0001199046 ust14:S000002757Member 2012-01-29 2013-01-28 0001199046 ust14:S000002756Member 2012-01-29 2013-01-28 0001199046 ust14:S000002756Member ust14:C000007552Member 2012-01-29 2013-01-28 0001199046 2012-01-29 2013-01-28 0001199046 ust14:S000002757Member ust14:C000007553Member 2012-01-29 2013-01-28 0001199046 ust14:S000002757Member rr:AfterTaxesOnDistributionsMember ust14:C000007553Member 2012-01-29 2013-01-28 0001199046 ust14:S000002757Member rr:AfterTaxesOnDistributionsAndSalesMember ust14:C000007553Member 2012-01-29 2013-01-28 0001199046 ust14:S000002757Member ust14:SandpFiveHundredIndexMember 2012-01-29 2013-01-28 0001199046 ust14:S000002756Member rr:AfterTaxesOnDistributionsMember ust14:C000007552Member 2012-01-29 2013-01-28 0001199046 ust14:S000002756Member rr:AfterTaxesOnDistributionsAndSalesMember ust14:C000007552Member 2012-01-29 2013-01-28 0001199046 ust14:S000002756Member ust14:BarclaysCapitalUsIntermediateGovernmentCreditBondIndexMember 2012-01-29 2013-01-28 pure iso4217:USD <div style="display:none">~ http://www.fciadvisors.com/role/ScheduleAnnualFundOperatingExpensesFCIVALUEEQUITYFUND column period compact * ~</div> <div style="display:none">~ http://www.fciadvisors.com/role/ScheduleExpenseExampleTransposedFCIVALUEEQUITYFUND column period compact * ~</div> <div style="display:none">~ http://www.fciadvisors.com/role/ScheduleAverageAnnualTotalReturnsTransposedFCIVALUEEQUITYFUND column period compact * ~</div> <a name="tx462644_12"></a>Investment Objective 0 0.0011 -0.0008 361 649 1471 2013-01-28 485BPOS 2012-09-30 UNIFIED SERIES TRUST 0001199046 false 2013-01-28 2013-01-28 -0.01 0.006 0 0.0143 0.0001 0.0204 -0.0103 0.0101 The investment objective of the FCI Bond Fund (the “Fund”) is total return, comprised of both income and capital appreciation. <a name="tx462644_13"></a>Fees and Expenses of the Fund This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Portfolio Turnover The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate 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 operating expenses or in the Example, above, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 65.56% of the average value of its portfolio. <a name="tx462644_14"></a>Principal Investment Strategies 103 592 <a name="tx462644_15"></a>Principal Risks 1108 2526 <a name="tx462644_16"></a>Performance The bar chart below shows how the Fund’s investment results have varied from year to year. The table below shows how the Fund’s average annual total returns compare over time to those of a broad-based securities market index. This information provides some indication of the risks of investing in the Fund. Past performance of the Fund is no guarantee of how it will perform in the future. 93 0.0786 Expense Example: 0.1606 -0.3523 0.1936 0.004 0.0048 0.0099 0.0091 0.1233 -0.0006 0.0783 -0.01 0.0783 0.0505 0.0795 0.16 -0.0131 -0.0193 -0.0119 0.0166 0.0262 0.0194 0.0211 0.0444 <div style="display:none">~ http://www.fciadvisors.com/role/ScheduleShareholderFeesFCIBONDFUND column period compact * ~</div> 2005-10-05 2005-10-05 2005-10-05 2005-10-05 <div style="display:none">~ http://www.fciadvisors.com/role/ScheduleAnnualTotalReturnsFCIVALUEEQUITYFUNDBarChart column period compact * ~</div> SUMMARY SECTION – FCI VALUE EQUITY FUND Investment Objective The investment objective of the FCI Value Equity Fund (the “Fund”) is income and long-term capital appreciation. <a name="tx462644_11"></a>SUMMARY SECTION – FCI BOND FUND Shareholder Fees (fees paid directly from your investment) Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Fees and Expenses of the Fund This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Shareholder Fees (fees paid directly from your investment) Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Expense Example: This 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% return each year, that all dividends and capital gain distributions are reinvested, and that the Fund’s operating expenses remain the same. Only the 1 year number shown below reflects the Advisor’s agreement to waive fees and/or reimburse Fund expenses. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Portfolio Turnover The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate 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 operating expenses or in the Example, above, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 43.68% of the average value of its portfolio. Principal Investment Strategies Using a proprietary security selection process employed by Financial Counselors, Inc., the Fund’s investment advisor (the “Advisor”), the Fund invests primarily in a diversified portfolio of equity securities that the Advisor believes are undervalued by the market. The Advisor makes this determination primarily based on an analysis of a security’s trading price as a multiple of its cash flow. The Fund invests in companies that the Advisor believes exhibit consistency in balance sheet strength, revenues, and cash flow. Relying on a team of portfolio managers and equity analysts, the Advisor uses macroeconomic, industry-specific research and stock-specific research to identify investment opportunities for the Fund. Generally, each sector represented in the S&P 500 Index will be represented in the Fund’s portfolio. The Fund may at times significantly overweight or underweight specific sectors based on the Advisor’s research. The Fund may invest in securities regardless of market capitalization, which means that the Fund’s portfolio will at times include small- and mid-capitalization securities. The Fund’s investment strategy may result in a high portfolio turnover rate. Under normal circumstances, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities. The Fund may meet this objective by directly investing in equity securities, or by investing in other investment companies, including exchange-traded funds (“ETFs”), that invest primarily in equity securities. Equity securities in which the Fund may invest primarily include common stocks, securities convertible into common stocks and securities having common stock characteristics, derivative instruments, that have a value based on equity securities (such as rights, warrants or options to purchase common stocks, preferred stocks, and depositary receipts), as well as shares of other investment companies and ETFs that invest primarily in equity securities. The Fund may invest up to 25% of its assets in foreign companies operating in developed or undeveloped countries by investing in ETFs that invest primarily in equity securities of foreign companies, or by investing in American Depositary Receipts (“ADRs”) traded on U.S. stock exchanges that represent shares of a foreign company. The Fund’s equity investments may generate some dividend income, as many of the larger companies in which the Fund typically invests pay dividends. Such dividends may generate taxable income for investors. Pending selection of suitable investments the Fund may invest in money market mutual funds and investment grade, short-term money market instruments, including U.S. Government and agency securities, commercial paper, certificates of deposit, repurchase agreements and other cash equivalents. The Fund intends to use derivative instruments for hedging, managing risk or income enhancement. Derivative instruments in which the Fund may invest include options and futures contracts. For example, options may be used to hedge or adjust exposure to a security or market. In an effort to enhance income, the Fund may write a covered call option, in which the Fund holds a long position in a security combined with a short position in a call option on the same underlying security. Principal Risks All investments involve risks, and the Fund cannot guarantee that it will achieve its investment objective. An investment in the Fund is not insured or guaranteed by any government agency. As with any mutual fund investment, the Fund’s returns and share price will fluctuate, and you may lose money by investing in the Fund. Below are some of the specific risks of investing in the Fund. <blockquote><ul type="square"><li style="margin-left:-20px"><blockquote> Market Risk. The prices of securities held by the Fund may decline in response to certain events taking place around the world, including those directly involving the companies whose securities are owned by the Fund; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate and commodity price fluctuations.</blockquote></li></ul></blockquote><blockquote><ul type="square"><li style="margin-left:-20px"><blockquote> Value Risk. A company may be undervalued due to market or economic conditions, temporary earnings declines, unfavorable developments affecting the company and other factors, or because it is associated with a market sector that generally is out of favor with investors. Undervalued stocks tend to be inexpensive relative to their earnings or assets compared to other types of stock. However, these stocks can continue to be inexpensive for long periods of time and may not realize their full economic value.</blockquote></li></ul></blockquote><blockquote><ul type="square"><li style="margin-left:-20px"><blockquote> Management Risk. The Advisor’s value-oriented approach may fail to produce the intended results. If the Advisor’s perception of the value of a company is not realized in the expected time frame, the Fund’s overall performance may suffer.