Caravan Emerging Markets OverviewQuarterlyHistorical NAVs
The Frontier Caravan Emerging Markets Fund’s goal, also referred to as its investment objective, is long-term capital appreciation.
Principal Investment Strategy
The Fund seeks to achieve its goal by investing at least 80% of its net assets (under normal market conditions), plus any borrowings for investment purposes, in the equity securities of emerging market companies. The Fund invests primarily in common stocks, preferred stock, American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”).
Caravan Capital Management, LLC, the Fund’s subadviser (“Caravan”), defines emerging markets as those countries included in the MSCI Emerging Markets Index. As of July 31, 2019, emerging markets in this index include Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, South Korea, Taiwan, Thailand, Turkey and the United Arab Emirates. The countries that comprise emerging markets may change from time to time as the index is reconstituted. The Fund may invest up to 20% of its net assets in companies located in markets other than emerging markets. For example, the Fund may invest in companies located in frontier markets that Caravan expects may graduate to emerging market status through inclusion in the MSCI Emerging Markets Index in the near future. Caravan defines frontier markets as those countries included in the MSCI Frontier Markets Index.
The Fund may invest in companies of any size. The Fund will concentrate its investments in the banking industry. As a result, under normal conditions, the Fund will invest at least 25% of its total assets in securities issued by companies in the banking industry. As a non-principal investment strategy, Caravan generally excludes investments in securities in the tobacco, coal mining, gambling, defense, and alcohol industries and companies involved in abortion or embryonic stem cell research.
While the Fund does not focus in securities of any individual country as part of its principal investment strategy, the Fund is expected to have significant investments in the securities of companies operating in China. Issuers operating in China represent a large segment of the MSCI Emerging Markets Index and as such, may represent a significant weight in the Fund’s portfolio.
Caravan generally will sell a security when, among other items, it is no longer included in the MSCI Emerging Markets Index, or as part of the country weight and stock rebalancing process.
Total Returns as of June 30, 2020
|YTD ||Since Inception* |
|18.64% ||-14.31% ||-9.44% |
*Average annual return
Annual Fund Operating Expenses (As of Prospectus Dated 09/19/19 as supplemented 12/04/19)
(expenses that are deducted from Fund assets)
| ||Institutional Class ||Service Class |
|Management Fees ||0.70% ||0.70% |
|Distribution (12b-1) Fees ||None ||None |
|Shareholder Servicing Fee ||None ||0.15% |
|Additional Other Expenses ||1.30% ||1.30% |
|Total Other Expenses ||1.30% ||1.45% |
|Acquired Fund Fees and Expenses ||0.00% ||0.00% |
|Total Annual Fund Operating Expenses ||2.00% ||2.15% |
|Fee Waiver ||-1.20% ||-1.20% |
|Net Expenses ||0.80% ||0.95% |
Pursuant to an expense cap agreement between the Fund’s adviser, Frontegra Asset Management, Inc. (“Frontegra”) and the Fund, Frontegra agreed to waive its management fee and/or reimburse the Fund’s operating expenses to the extent necessary to ensure that the Fund’s total operating expenses (excluding acquired fund fees and expenses) do not exceed 0.80% and 0.95% of the Fund’s average daily net assets attributable to Institutional Class and Service Class shares, respectively. The expense cap agreement for the Fund will continue in effect until October 31, 2021, with successive renewal terms of one year unless terminated by Frontegra or the Fund prior to any such renewal. “Other Expenses” are presented before any waivers or expense reimbursements.
Past performance does not guarantee future results. The principal value of an investment and investment return will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted and may be obtained by calling 888-825-2100. Investment performance reflects contractual fee waivers in effect. In the absence of such waiver, total returns would be reduced.
Before investing, carefully consider the Fund's investment objectives, risks, charges and expenses. Please see the prospectus containing this and other information which can be obtained by downloading or calling 888-825-2100. To download, select the Prospectus option located on the right side bar. Read it carefully before investing.
Mutual fund investing involves risk, including the possible loss of the money you invest.
Principal Risk Factors
An investment in the Fund is subject to risks, and you could lose money on your investment in the Fund. There can be no assurance that the Fund will achieve its investment objective. The risks associated with an investment in the Fund can increase during times of significant market volatility. As a result of political or economic instability in foreign countries, there can be special risks associated with investing in foreign securities, including fluctuations in currency exchange rates, increased price volatility and difficulty obtaining information. In addition, emerging markets may present additional risk due to potential for greater economic and political instability in less developed countries. The Fund also has specific principal risks, which are listed below.
The principal risks of investing in the Frontier Caravan Emerging Markets Fund include: market risk, common stock risk, emerging markets risk, foreign securities risk, China industry risk, currency risk, depositary receipts risk, management risk, sector weightings risk, concentration risk, stock selection risk, large capitalization risk, small and medium capitalization companies risk, new fund risk, frontier markets risk, preferred stock risk, cash and cash equivalents risk, liquidity risk, and cybersecurity risk. More detailed information regarding these risks can be found in the Fund's prospectus.
The Frontier Funds are not offered for sale in countries other than the United States and its territories.