485BPOS 2012-05-31 false PFS Funds 0001103243 2012-09-28 <div style="display:none">~ http://xbrl.sec.gov/rr/role/ShareholderFeesData column dei_LegalEntityAxis compact fil_S000032813Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display:none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column dei_LegalEntityAxis compact fil_S000032813Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> -0.0200 <div style="display:none">~ http://xbrl.sec.gov/rr/role/RiskReturnDetailData row dei_DocumentInformationDocumentAxis compact * row dei_LegalEntityAxis compact * row rr_ProspectusShareClassAxis compact * row rr_PerformanceMeasureAxis compact * row primary compact * ~</div> 0.0100 0.0000 0.0050 0.0013 0.0163 -0.0050 0.0113 <div style="display:none">~ http://xbrl.sec.gov/rr/role/ExpenseExample column dei_LegalEntityAxis compact fil_S000032813Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display:none">~ http://xbrl.sec.gov/rr/role/ExpenseExampleNoRedemption column dei_LegalEntityAxis compact fil_S000032813Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display:none">~ http://xbrl.sec.gov/rr/role/PerformanceTableData column dei_LegalEntityAxis compact fil_S000032813Member row primary compact * ~</div> <div style="display:none">~ http://xbrl.sec.gov/rr/role/MarketIndexPerformanceData column dei_LegalEntityAxis compact fil_S000032813Member row primary compact * row rr_PerformanceMeasureAxis compact * ~</div> 115 465 839 1891 <p style="tab-stops:0in"><b><font style="font-size:10.0pt; font-family:Arial; color:black">Investment Objective</font></b><font style="font-size:10.0pt; font-family:Arial"></font></p> <p style="tab-stops:0in"><font style="font-size:10.0pt; font-family:Symbol">&#183; </font><font style="font-size:10.0pt; font-family:Arial; color:black">The HNP Growth and Preservation Fund seeks long-term capital appreciation, with a secondary</font><font style="font-size:10.0pt; font-family:Arial"> <font style="color:black">emphasis on capital preservation.</font> </font></p> <p><b><font style="font-size:10.0pt; font-family:Arial; color:black">Fees and Expenses of the Fund</font></b><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><font style="font-size:10.0pt; font-family:Arial; color:black">The following table describes the expenses and fees that you may pay if you buy and hold shares of the Fund.</font></p> <p><b><font style="font-size:10.0pt; font-family:Arial; color:black">Shareholder Fees </font></b><font style="font-size:10.0pt; font-family:Arial; color:black">(fees paid directly from your investment)</font></p> <p><b><font style="font-size:10.0pt; font-family:Arial; color:black">Annual Fund Operating Expenses </font></b><font style="font-size:10.0pt; font-family:Arial; color:black">(expenses that you pay each year as a percentage of the value of your investment)</font></p> <p><b><font style="font-size:10.0pt; font-family:Arial; color:black">Expense Example</font></b><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><font style="font-size:10.0pt; font-family:Arial; color:black">The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% annual return each year and that the Fund's operating expenses remain the same each year. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</font></p> <p><b><font style="font-size:10.0pt; font-family:Arial; color:black">Portfolio Turnover</font></b><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><font style="font-size:10.0pt; font-family:Arial; color:black">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &quot;turns over&quot; its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 240.79% of the average value of its portfolio.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><b><font style="font-size:10.0pt; font-family:Arial; color:black">The Principal Investment Strategy of the Fund</font></b><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><font style="font-size:10.0pt; font-family:Arial; color:black">The HNP Growth and Preservation Fund is a mutual fund that, under normal market conditions, invests in a group of exchange traded funds (&quot;ETFs&quot;), exchange traded notes (&quot;ETNs&quot;) and/or money market funds. The underlying ETFs generally invest in, and the underlying ETNs generally track indices related to, equity securities, fixed income securities, real estate investment trusts (&quot;REITs&quot;), and commodities. The Adviser allocates assets among these various categories based on its proprietary risk return screening model. The Adviser may also allocates assets to ETFs that hold and ETNs that track indices that are comprised of small and medium sized companies based on its proprietary risk return screening model. The Fund's investment strategy includes both growth and value style investing. The Fund may invest in ETFs that hold, and ETNs that track, foreign securities and American Depository Receipts (&quot;ADRs&quot;). The Fund may engage in short-term trading.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><font style="font-size:10.0pt; font-family:Arial; color:black">The Fund seeks long-term capital appreciation, while attempting to preserve capital by mitigating prolonged asset class depreciation. The Fund may be fully invested, partially invested or fully in cash or cash equivalents at any time. The Adviser uses a proprietary screening model to make purchase and sale decisions by confirming both short-term and long-term marketplace trends. When an asset class is in a confirmed upward trend, a buy signal is triggered. At this point the Adviser may purchase, what it believes to be, the most appropriate investment vehicle to track the asset class that is in an upward trend. When an underlying asset class is in a confirmed downward trend, a partial or full sell signal is triggered. At this point the Adviser may sell some or all of the investment vehicle held in the portfolio that it believes will continue trending downward. When the Fund is fully invested it will typically invest in ETF's that hold, and/or ETN's that track domestic equities, foreign securities, ADRs, commodities, fixed income securities and REITs. ETNs are a type of unsecured, unsubordi-nated debt security. There is no limit in which the Fund may invest in ETFs, ETNs and/or money market funds.