</blockquote></li></ul></blockquote><blockquote><ul type="square"><li style="margin-left:-20px"><blockquote> Industry or Sector Risk. Although the Advisor does not expect to concentrate the Fund’s investments in any particular industry or sector, the Fund may allocate more of the Fund’s investments to particular segments of the market. For example, the Fund, from time to time, may have over-weighted positions in particular sectors. A particular industry or market sector can be more volatile or underperform relative to the market as a whole. To the extent that the Fund has over-weighted holdings within a particular industry or sector, the Fund is subject to an increased risk that its investments in that particular industry or sector may decline because of changing expectations for the performance of that industry or sector.</blockquote></li></ul></blockquote><blockquote><ul type="square"><li style="margin-left:-20px"><blockquote> Small/Mid Cap Risk. Stocks of mid- and small-cap companies are more risky than stocks of larger companies. Many of these companies are young and have a limited track record. Their securities may trade less frequently and in more limited volume than those of more mature companies. Mid- and/or small-cap companies also may lack the managerial, financial or other resources necessary to implement their business plans or succeed in the face of competition. The prospects for a company or its industry may deteriorate because of a variety of factors, including disappointing operating results or changes in the competitive environment.</blockquote></li></ul></blockquote><blockquote><ul type="square"><li style="margin-left:-20px"><blockquote> Company Specific Risk. Common stock prices are subject to market, economic and business risks that will cause their prices to fluctuate over time. The value of individual stocks may decrease in response to company financial prospects or changing expectations for the performance of the company. While common stocks have historically been a leading choice of long-term investors, stock prices may decline over short or even extended periods.</blockquote></li></ul></blockquote><blockquote><ul type="square"><li style="margin-left:-20px"><blockquote> Foreign Risk. Investing in foreign companies (whether directly or through ADRs or ETFs) may involve more risks than investing in U.S. companies. These risks can increase the potential for losses in the Fund and may include, among others, currency risks (fluctuations in currency exchange rates), country risks (political, diplomatic, regional conflicts, terrorism, war, social and economic instability, currency devaluations and policies that have the effect of limiting or restricting foreign investment or the movement of assets), different trading practices, less government supervision, less publicly available information, limited trading markets and greater volatility. ADRs do not eliminate all of the risks associated with direct investments in the securities of foreign issuers. The risks of foreign investing are of greater concern in the case of investments in companies located in emerging markets, which may exhibit greater price volatility and have less liquidity.</blockquote></li></ul></blockquote><blockquote><ul type="square"><li style="margin-left:-20px"><blockquote> Investment Company Securities Risk. When the Fund invests in another investment company (including ETFs), it will indirectly bear its proportionate share of any fees and expenses payable directly by the other investment company. Therefore, the Fund will incur higher expenses, many of which may be duplicative. In addition, the Fund may be affected by losses of the underlying funds and the level of risk arising from the investment practices of the underlying funds (such as the use of leverage by the funds). The Fund has no control over the risks taken by the underlying funds in which it invests.</blockquote></li></ul></blockquote><blockquote><ul type="square"><li style="margin-left:-20px"><blockquote> ETF Risk. In addition to risks generally associated with investments in investment company securities, ETFs are subject to the following risks that do not apply to non-exchange traded funds: (i) an ETF’s shares may trade at a market price that is above or below their net asset value; (ii) an active trading market for an ETF’s shares may not develop or be maintained; (iii) the ETF may employ an investment strategy that utilizes high leverage ratios; or (iv) trading of an ETF’s shares may be halted if the listing exchange’s officials deem such action appropriate, the shares are de-listed from the exchange, or the activation of market-wide “circuit breakers” (which are tied to large decreases in stock prices) halts stock trading generally.