MONTEAGLE FIXED INCOME FUND
PROSPECTUS DATED JUNE 1, 2000
209 10th Ave. South, Suite 332
Nashville, Tennesse 37203
(800) 459-9084
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.
<PAGE>
TABLE OF CONTENTS
PAGE
RISK / RETURN SUMMARY........................................................3
FEES AND EXPENSES OF INVESTING IN THE FUND...................................4
HOW TO BUY SHARES............................................................5
HOW TO REDEEM SHARES.........................................................7
DETERMINATION OF NET ASSET VALUE.............................................8
DIVIDENDS, DISTRIBUTIONS AND TAXES...........................................8
MANAGEMENT OF THE FUND.......................................................9
FOR MORE INFORMATION................................................BACK COVER
<PAGE>
MONTEAGLE FIXED INCOME FUND
INVESTMENT OBJECTIVE
The investment objective of the Monteagle Fixed Income Fund is total return.
PRINCIPAL STRATEGIES
The Fund invests primarily in investment grade intermediate term fixed
income securities. These include U.S. Government securities, securities issued
by agencies of the U.S Government and taxable municipal bonds. The Fund may also
invest in corporate debt securities rated at least A-3 by Moody's or A- by
Standard & Poor's if, in the judgement of the Fund's adviser, the incremental
expected return is sufficient to outweigh the additional risk compared to U.S.
Government securities.
The Fund seeks to achieve its objective of total return through capital
appreciation on the bonds and other securities held and income on those
securities held. The adviser will actively manage the portfolio and, based on
its assessment of market conditions, either lengthen or shorten the average
maturity of the portfolio and/or switch between bonds of different sectors, with
the view of maximizing the total return for the types of obligations purchased.
The Fund may achieve capital appreciation by owning bonds of longer duration
when interest rates are declining, protecting against large depreciation, and by
owning bonds of shorter duration when interest rates are rising. In addition,
the Fund may achieve capital appreciation if the credit quality of corporate and
municipal bonds improve and there is a rating upgrade. For this purpose, the
adviser will use its proprietary "Bond Market Watch" model to evaluate
macroeconomic indicators and based on this evaluation, attempt to anticipate
interest rate changes. The Fund's adviser seeks to reduce interest rate risk by
maintaining an average maturity of the bonds and notes (on a dollar weighted
basis) of between three and eight years. The Fund will invest at least 65% of
its assets in fixed income securities.
The Fund may sell a security if, in the advisor's opinion:
o an interest rate change is expected to occur and the Fund's advisor seeks
to lengthen or shorten the duration of the Fund
o a sector of the market has become less attractive for total return compared
to another sector
o a security receives a rating downgrade which could increase credit risk and
negatively impact the market value of the security
o a security receives a rating upgrade that positively impacts the market
value of the security and the Fund's advisor wishes to capture the
appreciation
PRINCIPAL RISKS OF INVESTING IN THE FUNDS
o MANAGEMENT RISK. The strategy used by the Fund's adviser may fail to produce
the intended results.
o INTEREST RATE RISK. The value of your investment may decrease when interest
rates rise. To the extent the Fund invests in fixed income securities with
longer maturities, the Fund will be more greatly affected by changes in
interest rates, and will be more volatile, than a fund that invests in
securities with shorter maturities.
o DURATION RISK. Prices of fixed income securities with longer effective
maturities are more sensitive to interest rate changes than those with
shorter effective maturities.
o CREDIT RISK. The issuer of the fixed income security may not be able to make
interest and principal payments when due. Generally, the lower the credit
rating of a security, the greater the risk that the issuer will default on
its obligation.
o GOVERNMENT RISK. It is possible that the U.S. Government would not provide
financial support to its agencies if it is not required to do so by law. If a
U.S. Government agency in which the Fund invests defaults and the U.S.
Government does not stand behind the obligation, the Fund's share price or
yield could fall.
o The U. S. Governments guarantee of ultimate payment of principal and timely
payment of interest on the U. S. Government securities owned by the Fund
does not imply that the Funds shares are guaranteed or that the price of
the Funds shares will not fluctuate. 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 has limited operating history and neither the Fund's investment
manager nor the Fund's adviser has prior experience managing the assets of
a mutual fund.
o The Fund is not a complete investment program.
o As with any mutual fund investment, the Fund's returns will vary and you
could lose money.
IS THIS FUND RIGHT FOR YOU?
The Fund may be a suitable investment for:
o long term investors seeking a fund with an income and capital appreciation
strategy
o investors seeking to diversify their holdings with bonds and other fixed
income securities
o investors seeking higher potential returns than a money market fund.
o investors willing to accept price fluctuations in their investments.
GENERAL
The Fund may from time to time take temporary defensive positions that are
inconsistent with the Fund's principal investment strategies in attempting 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 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
objectives.
The investment objective and strategies of the Fund may be changed without
shareholder approval.
PAST PERFORMANCE
Although past performance of a fund is no guarantee of how it will perform in
the future, historical performance may give you some indication of the risk of
investing in the fund because it demonstrates how its returns have varied over
time. The Bar Chart and Performance Table that would otherwise appear in this
prospectus have been omitted because the Fund is recently organized and has less
than one year of operations.
FEES AND EXPENSES OF THE FUND
The tables describe the fees and estimated expenses that you may pay if you buy
and hold shares of a Fund.
FIXED INCOME
SHAREHOLDER FEES FUND
(fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases NONE
Maximum Deferred Sales Charge (Load) NONE
Redemption Fee NONE
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)
Management Fee 1.14%
Distribution and/or Service (12b-1) Fees NONE
Other Expenses1 0.00%
Total Annual Fund Operating Expenses 1.14%
1 "Other Expenses" are based on estimated amounts for the current fiscal year.
<PAGE>
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 $117
3 YEAR $364
HOW TO BUY SHARES
INITIAL PURCHASE
The minimum initial investment in the Fund is $25,000 ($1,500 for
qualified retirement accounts and medical savings accounts. Investors choosing
to purchase or redeem their shares through a broker/dealer or other institution
may be charged a fee by that institution. To the extent investments of
individual investors are aggregated into an omnibus account established by an
investment adviser, broker or other intermediary, the account minimums apply to
the omnibus account, not to the account of the individual investor.