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><font style="font-size:10.0pt; font-family:Arial; color:black">The Fund is a &quot;non-diversified&quot; portfolio, which means it can invest in fewer securities at any one time than a diversified portfolio and can invest more of its assets in securities of a single issuer than a diversified portfolio. Also, the Fund may participate in a limited number of industry sectors, but will not concentrate its investments in any particular industry.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><b><font style="font-size:10.0pt; font-family:Arial; color:black">The Principal Risks of Investing in the Fund</font></b><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><b><i><font style="font-size:10.0pt; font-family:Arial; color:black">Risks of Exchange Traded Funds. </font></i></b><font style="font-size:10.0pt; font-family:Arial; color:black">Investment in an exchange traded fund (ETF) carries security specific risk and the market risk. Also, if the area of the market representing the underlying index or benchmark does not perform as expected for any reason, the value of the investment in the ETF may decline. In addition, due to transactions via market prices rather than at net asset value, the performance of an ETF may not completely replicate the performance of the underlying index.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><b><i><font style="font-size:10.0pt; font-family:Arial; color:black">Risks of Exchange Traded Notes. </font></i></b><font style="font-size:10.0pt; font-family:Arial; color:black">ETNs combine certain aspects of bonds and ETFs. Similar to ETFs, ETNs are traded on a major exchange (e.g., NYSE) during normal trading hours. The value of the ETN may drop due to a downgrade in the issuer's credit rating, despite the underlying index remaining unchanged. ETNs are synthetic instruments in that they do not represent an interest in a basket of underlying securities, but they derive their return (or loss) from the performance of a group of securities, such as those represented in an index. Additionally, because the ETNs are issued by third parties, there is a risk that the party issuing the ETN may default.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><b><font style="font-size:10.0pt; font-family:Arial; color:black">The Fund may invest in ETFs and ETNs that carry the risks described below:</font></b><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><b><i><font style="font-size:10.0pt; font-family:Arial; color:black">Risks in General</font></i></b><font style="font-size:10.0pt; font-family:Arial; color:black">. Domestic economic growth and market conditions, interest rate levels, and political events are among the factors affecting the securities markets in which the Fund invests. There is risk that these and other factors may adversely affect the Fund's performance. You could lose money by investing in the Fund.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><b><i><font style="font-size:10.0pt; font-family:Arial; color:black">Risks of Equity Securities. </font></i></b><font style="font-size:10.0pt; font-family:Arial; color:black">Overall stock market risks may affect the value of the Fund. Factors such as domestic economic growth and market conditions, interest rate levels, and political events affect the securities markets. When the value of the Fund's investments goes down, your investment in the Fund decreases in value and you could lose money.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><b><i><font style="font-size:10.0pt; font-family:Arial; color:black">Risks of Fixed Income Securities. </font></i></b><font style="font-size:10.0pt; font-family:Arial; color:black">Fixed income securities fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities. In general, the market price of fixed income securities with longer maturities will increase or decrease more in response to changes in interest rates than the market price of shorter-term securities.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><b><i><font style="font-size:10.0pt; font-family:Arial; color:black">Real Estate Investment Trusts. </font></i></b><font style="font-size:10.0pt; font-family:Arial; color:black">REITs offer investors greater liquidity and diversification than direct ownership of properties. A REIT is a corporation or business trust that invests substantially all of its assets in interests in real estate. Like any investment in real estate, a REITs performance depends on several factors, such as its ability to find tenants, renew leases and finance property purchases and renovations. Other risks associated with REIT investments include the fact that equity and mortgage REITs are dependent upon specialized management skills and are not fully diversified. These characteristics subject REITs to the risks associated with financing a limited number of projects. They are also subject to heavy cash flow dependency, defaults by borrowers, and self-liquidation. Additionally, equity REITs may be affected by any changes in the value of the underlying property owned by the trusts, and mortgage REITs may be affected by the quality of any credit extended. By investing in REITs indirectly through a Fund, a shareholder bears not only a proportionate share of the expenses of the Fund, but also may indirectly bear similar expenses of some of the REITs in which it invests.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><b><i><font style="font-size:10.0pt; font-family:Arial; color:black">Commodity Risk. </font></i></b><font style="font-size:10.0pt; font-family:Arial; color:black">Commodity investments will subject the Fund to potentially greater volatility than traditional securities. Commodity prices are influenced by unfavorable weather, animal and plant disease, geologic and environmental factors as well as government regulation.