 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending
credit |
0.58 |
% |
| 0.79 |
% |
| 0.33 |
% |
| 0.21 |
% |
| 0.55 |
% |
After
expense reimbursement (recapture) and securities lending
credit |
0.65 |
% |
| 0.82 |
% |
| 0.33 |
% |
| 0.26 |
% |
| 0.59 |
% |
Portfolio
turnover rate |
19.47 |
% |
| 46.39 |
% |
| 25.18 |
% |
| 34.13 |
% |
| 28.54 |
% |
1.Net
investment income per share has been calculated based on average shares
outstanding during the year.
2.Includes
interest expense where applicable. Interest expense was 0.00%, 0.00%, 0.00%,
0.00% and 0.00%, respectively.
3.The
effect of the voluntary expense reimbursement on the Service Class shares as of
March 31, 2024 was 0.02%.
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|
|
|
|
|
|
| |
| Emerging
Markets Fund |
Service |
Year Ended March
31, 2024 |
| Year Ended March
31, 2023 |
| Year
Ended March 31, 2022 |
| Year
Ended March 31, 2021 |
| Year
Ended March 31, 2020 |
Per
share data for a share of capital stock outstanding for the entire year
and selected information for the year are as follows: |
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
$10.299 |
|
| $13.573 |
|
| $16.502 |
|
| $10.516 |
|
| $13.278 |
|
Income
from investment operations: |
|
|
|
|
|
|
|
| |
Net
investment income1 |
0.218 |
|
| 0.324 |
|
| 0.214 |
|
| 0.049 |
|
| 0.175 |
|
Net
realized and unrealized gains (losses) on investments |
0.803 |
|
| (1.870) |
|
| (1.727) |
|
| 5.968 |
|
| (2.690) |
|
Total
from investment operations |
1.021 |
|
| (1.546) |
|
| (1.513) |
|
| 6.017 |
|
| (2.515) |
|
Less
distributions: |
|
|
|
|
|
|
|
| |
Distributions
from net investment income |
(0.368) |
|
| (0.486) |
|
| (0.258) |
|
| (0.031) |
|
| (0.247) |
|
Distributions
from net realized gains |
— |
|
| (1.242) |
|
| (1.158) |
|
| — |
|
| — |
|
Total
distributions |
(0.368) |
|
| (1.728) |
|
| (1.416) |
|
| (0.031) |
|
| (0.247) |
|
|
|
|
|
|
|
|
|
| |
Net
asset value, end of year |
$10.952 |
|
| $10.299 |
|
| $13.573 |
|
| $16.502 |
|
| $10.516 |
|
Total
return |
10.03 |
% |
| (11.02) |
% |
| (9.75) |
% |
| 57.85 |
% |
3 |
(19.40) |
% |
Supplemental
data and ratios: |
|
|
|
|
|
|
|
| |
Net
assets, end of year |
$47,929,601 |
|
| $45,699,264 |
|
| $71,780,033 |
|
| $96,895,863 |
|
| $64,153,851 |
|
Ratio
of expenses to average net assets |
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending credit including
interest expense2,4
|
1.88 |
% |
| 1.84 |
% |
| 1.40 |
% |
| 1.55 |
% |
| 1.79 |
% |
After
expense reimbursement (recapture) and securities lending credit including
interest expense2
,4 |
1.34 |
% |
| 1.40 |
% |
| 1.39 |
% |
| 1.64 |
% |
| 1.65 |
% |
Ratio
of net investment income to average net assets |
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending
credit |
1.55 |
% |
| 2.39 |
% |
| 1.32 |
% |
| 0.43 |
% |
| 1.20 |
% |
After
expense reimbursement (recapture) and securities lending
credit |
2.09 |
% |
| 2.83 |
% |
| 1.33 |
% |
| 0.34 |
% |
| 1.34 |
% |
Portfolio
turnover rate |
43.80 |
% |
| 43.50 |
% |
| 47.80 |
% |
| 58.36 |
% |
| 42.60 |
% |
1Net
investment income per share has been calculated based on average shares
outstanding during the year.
2Includes
interest expense where applicable. Interest expense was 0.01%, 0.01%, 0.00%,
0.00%, 0.00% and 0.00%, respectively.
3The
returns reflect the actual performance for each period and do not include the
impact of any adjustments made for financial reporting required by Generally
Accepted Accounting Principles (GAAP).
4The
effect of the voluntary expense reimbursement on the Service Class shares as of
March 31, 2024 was 0.06%.
|
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|
|
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|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
| |
| Small/Mid
Cap Core Fund |
Service |
Year Ended March
31, 2024 |
| Year Ended March
31, 2023 |
| Year
Ended March 31, 2022 |
| Year
Ended March 31, 2021 |
| Year
Ended March 31, 2020 |
|
Per
share data for a share of capital stock outstanding for the entire year
and selected information for the year are as follows: |
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
$16.763 |
|
| $19.122 |
|
| $21.067 |
|
| $10.765 |
|
| $14.385 |
| |
Income
from investment operations: |
|
|
|
|
|
|
|
|
| |
Net
investment income (loss)1 |
0.066 |
|
| 0.089 |
|
| 0.002 |
|
| (0.040) |
|
| (0.007) |
| |
Net
realized and unrealized gains (losses) on investments |
3.689 |
|
| (2.074) |
|
| 0.447 |
|
| 10.720 |
|
| (3.393) |
| |
Total
from investment operations |
3.755 |
|
| (1.985) |
|
| 0.449 |
|
| 10.680 |
|
| (3.400) |
| |
Less
distributions: |
|
|
|
|
|
|
|
|
| |
Distributions
from net investment income |
(0.067) |
|
| (0.063) |
|
| (0.046) |
|
| (0.024) |
|
| (0.016) |
| |
Distributions
from net realized gains |
(0.062) |
|
| (0.311) |
|
| (2.348) |
|
| (0.354) |
|
| (0.204) |
| |
Total
distributions |
0.129 |
|
| (0.374) |
|
| (2.394) |
|
| (0.378) |
|
| (0.220) |
| |
Net
asset value, end of year |
$20.389 |
|
| $16.763 |
|
| $19.122 |
|
| $21.067 |
|
| $10.765 |
| |
Total
return |
22.44 |
% |
| (10.34) |
% |
| 1.38 |
% |
| 99.76 |
% |
| (24.10) |
% |
|
Supplemental
data and ratios: |
|
|
|
|
|
|
|
|
| |
Net
assets, end of year |
$102,966,460 |
|
| $95,300,950 |
|
| $107,105,729 |
|
| $92,756,350 |
|
| $52,904,611 |
| |
Ratio
of expenses to average net assets |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending credit
including interest expense2,3 |
1.16 |
% |
| 1.17 |
% |
| 1.17 |
% |
| 1.46 |
% |
| 1.50 |
% |
|
After
expense reimbursement (recapture) and securities lending credit
including interest expense2,3 |
1.04 |
% |
| 1.06 |
% |
| 1.14 |
% |
| 1.31 |
% |
| 1.39 |
% |
|
Ratio
of net investment income to average net assets |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending
credit |
0.25 |
% |
| 0.41 |
% |
| (0.03) |
% |
| (0.40) |
% |
| (0.16) |
% |
|
After
expense reimbursement (recapture) and securities lending
credit |
0.37 |
% |
| 0.52 |
% |
| 0.01 |
% |
| (0.25) |
% |
| (0.05) |
% |
|
Portfolio
turnover rate |
16.37 |
% |
| 24.59 |
% |
| 36.38 |
% |
| 37.81 |
% |
| 26.54 |
% |
|
1Net
investment income/ (loss) per share has been calculated based on average shares
outstanding during the year.
