Netols Small Cap Value
Effective July 1, 2017, the Frontier Netols Small Cap Value Fund is subadvised by Phocas Financial Corp. Please see the prospectus for more information.
The Frontier Netols Small Cap Value Fund's goal, also referred to as its investment objective, is capital appreciation.
Principal Investment Strategy
The Fund seeks to achieve its goal primarily through investment in a diversified portfolio of equity securities of companies with small market capitalizations. Under normal market conditions, the Fund invests at least 80% of its net assets in domestic common stocks and other equity securities (including convertible preferred stocks and warrants) of small-capitalization companies, consistent with companies within the Russell 2000® Value Index.
The Fund pursues its investment objective by investing in a diversified portfolio of small-capitalization securities selling at discounts to their fair value as assessed by the investment and research team of Phocas Financial Corporation (“Phocas”), the Fund’s subadviser. Phocas will typically invest in 80 to 120 companies with initial weightings between 0.50% to 1.50% of the Fund’s total assets in order to have broad industry representation and reduce individual security risk within the Fund.
Total Returns as of June 30, 2017
*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 10/31/16)
(expenses that are deducted from Fund assets)
|Distribution (12b-1) Fees
|Acquired Fund Fees and Expenses
|Total Annual Fund Operating Expenses
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 1.50% of the Fund's average daily net assets for Class Y shares and 1.10% of the Fund’s average daily net assets for Institutional Class shares. Effective July 1, 2017, the Fund's expense caps are reduced to 1.35% and 0.95% of the Fund's average daily net assets for Class Y shares and Institutional Class shares, respectively. The expense cap agreement for the Fund will continue in effect until October 31, 2019, 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.
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, you may lose money. The share price of the Fund is expected to fluctuate. Your shares at redemption may be worth less than your initial investment. 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.
Small Capitalization Risks. The Fund will invest primarily in securities of companies with small market capitalizations, which are often more volatile and less liquid than investments in larger companies. The frequency and volume of trading in securities of small capitalization companies may be substantially less than is typical of larger companies. Therefore, the securities of small capitalization companies may be subject to greater and more abrupt price fluctuations than larger companies. In addition, small capitalization companies may lack the management experience, financial resources and product diversification of larger companies, making them more susceptible to market pressures. Generally, the smaller the company size, the greater these risks.
Equity Security Risks. The Fund invests primarily in common stocks and other equity securities. Common stocks and other equity securities generally increase or decrease in value based on the earnings of a company and on general industry and market conditions. A fund that invests a significant amount of its assets in common stocks and other equity securities is likely to have greater fluctuations in share price than a fund that invests a significant portion of its assets in fixed income securities.
Value Investing Risks. The Fund invests in primarily value-style stocks, stocks whose prices the portfolio manager believes are undervalued in relation to fundamental measures. Value stocks may never increase in price or pay dividends as anticipated by the portfolio manager, or may decline even further if the market fails to recognize the company’s value, if the factors that the portfolio manager believes will increase the price do not occur or if a stock judged to be undervalued is actually appropriately priced.
Management Risk. The Fund is subject to management risk as an actively-managed investment portfolio.
Sector Risks. Although Phocas selects stocks based on their individual merits, some economic sectors will represent a larger portion of the Fund's overall investment portfolio than other sectors. Potential negative market or economic developments affecting one of the larger sectors could have a greater impact on the Fund than on a fund with fewer holdings in that sector. Given the current composition of the Russell 2000® Value Index, the Fund may invest a relatively large percentage of its assets in the financial sector and, therefore, the Fund's performance may be adversely affected by volatility in financial and credit markets. Financial services companies are subject to extensive government regulation, interest rate risk, credit losses and price competition, among other factors.
High Portfolio Turnover Risks. During the initial period of Phocas' management of the Fund, the Fund may experience a high portfolio turnover rate (over 100%). High portfolio turnover is likely to lead to increased Fund expenses, such as brokerage commissions and other transaction costs. Additionally, a high portfolio turnover rate may result in higher short-term capital gains taxable to shareholders and in lower investment returns.
The Frontier Funds are not offered for sale in countries other than the United States and its territories.