GLOBALT GROWTH FUND
PROSPECTUS
JANUARY 31, 2000
INVESTMENT OBJECTIVE:
Provide long-term growth of capital
3060 Peachtree Road, N.W.
One Buckhead Plaza, Suite 225
Atlanta, Georgia 30305
http://www.globalt.com
877-Buy-GROWX (877-289-4769)
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
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TABLE OF CONTENTS
PAGE
ABOUT THE FUND 3
FEES AND EXPENSES OF INVESTING IN THE FUND 5
HOW TO BUY SHARES 6
HOW TO REDEEM SHARES 8
DETERMINATION OF NET ASSET VALUE 9
DIVIDENDS, DISTRIBUTIONS AND TAXES 10
MANAGEMENT OF THE FUND 10
FINANCIAL HIGHLIGHTS 11
FOR MORE INFORMATION BACK COVER
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ABOUT THE FUND
INVESTMENT OBJECTIVE
The investment objective of the GLOBALT Growth Fund is to provide long term
growth of capital.
PRINCIPAL STRATEGIES
The Fund invests primarily in common stocks of larger capitalization U.S.
companies (those with market capitalizations of $3 billion or more) with
multi-national exposure. The Fund's investment adviser, GLOBALT, Inc., selects
investments which it believes offer superior growth potential, based on certain
fundamental and technical standards of selection. These standards of selection
may include o positive trends in stock analyst's estimates, o quarterly earnings
that exceed consensus forecasts by Wall Street analysts,
o low price-to-value ratios, and
o superior long term growth rate potential as determined by such factors as
recent company earnings analysis, cyclical outlook, industry analysis and
specific company competitive advantages.
The adviser seeks to limit investment risk by diversifying the Fund's
investments across a broad range of economic sectors, industries and companies.
As the adviser believes exposure to rapidly growing foreign markets
enhances growth potential, stocks in the Fund's portfolio will be of U.S.
companies which compete in both U.S. and foreign economies and thus, in the
adviser's opinion, are globally positioned for success. It is anticipated that,
in the aggregate, the stocks in the Fund's portfolio will derive a substantial
portion of their future business outside of the U.S.
After screening for U.S. companies with greater exposure to foreign
markets, the adviser uses the stock selection process described above to
assemble the portfolio. As the Fund will primarily invest in growth-oriented
stocks, it is expected that the Fund will generate a total return that is
predominantly derived from long term capital appreciation. Although current
income in the form of dividends is also expected, income is incidental to the
Fund's principal strategies.
The Fund may sell a security when the adviser believes that a company's
financial and/or competitive position is deteriorating, the company's score in
the adviser's research process worsens, or the adviser identifies a better
investment opportunity.
PRINCIPAL RISKS OF INVESTING IN THE FUND
o MANAGEMENT RISK. The strategy used by the Fund's adviser may fail to
produce the intended results.
o COMPANY RISK. The value of the Fund may decrease in response to the
activities and financial prospects of an individual company in the Fund's
portfolio. The value of an individual company can be more volatile than the
market as a whole.
o MARKET RISK. Overall stock market risks may also affect the value of the
Fund. Factors such as domestic economic growth and market conditions,
interest rate levels, and political events affect the securities markets and
could cause the Fund's share price to fall.
o FOREIGN OPERATIONS RISK. Because the companies in which the Fund invests
depend heavily on foreign sales, any serious foreign economic or political
problems, or significant fluctuations in currency exchange rates, could have
a negative impact on the Fund.
o TURNOVER RISK. The Fund may at times have a portfolio turnover rate that is
higher than other stock funds. Higher portfolio turnover would result in
correspondingly greater brokerage commission expenses (which will lower the
Fund's total return) and may result in the distribution to shareholders of
additional capital gains for tax purposes.
o An investment in the Fund is not a deposit of any bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
o The Fund is not a complete investment program. As with any mutual fund
investment, the Fund's returns will vary and you could lose money.
IS THE FUND RIGHT FOR YOU?
