L REIAX, REICX, REIIX Q2 CommentaryQ3 Commentary  

 

As of September 30, 2015 Total Return (net of fees) 1 Month Q3 YTD 1 Year Annualized

ITD* Cumulative

ITD* REIAX 2.26% 1.00% -2.78% 9.89% 14.49% 26.69% REIAX w/ Load -3.65% -4.83% -8.38% 3.56% 10.68% 19.41% REICX 2.15% 0.81% -3.27% 9.04% 13.65% 25.06% REIIX 2.15% 1.07% -2.61% 10.04% 14.70% 27.10% MSCI US REIT Index 3.03% 2.06% -4.26% 9.47% 13.53% 24.83%  

Performance   data   quoted   represents   past   performance   and   is   no   guarantee   of   future   results.   Total   return   figures   include   the  reinvestment   of   dividends   and   capital   gains.   Current   performance   may   be   lower   or   higher   than   the   performance   data   quoted.  Investment  return  and  principal  value  will  fluctuate  so  that  an  investor’s  shares,  when  redeemed,  may  be  worth  more  or  less  than  original   cost.   For   the  most   recent  month   end   performance,   please   call   (800)   207-­‐7108.   Returns   showing   less   than   one   year   are  cumulative.  *ITD  represents  inception-­‐to-­‐date  data.  The  Fund’s  inception  date  was  12/31/2013.  The  gross  operating  expense  ratio  for  the  Class  A,  C,  and   Institutional  Shares  are  2.84%,  3.59%  and  2.59%,  respectively.  The  Fund’s   investment  advisor  contractually  agreed,  until  April  30,  2016,  to  waive  its  fees  and/or  pay  operating  expenses  so  that  the  net  expense  ratios  of  the  Class  A,  C  and  I  Shares  do  not  exceed  1.50%,  2.25%  and  1.25%,  respectively.  Otherwise,  performance  shown  would  have  been  lower.  Performance  results  with  load  reflect  the  deduction  for  Class  A  Shares  of  the  5.75%  maximum  front  end  sales  charge.  Class  C  Shares  are  subject  to  a   contingent  deferred  sales   charge  of  1.00%  when   redeemed  within  12  months  of  purchase.  Performance  presented  without   the  load  would  be  lower  if  this  charge  was  reflected.    Fund  performance  may  be  subject  to  substantial  short-­‐term  changes.      The West Loop Realty Fund institutional share class produced a total return of +1.07% for the third quarter of 2015, which compares to +2.06% for the MSCI US REIT Index over the same period. Detractors from relative performance included an overweight allocation to the hotel sector as well as stock selection in the self-storage and shopping center sectors, while stock selection in the data center/tech, mall, and health care sectors contributed positively to relative performance.

Attribution The hotel sector has been hurt recently over concerns that the macroeconomic environment and new supply in the form of Airbnb will result in a deceleration in revenue per available room (or RevPAR) growth. At current prices, hotel stocks are discounting a significant negative trend in fundamentals, which may be cause for upside if they remain as strong as we believe they will. Sovran Self Storage (NYSE: SSS) underperformed the self-storage sector during the quarter. Unlike its peers, SSS has no exposure to California markets, which has negatively affected its relative revenue growth profile. Sovran’s Houston exposure (~11% of net operating income, or NOI) has also put pressure on the stock price despite management forecasting Houston NOI growth to exceed the portfolio average. Additionally, the Fund’s allocation to Kite Realty Group (NYSE: KRG) within the shopping center sector detracted from relative performance. KRG has been trading at a substantial discount to its net asset value (or NAV) as some investors have not given the company credit for its improved portfolio quality and growth outlook. The allocation to CyrusOne (NASDAQ: CONE) and CoreSite Realty (NYSE: COR) within the data center/tech sector enhanced the Fund’s performance for the quarter. The data center/tech sector is expected to have strong growth driven by continued acceptance of the “cloud” and increased demand for more mobile and video capacity. Not owning CBL & Associates Properties (NYSE: CBL), a class B and C mall Real Estate Investment Trust (REIT), was the main reason for outperformance within the mall sector. We favor mall REITs with more exposure to higher-quality class A properties, which tend to have a stronger growth profile and are more resistant to threats from online retailers. Healthcare Realty Trust (NYSE: HR), which focuses on medical office buildings (MOBs), contributed to the Fund’s relative performance within the health care sector. HR benefits from increasing outpatient visits to its properties, which are mostly affiliated with large hospital systems.