BY MAIL - To be in proper form, your initial purchase request must include:
o a completed and signed investment application form (which accompanies this
Prospectus);
o a check made payable to the Fund;
Mail the application and check to:
U.S. Mail: Overnight:
Monteagle Funds Monteagle Funds
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 (800)-459-9084 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: Monteagle Funds
D.D.A.# 821637709
Fund Name ____________________ (write in fund name)
Account Name _________________ (write in shareholder name)
For the Account # _______________ (write in account number)
You must mail a signed application to Unified Fund Services, Inc., the
Fund's transfer agent, 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 (subject to a $500 minimum)
by mail, wire, or automatic investment. Each additional mail purchase request
must contain:
o your name
o the name of your account(s),
o your account number(s),
o the name of the Fund
o a check made payable to the Fund
Send your purchase request to the address listed above. A bank wire should be
sent as outlined above.
AUTOMATIC INVESTMENT PLAN
You may make regular investments in the Fund with an Automatic Investment
Plan by completing the appropriate section of the account application and
attaching a voided personal check. Investments may be made monthly to allow
dollar-cost averaging by automatically deducting $250 or more from your bank
checking account. You may change the amount of your monthly purchase at any
time.
TAX SHELTERED RETIREMENT PLANS
Since the Fund is oriented to longer term investments, shares of the Fund
may be an appropriate investment medium for tax sheltered retirement plans,
including: individual retirement plans (IRAs); simplified employee pensions
(SEPs); SIMPLE plans; 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. Contact the transfer agent for the procedure to open
an IRA or SEP plan and more specific information regarding these retirement plan
options. Please consult with your 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 transfer agent about the IRA custodial fees.
HOW TO EXCHANGE SHARES
As a shareholder in the Fund, you may exchange shares valued at $25,000 or
more for shares of any other Monteagle Fund. You may call the transfer agent at
(800) 459-9084 to exchange shares. An exchange may also be made by written
request signed by all registered owners of the account mailed to the address
listed above. Requests for exchanges received prior to close of trading on the
New York Stock Exchange (4:00 p.m. Eastern Time) will be processed at the next
determined net asset value (NAV) as of the close of business on the same day.
An exchange is made by selling shares of one Fund and using the proceeds to
buy shares of another Fund, with the NAV for the sale and the purchase
calculated on the same day. An exchange results in a sale of shares for federal
income tax purposes. If you make use of the exchange privilege, you may realize
either a long term or short term capital gain or loss on the shares sold.
Before making an exchange, you should consider the investment objective of
the Fund to be purchased. If your exchange creates a new account, you must
satisfy the requirements of the Fund in which shares are being purchased. You
may make an exchange to a new account or an existing account; however, the
account ownership must be identical. Exchanges may be made only in states where
an exchange may legally be made. The Funds reserve the right to terminate or
modify the exchange privilege at any time.
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.
The Fund has authorized certain broker-dealers and other financial
institutions (including their designated intermediaries) to accept on their
behalf purchase and sell orders. The Fund is deemed to have received an order
when the authorized person or designee accepts the order, and the order is
processed at the net asset value next calculated thereafter. It is the
responsibility of the broker-dealer or other financial institution to transmit
orders promptly to the Fund's transfer agent.
HOW TO REDEEM SHARES
You may receive redemption payments in the form of a check or federal wire
transfer. 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:
Monteagle Funds
c/o Unified Fund Services, Inc.
P.O. Box 6110
Indianapolis, Indiana 46206-6110
Proper order means your request for a redemption must include: o the Fund
name and account number, o account name(s) and address, o the dollar amount or
number of shares you wish to redeem.
Requests to sell shares are processed at the net asset value next
calculated after we receive your order in proper form. To be in proper order,
your 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 Unified Fund Services, Inc., you
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 transfer agent at (800) 459-9084. 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 may terminate the telephone redemption 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 transfer agent at (800) 459-9084. 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.
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 by the Fund's
adviser at their fair value, according to procedures approved by the Fund's
Board of Trustees. When determining fair value, factors considered include the
type of security, the nature of restrictions on disposition of the security,
constant date of purchase, information as to any transactions or offers with
respect to the security, existence of merger proposals or lender offers
affecting the security, price and extent of public trading in similar securities
of the issuer or comparable companies, and other relevant matters.
Requests to purchase and sell shares are processed at the NAV next
calculated after we receive your order in proper form.
DIVIDENDS, DISTRIBUTIONS AND TAXES
DIVIDENDS AND DISTRIBUTIONS
The Fund typically distributes substantially all of its net investment
income in the form of dividends and taxable capital gains to its shareholders.
These distributions are automatically reinvested in the Fund unless you request
cash distributions on your application or through a written request to the Fund.
Dividends paid by the Fund may be eligible in part for the dividends received
deduction for corporations.
TAXES
In general, selling or exchanging 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 the Fund is about to make a 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 FUNDS
Nashville Capital Corporation, 209 10th Avenue South, Suite 332, Nashville
TN 37203, serves as investment manager to the Fund. In this capacity, Nashville
Capital advises and assists the officers of the Trust in conducting the business
of the Fund and is responsible for providing general investment advice and
guidance to the Fund, although the investment manager has delegated
responsibility for the selection and ongoing monitoring of the securities in the
Fund's investment portfolio to Howe and Rusling Inc. Nashville Capital was
formed in 1986 and, as of September 30, 1999, managed assets of approximately
$98 million for financial institutions.
The Fund is authorized to pay the investment manager an annual fee equal
to 1.15% of net assets up to $25 million, 1.10% of net assets from $25 million
up to $50 million, 0.97% of net assets from $50 million up to $100 million, and
0.90% of net assets of $100 million and greater.