2Includes
interest expense where applicable. Interest expense was 0.01%, 0.00%, 0.00%,
0.00% and 0.00%, respectively.
3The
effect of the voluntary expense reimbursement on the Service Class shares as of
March 31, 2024 was 0.035%.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| World
ex-US Fund |
Service |
Year Ended March
31, 2024 |
| Year Ended March
31, 2023 |
| Year
Ended March 31, 2022 |
| Year
Ended March 31, 2021 |
| Year
Ended March 31, 2020 |
|
Per
share data for a share of capital stock outstanding for the entire year
and selected information for the year are as follows: |
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
$9.727 |
|
| $10.306 |
|
| $10.445 |
|
| $7.303 |
|
| $8.856 |
| |
Income
from investment operations: |
|
|
|
|
|
|
|
|
| |
Net
investment income1 |
0.191 |
|
| 0.229 |
|
| 0.131 |
|
| 0.081 |
|
| 0.142 |
| |
Net
realized and unrealized gains (losses) on investments |
1.190 |
|
| (0.526) |
|
| (0.150) |
|
| 3.263 |
|
| (1.538) |
| |
Total
from investment operations |
1.381 |
|
| (0.297) |
|
| (0.019) |
|
| 3.344 |
|
| (1.396) |
| |
Less
distributions: |
|
|
|
|
|
|
|
|
| |
Distributions
from net investment income |
(0.231) |
|
| (0.210) |
|
| (0.120) |
|
| (0.202) |
|
| (0.157) |
| |
Distributions
from net realized gains |
(0.117) |
|
| (0.072) |
|
| — |
|
| — |
|
| — |
| |
Total
distributions |
(0.348) |
|
| (0.282) |
|
| (0.120) |
% |
| (0.202) |
% |
| (0.157) |
% |
|
Net
asset value, end of year |
$10.760 |
|
| $9.727 |
|
| $10.306 |
|
| $10.445 |
|
| $7.303 |
| |
Total
return |
14.42 |
% |
| (2.70) |
% |
| (0.27) |
% |
| 45.89 |
% |
| (16.16) |
% |
|
Supplemental
data and ratios: Net assets, end of year |
$117,448,079 |
|
| $109,714,796 |
|
| $125,033,842 |
|
| $138,023,708 |
|
| $110,561,165 |
| |
Ratio
of expenses to average net assets |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending credit including
interest expense2 |
1.24 |
% |
| 1.26 |
% |
| 1.25 |
% |
| 1.38 |
% |
| 1.36 |
% |
|
After
expense reimbursement (recapture) and securities lending credit
including
interest expense2 |
1.10 |
% |
| 1.14 |
% |
| 1.14 |
% |
| 1.37 |
% |
| 1.35 |
% |
|
Ratio
of net investment income to average net assets |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending
credit |
1.80 |
% |
| 2.37 |
% |
| 1.08 |
% |
| 0.88 |
% |
| 1.58 |
% |
|
After
expense reimbursement (recapture) and securities lending
credit |
1.91 |
% |
| 2.49 |
% |
| 1.19 |
% |
| 0.89 |
% |
| 1.59 |
% |
|
Portfolio
turnover rate |
30.33 |
% |
| 54.13 |
% |
| 33.89 |
% |
| 46.15 |
% |
| 25.52 |
% |
|
1.Net
investment income per share has been calculated based on average shares
outstanding during the year.
2.Includes
interest expense where applicable. Interest expense was 0.00%, 0.00%, 0.00%,
0.00% and 0.00%, respectively.
3.The
effect of the voluntary expense reimbursement on the Service Class shares as of
March 31, 2024 was 0.041%.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Core
Fixed Income Fund |
Service |
Year Ended March
31, 2024 |
| Year Ended March
31, 2023 |
| Year
Ended March 31, 2022 |
| Year
Ended March 31, 2021 |
| Year
Ended March 31, 2020 |
|
Per
share data for a share of capital stock outstanding for the entire year
and selected information for the year are as follows: |
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
$8.266 |
|
| $9.009 |
|
| $9.700 |
|
| $9.798 |
|
| $9.270 |
|
Income
from investment operations: |
|
|
|
|
|
|
|
|
| |
Net
investment income1 |
0.266 |
|
| 0.194 |
|
| 0.110 |
|
| 0.112 |
|
| 0.170 |
|
Net
realized and unrealized gains (losses) on investments |
(0.061) |
|
| (0.740) |
|
| (0.571) |
|
| 0.141 |
|
3 |
0.490 |
|
Total
from investment operations |
0.205 |
|
| (0.546) |
|
| (0.461) |
|
| 0.253 |
|
| 0.660 |
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
|
|
|
|
| |
Distributions
from net investment income |
(0.268) |
|
| (0.197) |
|
| (0.124) |
|
| (0.184) |
|
| (0.108) |
|
Distributions
from net realized gains |
— |
|
| — |
|
| (0.106) |
|
| (0.167) |
|
| (0.024) |
|
Total
distributions |
(0.268) |
|
| (0.197) |
|
| (0.230) |
|
| (0.351) |
|
| (0.132) |
|
Net
asset value, end of year |
$8.203 |
|
| $8.266 |
|
| $9.009 |
|
| $9.700 |
|
| $9.798 |
|
Total
return |
2.56 |
% |
| (6.02) |
% |
| (4.88) |
% |
| 2.47 |
% |
| 7.16% |
|
Supplemental
data and ratios: |
|
|
|
|
|
|
|
|
| |
Net
assets, end of year |
$172,263,447 |
|
| $170,247,628 |
|
| $200,560,432 |
|
| $188,033,933 |
|
| $135,386,961 |
|
Ratio
of expenses to average net assets |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending credit including
interest expense2 |
1.00 |
% |
| 0.99 |
% |
| 0.99 |
% |
| 1.28 |
% |
| 1.29% |
|
After
expense reimbursement (recapture) and securities lending
credit
including
interest expense2 |
0.94 |
% |
| 0.94 |
% |
| 0.94 |
% |
| 1.19 |
% |
| 1.19% |
|
Ratio
of net investment income to average net assets |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending
credit |
3.23 |
% |
| 2.28 |
% |
| 1.09 |
% |
| 1.01 |
% |
| 1.67% |
|
After
expense reimbursement (recapture) and securities lending
credit |
3.29 |
% |
| 2.33 |
% |
| 1.14 |
% |
| 1.10 |
% |
| 1.77% |
|
Portfolio
turnover rate |
267.22 |
% |
| 252.14 |
% |
| 263.72 |
% |
| 283.45 |
% |
| 278.67% |
|
1Net
investment income per share has been calculated based on average shares
outstanding during the year.
2Includes
interest expense where applicable. Interest expense was 0.00%, 0.00%, 0.00%,
0.00% and 0.00%, respectively.