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The REIT Way to Measure Risk The advent of Modern Portfolio Theory in the 20th Century, along with fully functioning stock exchanges and computers, created a golden era for data analysis, return expectations, and optimizing portfolios for the highest return at a given level of risk. Who wouldn’t want the highest return and lowest risk? While understanding the calculation of historical returns is somewhat ubiquitous, the word ‘risk’ can have different meanings to different people.

Standard deviation is the most common unit of measurement of risk for investing. The historical standard deviation of REITs has been relatively high, which has contributed to a conclusion that public REITs are more ‘risky’ than S&P 500 (Bloomberg: SPX) equities. Consequently, investors typically allocate anywhere between 0-10% in REITs within their portfolios. However, we would argue that there are other factors which make a compelling enough case to increase that allocation in the REIT sector beyond 0-10%. Using Modern Portfolio Theory, a series of monthly returns for various investments and asset classes can be input into various formulas to find the optimal combination that will result in the best future performance at a given level of risk. Called “portfolio optimization”, many consultants, industry experts, and financial advisors use such formulas as the foundation for asset allocation decisions. However, using only a series of historical one-month returns to make broad asset allocation decisions is dangerous without carefully considering the inputs, especially with real estate. Go Long (Term)! Real estate is a long term asset. Despite the ability to trade properties in a portfolio today by the millisecond, performance of a REIT portfolio should be measured in years; not days, months, or even quarters. Similar to a major league baseball team, each REIT has underlying contracts with tenants that take years for a new owner to position it in to win. As a Houston-based REIT team, we have had an up-close view of how long it can take to reposition a franchise. The Houston Astros (also known as the “Lastros”, or “Disastros”) finished in last place for three straight years (2011-2013), producing the most losses in a three year period of any team in Major League Baseball history. In 2015, the Houston Astros made the playoffs. Waiting for below-market leases to expire, re-positioning space, and signing a new tenant can take years. Selling individual properties, exiting markets, and entering new markets are similarly long processes. Therefore, REIT performance and risk should be measured over a full cycle, typically averaging about 10 years. Coincidentally, 2005 was the last time the Astros made the playoffs - exactly 10 years ago. Steady and Smooth Relative to the S&P 500, public REITs as measured by the FTSE NAREIT All Equity REITs Index (Bloomberg: FNER) have had a higher standard deviation than the S&P 500 over the trailing 5, 10, 15, 20, 30, and 40 year periods. But, did an investor take on more risk? The standard deviation of the 403 monthly periods of 10-year annualized total returns since 1972 has been only 13.7% for the FNER, far less than the 19.1% for the S&P 500. Even using only 10-year periods ending after 2008 (chosen because they include 2008’s extreme volatility), the FNER standard deviation of 10-year total returns was only 6.6% versus 13.4% for the S&P 500. Historically, the FNER produced annualized 10-year total returns above the midpoint (7%) of that range 98% of the time. The S&P 500 was only