The investment manager pays all of the operating expenses of the Fund
except brokerage, taxes, borrowing costs, 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 Funds expenses, except those specified above, are paid by the investment
manager. The investment manager (not the Funds) may pay certain financial
institutions (which may include banks, brokers, securities dealers and other
industry professionals) a fee for providing distribution related services and/or
for performing certain administrative servicing functions for Fund shareholders
to the extent these institutions are allowed to do so by applicable statute,
rule or regulation.
The investment manager has retained Howe and Rusling, Inc., 120 East
Avenue, Rochester, NY 14604, to serve as the adviser to the Fixed Income Fund.
The firm was established in 1930 and, as of September 30, 1999, had
approximately $734 million in assets under management. The firm serves primarily
individual, retirement plan, corporate and non-profit endowment clients. The
Howe and Rusling Investment Committee is primarily responsible for the
day-to-day management of the Funds. Nashville Capital has agreed to pay Howe and
Rusling an annual advisory fee for the Fixed Income Fund of 0.30% of net assets
up to $25 million, 0.25% of net assets from $25% million up to $50 million, and
0.20% of net assets of $50 million and greater.
<PAGE>
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. Annual
and semi-annual reports contain management's discussion of market conditions,
investment strategies and performance results as of the Funds' latest
semi-annual or annual fiscal year end.
Call the Funds at (800) 459-9084 to request free copies of the SAI and the
Funds' annual and semi-annual reports, to request other information about the
Funds and to make shareholder inquiries.
You may review and copy information about the Funds (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 Funds 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, Washington, D.C. 20549-0102.
Investment Company Act #811-09541
MONTEAGLE LARGE CAP FUND
PROSPECTUS DATED JUNE 1, 2000
209 10th Ave. South, Suite 332
Nashville, Tennesse 37203
(800)-459-9084
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.
<PAGE>
TABLE OF CONTENTS
PAGE
RISK / RETURN SUMMARY........................................................3
FEES AND EXPENSES OF INVESTING IN THE FUND...................................4
HOW TO BUY SHARES............................................................5
HOW TO REDEEM SHARES.........................................................7
DETERMINATION OF NET ASSET VALUE.............................................8
DIVIDENDS, DISTRIBUTIONS AND TAXES...........................................8
MANAGEMENT OF THE FUND.......................................................9
FOR MORE INFORMATION................................................BACK COVER
<PAGE>
RISK / RETURN SUMMARY
INVESTMENT OBJECTIVE
The investment objective of the Monteagle Large Cap Fund is long term growth
of capital.
PRINCIPAL STRATEGIES
The Fund will invest at least 65% of its assets in common stocks of large
capitalization U.S. companies (those with market capitalizations above $15
billion) that the Fund's adviser believes exhibit a history of increasing
earnings. The adviser first analyzes various industrial sectors to select the
industry groups in which the Fund will focus its investments. The adviser
considers such factors as economic trends and earnings growth prospects when
selecting the industries in which the Fund will focus. The adviser then ranks
individual stocks in each industrial group based on certain factors, such as:
(1) expected earnings growth;
(2) analysts' earnings estimates for the next fiscal year;
(3) return on equity;
(4) stability of earnings growth in the past 5 years; and
(5) relative price-to-earnings multiple.
The Fund will invest at least 65% of its assets in large capitalization
companies.
The Fund may sell a stock if, in the adviser's opinion:
o stock appreciation has caused the stock to become too large a position in
the portfolio;
o the fundamental price objective has been achieved;
o the company has experienced a negative change in fundamentals (such as its
earnings growth rate or competitive position in its industry group); or
o some or all of the factors used to rank the company have declined, combined
with relative underperformance of the stock compared to the S&P 500 Index
or the company's industry group.
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 is the risk that the Fund might decrease in value in response to
the activities and financial prospects of an individual company.
o MARKET RISK is the risk that the Fund might decrease in value in response to
general market and economic conditions.
o VOLATILITY RISK means that common stocks tend to be more volatile than other
investment choices.
o The Fund has limited operating history and neither the Fund's investment
manager nor the Fund's adviser has prior experience managing the assets of a
mutual fund.
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.
o 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 a suitable investment 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 Fund may from time to time take temporary defensive positions that are
inconsistent with the Fund's principal investment strategies in attempting 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 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
objectives.
The investment objective and strategies of the Fund may be changed without
shareholder approval.
PAST PERFORMANCE
Although past performance of a fund is no guarantee of how it will perform in
the future, historical performance may give you some indication of the risk of
investing in the fund because it demonstrates how its returns have varied over
time. The Bar Chart and Performance Table that would otherwise appear in this
prospectus have been omitted because the Fund is recently organized and has less
than one year of operations.
FEES AND EXPENSES OF THE FUND
The tables describe the fees and estimated 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
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)
Management Fee 1.23%
Distribution and/or Service (12b-1) Fees NONE
Other Expenses1 0.00%
Total Annual Fund Operating Expenses 1.23%
1 "Other Expenses" are based on estimated amounts for the current fiscal year.
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 $126
3 YEAR $393
<PAGE>
HOW TO BUY SHARES
INITIAL PURCHASE
The minimum initial investment in the Fund is $25,000 ($1,500 for
qualified retirement accounts and medical savings accounts. Investors choosing
to purchase or redeem their shares through a broker/dealer or other institution
may be charged a fee by that institution. To the extent investments of
individual investors are aggregated into an omnibus account established by an
investment adviser, broker or other intermediary, the account minimums apply to
the omnibus account, not to the account of the individual investor.
BY MAIL - To be in proper form, your initial purchase request must include:
o a completed and signed investment application form (which accompanies this
Prospectus);
o a check made payable to the Fund;
Mail the application and check to:
U.S. Mail: Overnight:
Monteagle Funds Monteagle Funds
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 (800)-459-9084 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: Monteagle Funds
D.D.A.# 821637709
Fund Name ___________________ (write in fund name)
Account Name _________________ (write in shareholder name)
For the Account # ______________ (write in account number)
You must mail a signed application to Unified Fund Services, Inc., the
Fund's transfer agent, 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 (subject to a $500 minimum)
by mail, wire, or automatic investment. Each additional mail purchase request
must contain:
o your name
o the name of your account(s),
o your account number(s),
o the name of the Fund
o a check made payable to the Fund
Send your purchase request to the address listed above. A bank wire should be
sent as outlined above.
