Davidson Small/Mid Equity Fund

Objectives

The Davidson Small/Mid Equity Fund (the "Fund") seeks long-term capital appreciation by investing in high quality companies with small to medium market capitalizations.

Strategies

The Fund normally invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of companies with small to medium market capitalizations. The Fund invests in small to medium market capitalization companies with attractive fundamental characteristics, including conservative balance sheets, strong returns on invested capital, stable or improving profit margins, ample cash flow, and long-term sales growth potential. The Fund seeks to achieve its investment objective primarily through stock selection, with less emphasis on sector weightings. Under current market conditions, the Advisor defines small and medium-sized companies by reference to those companies within the market capitalization range of the Russell 2500™ Index. As of September 30, 2013, that capitalization range was was $42.4 million to $10.1 billion and it is expected to change frequently. Investments in companies that grow above these maximum capitalization criteria may continue to be held if the Advisor believes they remain attractive.

Focus

Seeks quality small- to medium-sized businesses with conservative balance sheets, attractive margins and growth potential.

Position

Less market efficiency among undiscovered companies in the small/mid segment of the market can create opportunity.

Horizon

Managers look to capitalize on "time horizon arbitrage," forecasting growth and operating leverage beyond current Wall Street estimates that may not be currently recognized by the market.

Flexibility

Unconstrained by style classifications, managers have the ability to invest where they view the greatest opportunities in the market.

Performance as of June 30, 2014

Class A
Fund Without Load Fund With Load Russell 2500 Index
3 Months 3.31% -1.83% 3.57%
YTD 3.03% -2.14% 5.95%
1 Year 19.73% 13.76% 25.58%
3 Year N/A N/A N/A
Since Inception*
06/29/2012
13.62% 10.74% 25.56%

Performance data shown for class A reflects a 5.00% sales load.
Gross Expense Ratio: 8.73% Net Expense Ratio:^ 1.41%
^The Advisor has contractually agreed to reduce its fees and/or pay Fund expenses in order to limit Expenses through 10/27/2014.

Class C
Fund Without Load Fund With Load Russell 2500 Index
3 Months 3.13% 2.13% 3.57%
YTD 2.67% 1.67% 5.95%
1 Year 18.87% 17.87% 25.58%
3 Year N/A N/A N/A
Since Inception*
06/29/2012
12.75% 12.75% 25.56%

Performance data shown for class C reflects a 1.00% CDSC.
Gross Expense Ratio: 9.29% Net Expense Ratio:^ 2.16%
^The Advisor has contractually agreed to reduce its fees and/or pay Fund expenses in order to limit Expenses through 10/27/2014.

Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 877-332-0529. Performance data shown does not reflect the 1.00% redemption fee imposed by the funds on shares held 7 calendar days or less. If it had, total return would be reduced.

Investment performance reflects fee waivers. In the absence of such waivers, total returns would be reduced.

The Russell 2500™ Index measures the performance of the small to mid-cap segment of the U.S. equity universe. You can not invest directly in an index.

*Average Annualized Total Returns

Top 10 Holdings

Top 10 Holdings
Holding % of Portfolio
RealPage, Inc 4.88%
Select Comfort Corp 4.06%
Terreno Realty Corp 3.63%
Camden Property Trust 3.61%
U.S. Physical Therapy, Inc 3.61%
Cobiz Financial, Inc 3.40%
Airgas, Inc 3.38%
Whiting Petroleum Corp 3.30%
MICRO Systems, Inc 3.27%
Superior Energy Services, Inc 3.13%

Fund holdings as of June 30, 2014.

Fund holdings are subject to change and are not recommendations to buy or sell any security.

Sector Weightings

Sector Weightings
Sector % of Portfolio
Information Technology 23.59%
Financials 21.99%
Consumer Discretionary 17.04%
Industrials 10.89%
Health Care 9.86%
Energy 6.41%
Short-Term Investments 4.31%
Materials 3.37%
Consumer Staples 2.72%

Sector Weightings as of June 30, 2014.

Sector allocations are subject to change at any time.

Management

Fund Management

Davidson Investment Advisors, serving the investment management needs of institutions, foundations, corporations, affluent investors, and trusts for more than 37 years, has a reputation for having a disciplined investment approach away from the noise of Wall Street.

Portfolio Management

The Advisor's firm uses a team approach to investments. Of the nine investment team members, Tom Rath and Mike Kubas are principally responsible for the management of the Fund's portfolio and serve as co-portfolio managers of the Fund.

Thomas E. Rath, CFA
  • 31 years of investment experience
  • MBA/BS—University of Washington
Michael P. Kubas, CFA
  • 13 years of investment experience
  • MBA—University of Minnesota
  • BS—Montana State University
Fund Details
CLASS A
Ticker: DFSAX
CUSIP: 00768D236
Inception Date: 06/29/2012
Net Expense Ratio: 1.41%
CLASS C
Ticker: DFSOX
CUSIP: 00768D228
Inception Date: 06/29/2012
Net Expense Ratio: 2.16%
Fund Facts
Minimum Investment: $2,500
Subsequent Investment: $100
Distribution Frequency: Annually
Total Net Assets: $4.6 million
as of 06/30/2014
Number of Holdings: 41
as of 06/30/2014
Fund Downloads

Headquarters: Great Falls, MT
Toll-free: 1-877-332-0529
Founded: 1975
Assets Under Management:
$1.1 billion