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able to exceed 7% in 81% of the 10-year periods over the same time frame. Additionally, the worst 10-year period since 1972 for public REITs produced an annual total return of +3.4%, which compared to -3.4% for the S&P 500. Therefore, for those who have a longer term time horizon, they may find that public REITs have had more predictable returns, better downside protection, and less risk – even using the all-powerful standard deviation metric. Volatile Earnings, Volatile Returns REIT earnings are more predictable and less volatile than comparable metrics for the S&P 500. As such, REIT earnings growth, as measured by Funds From Operations (FFO) have had much lower volatility than S&P 500 earnings growth. From 2001 to 2014, the standard deviation of REIT FFO growth (according to FNER) was only 12.1%, while the S&P 500’s earnings growth had a standard deviation of 18.0%! In contrast to many S&P 500 companies (excluding the 24 REITs in the S&P 500 of course), REITs enter into contracts that lock in revenues for periods of up to 20 years, depending on the property type. The contractual nature of REIT revenues protects the rental payments, even as the earnings and stock prices of a REIT’s underlying tenants may be declining. It is generally accepted that rent is one of the last expenses to be cut by a company looking to cut costs. Additionally, the diversification within many REITs, and especially a portfolio of REITs, tends to provide further risk mitigation if a particular geographic market, property type, or tenant industry is experiencing a decline. The companies in the West Loop Realty Fund as of June 30, 2015 owned 6,539 properties across 10 property types, not including the cell tower REITs (each owns thousands of towers) or the franchised/managed hotels by Starwood Hotels (NYSE: HOT). Excluding multifamily, self storage, and lodging, the portfolio has well over 20,000 tenants spread across all industries. Geographically, the portfolio is spread across the country in all regions and over 170 metropolitan service areas (or MSAs). New York City is the largest MSA by square footage, and accounts for less than 10% of the portfolio. Valuation Techniques We have lauded the effectiveness of using NAVs for valuing REITs many times in this publication. In addition to filing a 10-Q, each REIT issues a ‘Supplemental’ each quarter with 10-50 pages of company details which aide in determining REIT earnings and NAV calculations. Public REIT values are somewhat tied to their NAVs, which has prevented them from becoming too overvalued or undervalued (except for 2008-2009 when it happened for all asset classes). Unfortunately, NAV is not applicable to many other companies outside of REITs. Instead, investors are expected to determine fair value via other methods, most commonly an earnings multiple. In our 2Q 2015 Commentary, we explained the danger of using historical multiples to determine fair value of a company. Ultimately, the multiple used is a best guess opinion that rarely has substantial comparable transactions to use as evidence. Its inexact nature increases the probability that market multiples will be more volatile and experience swings too far in one direction or another. We believe an investor should feel more confident in the future earnings and fair value estimates of REITs than those of S&P 500 companies, which implies less risk. Less Obsolescence Well-located real estate has possibly the least obsolescence risk of any industry. Sometimes referred to as ‘irreplaceable’, the values of such properties seem to have very little downside risk for long term investors. While its tenants may succumb to competition, a well-located property will almost always be able to re-lease an empty space, and often at a premium to the prior tenant’s rent!

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For example, FAO Schwarz closed its doors at the GM Building (767 Fifth Avenue in New York City) on July 15 after almost 30 years. During that period, FAO Schwarz filed for bankruptcy twice, and now it is owned by Toys R Us, another struggling retailer. The private equity investors in FAO Schwarz and Toys R Us have likely lost a considerable portion of their investment. However, the owner of the GM Building, Boston Properties (NYSE: BXP), will be able to replace FAO Schwarz with a tenant or tenants paying a much higher rate. FAO Schwarz was paying about $20 million annually, or $323 per square foot (sqft), on its 62,000 sqft, 3-floor footprint. Though BXP has not given any estimate on the new rent the space could garner, the 14,000 sqft on the ground floor alone could produce annual rent of over $30 million assuming a rental rate of $2,250 per sqft, a conservative estimate given that asking rents for street retail on Fifth Ave as of June 30 were over $3,400 per sqft. Upon fully re-leasing the space, we believe BXP could stand to receive $25 million more in net operating income than it was under the prior lease with FAO Schwarz. At a 4% cap rate (again conservative for the most valuable office building in the world) and adjusting for its minority partner’s 40% interest, re-tenanting the FAO Schwarz space would add $375 million to BXP’s net asset value (or NAV), or $2.20 per share. The above scenario happens constantly for mall REITs, as all of their tenants are subject to changing trends that may make them obsolete. As shown in Figure 2, the mall REIT same store net operating income (SSNOI) and even tenant sales grew consistently in the face of varying amounts of tenant bankruptcies. In most cases, investors in the retailers that went bankrupt or had to close stores experienced significant losses, while the REIT landlord benefited from the ability to replace an underperforming tenant at a higher rate. REITs are Homebodies S&P 500 equities have significantly more international risk than public REITs. According to S&P/Dow, approximately 40% of S&P 500 company revenues are from outside of the US. While it can be argued that international exposure adds diversification, it also brings additional risk. A slowdown in China, Japanese deflation, falling commodity prices (Brazil and Russia), Middle East violence, and Greek insolvency can significantly alter corporate and consumer behavior. In addition to geopolitical risk and economic risk, currency fluctuations against the US dollar also change earnings when translated into US Dollars. In contrast, US REITs derive only 3% of their value from abroad according to Green Street Advisors. With little to no currency risk and a lack of exposure to more volatile economies, REIT earnings and valuations are well-insulated from crises and recessions that may significantly affect traditional equities. Shareholder Capital Allocation Most companies have stated leverage and external growth goals, along with a property type and geographic focus, that should give investors comfort that the management team is not going to stray from any of the characteristics that may have made the company attractive. For example, an investor who likes Essex Property Trust (NYSE: ESS) because of its West Coast multifamily exposure can feel confident that the management team will not buy or invest in properties outside of that geographic area. In addition, in the REIT sector, investors can feel more comfortable that their interests are aligned with management –the average insider ownership of 181 REITs analyzed by SNL Financial was 7.2% as of December 31, 2014. In comparison, the average insider ownership of the S&P 500 was 1.8% as of the same date.