3Realized
and unrealized gains and losses per shares in this caption are balancing amounts
necessary to reconcile the change in net asset value per share for the year, and
may not reconcile with aggregate gains and losses in the Statement of Operations
due to share transactions for the year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Growth
Allocation Fund |
Service |
Year
Ended March 31, 2024 |
| Year Ended March
31, 2023 |
| Year
Ended March 31, 2022 |
| Year
Ended March 31, 2021 |
| Year
Ended March 31, 2020 |
|
Per
share data for a share of capital stock outstanding for the entire year
and selected information for the year are as follows: |
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
$13.904 |
|
| $16.029 |
|
| $15.636 |
|
| $10.062 |
|
| $11.477 |
| |
Income
from investment operations: |
|
|
|
|
|
|
|
|
| |
Net
investment income1 |
0.172 |
|
| 0.127 |
|
| 0.126 |
|
| 0.064 |
|
| 0.128 |
| |
Net
realized and unrealized gains (losses) on investments |
3.206 |
|
| (1.718) |
|
| 0.726 |
|
| 5.780 |
|
| (1.402) |
| |
Total
from investment operations |
3.378 |
|
| (1.591) |
|
| 0.852 |
|
| 5.844 |
|
| (1.274) |
| |
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
|
|
|
|
| |
Distributions
from net investment income |
(0.262) |
|
| (0.028) |
|
| (0.129) |
|
| (0.072) |
|
| (0.141) |
| |
Distributions
from net realized gains |
(0.053) |
|
| (0.506) |
|
| (0.330) |
|
| (0.198) |
|
| — |
| |
Total
distributions |
(0.315) |
|
| (0.534) |
|
| (0.459) |
|
| (0.270) |
|
| (0.141) |
| |
Net
asset value, end of year |
$16.967 |
|
| $13.904 |
|
| $16.029 |
|
| $15.636 |
|
| $10.062 |
| |
Total
return |
24.46 |
% |
| (9.69) |
% |
| 5.22 |
% |
| 58.23 |
% |
| (11.35) |
% |
|
Supplemental
data and ratios: |
|
|
|
|
|
|
|
|
| |
Net
assets, end of year |
$1,279,611,829 |
|
| $950,178,503 |
|
| $1,136,476,058 |
| $1,075,230,154 |
|
| $739,949,997 |
| |
Ratio
of expenses to average net assets2 |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending credit including
interest expense3 |
0.67 |
% |
| 0.69 |
% |
| 0.68 |
% |
| 0.94 |
% |
| 0.97 |
% |
|
After
expense reimbursement (recapture) and securities lending credit
including interest expense3 |
0.62 |
% |
| 0.64 |
% |
| 0.64 |
% |
| 0.90 |
% |
| 0.93 |
% |
|
Ratio
of net investment income to average net assets4 |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending
credit |
1.09 |
% |
| 0.87 |
% |
| 0.71 |
% |
| 0.44 |
% |
| 1.03 |
% |
|
After
expense reimbursement (recapture) and securities lending
credit |
1.14 |
% |
| 0.92 |
% |
| 0.75 |
% |
| 0.48 |
% |
| 1.07 |
% |
|
Portfolio
turnover rate |
18.58 |
% |
| 22.84 |
% |
| 17.09 |
% |
| 39.58 |
% |
| 37.80 |
% |
|
1Net
investment income per share has been calculated based on average shares
outstanding during the year.
2These
ratios exclude the impact of the expenses of the underlying investment companies
and exchange-traded funds in which the Fund invests.
3Includes
interest expense where applicable. Interest expense was 0.00%, 0.01%, 0.00%,
0.00% and 0.01%, respectively.
4Recognition
of the net investment income by the Fund is affected by the timing of the
declaration of dividends by the underlying investment companies and
exchange-traded funds in which the Fund invests.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Conservative
Allocation Fund |
Service |
Year
Ended March 31, 2024 |
| Year Ended March
31, 2023 |
| Year
Ended March 31, 2022 |
| Year
Ended March 31, 2021 |
| Year
Ended March 31, 2020 |
|
Per
share data for a share of capital stock outstanding for the entire year
and selected information for the year are as follows: |
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
$10.165 |
|
| $10.978 |
|
| $11.070 |
|
| $9.137 |
|
| $9.617 |
| |
Income
from investment operations: |
|
|
|
|
|
|
|
|
| |
Net
investment income1 |
0.338 |
|
| 0.266 |
|
| 0.207 |
|
| 0.199 |
|
| 0.226 |
| |
Net
realized and unrealized gains (losses) on investments |
0.718 |
|
| (0.865) |
|
| 0.098 |
|
| 1.959 |
|
| (0.490) |
| |
Total
from investment operations |
1.056 |
|
| (0.599) |
|
| 0.305 |
|
| 2.158 |
|
| (0.264) |
| |
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
|
|
|
|
| |
Distributions
from net investment income |
(0.338) |
|
| (0.175) |
|
| (0.202) |
|
| (0.189) |
|
| (0.216) |
| |
Distributions
from net realized gains |
— |
|
| (0.039) |
|
| (0.195) |
|
| (0.036) |
|
| — |
| |
Total
distributions |
(0.338) |
|
| (0.214) |
|
| (0.397) |
|
| (0.225) |
|
| (0.216) |
| |
Net
asset value, end of year |
$10.883 |
|
| $10.165 |
|
| $10.978 |
|
| $11.070 |
|
| $9.137 |
| |
Total
return |
10.48 |
% |
| (5.39) |
% |
| 2.60 |
% |
| 23.67 |
% |
| (2.99) |
% |
|
Supplemental
data and ratios: |
|
|
|
|
|
|
|
|
| |
Net
assets, end of year |
$531,079,422 |
|
| $428,327,883 |
|
| $509,796,048 |
|
| $461,123,761 |
|
| $314,935,864 |
| |
Ratio
of expenses to average net assets2 |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending
credit
including
interest expense3 |
0.70 |
% |
| 0.71 |
% |
| 0.70 |
% |
| 0.96 |
% |
| 0.99 |
% |
|
After
expense reimbursement (recapture) and securities lending
credit
including
interest expense3 |
0.45 |
% |
| 0.45 |
% |
| 0.45 |
% |
| 0.70 |
% |
| 0.70 |
% |
|
Ratio
of net investment income to average net assets4 |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending
credit |
3.01 |
% |
| 2.37 |
% |
| 1.56 |
% |
| 1.64 |
% |
| 1.98 |
% |
|
After
expense reimbursement (recapture) and securities lending
credit |
3.26 |
% |
| 2.63 |
% |
| 1.81 |
% |
| 1.90 |
% |
| 2.27 |
% |
|
Portfolio
turnover rate |
19.92 |
% |
| 48.39 |
% |
| 28.28 |
% |
| 38.17 |
% |
| 58.96 |
% |
|
1Net
investment income per share has been calculated based on average shares
outstanding during the year.
2These
ratios exclude the impact of the expenses of the underlying investment companies
and exchange-traded funds in which the Fund invests.
3Includes
interest expense where applicable. Interest expense was 0.00%, 0.00%, 0.00%,
0.00% and 0.00%, respectively.
