threepeaksopportunity

Aquila Three Peaks Opportunity Growth Fund

Overview
Performance
Distributions
Fees & Expenses
Portfolio Management

Description & Objective

Aquila Three Peaks Opportunity Growth Fund is a diversified, open-end mutual fund.  The Fund’s objective is to provide capital appreciation by investing, under normal circumstances, at least 70% of its net assets in equity securities believed to have the potential for capital appreciation, without regard to whether they could be described as “growth” or “value” and investing in a range of market capitalizations that could include small-cap, mid-cap, and large-cap. Equity holdings of the Fund may include common stock, warrants, convertible bonds, preferred stock or a limited allocation to foreign equity.

Up to 30% of assets may be invested in fixed income securities including lower-quality, high-yield corporate debt. We believe that high-yield bonds have the ability to moderate equity market volatility by virtue of the coupon payments and the characteristically lower volatility of high-yield corporate bonds relative to equities.

The investment strategy and process described here was initially made available to shareholders of Aquila Three Peaks Opportunity Growth Fund on October 15, 2010. Prior to that date, the Fund was managed under an investment strategy that differs meaningfully from the strategy pursued by the current Fund. Performance prior to that date reflects the previous investment strategy of the Fund.

Investor Profile

Investors seeking the potential for long-term equity returns, and who can tolerate the risks of equity investing.

How to Invest

You may invest in any of the Aquila Group of Funds through your professional financial advisor at the public offering price as described in the the prospectus, or by completing the Fund’s application. The Fund offers both Front-Payment Class Shares (Class A Shares) or Level-Payment Class Shares (Class C Shares). The maximum sales charge included in the offering price of Class A Shares varies by fund. Please see the prospectus for details, or fund-specific information on this site. Class C Shares do not have a sales charge, but do have a contingent deferred sales charge (CDSC) of 1% if a redemption occurs within the first 12 months of purchase. Class I and Class Y shares are available to investors only through a professional financial advisor or a financial institution. Before investing, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available on this site and from your financial advisor, or by calling 800-437-1020.

How to Redeem

You may redeem all or part of your investment on any business day at the next-determined Net Asset Value of the Fund’s shares after acceptance of your redemption request. You should be aware that investment returns and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The prospectus outlines a number of different ways you may redeem your shares. A 1% contingent deferred sales charge (CDSC) applies to Class C Shares redeemed within the first 12 months of purchase.

Board of Trustees

  • Glenn P. O’Flaherty, Chair - Chief Financial Officer and Chief Operating Officer of Lizard Investors, LLC, 2008; Co-Founder, Chief Financial Officer and Chief Compliance Officer of Three Peaks Capital Management, LLC, 2003-2005; Vice President – Investment Accounting, Global Trading and Trade Operations, Janus Capital Corporation, and Chief Financial Officer and Treasurer, Janus Funds, 1991- 2002.  Other Directorships held by Trustee - Trustee of Pacific Capital Funds of Cash Assets Trust (three money-market funds in the Aquila Group of Funds) 2009-2012.

  • Diana P. Herrmann, President - Vice Chair and Chief Executive Officer of Aquila Management Corporation, Founder and Sponsor of the Aquila Group of Funds and parent of Aquila Investment Management LLC, Manager, since 2004, President since 1997, Chief Operating Officer, 1997-2008, a Director since 1984, Secretary since 1986 and previously its Executive Vice President, Senior Vice President or Vice President, 1986-1997; Chief Executive Officer and Vice Chair since 2004, President and Manager since 2003, and Chief Operating Officer (2003-2008), of the Administrator; Chair, Vice Chair, President,  Executive Vice President and/or Senior Vice President of funds in the Aquila Group of Funds since 1986; Director of the Distributor since 1997; Governor, Investment Company Institute (the U.S. mutual fund industry trade organization dedicated to protecting shareholder interests and educating the public about investing) for various periods since 2004, and head of its Small Funds Committee, 2004-2009; active in charitable and volunteer organizations.  Other Directorships held by Trustee – ICI Mutual Insurance Company, a Risk Retention Group (2006-2009 and 2010-2013); Vice Chair and Trustee of Pacific Capital Funds of Cash Assets Trust (three money-market funds in the Aquila Group of Funds) 2004-2012.