<PAGE>
AUTOMATIC INVESTMENT PLAN
You may make regular investments in the Fund with an Automatic Investment
Plan by completing the appropriate section of the account application and
attaching a voided personal check. Investments may be made monthly to allow
dollar-cost averaging by automatically deducting $250 or more from your bank
checking account. You may change the amount of your monthly purchase at any
time.
TAX SHELTERED RETIREMENT PLANS
Since the Fund is oriented to longer term investments, shares of the Fund
may be an appropriate investment medium for tax sheltered retirement plans,
including: individual retirement plans (IRAs); simplified employee pensions
(SEPs); SIMPLE plans; 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. Contact the transfer agent for the procedure to open
an IRA or SEP plan and more specific information regarding these retirement plan
options. Please consult with your 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 transfer agent about the IRA custodial fees.
HOW TO EXCHANGE SHARES
As a shareholder in the Fund, you may exchange shares valued at $25,000 or
more for shares of any other Monteagle Fund. You may call the transfer agent at
(800)-459-9084 to exchange shares. An exchange may also be made by written
request signed by all registered owners of the account mailed to the address
listed above. Requests for exchanges received prior to close of trading on the
New York Stock Exchange (4:00 p.m. Eastern Time) will be processed at the next
determined net asset value (NAV) as of the close of business on the same day.
An exchange is made by selling shares of one Fund and using the proceeds to
buy shares of another Fund, with the NAV for the sale and the purchase
calculated on the same day. An exchange results in a sale of shares for federal
income tax purposes. If you make use of the exchange privilege, you may realize
either a long term or short term capital gain or loss on the shares sold.
Before making an exchange, you should consider the investment objective of
the Fund to be purchased. If your exchange creates a new account, you must
satisfy the requirements of the Fund in which shares are being purchased. You
may make an exchange to a new account or an existing account; however, the
account ownership must be identical. Exchanges may be made only in states where
an exchange may legally be made. The Funds reserve the right to terminate or
modify the exchange privilege at any time.
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.
The Fund has authorized certain broker-dealers and other financial
institutions (including their designated intermediaries) to accept on their
behalf purchase and sell orders. The Fund is deemed to have received an order
when the authorized person or designee accepts the order, and the order is
processed at the net asset value next calculated thereafter. It is the
responsibility of the broker-dealer or other financial institution to transmit
orders promptly to the Fund's transfer agent.
<PAGE>
HOW TO REDEEM SHARES
You may receive redemption payments in the form of a check or federal wire
transfer. 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:
Monteagle Funds
c/o Unified Fund Services, Inc.
P.O. Box 6110
Indianapolis, Indiana 46206-6110
Proper order means your request for a redemption must include: o the Fund
name and account number, o account name(s) and address, o the dollar amount or
number of shares you wish to redeem.
Requests to sell shares are processed at the net asset value next
calculated after we receive your order in proper form. To be in proper order,
your 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 Unified Fund Services, Inc., you
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 transfer agent at (800)-459-9084. 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 may terminate the telephone redemption 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 transfer agent at (800)-459-9084. 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.
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 by the Fund's
adviser at their fair value, according to procedures approved by the Fund's
Board of Trustees. When determining fair value, factors considered include the
type of security, the nature of restrictions on disposition of the security,
constant date of purchase, information as to any transactions or offers with
respect to the security, existence of merger proposals or lender offers
affecting the security, price and extent of public trading in similar securities
of the issuer or comparable companies, and other relevant matters.
Requests to purchase and sell shares are processed at the NAV next
calculated after we receive your order in proper form.
DIVIDENDS, DISTRIBUTIONS AND TAXES
DIVIDENDS AND DISTRIBUTIONS
The Fund typically distributes substantially all of its net investment
income in the form of dividends and taxable capital gains to its shareholders.
These distributions are automatically reinvested in the Fund unless you request
cash distributions on your application or through a written request to the Fund.
Dividends paid by the Fund may be eligible in part for the dividends received
deduction for corporations.
TAXES
In general, selling or exchanging 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 the Fund is about to make a 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.
<PAGE>
MANAGEMENT OF THE FUNDS
Nashville Capital Corporation, 209 10th Avenue South, Suite 332, Nashville
TN 37203, serves as investment manager to the Fund. In this capacity, Nashville
Capital advises and assists the officers of the Trust in conducting the business
of the Fund and is responsible for providing general investment advice and
guidance to the Fund, although the investment manager has delegated
responsibility for the selection and ongoing monitoring of the securities in the
Fund's investment portfolio to Howe and Rusling, Inc. Nashville Capital was
formed in 1986 and, as of September 30, 1999, managed assets of approximately
$98 million for financial institutions.
The Fund is authorized to pay the investment manager an annual fee equal
to 1.25% of net assets up to $25 million, 1.13% of net assets from $25 million
up to $50 million, 1.00% of net assets from $50 million up to $100 million, and
0.95% of net assets of $100 million and greater.
The investment manager pays all of the operating expenses of the Fund
except brokerage, taxes, borrowing costs, 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 Funds expenses, except those specified above, are paid by the investment
manager. The investment manager (not the Funds) may pay certain financial
institutions (which may include banks, brokers, securities dealers and other
industry professionals) a fee for providing distribution related services and/or
for performing certain administrative servicing functions for Fund shareholders
to the extent these institutions are allowed to do so by applicable statute,
rule or regulation.
The investment manager has retained Howe and Rusling, Inc., 120 East
Avenue, Rochester, NY 14604, to serve as the adviser to the Large Cap Fund. The
firm was established in 1930 and, as of September 30, 1999, had approximately
$734 million in assets under management. The firm serves primarily individual,
retirement plan, corporate and non-profit endowment clients. The Howe and
Rusling Investment Committee is primarily responsible for the day-to-day
management of the Funds. Nashville Capital has agreed to pay Howe and Rusling an
annual advisory fee for the Large Cap Fund of 0.40% of net assets up to $25
million, 0.30% of net assets from $25% million up to $50 million, and 0.25% of
net assets of $50 million and greater.
