497 1 tm2035808-1_497.htm 497
Filed pursuant to Rule 497(e)
Registration No. 333-07305
1940 Act File No. 811-07685
FRONTIER FUNDS, INC.
Supplement to Prospectus Dated October 31, 2020
Frontier Caravan Emerging Markets Fund
Institutional Class Shares (FCEMX)
Service Class Shares (FCESX)
The Board of Directors (the “Board”) of Frontier Funds, Inc. (the “Company”) has approved the liquidation of the Frontier Caravan Emerging Markets Fund (the “Fund”) following notice from Caravan Capital Management, LLC (“Caravan”), the Fund’s subadviser, that Caravan had determined to terminate the subadvisory agreement between Frontegra Asset Management, Inc. (“Frontegra”), the Fund’s investment adviser, and Caravan. Upon the recommendation of Frontegra, the Board approved a Plan of Liquidation for the Fund on November 16, 2020. The Board concluded that it would be advisable and in the best interest of the Fund and its shareholders that the Fund be closed and liquidated as a series of the Company, effective as of the close of business on the liquidation date, December 15, 2020.
The Fund will be closed to new purchases, additional investments and incoming exchanges effective after market close on November 17, 2020. Exceptions may be made in limited circumstances when approved by the officers of the Company where it is not operationally possible or it is otherwise impracticable to prohibit new purchases by an account, and for purchases made through the automatic reinvestment of Fund distributions, if any, made after November 17, 2020. After the Fund is closed to new investments, shareholders will be permitted to exchange their shares of the Fund for shares of the other available Frontier Funds or to redeem their shares of the Fund, as provided in the Fund’s prospectus. No redemption fees will be imposed by the Fund in connection with such redemptions or exchanges; however, please note that your financial intermediary may charge fees in connection with such redemptions or exchanges.
On or about November 17, 2020, the Fund will no longer actively pursue its stated investment objective, and Caravan will begin to liquidate the Fund’s portfolio. The Fund’s portfolio manager will likely increase the Fund’s assets held in cash and cash equivalents in order to prepare for an orderly liquidation and to meet anticipated redemption requests. As a result, the Fund is expected to deviate from its stated investment objective, policies and strategies.
Pursuant to the Plan of Liquidation, any shareholder who has not exchanged or redeemed their shares of the Fund prior to the liquidation date of December 15, 2020, will have their shares redeemed in cash and will receive one or more payments representing the shareholder’s proportionate interest in the net assets of the Fund as of the liquidation date, after the Fund has paid or provided for all taxes, expenses and any other liabilities, subject to any required withholdings. The automatic redemption of Fund shares on the liquidation date will generally be treated the same as any other redemption of Fund shares for tax purposes, so that shareholders (other than tax-exempt accounts) will recognize gain or loss for tax purposes on the redemption of their Fund shares in the liquidation. In addition, the Fund and its shareholders will bear transaction costs and tax consequences associated with the disposition of the Fund’s portfolio holdings prior to the liquidation date. The Fund expects to have declared and paid a distribution or distributions, which, together with all previous such distributions, will have the effect of distributing to the Fund’s shareholders all of the Fund’s investment company taxable income and net capital gain, if any, realized in the taxable periods ending on or prior to the liquidation date. The distribution or distributions will include any additional amounts necessary to avoid federal excise tax. Shareholders should consult their tax adviser for further information about federal, state and local tax consequences relative to their specific situation.
This supplement should be retained with your Prospectus for future reference.
The date of this Supplement to the Prospectus is November 16, 2020.