The Fund may be suitable for:
o Long-term investors seeking a fund with a growth investment strategy o
Investors willing to accept price fluctuations in their investment
o Investors who can tolerate the greater risks associated with common
stock investments
GENERAL
The investment objective of the Fund may be changed without shareholder
approval.
From time to time, the Fund may take temporary defensive positions which are
inconsistent with the Fund's principal investment strategies, in an attempt to
respond to adverse market, economic, political, or other conditions. For
example, the Fund may hold all or a portion of its assets in money market
instruments, securities of other no-load mutual funds or repurchase agreements.
If the Fund invests in shares of another mutual fund, the shareholders of the
Fund generally will be subject to duplicative management fees. As a result of
engaging in these temporary measures, the Fund may not achieve its investment
objective. The Fund may also invest in such instruments at any time to maintain
liquidity or pending selection of investments in accordance with its policies.
HOW THE FUND HAS PERFORMED
The bar chart shows changes in the Fund's returns since the Fund's
inception. The table shows how the Fund's average annual total returns compare
over time to those of a broad-based securities market index.
During the period shown, the highest return for a quarter was 23.26% (4th
quarter, 1999); and the lowest return was -13.62% (3rd quarter, 1999).
AVERAGE ANNUAL TOTAL RETURNS:
One Year Since Inception
The Fund 27.15% 26.67%
S&P 500 Index 21.04% 26.28%
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FEES AND EXPENSES OF INVESTING IN THE FUND
The tables describe the fees and expenses that you may pay if you buy and hold
shares of the Fund.
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases .........................NONE
Maximum Deferred Sales Charge (Load)......................................NONE
Redemption Fee............................................................NONE
Exchange Fee..............................................................NONE
ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund assets)
Management Fees..........................................................1.17%
Distribution (12b-1) Fees.................................................NONE
Other Expenses...........................................................0.01%
Total Annual Fund Operating Expenses.....................................1.18%
Example:
The example below is intended to help you compare the cost of investing in
the Fund with the cost of investing in other mutual funds. The example uses the
same assumptions as other mutual fund prospectuses: a $10,000 initial investment
for the time periods indicated, reinvestment of dividends and distributions, 5%
annual total return, constant operating expenses, and sale of all shares at the
end of each time period. Although your actual expenses may be different, based
on these assumptions your costs will be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ -------- ------- --------
$121 $377 $652 $1,438
HOW TO BUY SHARES
The minimum initial investment in the Fund is $25,000 and minimum
subsequent investments are $5,000. If your investment is aggregated into an
omnibus account established by an investment adviser, broker or other
intermediary, the account minimums may apply to the omnibus account, not to your
individual investment. If you choose to purchase or redeem shares directly from
the Fund, you will not incur charges on purchases and redemptions. However, if
you purchase or redeem shares through a broker/dealer or another intermediary,
you may be charged a fee by that intermediary.
INITIAL PURCHASE
BY MAIL- You may make a direct initial investment by following these
steps:
o complete and sign the investment application form which accompanies
this Prospectus;
o write a check (subject to the minimum amounts) made payable to the Fund;
o mail the application and check to:
U.S. MAIL: OVERNIGHT:
GLOBALT Growth Fund GLOBALT Growth Fund
c/o Unified Fund Services, Inc. c/o Unified Fund Services, Inc.
P.O. Box 6110 431 North Pennsylvania Street
Indianapolis, Indiana 46206-6110 Indianapolis, Indiana 46204
BY WIRE- You may also purchase shares of the Fund by wiring federal funds
from your bank, which may charge you a fee for doing so. To wire money, you must
call Unified Fund Services, Inc. the Fund's transfer agent at (877) 289-4769 to
set up your account and obtain an account number. You should be prepared at that
time to provide the information on the application. Then, provide your bank with
the following information for purposes of wiring your investment:
Firstar Bank, N.A.
ABA #0420-0001-3
Attn: GLOBALT Growth Fund
Account Name _________________(write in shareholder name)
For the Account # ______________(write in account number)
D.D.A.# 483889739
You must mail a signed application to Firstar Bank, N.A, the Fund's
custodian, at the above address in order to complete your initial wire purchase.