  • John M. Burlingame - Global Head‚ Residential Development, Hyatt Hotels Corporation, since 2009, responsible for whole ownership and vacation ownership components of Hyatt branded mixed-use projects and stand-alone projects; Executive Vice President, Hyatt Vacation Ownership (including resort management, homeowner’s association management, sales and marketing, development and consumer financing), 1994-2009; prior to 1994 involved in all phases of hotel development for Hyatt.  Other Directorships held by Trustee – American Resort Development Association.

  • Gary C. Cornia - Professor, Marriott School of Management, Brigham Young University, 1980-present; Dean, Marriott School of Management, 2008-2013 and Associate Dean, 1991-2000; Director, Romney Institute of Public Management, Marriott School of Management, 2004–2008; Past President, National Tax Association; Fellow, Lincoln Institute of Land Policy, 2002-present; member, Utah Governor’s Tax Review Committee, 1993-2009.   Other Directorships held by Trustee – Utah Foundation, Salt Lake City, UT; formerly director, Lincoln Institute of Land Policy, Cambridge, MA.

  • Grady Gammage, Jr. - Founding partner, Gammage & Burnham, PLC, a law firm, Phoenix, Arizona, since 1983; director, Central Arizona Water Conservation District, 1992-2004; director, Arizona State University Foundation since 1998; Senior Fellow, Morrison Institute for Public Policy; active with Urban Land Institute.

  • Russell K. Okata – Executive Director, Hawaii Government Employees Association AFSCME Local 152, AFL-CIO 1981-2007; International Vice President, American Federation of State, County and Municipal Employees, AFL-CIO 1981-2007; Hawaii Democratic Party National Committeeman; member, State of Hawaii Long-term Care Commission; director of various civic and charitable organizations. Other Directorships held by Trustee: Hawaii Client Services (part of Hawaii Dental Services Group); formerly Trustee and Chairman, Pacific Capital Funds; past Chair of the Royal State Group (insurance); Pacific Capital Funds of Cash Assets Trust (three money-market funds in the Aquila Group of Funds) 1993-2012.

  • John J. Partridge - Founding Partner, Partridge Snow & Hahn LLP, a law firm, Providence, Rhode Island, since 1988, Senior Counsel, since January 1, 2007; Assistant Secretary – Advisor to the Board, Aquila Narragansett Tax-Free Income Fund, 2005-2008, Trustee 2002-2005; director or trustee of various educational, civic and charitable organizations, including Ocean State Charities Trust, Memorial Hospital of Rhode Island, and The Pawtucket Foundation.

  • Nominating Committee charter

Disclosures

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Fund Facts

  • Fund symbol: ATGAX
  • CUSIP: 03839M102
  • Inception date: 7/25/1994
  • Total net assets ($millions) as of 07/31/2014: $136.9

Qualified for sale in:

All 50 U.S. States, DC, GU and VI

Fund-Specific Risks

Consideration should be given to the risks of investing. Please refer to the Fund prospectus for a complete description of risks associated with an investment in the Fund. These include, but are not limited to, potential loss of value, market risk, financial risk, interest rate and credit risk, and investments in highly-leveraged companies, lower-quality debt securities, foreign markets and foreign currencies.

  • Fund symbol: ATGCX
  • CUSIP: 03839M201
  • Inception date: 5/1/1996
  • Total net assets ($millions) as of 07/31/2014: $136.9

Qualified for sale in:

All states, GU and VI, except MD, ND, TN and DC

Fund-Specific Risks

Consideration should be given to the risks of investing. Please refer to the Fund prospectus for a complete description of risks associated with an investment in the Fund. These include, but are not limited to, potential loss of value, market risk, financial risk, interest rate and credit risk, and investments in highly-leveraged companies, lower-quality debt securities, foreign markets and foreign currencies.

  • Fund symbol: ATGYX
  • CUSIP: 03839M300
  • Inception date: 5/1/1996
  • Total net assets ($millions) as of 07/31/2014: $136.9

Qualified for sale in:

All 50 U.S. States, DC, GU, PR and VI

Fund-Specific Risks

Consideration should be given to the risks of investing. Please refer to the Fund prospectus for a complete description of risks associated with an investment in the Fund. These include, but are not limited to, potential loss of value, market risk, financial risk, interest rate and credit risk, and investments in highly-leveraged companies, lower-quality debt securities, foreign markets and foreign currencies.

