# EDGAR Filing Document

**Accession Number:** 0001045701
**File Stem:** 0001162044-23-000012
**Filing Date:** 2023-1
**Character Count:** 24231
**Document Hash:** a64d55468e09f6606c37342ce0e1ce6c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001162044-23-000012.hdr.sgml**: 20230106

**ACCESSION NUMBER**: 0001162044-23-000012

**CONFORMED SUBMISSION TYPE**: 497K

**PUBLIC DOCUMENT COUNT**: 3

**FILED AS OF DATE**: 20230106

**DATE AS OF CHANGE**: 20230106

**EFFECTIVENESS DATE**: 20230106

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Monteagle Funds
- **CENTRAL INDEX KEY:** 0001045701
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0831

**FILING VALUES:**
- **FORM TYPE:** 497K
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-41461
- **FILM NUMBER:** 23514903

**BUSINESS ADDRESS:**
- **STREET 1:** 2506 WINFORD AVENUE
- **CITY:** NASHVILLE
- **STATE:** TN
- **ZIP:** 37211
- **BUSINESS PHONE:** 888-263-5593

**MAIL ADDRESS:**
- **STREET 1:** 2506 WINFORD AVENUE
- **CITY:** NASHVILLE
- **STATE:** TN
- **ZIP:** 37211

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Memorial Funds
- **DATE OF NAME CHANGE:** 20060420

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Monteagle Funds
- **DATE OF NAME CHANGE:** 20060420

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MEMORIAL FUNDS
- **DATE OF NAME CHANGE:** 19971208

## Series and Classes Contracts Data

### Smart Diversification Fund (Series ID: S000065233)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000211156 | Class I      | SMDFX           |

![[monteaglesmartdiv497k001.jpg]](monteaglesmartdiv497k001.jpg)

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**<u>FUND SUMMARY</u>**

**Investment Objective** 

The investment objective of the Smart Diversification Fund (the "Fund") is total return through a combination of capital appreciation and income.

**Fees and Expenses of the Fund** 

This table describes the fees and expenses you may pay if you buy and hold shares of the Fund.

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Shareholder Fees (fees paid directly from your investment)**  | &nbsp;&nbsp;**Shareholder Fees (fees paid directly from your investment)**  |
| &nbsp;&nbsp;Maximum Sales Charge (Load) Imposed on Purchases |  |
| &nbsp;&nbsp;Maximum Deferred Sales Charge (Load) |  |
| &nbsp;&nbsp;Redemption Fee |  |
| &nbsp;&nbsp;**Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)**  | &nbsp;&nbsp;**Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)**  |
| &nbsp;&nbsp;Management Fees <sup>(1)</sup> | 0.42% |
| &nbsp;&nbsp;Distribution and/or Service (12b-1) Fees |  |
| &nbsp;&nbsp;Other Expenses  | 0.14% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating Expenses <sup>(2)</sup> | 0.88% |
| &nbsp;&nbsp;Total of All Other Expenses | 1.02% |
| &nbsp;&nbsp;Acquired (Underlying) Fund Fees and Expenses | 0.22% |
| &nbsp;&nbsp;**Total Annual Fund Operating Expenses** <sup>(3)</sup> | 1.66% |

---

(1) Effective December 1, 2020, the Management Fee paid by the Fund to the Adviser was reduced to an annual rate of 0.25% of the Fund's average daily net assets up to $10 million and 0.50% of such assets over $10 million. The "Management Fees" of the Fund reflects a blended rate. The "Management Fees" will not exceed 0.50%.

(2) Effective December 1, 2020, the Fund pays to the Adviser an Operating Services Fee at an annual rate of 1.20% of the Fund's average daily net assets up to $10 million, 0.75% of such assets for the next $15 million, 0.65% of such assets for the next $25 million, 0.50% of such assets for the next $50 million, 0.40% of such assets over $100 million. The "Operating Expenses" of the Fund reflects a blended rate. The "Operating Expenses" will not exceed 1.20%.

(3) "Total Annual Fund Operating Expenses" do not correlate to the ratio of expenses to average net assets provided in the Financial Highlights. The Fund's "Acquired Fund Fees and Expenses" are the fees and expenses incurred indirectly by the Fund as a result of its investments in investment companies and other pooled investment vehicles.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

Smart Diversification Fund – Summary Prospectus - Page 1

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The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year, and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | |
|:---|:---|
| **1 Year**  | **3 Years**  |
| $169 | $523 |

---

**Portfolio Turnover** 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 373% of the average value of its portfolio.

**Principal Investment Strategies** 

The Fund seeks to meet its investment objective by investing under normal market conditions at least 80% of its assets (defined as net assets plus any borrowing for investment purposes) measured at the time of purchase, in exchange-traded funds ("ETFs") that invest in domestic and foreign (i) equity securities of all market capitalizations, (ii) fixed-income securities of any credit quality, (iii) commodities (e.g., gold), (iv) real estate investment trusts ("REITs") and (iv) cash or cash equivalents. The foreign securities held by the underlying ETFs may include those in emerging markets. While the percentage invested in each asset class will change over time, the Fund invests primarily in equity securities and fixed income securities. The Fund may invest in fixed income securities of any credit quality (including high yield or "junk" bonds) and any maturity duration.