4Recognition
of the net investment income by the Fund is affected by the timing of the
declaration of dividends by the underlying investment companies and
exchange-traded funds in which the Fund invests.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Tactical
Allocation Fund |
Service |
Year
Ended March 31, 2024 |
| Year Ended March
31, 2023 |
| Year
Ended March 31, 2022 |
| Year
Ended March 31, 2021 |
| Year
Ended March 31, 2020 |
|
Per
share data for a share of capital stock outstanding for the entire year
and selected information for the year are as follows: |
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
$10.563 |
|
| $11.400 |
|
| $11.394 |
|
| $9.960 |
|
| $10.919 |
| |
Income
from investment operations: |
|
|
|
|
|
|
|
|
| |
Net
investment income1 |
0.090 |
|
| 0.149 |
|
| 0.047 |
|
| 0.010 |
|
| 0.061 |
| |
Net
realized and unrealized gains (losses) on investments |
2.582 |
|
| (0.486) |
|
| 1.154 |
|
| 1.941 |
|
| (0.515) |
| |
Total
from investment operations |
2.672 |
|
| (0.337) |
|
| 1.201 |
|
| 1.951 |
|
| (0.454) |
| |
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
|
|
|
|
| |
Distributions
from net investment income |
(0.146) |
|
| — |
|
| (0.053) |
|
| (0.005) |
|
| (0.058) |
| |
Distributions
from net realized gains |
— |
|
| (0.500) |
|
| (1.142) |
|
| (0.512) |
|
| (0.447) |
| |
Total
distributions |
(0.146) |
|
| (0.500) |
|
| (1.195) |
|
| (0.517) |
|
| (0.505) |
| |
Net
asset value, end of year |
$13.089 |
|
| $10.563 |
|
| $11.400 |
|
| $11.394 |
|
| $9.960 |
| |
Total
return |
25.45 |
% |
| (2.90) |
% |
| 10.32 |
% |
| 19.96 |
% |
| (4.83) |
% |
|
Supplemental
data and ratios: |
|
|
|
|
|
|
|
|
| |
Net
assets, end of year |
$595,360,541 |
|
| $500,975,471 |
|
| $518,623,186 |
|
| $469,311,387 |
|
| $323,199,482 |
| |
Ratio
of expenses to average net assets2 |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending credit including
interest expense3 |
0.79 |
% |
| 0.80 |
% |
| 0.81 |
% |
| 1.07 |
% |
| 1.10 |
% |
|
After
expense reimbursement (recapture) and securities lending credit
including interest expense3 |
0.77 |
% |
| 0.79 |
% |
| 0.78 |
% |
| 1.05 |
% |
| 1.06 |
% |
|
Ratio
of net investment income to average net assets4 |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending
credit |
0.77 |
% |
| 1.37 |
% |
| 0.36 |
% |
| 0.07 |
% |
| 0.50 |
% |
|
After
expense reimbursement (recapture) and securities lending
credit |
0.79 |
% |
| 1.38 |
% |
| 0.39 |
% |
| 0.09 |
% |
| 0.54 |
% |
|
Portfolio
turnover rate |
333.31 |
% |
| 248.27 |
% |
| 406.19 |
% |
| 443.30 |
% |
| 500.28 |
% |
|
1Net
investment income per share has been calculated based on average shares
outstanding during the year.
2These
ratios exclude the impact of the expenses of the underlying investment companies
and exchange-traded funds in which the Fund invests.
3Includes
interest expense where applicable. Interest expense was 0.00%, 0.00%, 0.00%,
0.00% and 0.00%, respectively.
4Recognition
of the net investment income by the Fund is affected by the timing of the
declaration of dividends by the underlying investment companies and
exchange-traded funds in which the Fund invests.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Absolute
Return Allocation Fund |
Service |
Year
Ended March 31, 2024 |
| Year Ended March
31, 2023 |
| Year
Ended March 31, 2022 |
| Year
Ended March 31, 2021 |
| Year
Ended March 31, 2020 |
|
Per
share data for a share of capital stock outstanding for the entire year
and selected information for the year are as follows: |
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
$9.394 |
|
| $10.080 |
|
| $10.578 |
|
| $10.010 |
|
| $10.402 |
| |
Income
from investment operations: |
|
|
|
|
|
|
|
|
| |
Net
investment income1 |
0.394 |
|
| 0.286 |
|
| 0.227 |
|
| 0.195 |
|
| 0.266 |
| |
Net
realized and unrealized gains (losses) on investments |
0.047 |
|
| (0.750) |
|
| (0.515) |
|
| 0.634 |
|
5 |
(0.368) |
| |
Total
from investment operations |
0.441 |
|
| (0.464) |
|
| (0.288) |
|
| 0.829 |
|
| (0.102) |
| |
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
|
|
|
|
| |
Distributions
from net investment income |
(0.449) |
|
| (0.222) |
|
| (0.210) |
|
| (0.261) |
|
| (0.290) |
| |
Total
distributions |
(0.449) |
|
| (0.222) |
|
| (0.210) |
|
| (0.261) |
|
| (0.290) |
| |
Net
asset value, end of year |
$9.386 |
|
| $9.394 |
|
| $10.080 |
|
| $10.578 |
|
| $10.010 |
| |
Total
return |
4.72 |
% |
| (4.56) |
% |
| (2.80) |
% |
| 8.26 |
% |
| (1.11) |
% |
|
Supplemental
data and ratios: |
|
|
|
|
|
|
|
|
| |
Net
assets, end of year |
$203,758,072 |
|
| $224,226,970 |
|
| $236,003,490 |
|
| $212,656,486 |
|
| $391,177,265 |
| |
Ratio
of expenses to average net assets2 |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending credit including
interest expense3 |
0.84 |
% |
| 0.86 |
% |
| 0.82 |
% |
| 1.09 |
% |
| 1.10 |
% |
|
After
expense reimbursement (recapture) and securities lending credit
including interest expense3 |
0.55 |
% |
| 0.58 |
% |
| 0.55 |
% |
| 0.81 |
% |
| 0.81 |
% |
|
Ratio
of net investment income to average net assets4 |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending
credit |
3.91 |
% |
| 2.73 |
% |
| 1.87 |
% |
| 1.57 |
% |
| 2.22 |
% |
|
After
expense reimbursement (recapture) and securities lending
credit |
4.20 |
% |
| 3.01 |
% |
| 2.14 |
% |
| 1.85 |
% |
| 2.51 |
% |
|
Portfolio
turnover rate |
53.14 |
% |
| 152.99 |
% |
| 27.64 |
% |
| 65.03 |
% |
| 161.00 |
% |
|
Portfolio
Turnover is calculated for the Fund as a whole.
1Net
investment income per share has been calculated based on average shares
outstanding during the year.
2These
ratios exclude the impact of the expenses of the underlying investment companies
and exchange-traded funds in which the Fund invests.
3Includes
interest expense where applicable. Interest expense was 0.00%, 0.03%, 0.00%,
0.01% and 0.01%, respectively.
4Recognition
of the net investment income by the Fund is affected by the timing of the
declaration of dividends by the underlying investment companies and
exchange-traded funds in which the Fund invests.
