AlphaMark Large Cap Growth Fund (AMLCX)

The AlphaMark Large Cap Growth Fund invests in high quality large cap companies that have a proven history of consistent growth; current earnings momentum; and a growing cash flow from operations. A universe of 1,000 stocks with market caps over $5 billion is subject to internal screens creating a list of 100 companies for review. Further fundamental analysis includes the following: above market return on equity; sufficient cash flow to cover capital spending; operating margin relative to price/sales; financial statement review focused on true net equity value; enterprise value review and management review including such factors as insider trading, stock option distribution and share buy backs. Our process places a strong emphasis on risk controls and sell discipline. Sector weightings are monitored relative to the benchmark. Sector bets are never used to enhance returns. Superior returns come from superior security selection and a prudent sell discipline. Positions will be sold for the following reasons:

  1. A material change in company structure or management;
  2. A material change in the industry or economic factors effecting that industry;
  3. A position has grown to an unacceptable weight;
  4. Earnings momentum has decreased from previous estimates; and
  5. Stock price has become overvalued by 20% or more based on our proprietary cash flow models.

Sector Allocation as of September 30, 2017

Portfolio Holdings as of September 30, 2017

(not audited, for informational purposes only)

Symbol Name Portfolio %
Cash 2.90%
CNC CENTENE CORPORATION 4.63%
AMGN AMGEN, INC 4.11%
ANDV ANDEAVOR 3.87%
EOG EOG RESOURCES INC 3.83%
ROK ROCKWELL AUTOMATION 3.71%
GM GENERAL MOTORS 3.57%
TSS TOTAL SYSTEM SERVICES 3.51%
ICE INTERCONTINENTAL EXCH 3.48%
PKG PACKAGING CORP OF AM 3.41%
LEA LEAR CORP 3.39%
Top 10 Holdings % 37.5%
XPO XPO LOGISTICS, INC 3.38%
CDNS CADENCE DESIGN SYS 3.38%
FRFHF FAIRFAX FINANCIAL 3.32%
WM WASTE MANAGEMENT 3.31%
PVH PVH CORPORATION 3.30%
ROST ROSS STORES, INC 3.23%
APH AMPHENOL CORP-CL A 3.13%
MYL MYLAN N.V. 3.11%
FITB FIFTH THIRD BANCORP 3.05%
KLAC KLA-TENCOR CORP 2.97%
NYCB NEW YORK COMMTY BCRP 2.96%
EL ESTEE LAUDER CO. 2.96%
DAL DELTA AIR LINES, INC. 2.83%
SWKS SKYWORKS SOLUTIONS 2.55%
AVGO BROADCOM LIMITED 2.54%
VG VONAGE HOLDINGS CORP 2.53%
VZ VERIZON COMM 2.51%
CLR CONTINENTAL RES 2.40%
CE CELANESE CORP 2.11%
EMN EASTMAN CHEMICAL CO 2.04%
TSN TYSON FOODS 1.97%

This list is subjective to change and may not be representative of current or future holdings.

Average Annual Returns (%) as of September 30,2017

Quarter to Date Year to Date 1 year 3 Year 5 Year Inception to Date
AMLCX 8.48 17.92 19.72 9.67 14.18 12.91
Russell 1000 Growth Index 5.90 20.72 21.94 12.69 15.26 15.66
S&P 500 Index 4.48 14.24 18.61 10.81 14.22 13.76

Gross Expense Ratio: 1.98% Net Expense Ratio: 1.50%

Past performance is not a guarantee of future results. The investment return and the principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. Current month end data is available at www.alphamarkfunds.com. Performance results include the reinvestment of dividends. It is not possible to invest directly in any index.

Portfolio Statistics

3 Yr Sharpe Ratio 0.87

Price/Earnings 18.50

3 Yr Beta 1.06

Price/Sales 1.30

3 Yr R-Squared 88.06

Historical Growth 15.20

3 Yr Std. Dev. 10.96

Sales Growth 5.10

Sharpe Ratio is a measure for calculating risk-adjusted return which is the average return earned in excess of the risk-free rate per unit of volatility or total risk. Beta is a measure of risk which shows a fund’s volatility relative to its benchmark index. R-Squared is the percentage of a fund’s movement that can be explained by movements in its benchmark index. Standard Deviation is a statistical measure of the range of a fund’s performance. Price/Earnings (P/E) Ratio: The price-to-earnings ratio shows the “multiple” of earnings at which a stock is selling. The P/E ratio is calculated by dividing a stock’s current price by its current earnings per share. A high multiple means that investors are optimistic about future growth and have bid up the stock’s price. Price/Sales Ratio: Price-to-sales is calculated by dividing a stock’s current price by its projected revenue per share for the current fiscal year.