Luken Investment Analytics, LLC, the Fund's investment sub-adviser, uses the Smart Diversification® strategy, which is based on a proprietary quantitative model that uses trend analysis with a risk-management overlay to analyze each of the portfolio's fixed income, equities, cash or cash equivalent, and commodities or REIT, asset classes in the portfolio. The model uses trend, strength, and risk indicators to determine the weighting of each asset class held in the portfolio. The Adviser ranks each investment type (asset class) using a proprietary system which considers medium to long-term price trends ranging from a few weeks (short-term) to several months (long-term). If equity markets are trending upward for the applicable period, assets are allocated into equity investments according to the proprietary model's rules; and if equities are trending downward, the assets are primarily invested in fixed income securities, cash or alternatives as dictated by the applicable model. These decisions are made by pre-set rules. Proprietary indicators are used for strength and risk and may affect the portfolio's asset class weightings.

The sub-adviser anticipates rebalancing the Fund's portfolio based upon the sub-adviser's proprietary indicators. A consequence of the Sub-adviser's strategy, under certain market conditions, is high turnover.

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During protracted economic downturns, the sub-adviser may utilize defensive positioning, by increasing portfolio allocations to cash, fixed-income ETFs and alternative/specialty ETFs. Alternative or specialty ETFs are selected to provide positive returns and diversification. These may include ETFs linked to commodities, gold and managed futures. A consequence of the Sub-adviser's strategy, under certain market conditions, is high turnover. The Sub-adviser sees active trading as necessary to address market disturbances, volatility and the like.

**Principal Investment Risks**

As with all mutual funds, there is the risk that you could lose money through your investment in the Fund. The Fund is not intended to be a complete investment program. Many factors affect the Fund's net asset value and performance.

The following describes the risks the Fund may bear directly and indirectly through ETFs.

***Small and Medium Capitalization Company Risk.*** Securities of small and medium capitalization companies may be subject to more abrupt or erratic market movements than those of larger, more established companies or the market averages in general.

***Foreign Investment Risk.*** Foreign investing involves risks not typically associated with U.S. investments, including adverse fluctuations in foreign currency values, adverse political, social and economic developments, less liquidity, greater volatility, less developed or less efficient trading markets, political instability and differing auditing and legal standards.

***Emerging Market Risk.*** Investing in emerging markets imposes risks different from, or greater than, risks of investing in foreign developed countries.

***Interest Rate Risk.*** The Fund's fixed income investments are subject to interest rate risk, which generally causes the value of a fixed income portfolio to decrease when interest rates rise resulting in a decrease in the Fund's net assets.

For example, if interest rates increase by 1%, assuming a current portfolio duration of 10 years, and all other factors being equal, the value of the Fund's investments would be expected to decrease by 10%.

The Fund may be subject to a greater risk of rising interest rates due to the recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives. Interest rate fluctuations tend to have a greater impact on fixed income-securities with a greater time to maturity and/or lower coupon. A fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration. In periods of market volatility, the market values of fixed income securities may be more sensitive to changes in interest rates.

***High Yield or Junk Bond Risk.*** Lower-quality bonds and other debt securities, known as "high yield" or "junk" bonds, are considered speculative and present greater risk than bonds of higher quality, including an increased risk of default. An economic downturn or period of rising interest rates could adversely affect the market for these bonds and reduce the Fund's ability to sell its bonds. The lack of a liquid market for these bonds could decrease the Fund's share price.

***Real Estate Investment Trust (REIT) Risk.*** Investing in real estate investment trusts, or "REITs", involves certain unique risks in addition to those associated with the real estate

Smart Diversification Fund – Summary Prospectus - Page 3

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sector generally. REITs whose underlying properties are concentrated in a particular industry or region are also subject to risks affecting such industries and regions. REITs (especially mortgage REITs) are also subject to interest rate risks. By investing in REITs through the Fund, a shareholder will bear expenses of the REITs in addition to Fund expenses.