  • Fund symbol: ATRIX
  • CUSIP: 03839M409
  • Inception date: 12/1/2005
  • Total net assets ($millions) as of 07/31/2014: $136.9

Qualified for sale in:

All states, GU and VI, except AZ, MD, ND, TN and DC

Fund-Specific Risks

Consideration should be given to the risks of investing. Please refer to the Fund prospectus for a complete description of risks associated with an investment in the Fund. These include, but are not limited to, potential loss of value, market risk, financial risk, interest rate and credit risk, and investments in highly-leveraged companies, lower-quality debt securities, foreign markets and foreign currencies.

NAV As of 08/28/14   $43.42

TOTAL RETURNS as of 07/31/2014as of 06/30/2014

Monthly Quarterly
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
ATGAX (At maximum offering price) (5.68) 1.14 4.88 16.82 17.78 17.38 7.26 8.22
ATGAX (At NAV) (1.49) 5.62 9.54 22.02 19.49 18.40 7.73 8.49
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
ATGAX (At maximum offering price) 0.07 2.77 6.47 24.80 17.50 19.95 6.81 8.34
ATGAX (At NAV) 4.52 7.33 11.19 30.34 19.22 21.00 7.27 8.61
Lipper Ranking (as of 12/31/2013), Mid–Cap Core
Lipper Ranking 177 of 843 29 of 796 404 of 741 504 of 587
Lipper Percentile 21 4 55 86

NAV As of 08/28/14   $37.29

TOTAL RETURNS as of 07/31/2014as of 06/30/2014

Monthly Quarterly
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
ATGCX (With CDSC) (2.55) 4.41 8.07 20.14 18.61 17.53 6.93 7.09
ATGCX (Without CDSC) (1.57) 5.41 9.07 21.15 18.61 17.53 6.93 7.09
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
ATGCX (With CDSC) 3.48 6.12 9.81 28.41 18.35 20.11 6.48 7.21
ATGCX (Without CDSC) 4.48 7.12 10.81 29.43 18.35 20.11 6.48 7.21
Lipper Ranking (as of 12/31/2013), Mid–Cap Core
Lipper Ranking 177 of 843 29 of 796 404 of 741 504 of 587
Lipper Percentile 21 4 55 86

NAV As of 08/28/14   $45.68

TOTAL RETURNS as of 07/31/2014as of 06/30/2014

Monthly Quarterly
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
ATGYX (1.48) 5.69 9.73 22.39 19.88 18.76 8.03 8.12
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
ATGYX 4.58 7.43 11.39 30.76 19.61 21.36 7.58 8.24
Lipper Ranking (as of 12/31/2013), Mid–Cap Core
Lipper Ranking 177 of 843 29 of 796 404 of 741 504 of 587
Lipper Percentile 21 4 55 86

NAV As of 08/28/14   $44.63

TOTAL RETURNS as of 07/31/2014as of 06/30/2014

Monthly Quarterly
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
ATRIX (1.47) 5.65 9.70 22.37 19.88 18.81 N/A 6.75
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
ATRIX 4.54 7.38 11.34 30.72 19.60 21.42 N/A 7.01
Lipper Ranking (as of 12/31/2013), Mid–Cap Core
Lipper Ranking 177 of 843 29 of 796 404 of 741 504 of 587
Lipper Percentile 21 4 55 86

Disclosures

On October 8, 2010, Fund shareholders approved changes in the name, investment sub-advisor and investment strategy of the Fund.  On October 15, 2010, the Fund began operations under the name Aquila Three Peaks Opportunity Growth Fund, with Three Peaks Capital Management, LLC as sub-adviser, and an investment strategy that differs meaningfully from the strategy pursued by the previous Fund. Performance prior to that date reflects the previous investment strategy of the Fund.

