KL Allocation Fund

As of 12/31/2022, the 1-year, 5-year, 10-year and since inception annualized total returns for the KL Allocation Fund Advisor Class were -19.11%, -0.78%, 4.08% and 4.73% and Institutional Class were -18.91%, -0.53%, 4.34% and 5.01%, respectively. The Morningstar Developed Markets Large-Mid Cap Index 1-year, 5-year, 10-year and since inception annualized total returns as of 12/31/2022 were -18.25%, 5.87%, 8.77% and 8.65%. Based on the Fund’s current prospectus, the total annual operating expenses of the Fund are 1.53% and 1.28% for the Advisor and Institutional Classes, respectively. The inception date for the KL Allocation Fund is 09/30/10.

Past performance is no guarantee of future results. Ratings may reflect fee waivers in effect; in their absence, ratings may have been lower. Ratings for other share classes may vary. As of 12.31.22, the KL Allocation Fund was rated by Morningstar for risk-adjusted performance against the following numbers of U.S.-domiciled Tactical Allocation funds over the following time periods: 235 funds in the last three years, 212 funds in the last five years and 235 funds overall. With respect to these Tactical Allocation funds, the KL Allocation Fund (GAVIX/GAVAX) received Morningstar Rating of 2 stars for the overall and five-year periods and 3 stars (GAVIX) and 2 stars (GAVAX) for the three-year period. Please note: Morningstar ratings reflect the 3- and 5-year time periods but will not reflect greater time periods in the Tactical Allocation category before the fund’s strategy added a secondary objective of capital preservation and fixed income allocation. The Morningstar ratings highlighted here reflect the time period since that update.

Oakland A’s Coach Billy Beane’s genius was transforming professional baseball from a Winner’s Game, in which the actions of a few superstars dictated the outcome, to a Loser’s Game, where the team that made the fewest errors won. Legendary investor Charles Ellis has declared that active money management also has turned from a Winner’s Game to a Loser’s Game. Today, when over 90% of active managers are underperforming*, success may be as much about selling the wrong stocks as buying the right ones. In the KL Allocation Fund, we apply a Moneyball approach: seeking to outperform by making fewer mistakes than the overall market.

We first published “Moneyball Investing, Winning the Loser’s Game” in January 2018, and it quickly became our most popular white paper ever. The COVID-19 crisis of 2020 and its impacts on the markets remind us that years of accumulated investor capital can disappear in the blink of an eye. As such, we revisited our Moneyball analysis to explore how the philosophy stands up to new data. Download our updated white paper here: Moneyball Investing: Winning the Loser’s Game.

Past performance does not guarantee future results.

The KL Allocation Fund (GAVIX) had a lower correlation to the Morningstar DM Large-Mid Cap Index than the Morningstar Tactical Allocation category average over the trailing 10-year period.

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Please consider the Fund’s investment objectives, risks, charges and expenses before investing. The prospectus or summary prospectus that contains this and other information about the Fund, is available by calling 888.998.9890 and should be read carefully.

The value of the securities held by the Fund will change due to general market and economic conditions and industry perceptions. Investments in non-US issuers may involve unique risks. Currency fluctuation, adverse political, economic or social developments could undermine the value of the Fund’s investments. The securities of mid-cap companies may be subject to more abrupt or erratic market movements and may have lower trading volumes. Many of the risks with respect to foreign investments are more pronounced for investments in issuers in developing or emerging market countries. An investment in a fund that is less diversified across countries or geographic regions is generally riskier than an investment in a more geographically diversified fund.

Portfolio composition will change due to ongoing management of the Fund. References to specific securities or sectors should not be construed as recommendations by the Fund, its Advisor or Distributor.

The Fund’s primary performance benchmark is the Morningstar Developed Markets Large-Mid Cap Index. The index is a subset of large-cap and mid-cap stocks in the Morningstar Developed Markets Index, a broad market Index representing 97% of Developed Markets equity market capitalization.

The Fund’s secondary benchmark is the Morningstar US Treasury Bond Index, which measures the performance of fixed-rate, investment-grade USD-denominated Treasury bonds with maturities greater than one year. It is market-capitalization weighted.

Market Turbulence Resulting from COVID-19. The outbreak of COVID-19 has negatively affected the worldwide economy, individual countries, individual companies and the market in general. The future impact of COVID-19 is currently unknown, and it may exacerbate other risks that apply to the Fund.

The KL Allocation Fund is distributed by IMST Distributors, LLC.

© 2022 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Morningstar Rating^TM
The Morningstar Rating^TM for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

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