<PAGE>
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. Annual
and semi-annual reports contain management's discussion of market conditions,
investment strategies and performance results as of the Funds' latest
semi-annual or annual fiscal year end.
Call the Funds at (800)-459-9084 to request free copies of the SAI and the
Funds' annual and semi-annual reports, to request other information about the
Funds and to make shareholder inquiries.
You may review and copy information about the Funds (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 Funds 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, Washington, D.C. 20549-0102.
Investment Company Act #811-09541
MONTEAGLE OPPORTUNITY GROWTH FUND
PROSPECTUS DATED JUNE 1, 2000
209 10th Ave. South, Suite 332
Nashville, Tennesse 37203
(800) 459-9084
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.
<PAGE>
TABLE OF CONTENTS
PAGE
RISK/ RETURN SUMMARY.........................................................3
FEES AND EXPENSES OF INVESTING IN THE FUND...................................4
HOW TO BUY SHARES............................................................5
HOW TO REDEEM SHARES.........................................................6
DETERMINATION OF NET ASSET VALUE.............................................7
DIVIDENDS, DISTRIBUTIONS AND TAXES...........................................8
MANAGEMENT OF THE FUND.......................................................9
FOR MORE INFORMATION................................................BACK COVER
<PAGE>
RISK / RETURN SUMMARY
INVESTMENT OBJECTIVE
The investment objective of the Monteagle Opportunity Growth Fund is long
term growth of capital.
PRINCIPAL STRATEGIES
The Fund seeks to achieve its objective by investing in "growth stocks."
These are stocks that the Fund's adviser believes demonstrate accelerating cash
flows, profit margins and/or revenues. The adviser emphasizes companies where
management and/or large outside investors (such as banks, insurance companies
and mutual funds) are buyers or owners of the stock or where the company itself
is repurchasing its own shares on the open market. These are the "Informed
Investors."
Common sense suggests that the Informed Investors of the corporate world are
far closer to the day-to-day activities of the companies they own or manage and
are often in a much more informed position to gauge the long term effects
certain publicly disclosed information or developments may have on the future
price of their company's stock. Similar factors determine when a security is
sold. For example, a stock may be sold if there are changes in trading activity
by Informed Investors or changes in the company's fundamentals, such as
decelerating earnings or material changes in the debt-equity ratio of the
company.
The Fund invests primarily in common stocks of medium and large
capitalization U.S. companies (those with market capitalizations, at the time of
purchase, of $1 billion or more). Although the Fund will not concentrate in any
one industry, it is anticipated that the Fund's portfolio will focus on a small,
select group of industries ("growth industries") which the Fund's adviser
believes offer superior growth opportunities based on overall economic trends.
The Fund is a non-diversified fund, which means that the Fund may take larger
positions in a small number of companies than a diversified fund. The Fund may
also have a high level of portfolio turnover.
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.
o VOLATILITY RISK. Common stocks tend to be more volatile than other investment
choices. Because the Fund will emphasize various growth industries, the value
of your shares is likely to be more volatile than a fund that invests in a
broader range of industries.
o NON-DIVERSIFICATION RISK. As a non-diversified fund, the Fund's portfolio may
at times focus on a limited number of companies and will be subject to
substantially more investment risk and potential for volatility than a
diversified fund.
o TURNOVER RISK. The Fund's investment strategy may result in a high portfolio
turnover rate. A high portfolio turnover would result in correspondingly
greater brokerage commission expenses (which would lower the Fund's total
return) and may result in the distribution to shareholders of additional
capital gains for tax purposes.
o The Fund has limited operating history and the Fund's investment manager has
no prior experience managing the assets of a mutual fund.
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.
o 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 a suitable investment for:
o long term investors seeking a Fund with a growth investment strategy
o investors who can tolerate the greater risks associated with common stock
investments
o investors willing to accept greater price fluctuations than typically found
with a common stock mutual fund
<PAGE>
GENERAL
The Fund may from time to time take temporary defensive positions that are
inconsistent with the Fund's principal investment strategies in attempting 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 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
objectives.
The investment objective and strategies of the Fund may be changed without
shareholder approval.
PAST PERFORMANCE
Although past performance of a fund is no guarantee of how it will perform in
the future, historical performance may give you some indication of the risk of
investing in the fund because it demonstrates how its returns have varied over
time. The Bar Chart and Performance Table that would otherwise appear in this
prospectus have been omitted because the Fund is recently organized and has less
than one year of operations.
FEES AND EXPENSES OF THE FUND
The tables describe the fees and estimated 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
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)
Management Fee 1.33%
Distribution and/or Service (12b-1) Fees NONE
Other Expenses1 0.00%
Total Annual Fund Operating Expenses 1.33%
1 "Other Expenses" are based on estimated amounts for the current fiscal year.
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 $136
3 YEAR $424
HOW TO BUY SHARES
INITIAL PURCHASE
The minimum initial investment in the Fund is $25,000 ($1,500 for
qualified retirement accounts and medical savings accounts. Investors choosing
to purchase or redeem their shares through a broker/dealer or other institution
may be charged a fee by that institution. To the extent investments of
individual investors are aggregated into an omnibus account established by an
investment adviser, broker or other intermediary, the account minimums apply to
the omnibus account, not to the account of the individual investor.
BY MAIL - To be in proper form, your initial purchase request must include:
o a completed and signed investment application form (which accompanies this
Prospectus);
o a check made payable to the Fund;
Mail the application and check to:
U.S. Mail: Overnight:
Monteagle Funds Monteagle Funds
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 (800)-459-9084 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: Monteagle Funds
D.D.A.# 821637709
Fund Name ___________________ (write in fund name)
Account Name _________________ (write in shareholder name)
For the Account # _____________ (write in account number)
You must mail a signed application to Unified Fund Services, Inc., the
Fund's transfer agent, 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 (subject to a $500 minimum)
by mail, wire, or automatic investment. Each additional mail purchase request
must contain:
o your name
o the name of your account(s),
o your account number(s),
o the name of the Fund
o a check made payable to the Fund
Send your purchase request to the address listed above. A bank wire should be
sent as outlined above.