***ETF Risk.*** ETFs are subject to investment advisory fees and other expenses, which will be indirectly paid by the Fund. As a result, your cost of investing in the Fund will be higher than the cost of investing directly in ETFs and may be higher than other mutual funds that invest directly in bonds. Each ETF is subject to specific risks, depending on its investments. ETF shares may trade at a discount or a premium in market price if there is a limited market in such shares. ETFs are also subject to brokerage and other trading costs, which could result in greater expenses to the Fund. ****

***Equity Risk.*** The net asset value of the Fund will fluctuate based on changes in the value of the equity securities in which it invests through ETFs. Equity prices can fall rapidly in response to developments affecting a specific company or industry, or to changing economic, political or market conditions.

***Management Risk.*** The adviser's dependence on its proprietary macroeconomic analysis and judgments about the attractiveness, value and potential appreciation of particular asset classes in which the Fund invests may prove to be incorrect and may not produce the desired results.

***Currency Risk.*** The risk that material changes in currency exchange rates will negatively affect securities denominated in, and/or receiving revenues in, foreign and domestic currencies. Currency trading risks include market risk, credit risk and country risk. Market risk results from adverse changes in exchange rates in the currencies the Fund is long or short. Credit risk results because a currency-trade issuer may default. Country risk arises because a government may interfere with transactions in its currency.

***Alternative and Specialty Assets Risk.*** The Fund may purchase ETFs that invest in "alternative asset" or "specialty" market segments. The risks and volatility of these investments are linked to narrow segments of the economy such as commodities, gold, managed futures and real estate

***Commodity Risk.*** Investing in the commodities markets may subject the Fund to greater volatility than investments in traditional securities. Commodity prices may be influenced by unfavorable weather, animal and plant disease, geologic and environmental factors as well as changes in government regulation such as tariffs, embargoes or burdensome production rules and restrictions.

***Credit Risk.*** Debt issuers may not make interest or principal payments, resulting in losses to the Fund. In addition, the credit quality of securities held by an ETF may be lowered if an issuer's financial condition changes. These risks are more pronounced for securities at the lower end of the investment grade credit quality spectrum, such as those rated BBB- by Standard & Poor's Ratings Group or another NRSRO.

***Fixed-Income Risk.*** When the Fund invests in fixed-income ETFs, the value of your investment in the Fund will fluctuate with changes in interest rates. Rising interest rates will cause a bond's value to decline. Defaults by fixed income issuers will also harm performance. Other risk factors impacting fixed-income securities include credit risk, maturity risk, market risk, extension or prepayment risk, illiquid security risks, investment-grade securities risk. These risks could affect the value of a particular

Page 4 - Smart Diversification Fund – Summary Prospectus

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investment by the Funds possibly causing the Funds' share price and total return to be reduced and fluctuate more than other types of investments*.***

***Portfolio Turnover Risk.*** Generally, the Fund intends to invest for long-term purposes. However, the Fund's rate of portfolio turnover will depend upon market and other conditions, and it will not be a limiting factor when the Sub-adviser believes that portfolio changes are necessary or appropriate. Periods of portfolio "repositioning" may result in a high portfolio turnover rate. A high portfolio turnover would result in correspondingly greater brokerage commission expenses and may result in the distribution to shareholders of additional capital gains for tax purposes. These factors may negatively affect the Fund's performance.

***Sovereign Debt Risk.*** These investments are subject to the risk that a governmental entity may delay or refuse to pay interest or repay principal on its sovereign debt. There is no legal process for collecting sovereign debt that a government does not pay nor are there bankruptcy proceedings through which all or part of the sovereign debt that a governmental entity has not repaid may be collected.

***Gold Risk.*** The price of gold may be volatile, and gold related ETFs may be highly sensitive to the price of gold. The price of gold bullion can be significantly affected by international monetary and political developments such as currency devaluation or revaluation, central bank movements, economic and social conditions within a country, transactional or trade imbalances, or trade or currency restrictions between countries. Physical gold bullion has sales commission, storage, insurance and auditing expenses.

***Managed Futures Risk***. Investing in Underlying Funds that employ a managed futures investment strategy exposes the Fund to management risk, derivatives risk and leverage risk, as well as commodity, interest rate, equity and foreign currency risks depending on the particular strategy used by an Underlying Fund's manager. An Underlying Fund's manager's judgments about the price appreciation of various futures contracts may prove incorrect and result in losses. An Underlying Fund's use of derivatives (including futures and options on futures) to enhance returns or hedge against market declines is subject to the risk of mispricing or improper valuation, and changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Investments in derivatives may involve leverage, which means a small percentage of assets invested in derivatives can have a disproportionately large impact on the Underlying Fund. Commodity, interest rate, equity and foreign currency futures are subject to unfavorable price movements as well as specific risks described more fully in paragraphs above.

