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Method Collective Investment Trust R-2 Share Class
for Participating Pension and Profit Sharing Trusts
EMPLOYEE BENEFIT PLAN FUNDS SUMMARY IMPORTANT INFORMATION
Alta Trust Company,
Trustee
Investment Products: Not FDIC Insured ● No Bank Guarantee ● May Lose Value
This document discloses information pertaining to the objectives
and operations of collective investment funds (the “Funds”)
comprising the Method Collective Investment Trust for Participating
Pension and Profit Sharing Trusts (the “Trust”). Each Fund
represents an option provided to you by your employer through your
employer’s pension or profit sharing plan. It is important that you
review this information prior to investing.
PLAN COLLECTIVE INVESTMENT FUNDS FOR
EMPLOYEE BENEFIT PLANS
What are the Method Collective Investment Funds?
The Funds are collective investment funds that are designed to
serve the investment needs of tax-qualified, employer sponsored
retirement plans. Alta Trust Company (“Alta Trust”) serves as
Trustee of the Trust. Method Enterprises, LLC (“Method”) serves as
the investment manager to each Fund, and PineBridge Investments
LLC (“PineBridge”) serves as sub-adviser to Method with respect
to each Fund. The Funds are not mutual funds, and thus, are
not registered under the Investment Company Act of 1940, as
amended. The Funds’ units are not securities registered under the
Securities Act of 1933, as amended or applicable securities laws
of any state or other jurisdiction. As a result, Fund unit holders do
not have many of the legal protections provided to mutual fund
shareholders and holders of registered securities. In addition, the
Fund’s units are not publicly traded on any exchange or over-thecounter market and the unit values of each Fund are not published
in newspapers and other media.
The unit values of each Fund will fluctuate, and the market value
of the Fund will decrease or increase in accordance with changes
in value of the securities and other financial instruments held
by the Fund. There is no guarantee that any Fund will achieve
its investment objective. Units in the Funds are not deposits or
obligations of, or endorsed or guaranteed by, Alta Trust, Method or
PineBridge, or their affiliates, and Fund units are not insured by the
Federal Deposit Insurance Corporation or any other organization.
The Funds are also subject to investment risks, including possible
loss of the principal amount invested.
Fund Trustee
Alta Trust is a South Dakota state chartered trust company that
provides retirement plan services to plan sponsors throughout the
USA. In its capacity as Trustee of the Trust, Alta Trust Company
may provide investment management, trust and custody services
for the Funds. Alta Trust does not provide investment advice
or other services to employers, retirement plan participants or
accountholders.
Investment Manager & Sub-Adviser
Each of Method and PineBridge is registered with the Securities
and Exchange Commission as an investment adviser. With respect
to the Trust and any plan participating in a Fund each of Method
and PineBridge is an investment manager, as that term is defined in
Section 3(38) of Employee Retirement Income Security Act of 1974
(“ERISA”). All of the assets of the Funds will be invested according
to corresponding strategies and investment models developed and
provided by Method and PineBridge.
Who May Want to Invest
The Funds may be an appropriate investment for investors seeking
professional management of their retirement account assets.
Fund Investments and Risks of Investing in the Funds
Under normal market conditions, each Fund invests primarily in
US and foreign stocks, bonds, private investment funds and cash
equivalents primarily through a combination of direct investments,
mutual funds, exchange-traded funds (ETFs), bonds, fixed income
investments and money market vehicles that, taken as a whole,
reflect the investment allocation strategy of the Fund. The Funds
may also enter into repurchase and reverse repurchase agreements
on securities authorized for purchase or sale by the Fund, as well
as lend securities.
An investment in a Fund is subject to various risks. For a Fund that
invests in equities, the principal risk is stock market risk, that is,
the risk that the price of the stocks in which the Fund invests may
fluctuate or fall in response to economic events or trends. The
prices of bonds in which a Fund may invest may fall because of a
rise in interest rates. Investments in foreign securities are subject
to certain special risks and considerations, including potentially
less liquidity and greater price volatility than securities traded in
the US markets. In addition, currency risk must also be considered.
