Supplement to the Prospectuses and Statement of Additional Information
each dated January 3, 2006
of
PARADIGM MULTI STRATEGY FUND I, LLC
And
PARADIGM FUNDS TRUST
And its following series:
Advantage Series
Adviser Series
Institutional Series
Addition of Investment Manager
At a special meeting of shareholders held on
March 26, 2007, the shareholders of PARADIGM
Multi Strategy Fund I, LLC (the
“Portfolio”) and the shareholders of PARADIGM Funds Trust (the
“Trust” and, collectively with the Portfolio, the
“Funds”) on behalf of the Funds, approved a new
advisory arrangement in which Provident Group Asset Management, LLC (
“Provident” or
“Manager”)
would serve as the manager of the Funds and PARADIGM Global Advisors, LLC (
“PGA” or
“Investment
Adviser”) would serve as investment adviser of the Funds.
As Manager of the Funds, Provident is responsible for (1) the asset growth program and
marketing strategies for the Funds and (2) supervision of the investment activities of the
Investment Adviser. As Investment Adviser of the Funds, PGA will remain responsible for the
day-to-day investment activities of the Funds.
Provident is the dedicated asset management arm of the Provident Group. Formed in July 2002,
Provident focuses exclusively on structuring and managing alternative asset management products for
institutional and other accredited investors. As of
August 31, 2006, Provident had a total of $144
million in assets under management. Provident is owned by the Provident Group Limited and Grahams
St. Group, LLC.
Change in Fee Table with respect to the Advantage Series
At a special meeting of shareholders held on
March 26, 2007, the shareholders of the
Advantage Series of the Trust approved the amendment of the Advantage Series’ Distribution and
Shareholder Services Plan to increase the current servicing fee from 0.25% to 0.75%. In connection
with the increase in the servicing fee, PGA has agreed, effective
March 26, 2007, to voluntarily
cap the Advantage Series’ total annual operating expenses at 2.75% of the Fund’s average daily net
assets. Based on current estimated expenses, the Fund’s total annual expenses are 2.65%. Accordingly, the
expense example on page 3 of the Advantage Series’ prospectus is revised as follows:
1 Year $ 46
3 Years $101
Election of Charles R. Provini as President of the Funds and as Trustee/Director of the Funds
At a special meeting of shareholders held on
March 26, 2007, the shareholders of the Funds
elected Charles R. Provini to serve as Trustee of the Trust and Director of the Portfolio. At a
meeting held on
January 24, 2007, the Board of Trustees of the Trust and the Board of Directors of
the Portfolio appointed Charles R. Provini to serve as President of the Funds.