Wire orders will be accepted only on a day on which the Fund, custodian and
transfer agent are open for business. A wire purchase will not be considered
made until the wired money is received and the purchase is accepted by the Fund.
Any delays which may occur in wiring money, including delays which may occur in
processing by the banks, are not the responsibility of the Fund or the transfer
agent. There is presently no fee for the receipt of wired funds, but the Fund
may charge shareholders for this service in the future.
ADDITIONAL INVESTMENTS
You may purchase additional shares of the Fund at any time (subject to
minimum investment requirements) by mail, wire, or automatic investment. Each
additional mail purchase request must contain:
-your name -the name of your account(s)
-your account number(s) -a check made payable to GLOBALT Growth Fund
Checks should be sent to the GLOBALT Growth Fund at the address listed above. A
bank wire should be sent as outlined above.
TAX SHELTERED RETIREMENT PLANS
Since the Fund is oriented to longer-term investments, the Fund may be an
appropriate investment medium for tax-sheltered retirement plans, including:
individual retirement plans (IRAs); simplified employee pensions (SEPs); 401(k)
plans; qualified corporate pension and profit-sharing plans (for employees); tax
deferred investment plans (for employees of public school systems and certain
types of charitable organizations); and other qualified retirement plans. You
should contact the Fund's transfer agent for the procedure to open an IRA or SEP
plan, as well as more specific information regarding these retirement plan
options. Please consult with an attorney or tax adviser regarding these plans.
You must pay custodial fees for your IRA by redemption of sufficient shares of
the Fund from the IRA unless you pay the fees directly to the IRA custodian.
Call the Fund's transfer agent about the IRA custodial fees.
OTHER PURCHASE INFORMATION
The Fund may limit the amount of purchases and refuse to sell to any
person. If your check or wire does not clear, you will be responsible for any
loss incurred by the Fund. If you are already a shareholder, the Fund can redeem
shares from any identically registered account in the Fund as reimbursement for
any loss incurred. You may be prohibited or restricted from making future
purchases in the Fund.
HOW TO REDEEM SHARES
You may receive redemption payments by check or federal wire transfer. The
proceeds may be more or less than the purchase price of your shares, depending
on the market value of the Fund's securities at the time of your redemption.
Presently there is no charge for wire redemptions; however, the Fund may charge
for this service in the future. Any charges for wire redemptions will be
deducted from your Fund account by redemption of shares. If you redeem your
shares through a broker/dealer or other institution, you may be charged a fee by
that institution.
BY MAIL - You may redeem any part of your account in the Fund at no charge
by mail. Your request should be addressed to:
U.S. MAIL: OVERNIGHT:
GLOBALT Growth Fund : GLOBALT Growth Fund
c/o Unified Fund Services, Inc. c/o Unified Fund Services, Inc.
P.O. Box 6110 431 North Pennsylvania Street
Indianapolis, Indiana 46206-6110 Indianapolis, Indiana 46204
Your request for a redemption must include your letter of instruction,
including the Fund name, account number, account name(s), the address, and the
dollar amount or number of shares you wish to redeem. This request must be
signed by all registered share owner(s) in the exact name(s) and any special
capacity in which they are registered. The Fund may require that signatures be
guaranteed by a bank or member firm of a national securities exchange. Signature
guarantees are for the protection of shareholders. At the discretion of the Fund
or the Fund's transfer agent, a shareholder, prior to redemption, may be
required to furnish additional legal documents to insure proper authorization.
BY TELEPHONE - You may redeem any part of your account in the Fund by
calling the Fund's transfer agent at (877) 289-4769. You must first complete the
Optional Telephone Redemption and Exchange section of the investment application
to institute this option. The Fund, the transfer agent and the custodian are not
liable for following redemption or exchange instructions communicated by
telephone that they reasonably believe to be genuine. However, if they do not
employ reasonable procedures to confirm that telephone instructions are genuine,
they may be liable for any losses due to unauthorized or fraudulent
instructions. Procedures employed may include recording telephone instructions
and requiring a form of personal identification from the caller.