Performance data represents past performance, but does not guarantee future results.  Investment return and principal value will fluctuate; shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the data presented.   Class A shares have a maximum sales charge of 4.25%; Class C shares have no initial sales charge, but a 1.00% contingent deferred sales charge applies to Class C shares redeemed within 12 months of their purchase date.  Class I and Class Y shares have no initial or contingent deferred sales charge. Class A MOP (maximum offering price) returns reflect deduction of the maximum 4.25% sales charge; Class A NAV returns do not reflect deduction of the sales charge and would be lower if that charge were reflected.  Class C returns without CDSC do not reflect deduction of the 1% CDSC applicable in the first 12 months; if applied, the CDSC would reduce the performance quoted.  An explanation of the share classes appears in the Fund prospectus.  Management has contractually undertaken to waive fees and/or reimburse Fund expenses through September 30, 2014.  Returns would have been less if fees and expenses were applied.

Lipper rankings are based on total return without sales charge relative to all share classes of funds with similar objectives as determined by Lipper. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information.  Lipper category is as of the quarter-end date indicated and may not accurately represent the current composition of the portfolio.

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Annual Capital Gains Distributions as of 12/31/2013 Annual Dividend
Short-term Long-term
$0.11641 per share $0.35478 per share $0.00 per share

For the latest 30-day SEC yield, call 1-800-437-1020 between 9:00 A.M. and 5:00 P.M. ET on any business day.

Annual Tax Information

Disclosures

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Dividend History

Annual Capital Gains Distributions as of 12/31/2013 Annual Dividend
Short-term Long-term
$0.11641 per share $0.35478 per share $0.00 per share

For the latest 30-day SEC yield, call 1-800-437-1020 between 9:00 A.M. and 5:00 P.M. ET on any business day.

Annual Tax Information

Disclosures

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Dividend History

Annual Capital Gains Distributions as of 12/31/2013 Annual Dividend
Short-term Long-term
$0.11641 per share $0.35478 per share $0.00 per share

For the latest 30-day SEC yield, call 1-800-437-1020 between 9:00 A.M. and 5:00 P.M. ET on any business day.

Annual Tax Information

Disclosures

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Dividend History

Annual Capital Gains Distributions as of 12/31/2013 Annual Dividend
Short-term Long-term
$0.11641 per share $0.35478 per share $0.00 per share

For the latest 30-day SEC yield, call 1-800-437-1020 between 9:00 A.M. and 5:00 P.M. ET on any business day.

Annual Tax Information

Disclosures

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Dividend History

Annual Expenses (as of 04/25/2014)
Total Operating Expense 1.91%
Net Expense ratio 1.55%

Alternative Purchase Plans & Sales Charge Breakpoints

The fund provides individuals with alternative ways to purchase shares through four separate classes of shares (Classes A, C, I and Y). Although the classes have different sales charge structures and ongoing expenses, they all represent interests in the same portfolio of securities an investor should choose the class that best suits the investor’s circumstances and needs. You are entitled to substantial reductions in sales charges based on aggregate holdings of all shares of any class of any of the funds in the Aquila Group of Funds that you or other members of your immediate family already own at the time of your purchase. Before investing, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available on this site and from your financial advisor, or by calling 800-437-1020.

Front-End Sales Charge Schedule
Investment Front-end Sales Charges
Less than $10,000 4.25%
$10,000 but less than $25,000 4.00%
$25,000 but less than $50,000 3.75%
$50,000 but less than $100,000 3.50%
$100,000 but less than $250,000 3.25%
$250,000 but less than $500,000 3.00%
$500,000 but less than $1,000,000 2.50%
$1,000,000 but less than $2,500,000 0.00%
$2,500,000 but less than $5,000,000 0.00%
$5,000,000 or more 0.00%
12b-1 Fees 0.30%
Contingent Deferred Sales Charges (CDSC)
Investment Applies to Purchases
over $1 million
Year 1 Year 2 Year 3&4
$1,000,000 but less than $2,500,000 1.00% 1.00% 0.50%
$2,500,000 but less than $5,000,000 0.50% 0.25% 0.00%
$5,000,000 or more 0.00% 0.00% 0.00%
Annual Expenses (as of 04/25/2014)
Total Operating Expense 2.53%
Net Expense ratio 2.25%

Alternative Purchase Plans & Sales Charge Breakpoints

The fund provides individuals with alternative ways to purchase shares through four separate classes of shares (Classes A, C, I and Y). Although the classes have different sales charge structures and ongoing expenses, they all represent interests in the same portfolio of securities an investor should choose the class that best suits the investor’s circumstances and needs. You are entitled to substantial reductions in sales charges based on aggregate holdings of all shares of any class of any of the funds in the Aquila Group of Funds that you or other members of your immediate family already own at the time of your purchase. Before investing, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available on this site and from your financial advisor, or by calling 800-437-1020.

