Yorktown Small Cap Fund Class A (YOVAX)

Overview

The fund is designed for investors seeking to replicate the performance of the Russell 2000 Index, which represents small-cap U.S. listed companies. It is structured to invest a significant portion of its assets in companies fitting within the market capitalization range of this benchmark. This strategic allocation reflects an investment philosophy that emphasizes the potential growth and dynamism inherent in smaller companies. By committing at least 80% of its assets, in addition to any borrowing for investment purposes, towards small-cap entities, the fund underscores its dedication to this sector. In seeking to diversify its investment portfolio, the fund incorporates the use of American Depositary Receipts (ADRs), albeit limited to 15% of its total assets, thus providing a global exposure to its investors. The selection process for investments involves a rigorous combination of quantitative and fundamental analysis, conducted by the fund’s Investment Manager, to identify approximately 40-60 stocks that meet its discerning criteria.

Products and Services

The fund primarily offers investment in a specially curated portfolio of small-cap companies. This portfolio is built to mirror the characteristics and performance of the Russell 2000 Index. Here is a detailed look at the fund's products and services:

• U.S. Listed Securities Investment

  The core product of the fund is its investment in U.S. listed securities that fall within the small-cap category, as defined by the market capitalization parameters of the Russell 2000 Index. This approach ensures a focused yet diversified investment strategy aimed at achieving the fund's objectives.

• Use of American Depositary Receipts (ADRs)

  As part of its strategy to diversify and potentially enhance returns, the fund allows for an allocation of up to 15% of its assets in ADRs. This enables investors the opportunity to gain exposure to non-U.S. companies that may offer substantial growth prospects, within the carefully managed risk parameters of the fund.

• Quantitative and Fundamental Analysis

  The selection process involves a stringent evaluation of potential investments through quantitative analysis, complemented by a fundamental analysis approach. This dual-criteria screening is conducted by the fund's Investment Manager and is designed to identify stocks that not only pass quantitative thresholds but also exhibit solid fundamentals. This meticulous process underpins the fund's commitment to investing in high-potential small-cap companies.