Exhibit 77E-Legal Proceedings
On May 23, 2012, YieldQuest Securities, LLC, YieldQuest
Advisors, LLC and YieldQuest Funds Trust (the "Trust")
(collectively, the "Parties") entered into a Settlement
Agreement and Release (the "Agreement") with Citi Fund
Services Ohio, Inc., ("Citi") to settle a claim for payment
of $101,409.95 allegedly owed Citi, as the successor to the
Trust's former service provider, Bisys Fund Services. Citi
had initiated arbitration to resolve the dispute. Pursuant to the
Agreement (with Citi) and a separate Allocation Agreement
between Parties, the Trust paid $26,000 towards full and
final settlement of Citi's claim, the Adviser paid the balance of
the agreed settlement amount, the Parties were released from
further liability to Citi, and the arbitration was dismissed
with prejudice.