AUTOMATIC INVESTMENT PLAN
You may make regular investments in the Fund with an Automatic Investment
Plan by completing the appropriate section of the account application and
attaching a voided personal check. Investments may be made monthly to allow
dollar-cost averaging by automatically deducting $250 or more from your bank
checking account. You may change the amount of your monthly purchase at any
time.
TAX SHELTERED RETIREMENT PLANS
Since the Fund is oriented to longer term investments, shares of the Fund
may be an appropriate investment medium for tax sheltered retirement plans,
including: individual retirement plans (IRAs); simplified employee pensions
(SEPs); SIMPLE plans; 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. Contact the transfer agent for the procedure to open
an IRA or SEP plan and more specific information regarding these retirement plan
options. Please consult with your 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 transfer agent about the IRA custodial fees.
HOW TO EXCHANGE SHARES
As a shareholder in the Fund, you may exchange shares valued at $25,000 or
more for shares of any other Monteagle Fund. You may call the transfer agent at
(800) 459-9084 to exchange shares. An exchange may also be made by written
request signed by all registered owners of the account mailed to the address
listed above. Requests for exchanges received prior to close of trading on the
New York Stock Exchange (4:00 p.m. Eastern Time) will be processed at the next
determined net asset value (NAV) as of the close of business on the same day.
An exchange is made by selling shares of one Fund and using the proceeds to
buy shares of another Fund, with the NAV for the sale and the purchase
calculated on the same day. An exchange results in a sale of shares for federal
income tax purposes. If you make use of the exchange privilege, you may realize
either a long term or short term capital gain or loss on the shares sold.
Before making an exchange, you should consider the investment objective of
the Fund to be purchased. If your exchange creates a new account, you must
satisfy the requirements of the Fund in which shares are being purchased. You
may make an exchange to a new account or an existing account; however, the
account ownership must be identical. Exchanges may be made only in states where
an exchange may legally be made. The Funds reserve the right to terminate or
modify the exchange privilege at any time.
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.
The Fund has authorized certain broker-dealers and other financial
institutions (including their designated intermediaries) to accept on their
behalf purchase and sell orders. The Fund is deemed to have received an order
when the authorized person or designee accepts the order, and the order is
processed at the net asset value next calculated thereafter. It is the
responsibility of the broker-dealer or other financial institution to transmit
orders promptly to the Fund's transfer agent.
HOW TO REDEEM SHARES
You may receive redemption payments in the form of a check or federal wire
transfer. 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:
Monteagle Funds
c/o Unified Fund Services, Inc.
P.O. Box 6110
Indianapolis, Indiana 46206-6110
Proper order means your request for a redemption must include:
o the Fund name and account number,
o account name(s) and address,
o the dollar amount or number of shares you wish to redeem.
Requests to sell shares are processed at the net asset value next
calculated after we receive your order in proper form. To be in proper order,
your 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 Unified Fund Services, Inc., you
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 transfer agent at (800) 459-9084. 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 may terminate the telephone redemption 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 transfer agent at (800) 459-9084. 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.
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 by the Fund's
adviser at their fair value, according to procedures approved by the Fund's
Board of Trustees. When determining fair value, factors considered include the
type of security, the nature of restrictions on disposition of the security,
constant date of purchase, information as to any transactions or offers with
respect to the security, existence of merger proposals or lender offers
affecting the security, price and extent of public trading in similar securities
of the issuer or comparable companies, and other relevant matters.
Requests to purchase and sell shares are processed at the NAV next
calculated after we receive your order in proper form.
DIVIDENDS, DISTRIBUTIONS AND TAXES
DIVIDENDS AND DISTRIBUTIONS
The Fund typically distributes substantially all of its net investment
income in the form of dividends and taxable capital gains to its shareholders.
These distributions are automatically reinvested in the Fund unless you request
cash distributions on your application or through a written request to the Fund.
Dividends paid by the Fund may be eligible in part for the dividends received
deduction for corporations.
TAXES
In general, selling or exchanging 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 the Fund is about to make a 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.
<PAGE>
MANAGEMENT OF THE FUND
Nashville Capital Corporation, 209 10th Avenue South, Suite 332, Nashville
TN 37203, serves as investment manager to the Fund. In this capacity, Nashville
Capital advises and assists the officers of the Trust in conducting the business
of the Fund and is responsible for providing general investment advice and
guidance to the Fund, although the investment manager has delegated
responsibility for the selection and ongoing monitoring of the securities in the
Fund's investment portfolio to T.H Fitzgerald Jr. (d/b/a T.H. Fitzgerald & Co.).
Nashville Capital was formed in 1986 and, as of September 30, 1999, managed
assets of approximately $98 million for financial institutions.
The Fund is authorized to pay the investment manager an annual fee equal
to 1.35% of net assets up to $25 million, 1.30% of net assets from $25 million
up to $50 million, 1.18% of net assets from $50 million up to $100 million, and
1.10% of net assets of $100 million and greater.
The investment manager pays all of the operating expenses of the Fund
except brokerage, taxes, borrowing costs, 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 Funds expenses, except those specified above, are paid by the investment
manager. The investment manager (not the Fund) may pay certain financial
institutions (which may include banks, brokers, securities dealers and other
industry professionals) a fee for providing distribution related services and/or
for performing certain administrative servicing functions for Fund shareholders
to the extent these institutions are allowed to do so by applicable statute,
rule or regulation.
The investment manager has retained T.H. Fitzgerald, Jr. (d/b/a T.H.
