https://www.sec.gov/Archives/edgar/data/893730/000089373021000004/supplement_20210308.htm
497 1 supplement_20210308.htm
SUPPLEMENT DATED March 8, 2021
TO SUMMARY PROSPECTUS, PROSPECTUS AND
STATEMENT OF ADDITIONAL INFORMATION (“SAI”)
Integrity Energized Dividend Fund (the “Fund”)
Class A: NRGDX
Class C: NRGUX
Class I: NRIGX
Summary Prospectus, Prospectus, and SAI dated November 30, 2020
The Board of Trustees of the Integrity Energized Dividend Fund (the “Board”) has determined that it is in the best interests of the Fund and its shareholders that the Fund be liquidated and terminated. The Board has determined to redeem all outstanding shares of the Fund and then close the Fund on or about June 30, 2021 (the “Termination Date”).
Effective immediately, the Fund may no longer pursue its stated investment objectives, will begin liquidating its portfolio and may invest in cash equivalents such as money market funds. The Fund remains closed to additional purchases.
You may redeem or exchange your shares, including reinvested distributions, prior to the Termination Date, and you will not be subject to the Fund's contingent deferred sales charge. Additionally, if you are exchanging into a different Integrity Viking Fund you will not have to pay any initial sales charge. Any shareholders who have not redeemed or exchanged their shares of the Fund prior to the Termination Date will have their shares automatically redeemed at the net asset value per share as of that date, and proceeds will be sent to the address of record. If you have questions or need assistance, please contact your financial advisor or call the Fund's Shareholder Services Department at (800) 601-5593.
A redemption or exchange is generally considered a taxable event. You may wish to consult your tax advisor about your particular situation.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE

FBALX is a GREAT fund that I've owned for as long as I can remember but it pushes the envelope of a 50%-70% AA fund. YBB has noted recently that it at times acts like an aggressive growth fund. That, and its steller mgmt team, are likely some of the causes of its outperformance in its category.

Hi @sma3

My sister who knows nothing about investing wants a conservative asset allocation fund in early retirement for an inheritance she doesn't need to live on.

I'll presume from your statement that: your sister is already in retirement and that her inheritance will be invested in a taxable account.
I noted the following a few days ago regarding a 529 account that was started in 2006 but could be applied to a taxable account, too:
>>>We set our own allocation, being 50/50 with VITPX and VBMPX. The expense ratio for the funds are .02 and .03%. VITPX holds 3,400 equities and VBMPX holds 18,000 bonds. YOW !!!
The 50/50 ratio is required to auto balance once per year. So, the ratio has never traveled to far outside of 50/50.
The 10 year total return for this blend of 2 funds is 8.705%.
I've used FBALX as a benchmark for our own investments to discover how much of a smart arse or dumb arse we may be at any given time. FBALX is high on the list of balanced funds in it's category.
FBALX has a 10 year annualized return of 10.83%. <<<
An equivalent to the above could be a simple 50/50 of SPY and AGG (or BAGIX, a plain vanilla active managed AA bond fund); OR whatever percentage mix an individual wants to choose for these two. The rough math indicates a 50/50 mix of the above to provide about a +8.45% blended total return for the past 10 years and +6.95% over the past 15 years.
My personal choice using AGG or BAGIX examples for bonds, would be the equity side into FSPHX or FSMEX for the 50/50 mix.
We individual investors find ourselves at an unfamiliar place recently, relative to the AAA bond sector. Although we have BAGIX as part of our portfolio, I/we don't know how much support/ballast will arrive during a greater than -20% equity dive, although I still feel central banks and large investment organizations would still run to AAA bonds during an equity melt.
NOTE: 50/50 of SPY (or an index) and AGG = -.4% YTD, VWINX = -.25% YTD and FBALX = +2.3% YTD.
I think your sister could have a decent risk and reward blend of no more than 3 holdings among bonds and equity to satisfy a meaningful performance portfolio.
Lastly, retirement finds too many variables for individuals/couples. If monetary needs are satisfied for the normal expenses, one's investments should still include equities, IMHO. Forty years of favorable bond returns are at a new place right now; and I surely don't know the forward road in this sector for a fully buy and hold portfolio.
Take care,
Catch

https://www.bloomberg.com/news/articles/2021-03-05/etfs-show-balance-is-shifting-in-favor-of-emerging-market-stocks
ETF Buyers Prefer Emerging Stocks Over U.S. Shares, Gold, Bonds
**Fund buying EM stocks heads for biggest inflows in two years
Earnings outlook, relative valuation back case for EM stocks
If capital flows into U.S. exchange-traded funds are any indication, investors have begun to favor emerging-market stocks over almost every other asset class -- including U.S. equities...
Another interesting idea, EM could be good vehicle to invest med long term

