Leader Capital Corp

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Leader Capital Funds

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Leader Total Return Fund Overview

The investment objective of the Fund is to seek income and capital appreciation to produce a high total return.

INVESTMENT SUITABILITY

The Fund may be suitable for:
Investors seeking a high level of current income.  Investors seeking a total return strategy.  Investors seeking to diversify their holdings with a portfolio consisting of primarily intermediate-term fixed income securities

FUND DATA As of 7/31/10
Ticker LCTRX LCTIX
Share Class Inv. Share I Share
Fund Assets    
Minimum Investment $2,500.00 $2,000,000.00
Minimum Subsequent $100.00 $100.00
Number of Holdings

Gross Expense Ratio*

Net Expense Ratio* 1.51 1.01
Effective Date 7/30/10 7/30/10
Management Fee 0.75% 0.75%
SHARE PRICE As of 7/31/10
Inv. Share NAV $10.00
I Share NAV $10.00
FUND PORTFOLIO STATISTICS As of 7/31/10
Avg. Coupon N/A
Avg. Duration N/A
Avg. Current Yield N/A
Avg. Yield to Maturity N/A
30 Day SEC Yield - Inv. Share N/A
30 Day SEC Yield - I Share N/A

*There is a 2.00% redemption fee on shares held less than 6 months. Ratios listed are as of the 7/14/10 prospectus.

Sector Allocation Chart

JOHN E. LEKAS - PORTFOLIO MANAGER
President, CEO of Leader Capital Corp. and Senior Portfolio Manager of the Leader Short Term Bond Fund

Mr. Lekas has over 18 years of investment experience and has managed fixed income securities on a discretionary basis for over 15 years.

INVESTMENT PROCESS – TOP DOWN FOCUS

  • Economic Trends & Outlook
  • Yield Curve Analysis
  • Spread Analysis
  • Diversification used to manage volatility

FUNDAMENTAL RESEARCH

Find companies with recognizable brands, consistent streams of revenue & valuable assets.

Questions:

  • Can operating cash flow or free cash flow be sustained?
  • Is the revenue stream consistent?
  • Do they have monetizable assets?
  • How is working capital and liquidity managed?
  • When are bank lines of credit and debt coming due?
  • What is the annual interest expense?
  • How will changing economic trends affect covenants?
  • Is the risk worth the reward?

SELL DISCIPLINE

In general, bonds are sold when:

  • Valuation targets are achieved
  • Changing economics affect the original reasons for investment
  • The company exhibits deteriorating fundamentals
  • More attractive alternatives exist

Definitions: 
Free Cash Flow: Free Cash Flow is equal to the net income of a company plus depreciation and amortization less capital