https://www.sec.gov/Archives/edgar/data/893730/000089373021000004/supplement_20210308.htm497 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
Comments
Until the 1990s, funds were typically classified according to their stated objectives such as Equity Income, Growth and Income, Growth, and Capital Appreciation. https://www.morningstar.com/articles/931013/about-morningstars-fund-classifications
Lipper took a different path, maintaining the old system while promulgating its portfolio-based system: Refinitiv Lipper U.S. Fund Classifications, Aug 15, 2020
It's this latter group of categories of diversified domestic equity funds that one finds in Lipper-based screeners. One doesn't see the objective-based categories like G&I funds.
With respect to sector funds, Refinitiv Lipper classifies them according to their stated objectives, not according to their holdings. So what Prof. Snowball wrote about Lipper classifying NRGDX by its stated objective, not its holdings, is correct because this is a sector fund. With 95% AUM invested in energy stocks, it's hard to say otherwise.
But if Lipper is regarding it as a sector fund (and thus classifying it according to its objective), then given its stated 25%+ concentration in energy, not to mention its 95% actual concentration, IMHO Lipper still misclassified it.
"Equity income" is one of the few categories (along with S&P 500 Index) to survive from the old objectives-based Lipper system ("growth and income") to the new portfolio-based one.
As I scanned the 200 or so equity income funds, I didn't notice any others that advertised a particular sector bias. Still, I'm not sure that Lipper is wrong to classify it as equity income given the clear objective and strategy statements.
And, regardless, it's a deadster.