</blockquote></li></ul></blockquote><blockquote><ul type="square"><li style="margin-left:-20px"><blockquote> Derivatives Risk. The use of derivatives may not always be a successful strategy and using them could lower the Fund’s return. A small investment in derivatives could have a potentially large impact on the Fund’s performance; certain gains or losses could be amplified, increasing movements in the share price of the Fund. When writing put and call options, the Fund is exposed to declines in the value of the underlying asset against which the option was written. To the extent required, the Fund will cover the financial exposure created by writing put and call options either by purchasing or selling offsetting options or futures or designating liquid assets to cover such financial exposure. When purchasing options, the Fund is exposed to the potential loss of the option purchase price.</blockquote></li></ul></blockquote><blockquote><ul type="square"><li style="margin-left:-20px"><blockquote> Portfolio Turnover Risk. The Fund’s investment strategy typically results in a high portfolio turnover rate. High portfolio turnover results in correspondingly greater brokerage commission expenses and may result in the distribution to shareholders of additional capital gains for tax purposes. These factors may negatively affect the Fund’s performance. </blockquote></li></ul></blockquote> Performance The bar chart below shows how the Fund’s investment results have varied from year to year. The table below shows how the Fund’s average annual total returns compare over time to those of a broad-based securities market index. This information provides some indication of the risks of investing in the Fund. Past performance of the Fund is not necessarily an indication of how it will perform in the future. Prior to November 7, 2011 the Fund was known as the FCI Equity Fund and followed an equity growth investment strategy. The Fund’s current equity value strategy would have produced different results during the time periods shown below. Highest/Lowest quarterly results during this time period were: <table cellspacing="0" cellpadding="0" width="68%" border="0" ><tr><td valign="top" nowrap="nowrap">Best Quarter:</td><td valign="bottom">  </td><td nowrap="nowrap" valign="bottom"> </td><td nowrap="nowrap" valign="bottom" align="right">2nd Quarter, 2009, 12.50</td><td nowrap="nowrap" valign="bottom">% </td></tr><tr><td valign="top" nowrap="nowrap">Worst Quarter:</td><td valign="bottom">  </td><td nowrap="nowrap" valign="bottom"> </td><td nowrap="nowrap" valign="bottom" align="right">4th Quarter, 2008, -20.95</td><td nowrap="nowrap" valign="bottom">% </td></tr></table> AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2012) After-tax returns are calculated using the historical highest individual federal income tax rates in effect and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or IRAs. The index returns presented below assume reinvestment of all distributions and exclude the effect of taxes and fees (if expenses and taxes were deducted, the actual returns of the Index would be lower). Current performance of the Fund may be lower or higher than the performance quoted above. Performance data current to the most recent month end may be obtained by calling (877) 627-8504. FCI Value Equity Fund Total Return as of December 31st January 31, 2014 0.4368 As with any mutual fund investment, the Fund’s returns and share price will fluctuate, and you may lose money by investing in the Fund. An investment in the Fund is not insured or guaranteed by any government agency. The bar chart below shows how the Fund’s investment results have varied from year to year. The table below shows how the Fund’s average annual total returns compare over time to those of a broad-based securities market index. (877) 627-8504 Past performance of the Fund is not necessarily an indication of how it will perform in the future. After-tax returns are calculated using the historical highest individual federal income tax rates in effect and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or IRAs. Best Quarter: 2009-06-30 0.125 Worst Quarter: 2008-12-31 -0.2095 0.6556 0.0334 0.0644 0.0297 0.0842 0.0608 0.0319 0.068 <div style="display:none">~ http://www.fciadvisors.com/role/ScheduleShareholderFeesFCIVALUEEQUITYFUND column period compact * ~</div> FCI Bond Fund Total Return as of December 31st 0.068 0.0544 0.0457 0.0547 0.0401 0.0388 0.0521 0.0378 0.0366 All investments involve risks, and the Fund cannot guarantee that it will achieve its investment objective. An investment in the Fund is not insured or guaranteed by any government agency. As with any mutual fund investment, the Fund’s returns and share price will fluctuate, and you may lose money by investing in the Fund. Below are some of the specific risks of investing in the Fund. <blockquote><ul type="square"><li style="margin-left:-20px">Management Risk. The strategy used by the Advisor may fail to produce the intended results and may lose money.