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><b><i><font style="font-size:10.0pt; font-family:Arial; color:black">Risks of Small and Medium Sized Companies. </font></i></b><font style="font-size:10.0pt; font-family:Arial; color:black">Small and medium capitalization companies may be subject to additional risks. The earnings and prospects of these companies are more volatile than larger companies. Small and medium sized companies may experience higher failure rates than do larger companies.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><b><i><font style="font-size:10.0pt; font-family:Arial; color:black">Growth Risk. </font></i></b><font style="font-size:10.0pt; font-family:Arial; color:black">Growth companies are those that the Adviser believes will have revenue and earnings that grow faster than the economy as a whole, offering above-average prospects for capital appreciation and little or no emphasis on dividend income. If the Adviser's perceptions of a company's growth potential are wrong, the securities purchased may not perform as expected, reducing the Fund's return.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><b><i><font style="font-size:10.0pt; font-family:Arial; color:black">Value Investing Risk. </font></i></b><font style="font-size:10.0pt; font-family:Arial; color:black">Value investing attempts to identify companies selling at a discount to their intrinsic value. Value investing is subject to the risk that a company's intrinsic value may never be fully realized by the market or that a company judged by the Adviser to be undervalued may actually be appropriately priced.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><b><i><font style="font-size:10.0pt; font-family:Arial; color:black">Foreign Risk. </font></i></b><font style="font-size:10.0pt; font-family:Arial; color:black">Foreign securities and American Depository Receipts (&quot;ADRs&quot;) have risks not usually associated with securities of U.S. issuers. These risks can include fluctuations in foreign currencies, foreign currency exchange controls, political and economic instability, differences in financial reporting, differences in securities regulation and trading, and taxation issues.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><b><i><font style="font-size:10.0pt; font-family:Arial; color:black">Portfolio Turnover. </font></i></b><font style="font-size:10.0pt; font-family:Arial; color:black">The Fund may engage in short-term trading to try to achieve its objective and may have portfolio turnover rates significantly in excess of 100%. Increased portfolio turnover may cause the Fund to incur higher brokerage costs, which may adversely affect the Fund's performance, and may produce increased taxable distributions.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><b><i><font style="font-size:10.0pt; font-family:Arial; color:black">Risk of Non-Diversification. </font></i></b><font style="font-size:10.0pt; font-family:Arial; color:black">The Fund is a non-diversified portfolio, which means that it has the ability to take larger positions in a smaller number of securities than a portfolio that is &quot;diversified.&#8221; Non-diversification increases the risk that the value of the Fund could go down because of the poor performance of a single investment.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><b><i><font style="font-size:10.0pt; font-family:Arial; color:black">Sector Risk. </font></i></b><font style="font-size:10.0pt; font-family:Arial; color:black">Sector risk is the possibility that all stocks within the same group of industries will decline in price due to sector-specific market or economic developments. The Fund may be overweight in certain sectors at various times.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><b><font style="font-size:10.0pt; font-family:Arial; color:black">Performance History</font></b><font style="font-size:10.0pt; font-family:Arial"></font></p> <p><font style="font-size:10.0pt; font-family:Arial; color:black">Although past performance of a fund is no guarantee of how it will perform in the future, historical performance may give you some indication of the risk of investing in the Fund because it demonstrates how its returns have varied over time. There is no performance information for the Fund since the Fund has not completed one full calendar year of operation as of the date of this prospectus.</font><font style="font-size:10.0pt; font-family:Arial"></font></p> 2.4079 <font style="font-size:10.0pt; font-family:Arial; color:black">You could lose money by investing in the Fund.</font> <font style="font-size:10.0pt; font-family:Arial; color:black">Although past performance of a fund is no guarantee of how it will perform in the future, historical performance may give you some indication of the risk of investing in the Fund because it demonstrates how its returns have varied over time.</font> 2012-09-27 2012-09-28 0001103243 2012-09-28 2012-09-28 0001103243 fil:S000032813Member 2012-09-28 2012-09-28 0001103243 fil:S000032813Memberfil:C000101276Member 2012-09-28 2012-09-28 pure iso4217:USD Under the Services Agreement the Adviser receives an additional fee of 0.50% and is obligated to pay the operating expenses of the Fund excluding management fees, brokerage fees and commissions, 12b-1 fees, taxes, borrowing costs (such as (a) interest and (b) dividend expenses on securities sold short), the cost of acquired funds and extraordinary expenses. Effective February 16, 2012 the Adviser has contractually agreed to waive Services Agreement fees by 0.50% of its average daily net assets through September 30, 2013. The Services Agreement fee waiver will automatically terminate on September 30, 2013 unless it is renewed. The Adviser may not terminate the fee waiver before September 30, 2013.