Foreign securities are denominated in foreign currencies, which
may change in value in relation to the U.S. dollar. Investments in
emerging markets may involve heightened risks relating to those
same factors affecting foreign securities, as well as lower trading
volume. Investments in smaller companies and narrowly focused
investments, including many alternative investments, typically
exhibit higher volatility. Investments in a collective investment
pool, such as a mutual fund, ETF or private investment fund (e.g., a
hedge fund, private equity fund or venture capital fund) are subject
to the risks associated with the securities and other financial
instruments held by the pool. In addition, any Fund that invests
in a collective investment pool is responsible for the fees and
expenses charged by that pool. Investments in private investment
funds typically restrict investors’ redemption rights, which may limit
which investments a Fund can sell from its portfolio in the event of
unexpected redemption requests. Each Fund must maintain cash
balances to meet redemption requests, which may lower overall
fund performance. There is no assurance that the strategies used
to manage any Fund will maximize returns or minimize risk. In
addition to these risks mentioned above there may be other risks
associated with each security type.
Method Collective Investment Trust (continued)
EMPLOYEE BENEFIT PLAN FUNDS SUMMARY IMPORTANT INFORMATION
Objectives and Allocation Strategies of the Funds
The investment objective and allocation strategy of each of the Funds are:
Method Conservative
Objective: This portfolio’s dual objectives are conservation of principal with potential
appreciation.
Allocation Strategy: It is a global strategy that invests primarily in corporate and government
bonds of various countries, as well as cash instruments and has a modest exposure to global
stocks for potential appreciation and to protect against inflation. It also may have limited
investments in various alternative strategies, such as real estate, hedge funds, private equity,
and commodities.
Method Balanced
Asset Class
Method
Conservative
Range
Target
Equity
10-45%
30%
Fixed Income
40-80%
60%
Alternatives
0-16%
10%
Cash
0-10%
Asset Class
Objective: This portfolio’s objective is a balance between growth and conservation of principal.
Method
Balanced
Range
Target
Allocation Strategy: The portfolio invests primarily in global stocks as well as global corporate and
government bonds and cash equivalents designed to stabilize the portfolio during large market
swings and to provide diversification in down markets. It also may have limited investments in
various alternative strategies, such as real estate, hedge funds, private equity, and commodities.
Equity
25-65%
45%
Fixed Income
20-60%
43%
Alternatives
0-18%
12%
Cash
0-10%
Method Moderate Growth
Asset Class
Objective:This portfolio’s objective is to provide capital appreciation.
Allocation Strategy: The portfolio invests primarily in global equities with a modest exposure to
global bonds and cash equivalents to provide stability in a down market. It also may have limited
investments in various alternative strategies, such as real estate, hedge funds, private equity,
and commodities.
Method Growth
Objective: This portfolio’s objective is to provide long-term capital growth.
Allocation Strategy: The portfolio invests primarily in global stocks and various alternatives
strategies, such as real estate, hedge funds, private equity, and commodities. It will also invest in
global corporate and government bonds and cash equivalents designed to stabilize the portfolio
during large market swings and to provide diversification in down markets.
Method
Moderate Growth
Range
Target
Equity
35-75%
58%
Fixed Income
10-45%
28%
Alternatives
0-20%
14%
Cash
0-10%
Asset Class
Method
Growth
Range
Target
42.5-85%
68%
Fixed Income
5-30%
16%
Alternatives
0-22%
16%
Cash
0-10%
Equity
Method Aggressive Growth
Objective: This portfolio’s objective is to provide long-term capital growth.
Allocation Strategy: The portfolio invests primarily in global stocks and various alternatives
strategies, such as real estate, hedge funds, private equity, and commodities. It may invest in
global corporate and government bonds and cash equivalents designed to stabilize the portfolio
during large market swings and to provide diversification in down markets.