5Realized
and unrealized gains and losses per share in this caption are balancing amounts
necessary to reconcile the change in net asset value per share for the year, and
may not reconcile with aggregate gains and losses in the Statements of
Operations due to share transactions for the year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Multi-Asset
Income Allocation Fund |
Service |
Year
Ended March 31, 2024 |
| Year Ended March
31, 2023 |
| Year
Ended March 31, 2022 |
| Year
Ended March 31, 2021 |
| Year
Ended March 31, 2020 |
|
Per
share data for a share of capital stock outstanding for the entire year
and selected information for the year are as follows: |
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
$10.167 |
| $11.373 |
| $11.332 |
| $9.056 |
| $10.660 |
|
Income
from investment operations: |
|
|
|
|
|
|
|
|
| |
Net
investment income1 |
0.412 |
|
| 0.370 |
|
| 0.313 |
|
| 0.270 |
|
| 0.344 |
| |
Net
realized and unrealized gains (losses) on investments |
0.595 |
|
| (1.169) |
|
| 0.044 |
|
| 2.272 |
|
| (1.632) |
| |
Total
from investment operations |
1.007 |
|
| (0.799) |
|
| 0.357 |
|
| 2.542 |
|
| (1.288) |
| |
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
|
|
|
|
| |
Distributions
from net investment income |
(0.409) |
|
| (0.407) |
|
| (0.316) |
|
| (0.266) |
|
| (0.313) |
| |
Distributions
from net realized gains |
— |
|
| — |
|
| — |
|
| — |
|
| (0.003) |
| |
Total
distributions |
(0.409) |
|
| (0.407) |
|
| (0.316) |
|
| (0.266) |
|
| (0.316) |
| |
Net
asset value, end of year |
$10.765 |
|
| $10.167 |
|
| $11.373 |
|
| $11.332 |
|
| $9.056 |
| |
Total
return |
10.15 |
% |
| (6.92) |
% |
| 3.09 |
% |
| 28.42 |
% |
| (12.53) |
% |
|
Supplemental
data and ratios: |
|
|
|
|
|
|
|
|
| |
Net
assets, end of year |
$104,516,590 |
|
| $88,872,229 |
|
| $111,888,042 |
|
| $132,821,013 |
|
| $112,044,753 |
| |
Ratio
of expenses to average net assets2 |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending credit including
interest expense3 |
0.85 |
% |
| 0.85 |
% |
| 0.84 |
% |
| 1.09 |
% |
| 1.12 |
% |
|
After
expense reimbursement (recapture) and securities lending
credit
including
interest expense3 |
0.71 |
% |
| 0.59 |
% |
| 0.70 |
% |
| 0.96 |
% |
| 0.92 |
% |
|
Ratio
of net investment income to average net assets4 |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending
credit |
3.89 |
% |
| 3.32 |
% |
| 2.55 |
% |
| 2.48 |
% |
| 2.99 |
% |
|
After
expense reimbursement (recapture) and securities lending
credit |
4.03 |
% |
| 3.58 |
% |
| 2.69 |
% |
| 2.61 |
% |
| 3.19 |
% |
|
Portfolio
turnover rate |
27.54 |
% |
| 65.66 |
% |
| 24.21 |
% |
| 73.27 |
% |
| 85.15 |
% |
|
1Net
investment income per share has been calculated based on average shares
outstanding during the year.
2These
ratios exclude the impact of the expenses of the underlying investment companies
and exchange-traded funds in which the Fund invests.
3Includes
interest expense where applicable. Interest
expense was 0.00%, 0.01%, 0.00%, 0.00% and 0.00%, respectively.
4Recognition
of the net investment income by the Fund is affected by the timing of the
declaration of dividends by the underlying investment companies and
exchange-traded funds in which the Fund invests.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Flexible
Income Allocation Fund |
Service |
Year
Ended March 31, 2024 |
| Year Ended March
31, 2023 |
| Year
Ended March 31, 2022 |
| Year
Ended March 31, 2021 |
| Year
Ended March 31, 2020 |
|
Per
share data for a share of capital stock outstanding for the entire year
and selected information for the year are as follows: |
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
$8.974 |
|
| $9.991 |
|
| $10.497 |
|
| $9.304 |
|
| $9.366 |
| |
Income
from investment operations: |
|
|
|
|
|
|
|
|
| |
Net
investment income1 |
0.468 |
|
| 0.230 |
|
| 0.213 |
|
| 0.250 |
|
| 0.331 |
| |
Net
realized and unrealized gains (losses) on investments |
(0.101) |
|
| (0.960) |
|
| (0.445) |
|
| 1.175 |
|
2 |
(0.076) |
|
2 |
Total
from investment operations |
0.367 |
|
| (0.730) |
|
| (0.232) |
|
| 1.425 |
|
| 0.255 |
| |
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
|
|
|
|
| |
Distributions
from net investment income |
(0.450) |
|
| (0.220) |
|
| (0.207) |
|
| (0.232) |
|
| (0.317) |
| |
Distributions
from net realized gains |
— |
| (0.067) |
|
| (0.067) |
|
| — |
| — |
|
Total
distributions |
(0.450) |
|
| (0.287) |
|
| (0.274) |
|
| (0.232) |
|
| (0.317) |
| |
Net
asset value, end of year |
$8.891 |
|
| $8.974 |
|
| $9.991 |
|
| $10.497 |
|
| $9.304 |
| |
Total
return |
4.19 |
% |
| (7.27) |
% |
| (2.33) |
% |
| 15.38 |
% |
| 2.76 |
% |
|
Supplemental
data and ratios: |
|
|
|
|
|
|
|
|
| |
Net
assets, end of year |
$265,671,413 |
|
| $295,106,939 |
|
| $347,766,775 |
|
| $279,838,116 |
|
| $98,516,379 |
| |
Ratio
of expenses to average net assets3 |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending credit including
interest expense4 |
0.71 |
% |
| 0.70 |
% |
| 0.70 |
% |
| 0.99 |
% |
| 1.05 |
% |
|
After
expense reimbursement (recapture) and securities lending
credit
including
interest expense4 |
0.50 |
% |
| 0.50 |
% |
| 0.50 |
% |
| 0.75 |
% |
| 0.75 |
% |
|
Ratio
of net investment income to average net assets5 |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending
credit |
5.04 |
% |
| 2.28 |
% |
| 1.83 |
% |
| 2.17 |
% |
| 3.20 |
% |
|
After
expense reimbursement (recapture) and securities lending
credit |
5.25 |
% |
| 2.48 |
% |
| 2.03 |
% |
| 2.41 |
% |
| 3.50 |
% |
|
Portfolio
turnover rate |
247.29 |
% |
| 483.66 |
% |
| 195.55 |
% |
| 211.84 |
% |
| 517.05 |
% |
|
Portfolio
Turnover is calculated for the Fund as a whole.
1Net
investment income per share has been calculated based on average shares
outstanding during the year.
2Realized
and unrealized gains and losses per share in this caption are balancing amounts
necessary to reconcile the change in net asset value per share for the year, and
may not reconcile with the aggregate gains and losses in the Statement of
Operations due to share transactions for the year.
3These
ratios exclude the impact of the expenses of the underlying investment companies
and exchange-traded funds in which the Fund invests.
4Includes
interest expense where applicable. Interest expense was 0.01%, 0.00%, 0.00%,
0.00% and 0.00%, respectively.