The OP asked for suggestions on a "conservative asset allocation fund." Lots of great suggestions here but I'm not sure many of them are what the OP is looking for. (Some are actually aggressive AA funds.) To wit, I at least don't regard any AA fund with over a 50% stock allocation as a "conservative allocation fund." YMMV.
In the 30%-50% category, other than VWIAX, I would suggest FMSDX and CFIAX. I own both of the latter and both are great LT holds that are each doing very well in the current market environment. VWIAX is historically a leader in this category but is limping through the current conditions. Former LT holder of it but have sold if off for the time being. Any of these though are LT keepers.
In the 15%-30% category, RBBAX appears to be one of the best.

@carew388 said, “Unfortunately, the best-in-class PRWCX is still closed ...”
I own some PRWCX. Great fund. But would you believe that over the past year DODBX has performed better? (+26.75% vs +22.57%). At the 5-year mark they’re close, with PRWCX slightly ahead (+13.61% vs +12.38%).
One has David Giroux. But the other has lower fees (DODBX .53% .ER vs PRWCX .70% ER).
There’s a great many good funds that would fill the needs of @sma3’s sister. Depends on a lot of factors I’m not qualified to judge. Just wanted to try and knock a bit of the luminescent cellophane off PRWCX. :)
* My numbers came from Lipper.

https://www.marketwatch.com/articles/arks-cathie-wood-disrupted-investment-management-shes-not-done-yet-51614992508
Don't know what to think of this success. But... I'm curious.

Hi Jon. Nope. But that's a good one. For example, new GOs, old GOs. Ditto with Three Alarm. Perhaps last month's MFO Rating? Will noodle.
In this month's update, I notice DODIX is back as a GO, after a short hiatus.
There is a lot of historical info, like Calendar Year ratings, back to 1960, as applicable. And, some unique evaluation period, like listed below, which may provide some insight.
Another subscriber recently asked about a metric that evaluated near-term (like 3 month trend) versus long term (like 5-10 years), which I find interesting.
Thank you though for the suggestion ... subscribers get a month free each time they offer a good suggestion or catch something amiss.
c
Some unique evalation period on MFO Premium's MultiSearch tool:
Full 1 [Vietnam] - 196812 To 197212
Full 2 [OPEC-Reagan] - 197301 To 198708
Full 3 [Black Monday-Clinton] - 198709 To 200008
Full 4 [Dotcom Bubble] - 200009 To 200710
Full 5 [GFC] - 200711 To 201912
Full 6 [CV-19] - 202001 To 202101
QE 1 - 200812 To 201003
QE 2 - 201206 To 201312
Normalization - 201601 To 201812
ZIRP - 200812 To 201512
Obama Bull - 200903 To 201612
Trump Bump - 201701 To 201912
Dec '18 Selloff - 201812 To 201812
CV-19 Bear - 202001 To 202003
QE Inf - 202004 To 202101
Irrational - 200003 To 202101

I highly doubt that any of the individuals still looking for 'decent' paying jobs, hopefully paying more than $15/hr along with some benefits are going to be worried about whether or not to buy some 'more' real estate or crypto as a result of receiving these stimulus payments. Many are still facing foreclosures or evictions, standing in food lines, going without any, much less, adequate health care and stressing about which bills they shouldn't pay this month.
I'm guessing that you still haven't got the heat back on down there in TX.

Yes, those are the funds up exactly 0.97%. As you noted, that's not helpful if one is comparing with a multi-fund portfolio.
One isn't likely to achieve that return in either the aggregate or with an individual fund these days without using junk bonds. Out of 184 distinct funds returning at least 1% this year, only a dozen are investment grade. (M* screener).
Even limiting one's focus to HY bonds, out of 175 distinct funds, only 66 (about 3/8) have returned at least 1% YTD.

