Acadia Principal Conservation Fund (APCF)

In addition to the 'startup year' effect, the barbell investment strategy of the fund, two-thirds short duration investments and one-third fixed income longer maturity securities, creates an interesting paradox for the Net Asset Value (NAV) and expense ratio calculation that is important to consider when evaluating the total return on a NAV basis.

During the startup year, the total return on a NAV basis lags the total return of the Investment portfolio for two reasons. First, the interest rate of each investment is accrued into the NAV on a daily basis thus not reaching the full income level for 12 months (ie. An 8% interest coupon comes into income at the rate of .02192% per day). Second, the Fund has some investments issued by banks called 'trust preferred securities' which pay interest on a quarterly or semiannual basis. This income cannot be accrued daily and is recognized when the interest is paid to the Fund, the effect of which creates a stair step phenomenon in the Fund's income. For example a $50,000 investment on January 1st in bank X's 8% trust security debt which pays dividends on 3/15, 6/15, 9/15 and 12/15, would result in $1,000 of income to the fund each quarter on those respective dates. Thus the funds cumulative income would see a spike on each of those dates resulting in a jump in the NAV and a reduction in the expense ratio. This pattern would repeat itself each quarter.

This phenomenon creates the divergence between the Fund's current total return and the net return being generated by the portfolio as presented below. On March 31, 2011 the Fund's report total return on a NAV basis is .13 percent whereas the actual net return on the investment portfolio (minus expenses of the fund) is 1.74 percent.; as the full year progresses the gap between these two return numbers will close.

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2010 Capital Gains (N/A)

As of August 25, 2010, the investment adviser has contractually agreed to reduce its fees until September 1, 2011 so that the total annual operating expenses of the Fund, including but not limited to investment advisory fees of the Adviser (exclusive of (i) interest, (ii) taxes, (iii) brokerage commissions, (iv) other expenditures which are capitalized in accordance with generally accepted accounting principles, (v) other extraordinary expenses not incurred in the ordinary course of the Fund's business, and (vi) dividend expense on short sales), incurred by the Fund during the term of the Expense Limitation Agreement are limited to 1.45% of the Fund's average daily net assets. For more information, please see the Fund's prospectus and summary prospectus. During part of the period cited above the adviser assumed certain expenses and/or waived a portion of its fee. Total return would have been lower absent such assumptions and/or fee waivers. The Acadia Principal Conservation Fund's inception date was August 25, 2010.

Performance shown is for the period ended March 31, 2011. The performance data quoted above represents past performance, which is not a guarantee of future results. 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 data may be lower or higher than the performance data quoted. View performance data current to the Fund's most recent month end.

The Fund is subject to investment risks, including, without limitation, US Treasury Securities risk, market risk, Government Sponsored Enterprise risk, credit risk, interest rate risk, Repurchase Agreement risk, and call risk. As an investor in the Fund, you are subject to the risk that you may lose your money as a result of the impact of the Fund's investment risk on the Fund's net asset value per share. When you sell your investment in the Fund, the value of your investment may be more or less than your initial investment.

The Acadia Principal Conservation Funds are distributed by Rafferty Capital Markets, LLC. An investor should consider the investment objectives, risks, charges and expenses carefully before investing. The prospectus and summary prospectus contains this and other information about the Fund. View a free prospectus and summary prospectus, which contains detailed information, including fees and expenses, and the risks associated with investing in these funds. The prospectus and summary prospectus can also be obtained by calling the fund directly at (800) 595-4866 or the Fund's Adviser at (212) 671-1111. The prospectus and summary prospectus should be read carefully before investing. Mutual Fund investing involves risk, including the possible loss of principal. Past performance is no guarantee of future results.

The Fund is available for sale in all 50 states.