Objective

The Fund seeks long term growth of capital.

Strategy

The Fund will invest primarily in a diversified portfolio of domestic common stocks of large cap companies. Large cap companies are defined as companies with a total market cap of $5 billion or more at the time of purchase. It is anticipated that, under normal circumstances, the Fund will have an average weighted market capitalization of greater than $10 billion. The Fund seeks high quality growth companies experiencing earnings momentum valued at a level that justifies their price.

Important Risk Considerations

The Fund invests primarily in large capitalization equity securities which, like all equity securities, carry the potential for unpredictable drops in value and periods of lackluster performance. Large capitalization companies may be unable to respond as quickly as smaller companies to new competition challenges and also may not be able to attain the high growth rate of successful smaller companies. The Fund’s investments in foreign securities involve risks that may be different from those of U.S. securities. Foreign securities may not be subject to uniform audit and financial reporting and disclosure standards. In addition, the Fund’s foreign investments may be subject to adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, political or social instability, and nationalization of companies or industries. For additional information on these and other risks, please read the current prospectus.

*The Advisor has contractually agreed, until December 31, 2017, to reduce management fees and to absorb a Fund’s operating expenses to the extent necessary to limit Annual Fund Operating Expenses (excluding Acquired Fund Fees and Expenses) to an amount not exceeding 1.50% of each Fund’s average daily net assets. Management fee reductions and expenses absorbed by the Advisor are subject to repayment by the Funds for a period of 3 years after such fees and expenses were incurred.

S&P 500 Index is the Standard & Poor's composite index of 500 stocks, a widely recognized, unmanaged index of common stock prices. Russell 1000 Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price to-book ratios and higher forecasted growth values.

Price/Book Ratio: A valuation measure that compares a stock's market price to its book value, i.e., the company's new worth divided by the number of outstanding shares.

Price/Earnings (P/E) Ratio: The price-to-earnings ratio shows the "multiple" of earnings at which a stock is selling. The P/E ratio is calculated by dividing a stock's current price by its current earnings per share. A high multiple means that investors are optimistic about futire growth and have bid up the stock's price.

Price/Sales Ratio: Price to sales is calculated by dividing a stock's currrent price by its projected revenue per share for the currnet fiscal year. A smaller multiple (less than 1.0) means that investors are paying less for each unit of sales.

Fund Facts as of September 30,2017

Inception Date 10/31/08
Ticker AMLCX
CUSIP 020784104
Minimum Investment $1,000
Number of Holdings 31
Total Assets $23,003,643
NAV 15.73
Average Mkt Cap $Mil 33,375
Foreign % 6.0%
Gross Expense Ratio 1.88%
Net Expense Ratio* 1.50%
Portfolio Manager Michael Simon, CFA, CPA
Manager Start Date 10/31/08

P/E, P/B, P/S and Dividend Yield are based on projections for current fiscal year.

Trading Activity During the Quarter

Sales:

CenturyLink (CTL)

Purchases:

An investor should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. To obtain a prospectus, which contains this and other information, contact AlphaMark Funds by calling 866-422-3350. or at www.alphamarkfunds.com. Please read the prospectus carefully.

AlphaMark Large Cap Growth Fund Live ( External site. Funds, Advisor and Distributor are not responsible for the content.)

DISCLAIMER: This web-site is for informational purposes only and does not constitute a complete description of our investment services or performance. This web-site is in no way a solicitation or offer to sell securities or investment advisory services except, where applicable, in states where we are registered, notice filed or where an exemption or exclusion from such registration exists. Information throughout this site, whether stock quotes, charts, articles, or any other statement or statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Nothing on this web-site should be interpreted to state or imply that past results are an indication of future performance. Neither we or our information providers shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission thereof to the user. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION POSTED ON THIS OR ANY "LINKED" WEB-SITE.