5Recognition
of the net investment income by the Fund is affected by the timing of the
declaration of dividends by the underlying investment companies and
exchange-traded funds in which the Fund invests.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Managed
Futures Strategy Fund (Consolidated) |
Service |
Year
Ended March 31, 2024 |
| Year Ended March
31, 2023 |
| Year
Ended March 31, 2022 |
| Year
Ended March 31, 2021 |
| Year
Ended March 31, 2020 |
|
Per
share data for a share of capital stock outstanding for the entire year
and selected information for the year are as follows: |
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
$8.250 |
|
| $9.893 |
|
| $9.268 |
|
| $8.648 |
|
| $7.914 |
| |
Income
from investment operations: |
|
|
|
|
|
|
|
|
| |
Net
investment income (loss)1 |
0.309 |
|
| 0.160 |
|
| (0.136) |
|
| (0.129) |
|
| 0.011 |
| |
Net
realized and unrealized gains (losses) on investments |
0.287 |
|
| 0.542 |
|
3 |
1.570 |
|
| 1.053 |
|
| 1.077 |
| |
Total
from investment operations |
0.596 |
|
| 0.702 |
|
| 1.434 |
|
| 0.924 |
|
| 1.088 |
| |
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
|
|
|
|
| |
Distributions
from net investment income |
(0.010) |
|
| (1.046) |
|
| (0.202) |
|
| — |
|
| (0.071) |
| |
Distributions
from net realized gains |
— |
|
| (1.299) |
|
| (0.607) |
|
| (0.304) |
|
| (0.283) |
| |
Total
distributions |
(0.010) |
|
| (2.345) |
|
| (0.809) |
|
| (0.304) |
|
| (0.354) |
| |
Net
asset value, end of year |
$8.836 |
|
| $8.250 |
|
| $9.893 |
|
| $9.268 |
|
| $8.648 |
| |
Total
return |
7.23 |
% |
| 5.04 |
% |
| 16.94 |
% |
| 10.84 |
% |
| 14.03 |
% |
|
Supplemental
data and ratios: |
|
|
|
|
|
|
|
|
| |
Net
assets, end of year |
$289,808,486 |
|
| $498,938,872 |
|
| $251,272,515 |
|
| $207,653,403 |
|
| $221,868,264 |
| |
Ratio
of expenses to average net assets |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and fees waived including interest
expense2 |
1.50 |
% |
| 1.52 |
% |
| 1.54 |
% |
| 1.80 |
% |
| 1.85 |
% |
|
After
expense reimbursement (recapture) and fees waived including interest
expense2 |
1.50 |
% |
| 1.52 |
% |
| 1.54 |
% |
| 1.81 |
% |
| 1.90 |
% |
|
Ratio
of net investment gain (loss) to average net assets |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and fees waived |
3.66 |
% |
| 1.52 |
% |
| (1.47)% |
| (1.47)% |
| 0.18 |
% |
|
After
expense reimbursement (recapture) and fees waived |
3.66 |
% |
| 1.52 |
% |
| (1.47)% |
| (1.48)% |
| 0.13 |
% |
|
Portfolio
turnover rate |
0.00 |
% |
| 0.00 |
% |
| 0.00 |
% |
| 0.00 |
% |
| 0.00 |
% |
|
Portfolio
Turnover is calculated for the Fund as a whole.
1Net
investment income (loss) per share has been calculated based on average shares
outstanding during the year.
2Includes
interest expense where applicable. Interest
expense was 0.00%, 0.00%, 0.00%, 0.00% and 0.00%, respectively.
3Realized
and unrealized gains and losses per shares in this caption are balancing amounts
necessary to reconcile the change in net asset value per share for the year, and
may not reconcile with the aggregate gains and losses in the Statement of
Operations due to share transactions for the year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Conservative Income
Fund |
Year
Ended March 31, 2024 |
| Year Ended March
31, 2023 |
| Year
Ended March 31, 2022 |
| Year
Ended March 31, 2021 |
| Year
Ended March 31, 2020 |
|
Per
share data for a share of capital stock outstanding for the entire year
and selected information for the year are as follows: |
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
$9.629 |
|
| $9.776 |
|
| $9.938 |
|
| $9.899 |
|
| $9.987 |
| |
Income
from investment operations: |
|
|
|
|
|
|
|
|
| |
Net
investment income1 |
0.432 |
|
| 0.204 |
|
| 0.049 |
|
| 0.029 |
|
| 0.177 |
| |
Net
realized and unrealized gains (losses) on investments |
0.022 |
|
| (0.136) |
|
| (0.159) |
|
| 0.044 |
|
| (0.092) |
| |
Total
from investment operations |
0.454 |
|
| 0.068 |
|
| (0.110) |
|
| 0.073 |
|
| 0.085 |
| |
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
|
|
|
|
| |
Distributions
from net investment income |
(0.420) |
|
| (0.215) |
|
| (0.052) |
|
| (0.034) |
|
| (0.173) |
| |
Distributions
from net realized gains |
— |
|
| — |
|
| — |
|
| — |
|
| — |
| |
Total
distributions |
(0.420) |
|
| (0.215) |
|
| (0.052) |
|
| (0.034) |
|
| (0.173) |
| |
Net
asset value, end of year |
$9.663 |
|
| $9.629 |
|
| $9.776 |
|
| $9.938 |
|
| $9.899 |
| |
Total
return |
4.82 |
% |
| 0.71 |
% |
| (1.12) |
% |
| 0.74 |
% |
| 0.85 |
% |
|
Supplemental
data and ratios: |
|
|
|
|
|
|
|
|
| |
Net
assets, end of year |
$14,089,999 |
|
| $11,781,353 |
|
| $10,911,849 |
|
| $15,926,192 |
|
| $6,724,818 |
| |
Ratio
of expenses to average net assets2 |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending
credit4 |
0.92 |
% |
| 0.95 |
% |
| 1.06 |
% |
| 1.14 |
% |
| 2.23 |
% |
|
After
expense reimbursement (recapture) and securities lending
credit4 |
0.64 |
% |
| 0.64 |
% |
| 0.64 |
% |
| 0.64 |
% |
| 0.64 |
% |
|
Ratio
of net investment income to average net assets3 |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and fees waived |
4.20 |
% |
| 1.81 |
% |
| 0.08 |
% |
| (0.20)% |
| 0.18 |
% |
|
After
expense reimbursement (recapture) and fees waived |
4.48 |
% |
| 2.12 |
% |
| 0.50 |
% |
| 0.30 |
% |
| 1.77 |
% |
|
Portfolio
turnover rate |
258.88 |
% |
| 398.32 |
% |
| 161.18 |
% |
| 190.65 |
% |
| 190.99 |
% |
|
1Net
investment income per share has been calculated based on average shares
outstanding during the year.
2These
ratios exclude the impact of the expenses of the underlying investment companies
and exchange-traded funds in which the Fund invests.
3Recognition
of the net investment income by the Fund is affected by the timing of the
declaration of dividends by the underlying investment companies and
exchange-traded funds in which the Fund invests.
4Includes
interest expense where applicable. Interest expense was 0.00%, 0.00%, 0.00%,
0.00% and 0.00%, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Income
Fund |
Year
Ended March 31, 2024 |
| Year Ended March
31, 2023 |
| Year
Ended March 31, 2022 |
| Year
Ended March 31, 2021 |
| Year
Ended March 31, 2020 |
|
Per
share data for a share of capital stock outstanding for the entire year
and selected information for the year are as follows: |
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
$8.464 |
|
| $9.204 |
|
| $9.950 |
|
| $9.857 |
|
| $9.892 |
| |
Income
from investment operations: |
|
|
|
|
|
|
|
|
| |
Net
investment income1 |
0.313 |
|
| 0.169 |
|
| 0.208 |
|
| 0.186 |
|
| 0.284 |
| |
Net
realized and unrealized gains (losses) on investments |
(0.001) |
|
4 |
(0.742) |
|
| (0.745) |
|
| 0.090 |
|
4 |
(0.048) |
|
4 |
Total
from investment operations |
0.312 |
|
| (0.573) |
|
| (0.537) |
|
| 0.276 |
|
| 0.236 |
| |
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
|
|
|
|
| |
Distributions
from net investment income |
(0.306) |
|
| (0.167) |
|
| (0.209) |
|
| (0.183) |
|
| (0.266) |
| |
Distributions
from net realized gains |
— |
|
| — |
|
| — |
|
| — |
|
| (0.005) |
| |
Total
distributions |
(0.306) |
|
| (0.167) |
|
| (0.209) |
|
| (0.183) |
|
| (0.271) |
| |
Net
asset value, end of year |
$8.470 |
|
| $8.464 |
|
| $9.204 |
|
| $9.950 |
|
| $9.857 |
| |
Total
return |
3.82 |
% |
| (6.21) |
% |
| (5.53) |
% |
| 2.79 |
% |
| 2.34 |
% |
|
Supplemental
data and ratios: |
|
|
|
|
|
|
|
|
| |
Net
assets, end of year |
$79,625,224 |
|
| $56,634,190 |
|
| $44,470,391 |
|
| $38,031,721 |
|
| $32,494,874 |
| |
Ratio
of expenses to average net assets2 |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending credit including
interest expense5 |
0.84 |
% |
| 0.85 |
% |
| 0.88 |
% |
| 0.92 |
% |
| 1.18 |
% |
|
After
expense reimbursement (recapture) and securities lending credit including
interest expense5 |
0.79 |
% |
| 0.79 |
% |
| 0.79 |
% |
| 0.80 |
% |
| 0.79 |
% |
|
Ratio
of net investment income to average net assets3 |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and fees waived |
3.70 |
% |
| 1.91 |
% |
| 2.02 |
% |
| 1.73 |
% |
| 2.39 |
% |
|
After
expense reimbursement (recapture) and fees waived |
3.75 |
% |
| 1.97 |
% |
| 2.11 |
% |
| 1.85 |
% |
| 2.79 |
% |
|
Portfolio
turnover rate |
288.92 |
% |
| 300.76 |
% |
| 222.96 |
% |
| 194.13 |
% |
| 247.58 |
% |
|
1Net
investment income per share has been calculated based on average shares
outstanding during the year.