Fitzgerald & Co.), 180 Church Street, Naugatuck, CT 06770, to serve as the
adviser to the Opportunity Growth Fund. The firm has been owner-managed since
its founding in 1959. In 1982, Mr. Fitzgerald accepted his first institutional
investment management account, a Fortune 500 corporate pension plan. Since then,
he has directed the firm's resources exclusively to the management of large
institutional accounts and, as of June 30, 1999, managed nearly $220 million.
T.H. Fitzgerald accepts no individual or private accounts, regardless of size.
The Monteagle Opportunity Growth Fund offers the individual investor with access
to the firms proprietary "Informed Investors" strategy. Mr. Fitzgerald is
primarily responsible for the day to day management of the Fund. Nashville
Capital has agreed to pay T.H. Fitzgerald & Co. an annual advisory fee equal to
0.70% of net assets up to $25 million, 0.60% of net assets from $25% million up
to $50 million, 0.45% of net assets from $50 million up to $100 million, and
0.40% of net assets of $100 million and greater.
<PAGE>
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. Annual
and semi-annual reports contain management's discussion of market conditions,
investment strategies and performance results as of the Funds' latest
semi-annual or annual fiscal year end.
Call the Funds at (800)-459-9084 to request free copies of the SAI and the
Funds' annual and semi-annual reports, to request other information about the
Funds and to make shareholder inquiries.
You may review and copy information about the Funds (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 Funds 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, Washington, D.C. 20549-0102.
Investment Company Act #811-09541
MONTEAGLE VALUE FUND
PROSPECTUS DATED JUNE 1, 2000
209 10th Ave. South, Suite 332
Nashville, Tennesse 37203
(800) 459-9084
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.
<PAGE>
TABLE OF CONTENTS
PAGE
RISK / RETURN SUMMARY........................................................3
FEES AND EXPENSES OF INVESTING IN THE FUND...................................4
HOW TO BUY SHARES............................................................4
HOW TO REDEEM SHARES.........................................................6
DETERMINATION OF NET ASSET VALUE.............................................7
DIVIDENDS, DISTRIBUTIONS AND TAXES...........................................7
MANAGEMENT OF THE FUND.......................................................8
FOR MORE INFORMATION................................................BACK COVER
<PAGE>
RISK / RETURN SUMMARY
INVESTMENT OBJECTIVE
The investment objective of the Monteagle Value Fund is long term growth of
capital.
PRINCIPAL STRATEGIES
As a value oriented manager, the Fund's adviser takes a long term (or "buy
and hold") approach to managing the Fund's portfolio. The Fund invests primarily
in common stocks of medium and large capitalization U.S. companies (those with
market capitalization's of $1 billion or more) that the Fund's adviser believes
are undervalued based on value characteristics such as lower relative price
valuations, above average earnings per share growth and higher dividend yields
compared to the S&P 500 Index. The adviser will sell a stock when it believes
that the stock is no longer undervalued or when the fundamentals of the company
that affect revenue and profitability have changed significantly, either in a
positive or negative direction.
PRINCIPAL RISKS OF INVESTING IN THE FUND
o MANAGEMENT RISK. The adviser's value-oriented approach 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.
o VOLATILITY RISK. Common stocks tend to be more volatile than other
investment choices.
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 has limited operating history and neither the Fund's investment
manager nor the Fund's adviser has prior experience managing the assets of a
mutual fund.
o The Fund is not a complete investment program.
o 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 value 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 Fund may from time to time take temporary defensive positions that are
inconsistent with the Fund's principal investment strategies in attempting 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 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
objectives.
The investment objective and strategies of the Fund may be changed without
shareholder approval.
PAST PERFORMANCE
Although past performance of a fund is no guarantee of how it will perform in
the future, historical performance may give you some indication of the risk of
investing in the fund because it demonstrates how its returns have varied over
time. The Bar Chart and Performance Table that would otherwise appear in this
prospectus have been omitted because the Fund is recently organized and has less
than one year of operations.
FEES AND EXPENSES OF THE FUND
The tables describe the fees and estimated 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
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)
Management Fee 1.35%
Distribution and/or Service (12b-1) Fees NONE
Other Expenses1 0.00%
Total Annual Fund Operating Expenses 1.35%
1 "Other Expenses" are based on estimated amounts for the current fiscal year.
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 $138
3 YEAR $430
HOW TO BUY SHARES
INITIAL PURCHASE
The minimum initial investment in the Fund is $25,000 ($1,500 for
qualified retirement accounts and medical savings accounts. Investors choosing
to purchase or redeem their shares through a broker/dealer or other institution
may be charged a fee by that institution. To the extent investments of
individual investors are aggregated into an omnibus account established by an
investment adviser, broker or other intermediary, the account minimums apply to
the omnibus account, not to the account of the individual investor.
BY MAIL - To be in proper form, your initial purchase request must include:
o a completed and signed investment application form (which accompanies this
Prospectus);
o a check made payable to the Fund;
Mail the application and check to:
U.S. Mail: Overnight:
Monteagle Funds Monteagle Funds
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 (800)-459-9084 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: Monteagle Funds
D.D.A.# 821637709
Fund Name ____________________ (write in fund name)
Account Name _________________ (write in shareholder name)
For the Account # ______________ (write in account number)
You must mail a signed application to Unified Fund Services, Inc., the
Fund's transfer agent, 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 (subject to a $500 minimum)
by mail, wire, or automatic investment. Each additional mail purchase request
must contain:
o your name
o the name of your account(s),
o your account number(s),
o the name of the Fund
o a check made payable to the Fund
Send your purchase request to the address listed above. A bank wire should be
sent as outlined above.
AUTOMATIC INVESTMENT PLAN
You may make regular investments in the Fund with an Automatic Investment
Plan by completing the appropriate section of the account application and
attaching a voided personal check. Investments may be made monthly to allow
dollar-cost averaging by automatically deducting $250 or more from your bank
checking account. You may change the amount of your monthly purchase at any
time.