</li></ul></blockquote> <blockquote><ul type="square"><li style="margin-left:-20px">Fixed Income Securities Risks.</li></ul></blockquote> <ul type="square"><li style="margin-left:50px"><blockquote>Interest Rate Risk. The market value of fixed income securities in which the Fund invests and, thus, the Fund’s net asset value, can be expected to vary inversely with changes in interest rates. Debt securities with longer maturities are subject to potentially greater price fluctuation than obligations with shorter maturities. Fluctuations in the market value of fixed income securities subsequent to their acquisition will not affect cash income from such securities but will be reflected in the Fund’s net asset value.</blockquote></li></ul> <ul type="square"><li style="margin-left:50px"><blockquote> Duration Risk. Prices of fixed income securities with longer effective maturities are more sensitive to interest rate changes than those with shorter effective maturities.</blockquote></li></ul><ul type="square"><li style="margin-left:50px"><blockquote>Credit Risk. The issuer of the fixed income security may not be able to make interest and principal payments when due, and the issuer may not be able to make dividend payments when due. Generally, the lower the credit rating of a security, the greater the risk that the issuer will default on its obligation.</blockquote></li></ul> <ul type="square"><li style="margin-left:50px"><blockquote>High Yield Risk. The Fund may invest a portion of its assets in lower-rated, high-yielding bonds (commonly known as “junk bonds”). These bonds have a greater degree of default risk than higher-rated bonds. Default risk is the possibility that the issuer of a debt security will fail to make timely payments of principal or interest to the Fund.</blockquote></li></ul> <ul type="square"><li style="margin-left:50px"><blockquote>Prepayment and Extension Risk. As interest rates decline, the issuers of fixed income securities may prepay principal earlier than scheduled, forcing the Fund (or an underlying fund) to reinvest in lower yielding securities. As interest rates increase, slower than expected principal payments may extend the average life of fixed income securities, locking in below-market interest rates and reducing the value of these securities. There is a greater risk that the Fund will lose money due to prepayment and extension risks when the Fund invests in mortgage-backed and asset-backed securities.</blockquote></li></ul> <ul type="square"><li style="margin-left:50px"><blockquote>Government Securities Risk. It is possible that the U.S. Government would not provide financial support to its agencies or instrumentalities if it is not required to do so by law. If a U.S. Government agency or instrumentality in which the Fund invests defaults, and the U.S. Government does not stand behind the obligation, the Fund’s share price or yield could fall. Securities of certain U.S. Government sponsored entities, such as Freddie Mac or Fannie Mae, are neither issued nor guaranteed by the U.S. Government. The U.S. Government’s guarantee of ultimate payment of principal and timely payment of interest of any U.S. Government securities owned by the Fund does not imply that the Fund’s shares are guaranteed or that the price of the Fund’s shares will not fluctuate.</blockquote></li></ul> <ul type="square"><li style="margin-left:50px"><blockquote>Mortgage-Related and Other Asset-Backed Securities Risk. Mortgage-related securities include pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, mortgage dollar rolls, CMO residuals, stripped mortgage-backed securities and other securities that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property. The value of some mortgage- or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Fund to a lower rate of return upon reinvestment of principal. When interest rates rise, the value of a mortgage-related security generally will decline; however, when interest rates are declining, the value of mortgage-related securities with prepayment features may not increase as much as other fixed income securities. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Mortgage-backed securities (“MBS”) may also posses credit risk. Because the assets providing cash flows to a MBS are comprised of home mortgage loans, the holders of MBS are subject to default and delinquency risks. If mortgage borrowers are delinquent or default on their payments, the holders of MBS may not realize full repayment of their investment or may experience delays in the repayment of their investment. The credit risk of MBS depends, in part, on the likelihood of the borrower paying the promised cash flows of principal and interest on time. The credit risk of a specific MBS may be influenced by a variety of factors including: (i) the mortgage borrower’s lessened ability or willingness to repay in light of changed circumstances such as a job loss; (ii) the borrower’s ability or willingness to make higher mortgage payments which may result from floating-rate interest resets; (iii) declines in the value of the property which serves as collateral for the mortgage loan; (iv) seniority or priority of the specific MBS relative to other claims on the cash flow from the pool of mortgage loans.