2These
ratios exclude the impact of the expenses of the underlying investment companies
and exchange-traded funds in which the Fund invests.
3Recognition
of the net investment income by the Fund is affected by the timing of the
declaration of dividends by the underlying investment companies and
exchange-traded funds in which the Fund invests.
4Realized
and unrealized gains and losses per shares in this caption are balancing amounts
necessary to reconcile the change in net asset value per share for the year, and
may not reconcile with aggregate gains and losses in the Statement of Operations
due to share transactions for the year.
5Includes
interest expense where applicable. Interest expense was 0.00%, 0.00%, 0.00%,
0.01% and 0.00%, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Growth
& Income Fund |
Year
Ended March 31, 2024 |
| Year Ended March
31, 2023 |
| Year
Ended March 31, 2022 |
| Year
Ended March 31, 2021 |
| Year
Ended March 31, 2020 |
|
Per
share data for a share of capital stock outstanding for the entire year
and selected information for the year are as follows: |
|
|
|
|
|
|
|
|
| |
Net
asset value, beginning of year |
$10.463 |
|
| $11.023 |
|
| $11.683 |
|
| $8.717 |
|
| $9.772 |
| |
Income
from investment operations: |
|
|
|
|
|
|
|
|
| |
Net
investment income1 |
0.264 |
|
| 0.236 |
|
| 0.110 |
|
| 0.134 |
|
| 0.189 |
| |
Net
realized and unrealized gains (losses) on investments |
1.698 |
|
| (0.575) |
|
| 0.888 |
|
| 2.959 |
|
| (1.094) |
| |
Total
from investment operations |
1.962 |
|
| (0.339) |
|
| 0.998 |
|
| 3.093 |
|
| (0.905) |
| |
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
|
|
|
|
| |
Distributions
from net investment income |
(0.267) |
|
| (0.221) |
|
| (0.139) |
|
| (0.127) |
|
| (0.146) |
| |
Distributions
from net realized gains (losses) |
— |
|
| — |
|
| (1.519) |
|
| — |
|
| (0.004) |
| |
Total
distributions |
(0.267) |
|
| (0.221) |
|
| (1.658) |
|
| (0.127) |
|
| (0.150) |
| |
Net
asset value, end of year |
$12.158 |
|
| $10.463 |
|
| $11.023 |
|
| $11.683 |
|
| $8.717 |
| |
Total
return |
19.08 |
% |
| (3.02) |
% |
| 7.90 |
% |
| 35.67 |
% |
| (9.45) |
% |
|
Supplemental
data and ratios: |
|
|
|
|
|
|
|
|
| |
Net
assets, end of year |
$109,456,473 |
|
| $106,817,174 |
|
| $116,833,573 |
|
| $86,833,376 |
|
| $33,927,659 |
| |
Ratio
of expenses to average net assets2 |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and securities lending credit including
interest expense4 |
0.94 |
% |
| 0.94 |
% |
| 0.87 |
% |
| 0.95 |
% |
| 1.34 |
% |
|
After
expense reimbursement (recapture) and securities lending credit including
interest expense4 |
0.88 |
% |
| 0.89 |
% |
| 0.81 |
% |
| 0.80 |
% |
| 0.79 |
% |
|
Ratio
of net investment income to average net assets3 |
|
|
|
|
|
|
|
|
| |
Before
expense reimbursement (recapture) and fees waived |
2.35 |
% |
| 2.21 |
% |
| 0.86 |
% |
| 1.13 |
% |
| 1.34 |
% |
|
After
expense reimbursement (recapture) and fees waived |
2.41 |
% |
| 2.26 |
% |
| 0.92 |
% |
| 1.28 |
% |
| 1.89 |
% |
|
Portfolio
turnover rate |
122.79 |
% |
| 73.19 |
% |
| 174.37 |
% |
| 108.96 |
% |
| 159.34 |
% |
|
1Net
investment income per share has been calculated based on average shares
outstanding during the year.
2These
ratios exclude the impact of the expenses of the underlying investment companies
and exchange-traded funds in which the Fund invests.
3Recognition
of the net investment income by the Fund is affected by the timing of the
declaration of dividends by the underlying investment companies and
exchange-traded funds in which the Fund invests.
4Includes
interest expense where applicable. Interest expense was 0.09%, 0.10%, 0.02%,
0.01% and 0.00%, respectively.
|
|
|
|
| |
Investment
Advisor |
AssetMark,
Inc. 1655 Grant Street, 10th Floor Concord, CA
94520-2445 |
Legal
Counsel |
Stradley
Ronon Stevens & Young, LLP 2005 Market Street, Suite
2600 Philadelphia, PA 19103 |
Independent
Registered Public Accounting Firm |
Cohen
& Company, Ltd. 342 North Water Street, Suite 830 Milwaukee, WI
53202 |
Transfer
Agent, Fund Accountant and Fund Administrator |
U.S.
Bank Global Fund Services 615 East Michigan Street Milwaukee, WI
53202 |
Custodian
|
U.S.
Bank N.A. 1555 North RiverCenter Drive, Suite 302 Milwaukee, WI
53212 |
Distributor |
AssetMark
Brokerage®,
LLC
1655
Grant Street, 10th
Floor
Concord,
CA 94520-2445 |
Privacy
Policy
For
AssetMark, Inc., AssetMark Trust Company, AssetMark Services, Inc. and AssetMark
Brokerage, LLC. (together “AssetMark”).
Rev.
