Overall Morningstar Rating
Overall rating out of 1,082 Large Value category funds as of 05/31/2017

Learn more about the Morningstar rating.

Fund Facts

Inception Date 6/13/2002
Geo Avg Mkt Cap $67,057MM
No. of Holdings 56
Turnover Ratio 14%
Net Assets $42.3MM
Gross Annual
Operating Exp
0.96%
Portfolio Mgr Steven Scruggs
Tenure 13.0 years
As of 03/31/2017

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Top Ten Holdings

General Dynamics Corp. 3.54%
American Express Co. 3.37%
Eaton Corp. PLC 3.16%
Microsoft Corp. 3.04%
AT&T, Inc. 2.95%
Anthem, Inc. 2.86%
Ameriprise Financial, Inc. 2.76%
Oracle Corp. 2.64%
Hewlett Packard Enterprise Co. 2.60%
LyondellBasell Industries NV, Class A 2.59%
As of 03/31/2017

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Sector Allocation

Financial Services 19.9%
Technology 19.6%
Industrials 16.2%
Healthcare 11.6%
Consumer Defensive 10.8%
Consumer Cyclical 8.8%
Utilities 5.0%
Communication Services 4.4%
Basic Materials 2.8%
Energy 1.0%
Real Estate 0.0%
As of 03/31/2017

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Queens Road Value Fund

Approach

The Queens Road Value Fund (QRVLX) uses fundamental, bottom-up analysis to construct a diversified portfolio of companies typically with market capitalizations greater than $2 billion. Our thorough research process is built on the principles established by Benjamin Graham to identify companies that are trading at a discount to their intrinsic value.

Process

As we seek to identify attractive companies that can be purchased with a margin of safety, our four-step process considers the following:
  1. balance sheet & cash flow
  2. normalized operating earnings
  3. management
  4. industry

People

Steven H. Scruggs, CFA has served as Portfolio Manager since inception in 2002. The Queens Road Value Fund is managed by Bragg Financial Advisors, a boutique RIA firm located in Charlotte, North Carolina. The principals of the firm are significant shareholders of the Queens Road Funds.

Performance Summary: March 31, 2017

Queens Road Value Fund

YTD 12
Months
Avg.
Annual
3-Year
Return*
Avg.
Annual
5-Year
Return*
Avg.
Annual
10-Year
Return*
Since
Inception*
Lifetime
Cumulative
Queens Road Value Fund 6.96% 17.13% 8.38% 11.48% 5.69% 7.88% 207.29%
S&P 500/Citi Value Index 3.29% 18.65% 8.87% 12.66% 5.70% 7.71% 200.11%
Performance as of March 31, 2017; gross annual operating expenses 0.96%
*Performance annualized since June 2002 inception

Important Performance and Expense Information
All performance information reflects past performance, is presented on a total return basis and reflects the reinvestment of distributions. Past performance is no guarantee of future results. Current performance may be higher or lower than performance quoted. Returns as of the recent month-end may be obtained by calling (888) 353‑0261.

Investment return and principal value will fluctuate, so that shares may be worth more or less than their original cost when redeemed. There can be no assurance that the fund will meet any of its objectives.

From inception to 12/31/2004 the Fund's manager and its affiliates voluntarily absorbed certain expenses of the fund and voluntarily waived its management fee. Had the Fund's manager not done this, returns would have been lower. The Fund's manager and its affiliates do not intend to absorb any expenses or waive its management fee in the future.

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Calendar Year Total Returns

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
QRVLX 30.17 11.49 5.83 16.31 3.53 -33.13 21.47 7.21 5.07 9.47 31.33 9.41 -3.74 13.80
S&P 500/Citi Value Index 31.79 15.71 5.82 20.80 1.99 -39.22 21.18 15.10 -0.48 17.68 31.99 12.36 -3.13 17.40

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Down Market Performance

The S&P 500 Citi Value Index recorded ten down-market quarters since Q3 2008. The chart below compares the performance of the Queens Road Value Fund to the S&P 500 Citi Value Index in those ten down-market quarters.
QRVLX down market comparison

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Morningstar Rating
© 2016 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (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.

For each fund with at least a three-year history, Morningstar calculates a Morningstar RatingTM based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each 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. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar RatingTM for a fund is derived from a weighted average of the performance figures associated with its three-,five- and 10-year (if applicable) Morningstar Rating metrics.

The Queens Road Value fund was rated against the following numbers of U.S.-domiciled insert name of Large Value category funds over the following time periods: 1,082 funds in the last three years, 935 funds in the last five years, and 677 funds in the last 10 years. With respect to these Large Value category funds, the Queens Road Value fund received a Morningstar Rating of 4-stars, 3-stars, and 4-stars for the three-, five- and 10-year periods, respectively. Past performance is no guarantee of future results.