Timpani Small Cap Growth
The Frontier Timpani Small Cap Growth Fund's goal, also referred to its investment objective, is capital appreciation.
Principal Investment Strategy
The Fund invests, under normal conditions, at least 80% of its net assets in equity securities of small capitalization companies that Timpani believes have sound growth potential. Timpani uses fundamental research, focusing on companies with superior management and whose business models have a high potential for earnings upside. Timpani forms an investment decision based on this research and an assessment of the market’s perception of these companies.
Timpani defines a small capitalization company as any company with a market capitalization less than or equal to the total market capitalization of the largest company included in the Russell 2000 Growth Index. The Fund may also invest up to 25% of its total assets in equity securities issued by foreign companies such as ADRs.
Equity securities in which the Fund may invest include common stocks, preferred stocks, warrants to purchase common stocks or preferred stocks and securities convertible into common or preferred stocks, such as convertible bonds and debentures rated Baa or higher by Moody’s Investors Service or BBB or higher by Standard & Poors or Fitch Ratings.
Total Returns as of December 31, 2018
*Average annual return
The recent growth in the equity market has helped to produce short-term returns for some asset classes that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes.
Annual Fund Operating Expenses (As of Prospectus Dated 10/31/18)
(expenses that are deducted from Fund assets)
|Distribution (12b-1) Fees
|Shareholder Servicing Fee
|Additional Other Expenses
|Total Other Expenses
|Total Annual Fund Operating Expense
Pursuant to an expense cap agreement between the Fund’s adviser, Timpani Capital Management LLC ("Timpani") and the Fund, Timpani 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 1.10% of the Fund's average daily net assets for Institutional Class shares, 1.50% of the Fund’s average daily net assets for Class Y shares, and 1.25% of the Fund's average daily net assets for Service Class shares. The expense cap agreement for the Fund will continue in effect until October 31, 2020, with successive renewal terms of one year unless terminated by Timpani 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.
The Fund's investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the Frontier Funds, and it may be obtained by downloading or calling 888-825-2100. To download, select the Prospectus option located on the right sidebar.
Mutual fund investing involves risk; principal loss is possible.
Principal Risk Factors. The main risks of investing in the Fund are:
Market Risks. The Fund’s investments are subject to market risk, which may cause the value of the Fund’s investments to decline. If the value of the Fund’s investments goes down, the share price of the Fund will go down, and you may lose money. U.S. and international markets have experienced extreme volatility, reduced liquidity, credit downgrades, increased likelihood of default and valuation difficulties in recent years.
Stock Selection Risks. The stocks selected for the Fund may decline in value or not increase in value when the stock market in general is rising.
Equity Securities Risks. Common stocks and other equity securities held by the Fund will fluctuate in value based on the earnings of the company and on general industry and market conditions, leading to fluctuations in the Fund’s share price.
Foreign Securities Risks. Investments in securities of foreign companies involve additional risks, including less liquidity, currency-rate fluctuations, political and economic instability and differences in financial reporting standards and securities market regulation.
American Depositary Receipts Risks. The risks of ADRs include many of the risks associated with investing directly in foreign securities, such as currency-rate fluctuations and political and economic instability.
Portfolio Turnover Risks. The Fund may engage in frequent trading as part of its investment strategy and thus may experience a high portfolio turnover rate. When the Fund experiences a high portfolio turnover rate, you may realize significant taxable capital gains as a result of frequent trading of the Fund’s assets and the Fund will incur transaction costs in connection with buying and selling securities, which may lower the Fund’s return.
Liquidity Risks. Liquidity risk is the risk that certain securities may be difficult or impossible to sell at the time and price that Timpani would like to sell. Timpani may have to lower the price, sell other securities instead or forego an investment opportunity.
Growth Investing Risks. Growth companies are generally more susceptible than established companies to market events and sharp declines in value. Additionally, growth stocks typically lack the dividend yield that can cushion stock prices in market downturns.
Small Capitalization Risks. Securities of companies with small market capitalizations are often more volatile, less liquid and more susceptible to market pressures than securities of larger companies.
Management Risks. The Fund is subject to management risk as an actively-managed investment portfolio and depends on the decisions of the portfolio manager to produce the desired results.
The Frontier Funds are not offered for sale in countries other than the United States and its territories.