</blockquote></li></ul> <ul type="square"><li style="margin-left:50px"><blockquote>Prepayment Risk. Certain types of asset-backed securities, such as MBS, have yield and maturity characteristics corresponding to underlying assets. Unlike traditional debt securities, which may pay a fixed rate of interest until maturity when the entire principal amount comes due, payments on certain mortgage-backed securities include both interest and a partial payment of principal. Besides the scheduled repayment of principal, payments of principal may result from voluntary prepayment, refinancing, or foreclosure of the underlying mortgage loans.</blockquote></li></ul> <blockquote><ul type="square"><li style="margin-left:-20px">Foreign Risk. Investing in foreign companies (whether directly or through ADRs or investment companies) may involve more risks than investing in U.S. companies. These risks can increase the potential for losses in the Fund and may include, among others, currency risks (fluctuations in currency exchange rates), country risks (political, diplomatic, regional conflicts, terrorism, war, social and economic instability, currency devaluations and policies that have the effect of limiting or restricting foreign investment or the movement of assets), different trading practices, less government supervision, less publicly available information, limited trading markets and greater volatility. ADRs do not eliminate all of the risks associated with direct investment in the securities of foreign issuers.</li></ul></blockquote> <blockquote><ul type="square"><li style="margin-left:-20px">Derivatives Risk. The Fund is subject to credit risk on the amount it expects to receive from counterparties in privately negotiated derivatives contracts. For example, if a swap counterparty defaults on its payment obligations to the Fund, this default will cause the value of your investment in the Fund to decrease. Additionally, if a derivative instrument is used for hedging purposes, there is a risk that the correlation between the derivative and the investment being hedged will not be assessed correctly which could lead to the Fund being exposed to more risk. Derivatives may be illiquid and the market for derivatives is largely unregulated. The use of derivatives may not always be a successful strategy and using them could lower the Fund’s return.</li></ul></blockquote> <blockquote><ul type="square"><li style="margin-left:-20px">Investment Company Securities Risk. When the Fund invests in other investment companies (including ETFs, mutual funds, closed-end funds or money market funds) your cost of investing in the Fund may be higher than the cost of investing in a mutual fund that invests directly in fixed income securities. You will indirectly bear any fees and expenses charged by the underlying funds in addition to the Fund’s direct fees and expenses. Therefore, the Fund could incur higher expenses, many of which may be duplicative. In addition, the Fund may be affected by losses of the underlying funds and the level of risk arising from the investment practices of the underlying funds (such as the use of leverage by the funds). The Fund has no control over the risks taken by the underlying funds in which it invests. At times, underlying funds in which the Fund invests may limit the Fund’s ability to redeem out of the investment and, as a result, such investments may be deemed illiquid.</li></ul></blockquote> <blockquote><ul type="square"><li style="margin-left:-20px">Sector Risk. Although the Advisor does not expect to concentrate the Fund’s investments in any particular sector, the Fund may allocate more of the Fund’s investments to particular segments of the market. For example, the Fund, from time to time, may have over-weighted positions in particular sectors. A particular market sector can be more volatile or underperform relative to the market as a whole. To the extent that the Fund has over-weighted holdings within a particular sector, the Fund is subject to an increased risk that its investments in that particular sector may decline because of changing expectations for the performance of that sector.