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Historically, the REIT dividend has accounted for about half of the total return and putting cash in the hands of the shareholders via a higher dividend yield gives them the power of capital allocation and increases the probability of reaching the desired return. Similarly, active managers such as ourselves can use the liquidity from dividends and trading to shift the portfolio toward geographic markets, property types, and management teams that we believe will produce a return above that required by our assessment of risk. If no opportunities are available, we can hold cash until one presents itself. Cozy up to a Higher REIT Allocation We by no means would advocate throwing all risk metrics out of the door, nor are we trying to paint the picture that every S&P 500 company is more risky than every REIT. REITs have been associated with risk and volatility in the past, but we believe that should not be the case, especially today. After looking deeper into the available data, REITs have offered a similar or better return profile to the S&P 500, but with less risk. An investor with a time horizon of 10 years or more should seriously consider a minimum allocation to REITs throughout the cycle, and may feel comfortable with a larger allocation depending on valuation, fundamentals, and portfolio goals. To put a hypothetical allocation in perspective, commercial real estate comprises about 15% of the US economy, and over 18% when excluding residential real estate from the denominator. With predictable earnings, high transparency, well-covered dividends, record low leverage, and a lack of international exposure, an investor should focus on long term positive REIT fundamentals and ignore short term volatility that can give the appearance of above average risk. As of September 30, 2015 the Fund's Top 10 holdings were as follows: Simon Property Group (SPG) 9.20%, Sovran Self Storage (SSS) 5.57%, Avalonbay Communities (AVB) 5.04%, Boston Properties (BXP) 4.79%, Camden Property Trust (CPT) 4.67%, Vornado Realty Trust (VNO) 3.79%, General Growth Properties (GGP) 3.74%, Essex Property Trust (ESS) 3.68%, Crown Castle International (CCI) 3.36% and EastGroup Properties (EGP) 3.35% INDEX  DEFINITIONS  Indices  are  unmanaged,  do  not   reflect   the  deduction  of   fees  or   expenses,  and  are  not  available   for  direct   investment.   Each  index  discussed  above  is  comprised  of  different  investments  and  asset  classes.  Different  types  of  investments  and  asset  classes  have  different  characteristics,  including  with  respect  to  guarantees,  fluctuation  of  principal  and/or  return  and  tax  features.  The  performance  of  the  Fund  will  differ,  and  may  vary  materially,   from  that  of  any   index.  Risks   inherent   in  the  following   indices  include,  but  are  not  limited  to,  real  estate  industry  concentration  risk  (non-­‐diversification),  interest  rate  risk  (as  interest  rates  rise  bond  prices  usually  fall),  the  risk  of  issuer  default,  and  inflation  risk.  One  cannot  invest  directly  in  an  index.    The  MSCI  US  REIT   Index   is  a  free  float-­‐adjusted  market  capitalization  weighted  index  that  is  comprised  of  equity  REITs  that  are  included  in  the  MSCI  US  Investable  Market  2500  Index,  with  the  exception  of  specialty  equity  REITs  that  do  not  generate  a  majority  of  their  revenue  and  real  estate  rental  and  leasing  operations.  The  index  represents  approximately  85%  of  the  US  REIT  universe.  One  cannot  invest  directly  in  an  index.    NAREIT   Equity   REIT   Index   (FNER)   -­‐   The   NAREIT   Equity   REITs   Index   is   a   free-­‐float   adjusted,   market   capitalization-­‐  weighted  index  of  U.S.  Equity  REITs.  Constituents  of  the  Index  include  all  tax-­‐qualified  REITs  with  more  than  50  percent  of  total  assets  in  qualifying  real  estate  assets  other  than  mortgages  secured  by  real  property.  Inception  Date:  1971  Risks:  real  estate   risk   (non-­‐diversification),   interest   rate   risk   (as   interest   rates   rise  bond  prices  usually   fall),   the   risk  of   issuer  default,  and  inflation  risk  exist.    The   S&P   500   Index   is   a  broad-­‐based,  unmanaged  measurement   of   changes   in   stock  market   conditions   based   on   the  average  of  500  widely  held  common  stocks.    