CONTINGENT DEFERRED SALES CHARGES (CDSC)

A CDSC of 1% is applied to the redemption of Class C Shares held for less than 12 months.  No CDSC applies to Class C Shares acquired through the reinvestment of dividends or distributions.

12b-1 Fees 0.75%
Annual Expenses (as of 04/25/2014)
Total Operating Expense 1.55%
Net Expense ratio 1.25%

Alternative Purchase Plans & Sales Charge Breakpoints

The fund provides individuals with alternative ways to purchase shares through four separate classes of shares (Classes A, C, I and Y). Although the classes have different sales charge structures and ongoing expenses, they all represent interests in the same portfolio of securities an investor should choose the class that best suits the investor’s circumstances and needs. You are entitled to substantial reductions in sales charges based on aggregate holdings of all shares of any class of any of the funds in the Aquila Group of Funds that you or other members of your immediate family already own at the time of your purchase. Before investing, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available on this site and from your financial advisor, or by calling 800-437-1020.

12b-1 Fees 0.00%
Annual Expenses (as of 04/25/2014)
Total Operating Expense 1.81%
Net Expense ratio 1.49%

Alternative Purchase Plans & Sales Charge Breakpoints

The fund provides individuals with alternative ways to purchase shares through four separate classes of shares (Classes A, C, I and Y). Although the classes have different sales charge structures and ongoing expenses, they all represent interests in the same portfolio of securities an investor should choose the class that best suits the investor’s circumstances and needs. You are entitled to substantial reductions in sales charges based on aggregate holdings of all shares of any class of any of the funds in the Aquila Group of Funds that you or other members of your immediate family already own at the time of your purchase. Before investing, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available on this site and from your financial advisor, or by calling 800-437-1020.

12b-1 Fees 0.15%

Disclosures

The Manager and Sub-Adviser have contractually undertaken to waive fees and/or reimburse Fund expenses so that total Fund expenses will not exceed 1.55% for Class A Shares, 2.25% for Class C Shares, 1.18% for Class I Shares and 1.25% for Class Y Shares.  These expense limitations are in effect until September 30, 2014.  Prior to September 30, 2014, the arrangement may not be terminated without the approval of the Board of Trustees.

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Portfolio Managers

  • Three Peaks Capital Management, LLC (TPCM), a SEC-registered investment adviser located in Colorado, serves as sub-adviser to the Fund.  TPCM manages over $1 billion in assets including Aquila Three Peaks High Income Fund and Aquila Three Peaks Opportunity Growth Fund.

    SANDY RUFENACHT, TPCM Founder, President and CIO, has been the Co-Portfolio Manager of Aquila Three Peaks Opportunity Growth Fund since October 15, 2010.  He has been involved in the investment management industry since 1988, and manages the TPCM portfolios with the support and resources of a team of experienced high-yield and equity specialists.  He has been the Portfolio Manager of Aquila Three Peaks High Income Fund since the June, 2006 inception date, and was previously Executive Vice President and Portfolio Manager of the Janus High Yield Fund from June, 1996 until July, 2003.  Mr. Rufenacht holds a BA in Business from the University of Northern Colorado.

     

  • ZACH MILLER, CFA, is the Co-Portfolio Manager of the Aquila Three Peaks Opportunity Growth Fund.  Mr. Miller was named Co-Portfolio Manager of the Opportunity Growth Fund as of October, 2013.  Since January, 2012, Mr. Miller has been Director of Research for the Sub-Adviser.  Mr. Miller joined the Sub-Adviser in 2008 as a research analyst.  Mr. Miller received his CFA designation in June 2012 and is a graduate of the University of Northern Colorado, holding a degree in business administration with an emphasis in Finance and a minor in Economics.