</li></ul></blockquote><blockquote><ul type="square"><li style="margin-left:-20px">ETF Risk. In addition to risks generally associated with investments in investment company securities, ETFs are subject to the following additional risks: (i) an ETF’s shares may trade at a market price that is above or below their net asset value; (ii) an active trading market for an ETF’s shares may not develop or be maintained; (iii) the ETF may employ an investment strategy that utilizes high leverage ratios; or (iv) trading of an ETF’s shares may be halted if the listing exchange’s officials deem such action appropriate, the shares are de-listed from the exchange, or the activation of market-wide “circuit breakers” (which are tied to large decreases in stock prices) halts stock trading generally.</li></ul></blockquote> <blockquote><ul type="square"><li style="margin-left:-20px">Closed-End Fund Risk. The market price of a closed-end fund’s shares may be affected by its dividend or distribution levels (which are dependent, in part, on expenses), stability of dividends or distributions, general market and economic conditions, and other factors beyond the control of a closed-end fund. This means that a closed-end fund’s shares may trade at a discount to its net asset value. Another risk generally associated with closed-end funds is that most closed-end funds leverage their assets (i.e., use borrowed money to buy additional assets) in the attempt to enhance their yield. The use of leverage can provide higher yields and potentially higher returns for closed-end fund investors, but it also increases overall risk and the volatility of the investment.</li></ul></blockquote> <div style="display:none">~ http://www.fciadvisors.com/role/ScheduleAnnualTotalReturnsFCIBONDFUNDBarChart column period compact * ~</div> After-tax returns are calculated using the historical highest individual federal income tax rates in effect and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or IRAs. The index returns presented below assume reinvestment of all distributions and exclude the effect of taxes and fees (if expenses and taxes were deducted, the actual returns of the Index would be lower). Current performance of the Fund may be lower or higher than the performance quoted above. Performance data current to the most recent month end may be obtained by calling (877) 627-8504. Highest/Lowest quarterly results during this time period were: <table cellspacing="0" cellpadding="0" width="68%" border="0" ><tr><td valign="top" nowrap="nowrap">Best Quarter:</td><td valign="bottom">  </td><td nowrap="nowrap" valign="bottom"> </td><td nowrap="nowrap" valign="bottom" align="right">4th Quarter, 2008, 5.38</td><td nowrap="nowrap" valign="bottom">% </td></tr><tr><td valign="top" nowrap="nowrap">Worst Quarter:</td><td valign="bottom">  </td><td nowrap="nowrap" valign="bottom"> </td><td nowrap="nowrap" valign="bottom" align="right">3rd Quarter, 2008, -3.26</td><td nowrap="nowrap" valign="bottom">% </td></tr></table> January 31, 2014 As with any mutual fund investment, the Fund’s returns and share price will fluctuate, and you may lose money by investing in the Fund. An investment in the Fund is not insured or guaranteed by any government agency. (877) 627-8504 Past performance of the Fund is no guarantee of how it will perform in the future. The bar chart below shows how the Fund’s investment results have varied from year to year. The table below shows how the Fund’s average annual total returns compare over time to those of a broad-based securities market index. After-tax returns are calculated using the historical highest individual federal income tax rates in effect and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or IRAs. Best Quarter: 2008-12-31 0.0538 Worst Quarter: 2008-09-30 -0.0326 2005-10-04 2005-10-04 2005-10-04 0.0389 0.0518 0.0524 <div style="display:none">~ http://www.fciadvisors.com/role/ScheduleAnnualFundOperatingExpensesFCIBONDFUND column period compact * ~</div> <div style="display:none">~ http://www.fciadvisors.com/role/ScheduleExpenseExampleTransposedFCIBONDFUND column period compact * ~</div> <div style="display:none">~ http://www.fciadvisors.com/role/ScheduleAverageAnnualTotalReturnsTransposedFCIBONDFUND column period compact * ~</div> AVERAGE ANNUAL TOTAL RETURNS (for the periods ended December 31, 2012) 2005-10-04 The Fund invests primarily in a diversified portfolio of intermediate-term (typically with maturities between one and 10 years), investment grade fixed income securities. The Fund may, on occasion, purchase long-term bonds. The Fund may also purchase various mortgage-backed and other asset-backed securities. The Fund’s Advisor seeks to add value for Fund investors and to maximize the risk-adjusted returns versus the unmanaged Barclays Capital U.S. Intermediate Government/Credit Bond Index®, by managing the duration of the Fund’s portfolio, and through