CANNABIS GROWTH FUND

Providing investors access to a growing, emerging industry via a
professionally managed mutual fund

OVERVIEW

PERFORMANCE

OVERVIEW

The Cannabis Growth Fund is one of the first open-end mutual funds to invest primarily in companies related to the cannabis industry.

Strategy

The Fund plans to invest primarily in exchange listed equity securities of companies in the cannabis industry. These companies are located around the globe and engaged exclusively in legal activities under national and local laws, including U.S. federal and state law, as applicable.1,2 Many companies that the Fund seeks to hold legally participate in activities including agriculture technology, biotechnology, cultivation and retail, products and extracts, industry hemp, and ancillary products and services that complement the cannabis industry. Diversified across various subsectors to provide broad-based exposure, the Fund helps investors capitalize on the fast-growing, innovative cannabis industry.

Why Professional Management?

Today the cannabis industry is growing quickly, with a universe of over 75 small-, mid- and large-cap companies that participate in medicinal or recreational use of cannabis. As this new industry changes and expands, we believe active management has advantages over purchasing individual companies or a passive ETF. In our opinion, knowledgeable and dedicated professionals help investors mitigate inherent volatility and identify favorable growth opportunities, such as initial public offerings. The Fund also has the flexibility to use options in an attempt to enhance the Fund’s return and reduce volatility.

Asset Allocation and the Cannabis Growth Fund

The Fund is a specialty and actively managed portfolio focused on investing in the cannabis industry, providing potentially small-cap, aggressive growth exposure. When including the Fund in an overall portfolio, investors should consider their long-term objectives and goals and place the Fund appropriately within an equity portfolio.3

Why Invest in the Cannabis Industry

  • Global Legalization

    More than 22 countries covering a population of nearly 1 billion have laws that cover the legal use of medical cannabis.1 With growing legalization, the global cannabis market is anticipated to grow over $30 billion by 2022.2

  • Hemp Use

    The fibers and stalks of the plant are used in clothing, construction, body oil and lotions, plastic, and construction materials.

  • Medical Use

    Cannabis and its cannabinoids have been found helpful in treating chronic pain, glaucoma, epileptic seizures and anxiety.

  • Robust M&A Activity

    Significant consolidation and collaboration signal growth potential. In 2018, there were over 300 M&A transactions in the global cannabis industry

  • Recreational Use

    Cannabis has the potential to be used in an array of consumer products, such as beverages, energy drinks, coffee, alcohol, and other edible products.

1 The Future of Legal Cannabis: Key Developments in the Emerging Global Industry. Frontier Financial Group, Inc., February 15, 2018.

2“Worldwide Legal Cannabis Spending Hits $12.2 Billion in 2018, projected to Grow 38% to $16.9 Billion in 2019,” BDS Analytics, January 15, 2019.

Statements, estimates and forecasts are subject to significant legal, business, economic, and competitive uncertainties. There can be no assurance that such estimates and/or forecasts will be realized, and these are not indicative of future investment performance. Historical data is not indicative of future performance

1 The companies are engaged exclusively in legal activities under national and local laws, including U.S. federal and state law, as applicable. Controlled substance legislation differs between countries, which may limit the ability of cannabis industry companies to sell their products.

2 Pronouncements from the current Administration suggest the Department of Justice may take action against states to prevent them from implementing laws that authorize medical marijuana use, possession, distribution, and cultivation. This action may have a material effect on investment in companies involved in the cannabis industry.

3 Fund investments will be concentrated in an industry or group of industries, and the value of Fund shares may rise and fall more than more diversified funds.

PERFORMANCE

Cannabis Growth Fund Returns (%) as of 11/30/2020

1 Month 3 Month 1 Year SINCE INCEPTION* annualized
CANNX (Investor Class) 53.03 38.99 23.80 -24.09
CANIX (Class I) 52.79 39.03 23.03 -24.26
S&P 500 Index 10.95 3.89 17.46 18.06
Cannabis World Index 49.66 23.33 -17.26 -43.56

The inception date of the Investor Class is 2/22/19; the inception date of the Class I is 5/24/19. Performance for periods prior to August 19, 2020, reflect performance of the Institutional Class, which were re-designated as Class I shares on August 19, 2020. The performance figures for the Class I include the performance for the Investor Class for the periods prior to the start date of the Class I. The Investor Class imposes higher expenses than the Class I.

 

The performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Returns less than one year are not annualized. For the most recent month-end performance, please call 888.885.0588.

 

CANNX Gross (Net) Expense Ratio: 2.77% (1.35%). CANIX Gross (Net) Expense Ratio: 2.52% (1.10%). The Fund’s advisor has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that total annual fund operating expenses (excluding any taxes, leverage interest, brokerage commissions, dividend and interest expenses on short sales, acquired fund fees and expenses (as determined in accordance with SEC Form N-1A), expenses incurred in connection with any merger or reorganization, and extraordinary expenses such as litigation expenses) do not exceed 1.35% and 1.10% of the average daily net assets of Investor Class shares and Class I shares of the Fund, respectively. This agreement is in effect until May 31, 2020, and it may be terminated before that date only by the Trust’s Board of Trustees.

 

The S&P 500 Index: The S&P 500 Index is a market capitalization-weighted index of 500 widely held common stocks. The index does not reflect expenses, fees or sales charge, which would lower performance. The index is unmanaged.

Cannabis World Index: The Cannabis World Index measures the performance of exchange traded equity securities of companies that are engaged exclusively in legal cannabis activities under applicable national and local laws, including U.S. federal and state laws. The index does not reflect expenses, fees or sales charge, which would lower performance. The index is unmanaged.

You cannot invest directly in an index.

Daily Prices as of 9/24/2021

Class I
CANIX NAV: $18.61 | Change: $-0.44

PORTFOLIO MANAGEMENT

  • KOREY BAUER, CMT ®
    Portfolio Manager and Managing Director

    Over 9 years of experience
    MORE ABOUT US »