Asset Class
Method
Aggressive
Range
Target
50-100%
75%
Fixed Income
0-20%
7%
Alternatives
0-24%
18%
Cash
0-10%
Equity
Method Collective Investment Trust (continued)
EMPLOYEE BENEFIT PLAN FUNDS SUMMARY IMPORTANT INFORMATION
Expenses of the Funds
Each of the Trustee Fee and Service Fee with respect to each Fund and share class will be paid to the Trustee from the assets of such Fund.
Each is calculated and accrued daily and paid monthly in arrears. Each of the Trustee Fee and Service Fee is calculated by multiplying the daily
rate corresponding to the Fund and share class based on the annual rates in the chart below to the value of the assets held in each Fund and
allocated to such share class as of such day.
Trustee Fee and Fees payable to Method and PineBridge: The Trustee Fee will be paid to the Trustee as compensation for its management and
administration of the Fund. From the Trustee Fee, the Trustee shall pay a fee to Method for the purpose of providing investment advisory services
to the Trustee with respect to one or more Funds. The Trustee will pay Method between 0.50% and 0.62% of the assets of the Funds.
From the fees that Method receives, Method shall pay a fee to PineBridge for providing sub-advisory services. Each of Method and PineBridge
shall provide investment advice as a fiduciary to the participating plan solely with respect to the assets of the participating invested in such Fund
or Funds.
Service Fee: The Service Fee will be paid to the plan custodian.
Fund Name
Method Conservative R-2
Method Balanced R-2
Method Moderate Growth R-2
Method Growth R-2
Method Aggressive Growth R-2
Trustee Fee
.70%
.70%
.70%
.70%
.70%
Service Fee
.25%
.25%
.25%
.25%
.25%
Total Fund Fee
.95%
.95%
.95%
.95%
.95%
Sales Commissions and Redemption Fees
There are no sales commissions or redemption fees charged for purchases and sales of units in the Funds.
Other Expenses
The Trustee shall pay from the assets of the Funds all other expenses of the Trust (“Other Expenses”). Other Expenses include fund accounting,
audit, transfer agency, custody of Trust assets, legal services and annual report preparation and distribution, but do not include the Trustee Fee
or the Service Fee. All Other Expenses shall be allocated to a Fund and share class as provided by the Declaration of Trust.
Each Fund investing in a collective investment pool, such as a mutual fund, exchange traded fund, hedge fund, private equity fund or venture
capital fund, will be responsible for the fees and expenses charged by that collective investment pool.
Other Expenses with respect to each Fund, other than Fund portfolio transaction costs, are expected each year to be between 0.10% and 0.25%
of Fund assets.
If a mutual fund investment held in a Fund charges a 12b-1 fee, shareholder servicing fee, or other similar fee, as disclosed in the prospectus,
and remits such fee to the Trustee, the Trustee will remit to the Fund, for the benefit of the Participating Trusts, the amount of such fees.
Aggregate Fees
Total expected aggregate fees for each fund are as follows:
Share Class
R-2
Total Estimated Expense Ratio
1.05% to 1.20%
Effective on $1,000 Annually
$10.05 to $12.00
Participant Notice and Disclosure
The Declaration of Trust for the Trust describes the procedures for admission to and withdrawal from a Fund. The Declaration of Trust should be
read in conjunction with this information statement and is hereby incorporated by reference.
The information contained in this information statement is for informational purposes only and does not provide legal or tax advice. Any taxrelated discussion contained in this information statement is not intended or written to be used, and cannot be used, for the purpose of (a)
avoiding tax penalties or (b) promoting, marketing or recommending to any other party any transaction or matter addressed in this information
statement.
Before investing in any Fund, please consider the Fund’s investment objective, strategies, risks, fees and expenses, and consult with your
financial, legal and professional tax advisers.
Each Fund is operated by a person who has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity
Exchange Act and therefore, is not subject to registration or regulation as a commodity pool operator under that act.
May 31, 2012
2113434.1