***Market Turbulence Resulting from COVID-19.*** The respiratory illness COVID-19 caused by a novel coronavirus has resulted in a global pandemic and major disruption to economies and markets around the world, including the United States. Global financial markets have experienced extreme volatility and severe losses, and trading in many instruments has been disrupted. Liquidity for many instruments has been greatly reduced for periods of time. Some interest rates are very low and in some cases yields are negative. Some sectors of the economy and individual issuers have experienced particularly large losses. These circumstances may continue for an extended period and may continue to affect adversely the value and/or liquidity of the Fund's investments. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, are not known. Governments and central banks, including the Federal Reserve in the U.S., have taken extraordinary and

Smart Diversification Fund – Summary Prospectus - Page 5

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unprecedented actions to support national economies and the financial markets. These actions have resulted in significant expansion of public debt, including in the U.S. The impact of these measures, and whether they will be effective to mitigate the economic and market disruption, may not be known for some time. The consequences of high public debt, including its future impact on the economy and securities markets, likewise may not be known for some time.

***Shareholder Concentration Risk.*** When a small number of shareholders account for a disproportionate share of the Fund's assets, the Fund could be vulnerable to a very large redemption request from a significant shareholder who wants to redeem. Such redemption may increase the expense ratio of the Fund. The decision-making process may also be controlled by a limited number of shareholders which may be biased in favor of said small group.

**Performance** 

The bar chart and performance table that follow provide some indication of the risks and variability of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.

**Calendar Year Returns as of December 31, 2021**

![[monteaglesmartdiv497k003.gif]](monteaglesmartdiv497k003.gif)

The Fund's Institutional Class Shares year-to-date total return through September 30, 2022, was -26.04%.

 **Best and Worst Quarter Returns**

*(for the last 10 years)*

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| | | |
|:---|:---|:---|
|  | **Return** | **Quarter/Year** |
| Highest Return | 22.38% | &nbsp;&nbsp;&nbsp;&nbsp;June 30, 2020 |
| Lowest Return | -18.29% | March 31, 2020 |

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**Average Annual Total Returns<br> For the Period Ended December 31, 2021**

The table below shows how the Fund's average annual total returns compared to those of the S&P 500 Index<sup>®</sup>. The table also presents the impact of taxes on the Fund's returns. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state or local income taxes. Your actual after-tax returns depend on your tax situation and may differ from those shown. If you own the Fund in a tax-deferred account, such as an individual retirement account ("IRA") or a 401(k) plan, after-tax returns are not relevant to your investment because such accounts are subject to taxes only upon distribution.

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Smart Diversification Fund** | **1 Year**  | **Since Inception**<br> **9/3/2019** |
| &nbsp;&nbsp;&nbsp;&nbsp;Institutional Class Return Before Taxes | 22.62% | 23.18% |
| &nbsp;&nbsp;&nbsp;&nbsp;Institutional Class Return After Taxes on Distributions | 18.66% | 21.42% |
| &nbsp;&nbsp;&nbsp;&nbsp;Institutional Class Return After Taxes on Distributions and Sale of Fund Shares | 14.31% | 17.68% |
| &nbsp;&nbsp;**S&P 500 Index<sup>®</sup>** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;(reflects no deduction for fees, expenses, or taxes) | 28.71% | 25.74% |

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**Investment Adviser and Sub-Adviser** 

Park Place Capital Corporation d/b/a Park Place Capital is the investment adviser to the Fund. Luken Investment Analytics, LLC is the investment Sub-adviser to the Fund.

**Portfolio Managers** 

● Gregory L. Luken, President of the Sub-adviser, has managed the Fund since its inception on September 3, 2019.

**Purchase and Sale of Fund Shares** 

Generally, you may purchase or redeem Fund shares on any business day by mail (Monteagle Funds, 8000 Town Centre Drive, Suite 400, Broadview Heights, Ohio 44147) or by wire transfer. Investors who wish to purchase, exchange or redeem Fund shares through a broker-dealer should contact the broker-dealer directly. The minimum initial investment in shares of the Fund is $10,000 for all accounts. There is no minimum subsequent investment in the Fund. To open an Individual Retirement Account (IRA), contact the Transfer Agent at (888) 263-5593.

**Tax Information** 

Dividends and capital gain distributions, you receive from the Fund, whether you reinvest your distributions in additional Fund shares or receive them in cash, are taxable to you at either ordinary income or capital gains tax rates unless you are investing through a tax-

Smart Diversification Fund – Summary Prospectus - Page 7

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free plan. However, these dividend and capital gain distributions may be taxable upon their eventual withdrawal from tax-deferred plans.

**Financial Intermediary Compensation**

***Payments to Broker-Dealers and Other Financial Intermediaries.*** If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's Web site for more information.

Page 8 - Smart Diversification Fund – Summary Prospectus

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