3/2024
|
|
|
|
|
|
|
|
|
|
| |
FACTS |
What
does AssetMark do with your personal information? |
Why? |
Financial
companies choose how they share your personal information. Federal law
gives consumers the right to limit some but not all sharing. Federal law
also requires us to tell you how we collect, share, and protect your
personal information. Please read this notice carefully to understand what
we do. |
What? |
The
types of personal information we collect, and share depend on the products
or services you have with us. This information can include:
•Social
Security number and credit history
•Income
and account balances
•Transaction
history and investment experience
When
you are no longer our customer, we continue to share your information as
described in this notice. |
How? |
All
financial companies need to share customers’ personal information to run
their everyday business. In the section below, we list the reasons
financial companies can share their customers’ personal information; the
reasons we choose to share; and whether you can limit this
sharing. |
Reasons
we can share your personal information |
Do
we share? |
Can
you limit this sharing? |
For
our everyday business purposes —
such
as to process your transactions, maintain your account(s), respond to
court orders and legal investigations, or report to credit
bureaus. |
Yes |
No |
For
our marketing purposes —
to
offer our products and services to you. |
Yes |
No |
For
joint marketing with other financial companies. |
Yes |
No |
For
our affiliates’ everyday business purposes—
information
about your transactions and experiences. |
Yes |
No |
For
our affiliates’ everyday business purposes —
information
about your creditworthiness. |
No |
We
don’t share |
For
our affiliates to market to you. |
No |
We
don’t share |
For
non-affiliates to market to you. |
No |
We
don’t share |
Questions?
Toll
Free: (800) 664-5345 |
|
|
| |
|
R242_AMK_GLBA
Privacy Policy_2024_03 |
|
|
|
|
| |
Who
We Are |
Who
is providing this notice? |
AssetMark,
Inc., AssetMark Trust Company, AssetMark Services, Inc., and AssetMark
Brokerage, LLC. |
What
We Do |
How
do AssetMark, Inc., AssetMark Trust Company, AssetMark Retirement
Services, Inc., and AssetMark Brokerage, LLC protect my personal
information? |
To
protect your personal information from unauthorized access and use, we use
security measures that comply with federal law.
These
measures include computer safeguards and secured files and
buildings. |
How
do AssetMark, Inc., AssetMark Trust Company, AssetMark Retirement
Services, Inc., and AssetMark Brokerage, LLC collect my personal
information? |
We
collect your personal information, for example, when you:
•Direct
us to buy or sell securities
•Enter
into an investment advisory contract
•Open
an account or seek advice about your investments
We
also collect your personal information from others, such as credit
bureaus, affiliates, or other companies.
|
Why
can’t I limit all sharing? |
Federal
law gives you the right to limit only:
•Sharing
for affiliates’ everyday business purposes- information about your
creditworthiness
•Affiliates
from using your information to market to you
•Sharing
for non-affiliates to market to you.
State
laws and individual companies may give you additional rights to limit
sharing. See below for more on your rights under state law.
|
Definitions |
Affiliates |
Companies
related by common ownership or control. They can be financial and
non-financial companies.
•Our
affiliates include companies that use the name AssetMark, along with other
financial companies listed under the heading “AssetMark Legal
Entities.”
|
Non-affiliates |
Companies
not related by common ownership or control. They can be financial and
nonfinancial companies.
•We
do not share with non-affiliates so they can market to you.
|
Joint
Marketing |
A
formal agreement between non-affiliated financial companies that together
market financial products or services to you.
•Our
joint marketing partners include other financial
institutions. |
|
| |
Other
Important Information |
California.
We
will share your personal information for joint marketing purposes unless
you opt out of that sharing.
For
instructions on how to opt out, please see our separate notice to you
entitled “Important Privacy Choices for
Consumers.”
California residents have additional rights over personal information that
we collect for purposes other
than
providing financial products and services to you. For an explanation of
the rights available to California residents,
please
see our “California Privacy Policy.” |
For
Nevada residents only. We
are providing you this additional notice under state law. You may be
placed on
our
internal Do Not Call List by calling us at (800) 664-5345. Nevada law
requires we provide the following contact
information:
Bureau of Consumer Protection, Office of the Nevada Attorney General, 555
E. Washington St., Suite
3900,
Las Vegas, NV 89101; Phone number: (702) 486-3132; email:
[email protected]. AssetMark, Inc., 1655 Grant
Street,
10th Floor, Concord, CA 94520-2445. Tel: (800) 664-5345 |
North
Dakota: We
will not share your personal information with non-affiliates for joint
marketing purposes without your authorization. |
Vermont.
If
you are a Vermont resident, we will automatically limit sharing of your
information for joint marketing
purposes.
We will not disclose information about your creditworthiness to our
affiliates and will not disclose your
personal
information, financial information, credit report, or health information
to nonaffiliated third parties to
market
to you, other than as permitted by Vermont law, unless you authorize us to
make those disclosures. |
“AssetMark
Legal Entities.”
AssetMark, Inc., AssetMark Trust Company, AssetMark Services, Inc.,
AssetMark
Brokerage,
LLC, Voyant, Inc., and Atria Investments, Inc. (DBA “Adhesion Wealth
Advisor Solutions”). |
|
|
|
|
| |
AssetMark,
Inc.
1655
Grant Street 10th Floor
Concord,
CA 94520-2445
800-664-5345
|
You
are receiving this Privacy Policy because you are a client of AssetMark,
Inc. AssetMark Services, Inc. and/or AssetMark Trust
Company.
©2024
AssetMark, Inc. All rights reserved. AssetMark, Inc. is an investment
adviser registered with the U.S. Securities and Exchange
Commission. AssetMark Trust Company is a trust company licensed by the
Arizona Department of Insurance and Financial
Institutions. |
FOR
MORE INFORMATION
You
may obtain the following and other information on the Funds free of
charge:
Statement
of Additional Information (“SAI”) for GPS Funds I and GPS Funds II, dated July
31, 2024.
The
SAI of GPS Funds I and GPS Funds II provides more details about each Fund’s
policies and management. GPS Funds I’s and GPS Funds II’s SAI is incorporated by
reference into this Prospectus.
Annual
and Semi-Annual Report:
The
annual and semi-annual reports and Form N-CSR provide (or will provide)
additional information about each Fund’s investments, as well as the most recent
financial reports and portfolio listings, as applicable. The annual report,
(GPS
Funds I Annual Report)
and (GPS
Funds II Annual Report),
contains (or will contain) a discussion of the market conditions and investment
strategies that affected each Fund’s performance during the last fiscal year.
Form N-CSR includes each Fund's financial statements.
To
receive any of these documents or a Prospectus of the Funds free of charge or to
make inquiries or request additional information about the Funds, please contact
us.
By
Telephone:
(888)
278-5809
By
Mail:
GPS
Funds I / GPS Funds II
c/o
U.S. Bank Global Fund Services
P.O.
Box 701
Milwaukee,
WI 53201-0701
By
Internet:
www.AssetMark.com/info/funds
From
the SEC:
Reports
and other information about each Fund are available on the EDGAR Database on the
SEC’s Internet site at http://www.sec.gov.
Copies of the information may be obtained, after paying a duplicating fee, by
electronic request at the following e-mail address:
[email protected].
Prospectus
July
31, 2024
GPS
Funds I – 1940 Act File No. 811-10267
GuideMark®
Large Cap Core Fund
GuideMark®
Emerging Markets Fund
GuideMark®
Small/Mid Cap Core Fund
GuideMark®
World ex-US Fund
GuideMark®
Core Fixed Income Fund
GPS
Funds II – 1940 Act File No. 811-22486
GuidePath®
Growth Allocation Fund
GuidePath®
Conservative Allocation Fund
GuidePath®
Tactical Allocation Fund
GuidePath®
Absolute Return Allocation Fund
GuidePath®
Multi-Asset Income Allocation Fund
GuidePath®
Flexible Income Allocation Fund
GuidePath®
Managed Futures Strategy Fund
GuidePath®
Conservative
Income Fund
GuidePath®
Income
Fund
GuidePath®
Growth
and Income Fund