HVIA Equity Fund
The HVIA Equity Fund is a U.S. large-capitalization strategy that seeks growth at a reasonable price. HVIA believes that growth companies offered at reasonable valuations when compared to industry peers and the potential for earnings growth, combined compared with appropriate risk control has the potential to outperform the market on a risk-adjusted basis.
The Fund seeks to achieve its investment objective by investing principally in a diversified portfolio of common stock of large-capitalization growth companies offer reasonable valuation when compared to their industry peers and the potential of earnings growth.
Fund StrategyThe HVIA Equity fund seeks to achieve its investment objective by investing principally in a diversified portfolio of common stock of large-capitalization growth companies that the Fund believes offer (1) reasonable valuation when compared to their industry peers and (2) the potential of earnings growth. For purposes of the Fund, the Fund defines large-capitalization companies as companies that have a market capitalization within the range represented in the S&P 500 Dow Jones Index (between $4.19 billion and $983 billion as of April 28, 2018) as the time of purchase. The size of the companies in the S&P 500 Dow Jones Index will change with market conditions.
The Fund’s investment process includes both a top-down analysis of the economic landscape and a bottom-up analysis of individual companies. Economic projections are created consisting of factors including inflation, unemployment, interest rates, and corporate earnings. The top-down analysis begins with these economic projections. Market value expectations and projected changes in government policy, technology, industries and demographics are also considered. The Fund then evaluates the relevant portfolio’s sector and industry weightings. The bottom-up analysis begins with the universe of large-capitalization common stocks, to which the Fund applies its proprietary quantitative screening process and fundamental research. Fundamental research includes detailed analysis of the competitive environments of the companies under consideration, interaction with the management of those companies, a review of multiple resources to assess the companies and their respective industries, analysis of company earnings and cash flow projections, and identification of themes that could affect company and industry trends and catalysts. The Fund continually monitors “out of favor” sectors for potential ideas.
In selecting securities for the portfolio, the Fund seeks to include the securities of companies believed to have growth potential, which are likely to exceed the overall market estimates and general consensus. In determining this, the Fund looks for certain positive attributes of companies, including superior management and business models, dominant market positions, durable competitive advantages, and strong transparent financials.
The Fund sets a target price for each security in the portfolio, which is updated periodically. When a stock reaches or exceeds its target price, the Fund’s strategy typically requires that the security be sold. The Adviser may also sell a security when it determines there is a change in the company’s risk/return characteristics, such as when events fail to confirm the investment thesis or there is a loss of confidence in management. A position may also be sold when it is believed other investment opportunities are more attractive or that the security is unlikely to benefit from current business, market or economic conditions.
Under normal circumstances, the Fund will invest at least 80% of its net assets (including the amount of any borrowings for investment purposes) in U.S. equity securities listed on a U.S. securities exchange.
As of 06/28/23
Distribution and/or Service (12b-1) Fees
Total Annual Fund Operating Expenses
Less Management Fee Reductions and/or Expense Reimbursements (2)
Total Annual Fund Operating Expenses After Fee Reductions and/or Expense Reimbursements
(1) As of the date of this Prospectus, Investor Class shares are not being offered.
(2) “Total Annual Fund Operating Expenses” and “Total Annual Fund Operating Expenses After Fee Reductions and/or Expense Reimbursements” will not correlate to the ratio of expenses to the average net assets in the Fund’s Financial Highlights, which reflect the operating expenses of the Fund and do not include acquired fund fees and expenses.”
(3) The initials “HVIA” in the Fund’s name are an initialism for Hudson Valley Investment Advisors, Inc. (the “Adviser”) which has contractually agreed, until July 1, 2024, to reduce Management Fees and reimburse Other Expenses to the extent necessary to limit Total Annual Fund Operating Expenses of each class of shares of the Fund (exclusive of brokerage costs, taxes, interest, borrowing costs such as interest and dividend expenses on securities sold short, costs to organize the Fund, Acquired Fund fees and expenses, extraordinary expenses such as litigation and merger or reorganization costs and other expenses not incurred in the ordinary course of the Fund’s business) to an amount not exceeding 1.24% and 0.99% of the average daily net assets of Investor Class and Institutional Class shares, respectively. Management Fee reductions and expense reimbursements by the Adviser are subject to repayment by the Fund for a period of three years after the date that such fees and expenses were incurred, provided that the repayments do not cause Total Annual Fund Operating Expenses (exclusive of such reductions and reimbursements) to exceed (i) the expense limitation then in effect, if any, and (ii) the expense limitation in effect at the time the expenses to be repaid were incurred. Prior to July 1, 2023, this agreement may not be modified or terminated without the approval of the Fund’s Board of Trustees (the “Board”). This agreement will terminate automatically if the Fund’s investment advisory agreement (the “Advisory Agreement”) with the Adviser is terminated.