The Fund or the transfer agent may terminate the telephone redemption and
exchange procedures at any time. During periods of extreme market activity, it
is possible that shareholders may encounter some difficulty in telephoning the
Fund, although neither the Fund nor the transfer agent has ever experienced
difficulties in receiving and in a timely fashion responding to telephone
requests for redemptions or exchanges. If you are unable to reach the Fund by
telephone, you may request a redemption or exchange by mail.
ADDITIONAL INFORMATION - If you are not certain of the requirements for a
redemption please call the Fund's transfer agent at (877) 289-4769. Redemptions
specifying a certain date or share price cannot be accepted and will be
returned. You will be mailed the proceeds on or before the fifth business day
following the redemption. However, payment for redemption made against shares
purchased by check will be made only after the check has been collected, which
normally may take up to fifteen calendar days. Also, when the New York Stock
Exchange is closed (or when trading is restricted) for any reason other than its
customary weekend or holiday closing, or under any emergency circumstances (as
determined by the Securities and Exchange Commission) the Fund may suspend
redemptions or postpone payment dates.
Because the Fund incurs certain fixed costs in maintaining shareholder
accounts, the Fund may require you to redeem all of your shares in the Fund on
30 days' written notice if the value of your shares in the Fund is less than
$25,000 due to redemption, or such other minimum amount as the Fund may
determine from time to time. An involuntary redemption constitutes a sale. You
should consult your tax adviser concerning the tax consequences of involuntary
redemptions. You may increase the value of your shares in the Fund to the
minimum amount within the 30-day period. Your shares are subject to redemption
at any time if the Board of Trustees determines in its sole discretion that
failure to so redeem may have materially adverse consequences to all or any of
the shareholders of the Fund.
DETERMINATION OF NET ASSET VALUE
The price you pay for your shares is based on the Fund's net asset value
per share (NAV). The NAV is calculated at the close of trading (normally 4:00
p.m. Eastern time) on each day the New York Stock Exchange is open for business
(the Stock Exchange is closed on weekends, Federal holidays and Good Friday).
The NAV is calculated by dividing the value of the Fund's total assets
(including interest and dividends accrued but not yet received) minus
liabilities (including accrued expenses) by the total number of shares
outstanding. Requests to purchase and sell shares are processed at the NAV next
calculated after we receive your order in proper form.
The Fund's assets are generally valued at their market value. If market
prices are not available, or if an event occurs after the close of the trading
market that materially affects the values, assets may be valued at their fair
value.
DIVIDENDS, DISTRIBUTIONS AND TAXES
DIVIDENDS AND DISTRIBUTIONS. The Fund typically distributes substantially
all of its net investment income in the form of dividends to its shareholders.
These distributions are automatically reinvested in the Fund unless you request
cash distributions on your application or through a written request. The Fund
expects that its distributions will consist primarily of capital gains.
TAXES. In general, selling shares of the Fund and receiving distributions
(whether reinvested or taken in cash) are taxable events. Depending on the
purchase price and the sale price, you may have a gain or a loss on any shares
sold. Any tax liabilities generated by your transactions or by receiving
distributions are your responsibility. You may want to avoid making a
substantial investment when a Fund is about to make a capital gains distribution
because you would be responsible for any taxes on the distribution regardless of
how long you have owned your shares.
Early each year, the Fund will mail to you a statement setting forth the
federal income tax information for all distributions made during the previous
year. If you do not provide your taxpayer identification number, your account
will be subject to backup withholding.
The tax considerations described in this section do not apply to
tax-deferred accounts or other non-taxable entities. Because each investor's tax
circumstances are unique, please consult with your tax adviser about your
investment.
MANAGEMENT OF THE FUND
GLOBALT, Inc., 3060 Peachtree Road, N.W., One Buckhead Plaza, Suite 225,
Atlanta, Georgia 30305, serves as investment adviser to the Fund. The adviser
manages large capitalization equity, medium capitalization equity, balanced and
fixed income portfolios for a variety of tax-exempt and taxable clients. During
the fiscal year ended October 31, 1999, the Fund paid the adviser a fee equal to
1.17% of its average daily net assets.
