497 1 state497201902.htm
SUPPLEMENT DATED FEBRUARY 27, 2019 TO THE
ENHANCED ULTRA SHORT DURATION MUTUAL FUND PROSPECTUS
DATED MARCH 29, 2018, AS SUPPLEMENTED
On February 20, 2019, the Board of Trustees of State Funds (the “Trust”), upon the recommendation of New York Alaska ETF Management LLC, the investment adviser for the series of the Trust, approved a plan to liquidate and terminate (the “Liquidation”) the Enhanced Ultra Short Duration Mutual Fund (the “Fund”), a series of the Trust. It is anticipated that the Liquidation will be completed on or about March 6, 2019 (the “Liquidation Date”). A shareholder vote is not required to approve the Liquidation.
Any shares of the Fund outstanding on the Liquidation Date will be automatically redeemed on that date. Effective as of the regularly scheduled close of regular trading on the New York Stock Exchange on February 27, 2019, the Fund will no longer accept investments from new shareholders. Redemption orders received in proper form as described in the Fund’s prospectus after the close of regular trading on the New York Stock Exchange on February 27, 2019 will not be subject to any contingent deferred sales charges or other sales charges imposed by the Fund, except that shares held through a broker-dealer or other financial intermediary, such as omnibus accounts, may be subject to sales charges in accordance with the protocols of the financial intermediary.
At any time prior to the Liquidation Date, shareholders may redeem their shares of the Fund pursuant to the procedures set forth in the prospectus under “How to Redeem Shares.” A letter will be sent to shareholders who hold shares directly with the Fund with respect to the Liquidation and the distribution of their redemption proceeds. Shareholders who hold their shares in the Fund through a financial intermediary should contact their financial representative to discuss their options with respect to the Liquidation and the distribution of such shareholders’ redemption proceeds.
It is expected that as soon as practicable following the Liquidation, the cash proceeds of the Liquidation will be distributed to shareholders of the Fund in complete redemption of their shares, after all charges, taxes, expenses and liabilities of the Fund have been paid or accounted for. For federal income tax purposes, the automatic redemption on the Liquidation Date will generally be considered a taxable event like any other redemption of shares. Shareholders should consult with their tax advisors for more information about the tax consequences of the Liquidation to them, including any federal, state, local, foreign or other tax consequences.
In order to provide for an orderly liquidation and satisfy redemptions in anticipation of the Liquidation, the Fund will no longer pursue its investment objectives and strategies between now and the Liquidation Date.
For assistance or more information, shareholders can contact their registered representative or contact the Fund by calling toll free 1-800-523-8382.
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Please retain this Supplement for future reference...