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RISK  AND  OTHER  DISCLOSURES:    Effective  September  30,  2014,  the  Fund  changed  its  fund  name  from  “Chilton  Realty  Income  &  Growth  Fund”  to  “West  Loop   Realty   Fund.”   Chilton   Capital   Management,   LLC   remains   as   the   Fund’s   sub-­‐advisor.   The   Fund’s   investment  objective,  principal  investment  strategies  and  principal  risks  remain  the  same.    Before  investing  you  should  carefully  consider  the  West  Loop  Realty  Fund’s  investment  objectives,  risks,  charges  and  expenses.  This  and  other  information  about  the  Fund  is   in  the  prospectus  and  summary  prospectus,  a  copy  of  which  may  be  obtained  by  calling  800-­‐  207-­‐7108  or  by  visiting  the  Fund’s  website  at  www.libertystreetfunds.com.  Please  read  the  Fund’s  prospectus  or  summary  prospectus  carefully  before  investing.    An  investment  in  the  West  Loop  Realty  Fund  is  subject  to  risk,  including  the  possible  loss  of  principal  amount  invested  and  including,  but  not  limited  to,  the  following  risks,  which  are  more  fully  described  in  the  prospectus:  

• The  Fund   invests   in  Real   Estate   Investment  Trusts   (REITs),  which   involve   additional   risks   compared   to   those   from  investments  in  common  stock.  REITs  are  dependent  upon  management  skills;  generally  may  not  be  diversified;  and  are  subject  to  heavy  cash  flow  dependency,  defaults  by  borrowers,  self-­‐liquidation,  and  tax  risks.  

• Investments   in  REITs   involve  risks   including,  but  not   limited  to,  market  risk,   interest   rate  risk,  equity  risk  and  risks  related  to  the  real  estate  market.  

• The  Fund  will  be  closely  linked  to  the  performance  of  the  real  estate  markets.  The  Real  Estate  industry  is  subject  to  certain  market  risks  such  as  property  revaluations,  interest  rate  fluctuations,  rental  rate  fluctuations  and  operating  expenses,  increasing  vacancies,  rising  construction  costs  and  potential  modifications  to  government  regulations.  

• REITs  are  subject   to  declines   in   the  value  of   real  estate  as   it   relates   to  general  and   local  economic  conditions  and  decreases   in   property   revenues.   Continued   disruptions   in   the   financial   markets   and   deteriorating   economic  conditions  could  adversely  affect  the  value  of  the  Fund’s  investments.  

• As  a  non-­‐diversified  fund,  the  Fund  may  focus  its  assets  in  the  securities  of  fewer  issuers,  which  exposes  the  Fund  to  greater  market  risk  than  if  its  assets  were  diversified  among  a  greater  number  of  issuers.  

• The  Fund’s  investments  will  be  concentrated  in  the  real  estate  sector.  The  focus  of  the  Fund’s  portfolio  on  a  specific  sector  may  present  more  risks  than  if  the  portfolio  were  broadly  diversified  over  numerous  sectors.  

• Foreign  investment  risk.  These  risks  include  currency  fluctuations,  economic  or  financial  instability,  lack  of  timely  or  reliable   financial   information   or   unfavorable   political   or   legal   developments.   Foreign   companies   are   generally  subject  to  different  legal  and  accounting  standards  than  U.S.  companies.  

• The  Fund  invests  in  small  and  mid-­‐cap  real  estate  companies,  which  may  involve  less  trading  and,  therefore,  a  larger  impact  on  a  stock’s  price  than  customarily  associated  with  larger,  more  established  company  stocks.  

• In  order  to  qualify  for  the  favorable  tax  treatment  generally  available  to  regulated  investment  companies,  the  Fund  must   satisfy   certain   diversification   requirements.   The   Fund’s   strategy   of   investing   in   a   relatively   small   number   of  securities  may   cause   it   inadvertently   to   fail   to   satisfy   the  diversification   requirements.   If   the   Fund  were   to   fail   to  qualify  as  a  regulated  investment  company,  it  would  be  taxed  in  the  same  manner  as  an  ordinary  corporation,  and  distributions  to  its  shareholders  would  not  be  deductible  by  the  Fund  in  computing  its  taxable  income.  

The  Fund  may  not  be  suitable  for  all  investors.  We  encourage  you  to  consult  with  appropriate  financial  professionals  before  considering  an  investment  in  the  Fund.    Distributed  by  Foreside  Fund  Services,  LLC.    www.foreside.com