TAX SHELTERED RETIREMENT PLANS
Since the Fund is oriented to longer term investments, shares of the Fund
may be an appropriate investment medium for tax sheltered retirement plans,
including: individual retirement plans (IRAs); simplified employee pensions
(SEPs); SIMPLE plans; 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. Contact the transfer agent for the procedure to open
an IRA or SEP plan and more specific information regarding these retirement plan
options. Please consult with your 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 transfer agent about the IRA custodial fees.
HOW TO EXCHANGE SHARES
As a shareholder in the Fund, you may exchange shares valued at $25,000 or
more for shares of any other Monteagle Fund. You may call the transfer agent at
(800) 459-9084 to exchange shares. An exchange may also be made by written
request signed by all registered owners of the account mailed to the address
listed above. Requests for exchanges received prior to close of trading on the
New York Stock Exchange (4:00 p.m. Eastern Time) will be processed at the next
determined net asset value (NAV) as of the close of business on the same day.
An exchange is made by selling shares of one Fund and using the proceeds to
buy shares of another Fund, with the NAV for the sale and the purchase
calculated on the same day. An exchange results in a sale of shares for federal
income tax purposes. If you make use of the exchange privilege, you may realize
either a long term or short term capital gain or loss on the shares sold.
Before making an exchange, you should consider the investment objective of
the Fund to be purchased. If your exchange creates a new account, you must
satisfy the requirements of the Fund in which shares are being purchased. You
may make an exchange to a new account or an existing account; however, the
account ownership must be identical. Exchanges may be made only in states where
an exchange may legally be made. The Funds reserve the right to terminate or
modify the exchange privilege at any time.
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.
The Fund has authorized certain broker-dealers and other financial
institutions (including their designated intermediaries) to accept on their
behalf purchase and sell orders. The Fund is deemed to have received an order
when the authorized person or designee accepts the order, and the order is
processed at the net asset value next calculated thereafter. It is the
responsibility of the broker-dealer or other financial institution to transmit
orders promptly to the Fund's transfer agent.
HOW TO REDEEM SHARES
You may receive redemption payments in the form of a check or federal wire
transfer. 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:
Monteagle Funds
c/o Unified Fund Services, Inc.
P.O. Box 6110
Indianapolis, Indiana 46206-6110
Proper order means your request for a redemption must include:
o the Fund name and account number,
o account name(s) and address,
o the dollar amount or number of shares you wish to redeem.
Requests to sell shares are processed at the net asset value next
calculated after we receive your order in proper form. To be in proper order,
your 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 Unified Fund Services, Inc., you
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 transfer agent at (800) 459-9084. 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 may terminate the telephone redemption 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 transfer agent at (800) 459-9084. 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.
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 by the Fund's
adviser at their fair value, according to procedures approved by the Fund's
Board of Trustees. When determining fair value, factors considered include the
type of security, the nature of restrictions on disposition of the security,
constant date of purchase, information as to any transactions or offers with
respect to the security, existence of merger proposals or lender offers
affecting the security, price and extent of public trading in similar securities
of the issuer or comparable companies, and other relevant matters.
Requests to purchase and sell shares are processed at the NAV next
calculated after we receive your order in proper form.
DIVIDENDS, DISTRIBUTIONS AND TAXES
DIVIDENDS AND DISTRIBUTIONS
The Fund typically distributes substantially all of its net investment
income in the form of dividends and taxable capital gains to its shareholders.
These distributions are automatically reinvested in the Fund unless you request
cash distributions on your application or through a written request to the Fund.
Dividends paid by the Fund may be eligible in part for the dividends received
deduction for corporations.
TAXES
In general, selling or exchanging 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 the Fund is about to make a 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
Nashville Capital Corporation, 209 10th Avenue South, Suite 332, Nashville
TN 37203, serves as investment manager to the Fund. In this capacity, Nashville
Capital advises and assists the officers of the Trust in conducting the business
of the Fund and is responsible for providing general investment advice and
guidance to the Fund, although the investment manager has delegated
responsibility for the selection and ongoing monitoring of the securities in the
Fund's investment portfolio to Robinson Investment Group, Inc. Nashville Capital
was formed in 1986 and, as of September 30, 1999, managed assets of
approximately $98 million for financial institutions.
The Fund is authorized to pay the investment manager an annual fee equal
to 1.35% of net assets up to $25 million, 1.25% of net assets from $25 million
up to $50 million, 1.10% of net assets from $50 million up to $100 million, and
1.00% of net assets of $100 million and greater.
The investment manager pays all of the operating expenses of the Fund
except brokerage, taxes, borrowing costs, 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 Funds expenses, except those specified above, are paid by the investment
manager. The investment manager (not the Fund) may pay certain financial
institutions (which may include banks, brokers, securities dealers and other
industry professionals) a fee for providing distribution related services and/or
for performing certain administrative servicing functions for Fund shareholders
to the extent these institutions are allowed to do so by applicable statute,
rule or regulation.
The investment manager has retained Robinson Investment Group, Inc., 5301
Virginia Way, Suite 150, Brentwood, TN 37027, to serve as the adviser to the
Value Fund. The firm was founded in 1996 by Russell L. Robinson. Mr. Robinson
and his firm currently manage assets of approximately $140 million for
individuals, financial institutions, pension plans, corporations and other
business entities. Mr. Russell has been the President of Robinson Investment
Group since 1996. He was the Director of Investment Strategy of the investment
manager, Nashville Capital Corporation, from 1990 to 1996. Mr. Russell is
primarily responsible for the day-to-day management of the Value Fund. Nashville
Capital has agreed to pay Russell Investment Group an annual advisory fee of
0.60% of net assets up to $25 million, 0.45% of net assets from $25% million up
to $50 million, 0.35% of net assets from $50 million up to $100 million, and
0.30% of net assets of $100 million and greater.
<PAGE>
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. Annual
and semi-annual reports contain management's discussion of market conditions,
investment strategies and performance results as of the Funds' latest
semi-annual or annual fiscal year end.
Call the Funds at (800) 459-9084 to request free copies of the SAI and the
Funds' annual and semi-annual reports, to request other information about the
Funds and to make shareholder inquiries.
You may review and copy information about the Funds (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 Funds 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 #811-09541