The investment decisions for the Fund are made by a committee of the
adviser, which is primarily responsible for the day-to-day management of the
Fund's portfolio.
The Fund's adviser pays all of the operating expenses of the Fund except
brokerage, taxes, interest, fees and expenses of non-interested person trustees
and extraordinary expenses. In this regard, it should be noted that most
investment companies pay their own operating expenses directly, while the Fund's
expenses, except those specified above, are paid by the adviser. The adviser
(not the Fund) may pay certain financial institutions (which may include banks,
brokers, securities dealers and other industry professionals) a "servicing fee"
for performing certain administrative functions for Fund shareholders to the
extent these institutions are allowed to do so by applicable statute, rule or
regulation.
<PAGE>
FINANCIAL HIGHLIGHTS
The following condensed supplementary financial information for the period
December 1, 1995 (commencement of operations) to October 31, 1996, and for the
fiscal years ended October 31, 1997, 1998 and 1999 is derived from the audited
financial statements of the Fund. The financial statements of the Fund have been
audited by McCurdy & Associates CPA's, Inc., independent public accountants, and
are included in the Fund's Annual Report. The Annual Report contains additional
performance information and is available upon request and without charge.
<TABLE>
<CAPTION>
FOR THE PERIODS ENDED OCTOBER 31
---------------------------------
1999 1998 1997 1996 (a)
--------- --------- --------- ---------
--------- --------- --------- ---------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C>
Net asset value, beginning of period $16.14 $15.66 $12.48 $10.00
--------- --------- --------- ---------
Income from investment operations:
Net investment income (loss) (0.05) 0.02 0.01 0.01
Net realized and unrealized gain 4.27 1.86 3.34 2.47
--------- --------- --------- ---------
Total from investment operations 4.22 1.88 3.35 2.48
--------- --------- --------- ---------
Less Distributions
From net investment income (0.02) (0.01) - -
From net realized gain (0.81) (1.39) (0.17) -
--------- --------- --------- ---------
Total Distributions (0.83) (1.40) (0.17) -
--------- --------- --------- ---------
Net asset value, end of period $19.53 $16.14 $15.66 $12.48
========= ========= ========= =========
TOTAL RETURN (b) 26.67% 13.28% 27.15% 24.80%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000) $16,934 $11,709 $8,003 $3,443
Ratio of expenses to average net assets 1.17% 1.17% 1.17% 1.16% (c)
Ratio of expenses to average net assets
before reimbursement 1.18% 1.19% 1.19% 1.25% (c)
Ratio of net investment income (loss) to
average net assets (0.27)% 0.14% 0.06% 0.11% (c)
Ratio of net investment income (loss) to
average net assets before (0.28)% 0.12% 0.04% 0.02% (c)
reimbursement
Portfolio turnover rate 120.46% 83.78% 110.01% 66.42% (c)
(a) December 1, 1995 (commencement of operations) to October 31, 1996
(b) For periods of less than a full year, total returns are not annualized.
(c) Annualized
</TABLE>
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FOR MORE INFORMATION
Several additional sources of information are available to you. The
Statement of Additional Information (SAI), incorporated into this prospectus by
reference, contains detailed information on Fund policies and operations.
Shareholder reports contain management's discussion of market conditions,
investment strategies and performance results as of the Fund's latest
semi-annual or annual fiscal year end.
Call the Fund at 877-Buy-Growx (877-289-4769) to request free copies of
the SAI and the Fund's annual and semi-annual reports, to request other
information about the Fund and to make shareholder inquiries.
You may review and copy information about the Fund (including the SAI and
other reports) at the Securities and Exchange Commission (SEC) Public Reference
Room in Washington, D.C. Call the SEC at 1-202-942-8090 for room hours and
operation. You may also obtain reports and other information about the Fund on
the EDGAR Database on the SEC's Internet site at http.//www.sec.gov, and copies
of this information may be obtained, after paying a duplicating fee, by
electronic request at the following e-mail address: [email protected], or by
writing the SEC's Public Reference Section of the SEC, Washington, D.C.
20549-0102.
Investment Company Act #811-9096