sector allocation and issue selection. The Advisor evaluates each sector and manages the Fund’s portfolio such that the Fund’s investments may be over- or under-weighted in a particular sector relative to its benchmark index. Sector allocation decisions use many of the same inputs as those analyzed when formulating an interest rate forecast. Generally, the anticipation of narrowing credit spreads suggests a higher allocation to non-Treasury sectors, while widening credit spreads normally dictate a lower allocation. The Advisor uses a proprietary process that combines economic momentum, inflationary expectations and technical factors to evaluate interest rate changes in order to manage the duration of the Fund’s portfolio in an effort to mitigate risk and maximize total return. In addition to duration management, the Advisor invests in securities of varying maturities depending on market conditions. In general, the Fund maintains an effective weighted average duration of two to five years, and an effective weighted average maturity of three to six years. The Fund may invest up to 10% of its assets in high yield bonds (commonly known as “junk bonds”) or in exchange-traded funds (“ETFs”) and closed-end funds that own junk bonds. Junk bonds are bonds rated below BBB or its equivalent by any nationally recognized securities rating organization, or that are unrated but determined by the Advisor to be of comparable quality. Under normal conditions, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in fixed income securities, including foreign fixed income securities from developed countries. The Fund may meet this objective by directly investing in fixed income securities, or by investing in other investment companies (including ETFs) that invest primarily in fixed income securities. Fixed income securities in which the Fund typically invests include securities issued or guaranteed by the U.S. government, its agencies or government-sponsored enterprises; corporate debt securities of U.S. and non-U.S. issuers, including convertible securities and corporate commercial paper; mortgage and other asset-backed securities; and money market instruments. All fixed income securities will be denominated in U.S. dollars. The Fund may utilize derivative securities and/or contracts to gain or reduce exposure to certain sectors, industries, and specific credits. These derivatives may be used for hedging and non-hedging purposes and may be structured as swaps, options or notes. These derivatives may involve risks similar to those generally associated with swaps and other derivatives, but also involve investment risks similar to those associated with the direct investments in a component of the underlying financial instrument or index to the extent that the returns payable to the Fund from a derivative will be linked to the investment returns of such component. This 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% return each year, that all dividends and capital gain distributions are reinvested, and that the Fund’s operating expenses remain the same. Only the 1 year number shown below reflects the Advisor’s agreement to waive fees and/or reimburse Fund expenses. Although your actual costs may be different, based on these assumptions, your costs would be: Effective February 1, 2013, the Fund's Advisor contractually has agreed to waive its management fee and/or reimburse expenses so that total annual operating expenses, excluding: brokerage fees and commissions; borrowing costs (such as (i) interest and (ii) dividend expenses on securities sold short); taxes; any 12b-1 fees; any indirect expenses such as acquired fund fees and expenses; and extraordinary litigation expenses do not exceed 0.80% of the Fund's average daily net assets through January 31, 2014, subject to the Advisor's right to recoup reimbursements on a rolling three-year basis so long as the reimbursement would not exceed the 0.80% expense cap. This expense cap may not be terminated prior to this date except by the Board of Trustees. Effective February 1, 2013, the Fund's Advisor contractually has agreed to waive its management fee and/or reimburse expenses so that total annual operating expenses, excluding: brokerage fees and commissions; borrowing costs (such as (i) interest and (ii) dividend expenses on securities sold short); taxes; any 12b-1 fees; any indirect expenses such as acquired fund fees and expenses; and extraordinary litigation expenses do not exceed 1.00% of the Fund's average daily net assets through January 31, 2014, subject to the Advisor's right to recoup reimbursements on a rolling three-year basis so long as the reimbursement would not exceed the 1.00% expense cap. This expense cap may not be terminated prior to this date except by the Board of Trustees.