Yes, need HY to get return these days. I use a barbell for my bonds, plenty of core/core-plus on one end and HY on the other and juiced with CEF's which need to be timed right of course (bought PHK off the lows last spring and GOF after it got battered in the same drawdown, worked out pretty well so far).

HI Sirs
Mama's portfolio mostly fixed incomes /private corp bonds and majority in fidelity 2015, along with BND FBND, about 20s% cash.
FSD maybe too risky for retired portfolio [as they say high risks high rewards]
prob wont get it anytime soon

Back to the future: "On August 28, 2018, Monetta Young Investor Fund changed its name to Monetta Core Growth Fund." Two-star rating which might say more about the state of the market and investor psychology than about the fund's discipline: 15 household names, 7% turnover, 17% 5-year returns.

Thought I’ve correct / embellish my above comments. From Randall Forsyth’s regular column in Barron’s (March 8), Forsyth mentions some instances where the U. S. government or Federal Reserve did control / manage longer term bond rates with some positive effect:
- During WW II (at 2.5% on long bond)
- 1961
- 2011 & 2012
I don’t have time to dig deeper into above, but thought in interest of accuracy I should mention them here. Others may wish to dig deeper.
Forsyth cites skeptics who see any attempt by the Fed to hold down long rates artificially as an effort to limit the amount of interest the government pays on its growing debt. He also notes that Australia’s central bank has been aggresdively buying up long term bonds with some success (at holding rates down).

@johnN
I will have to assume that you consider this fund to be appropriate for your Mom's retirement account, yes ???
Only a meaningful holding of at least 25% of a total portfolio would be helpful for performance. Otherwise, one is just fiddling around with some money.
So, might you sell 25% of BND or FBND in your Mom's account, to move to FSD?
Not quite one's plain vanilla bond fund, eh?
NOTE: FSD has outperformed BND or FBND for the past 6 months.
FSD vs FBND from Jan 2018.........I chose this time frame, as 2018 through YTD 2021 has had several interesting market swings.

February: 27.96%
January: 29.56%
December: 31.86%
19a-1 notices, generally:
https://www.ftportfolios.com/Retail/Cef/Ceffundnewsarchive.aspx?Ticker=FSD&SubCategoryCode=19A1_NOTICES

https://seekingalpha.com/article/4411564-fsd-stable-absolute-return-bond-fund-monster-yield
Summary
The biggest problem facing retirees today is an inability to generate reasonably stable income.
FSD is an absolute return bond fund that boasts a remarkable 8.7% yield.
The fund is well positioned to benefit from rising interest rates due to its short position in US Treasuries.
The fund appears to normally cover its distribution, although it did fail to in 2020 due to some of the uniqueness of that year.
The fund currently trades at a fairly attractive discount to net asset value, so the price appears to be right.....
will look at this vehicle further

related
Don't stop believing in bonds
MarketWatch
...And once you factor in a person's human capital, which Page argues acts more like a stock than a bond, a balanced portfolio with a healthy allocation...
https://www.marketwatch.com/story/dont-stop-investing-in-bonds-2021-03-04
Appears many folks still love bonds for diversification purpose/safety. The 20million dollars question [maybe] is how much should you be in bonds. For us about 20%, still have 15-20 yrs left before retirement.

Yes, those are the funds up exactly 0.97%. As you noted, that's not helpful if one is comparing with a multi-fund portfolio.
One isn't likely to achieve that return in either the aggregate or with an individual fund these days without using junk bonds. Out of 184 distinct funds returning at least 1% this year, only a dozen are investment grade. (M* screener).
Even limiting one's focus to HY bonds, out of 175 distinct funds, only 66 (about 3/8) have returned at least 1% YTD.

Was reading other writeups on her career.
https://ark-invest.com/podcast/economics-trade-relations-and-innovation-recognizing-investment-potential-with-dr-art-laffer-and-cathie-wood/
https://www.afr.com/markets/equity-markets/tesla-bull-warns-biden-presidency-could-stifle-innovation-20201008-p56337

I've been holding some gold (IAU) since around Dec. 2018. Had about a 5% holding over most of that time until recently. I've been getting out slow (to slow maybe) the past couple months and putting that money into a broad basket commodity EFT, DBC (@ ~5% now) and putting some cash into an inverse dollar ETF, UDN.