Strategy. The Fund is an actively managed exchange-traded fund (ETF) that seeks to provide capital appreciation by investing in a select group of equity securities. The central premise of the Funds investment style is growth at a reasonable price or GARP. The Funds portfolio will consist of an equity sleeve and an options sleeve, which are each described below. Castellan Group, LLC (Castellan), serves as a sub-adviser to the Fund and is responsible for determining the Funds investments. Castellan has developed a proprietary methodology for selecting investments that blends both quantitative and qualitative analysis. Under normal circumstances, at least 80% of the Fund net assets (plus the amount of any borrowings for investment purposes) will be invested in equity securities and … Show more… The Fund is an actively managed exchange-traded fund (ETF) that seeks to provide capital appreciation by investing in a select group of equity securities. The central premise of the Funds investment style is growth at a reasonable price or GARP. The Funds portfolio will consist of an equity sleeve and an options sleeve, which are each described below. Castellan Group, LLC (Castellan), serves as a sub-adviser to the Fund and is responsible for determining the Funds investments. Castellan has developed a proprietary methodology for selecting investments that blends both quantitative and qualitative analysis. Under normal circumstances, at least 80% of the Fund net assets (plus the amount of any borrowings for investment purposes) will be invested in equity securities and derivatives based on those securities. The Fund defines equity securities to mean common and preferred stocks, rights, warrants, and depositary receipts. For purposes of determining compliance with the Funds 80% investment policy, derivatives generally will be valued based on their notional value. Equity Sleeve In selecting equity securities for the Fund, Castellan will first apply a rules-based quantitative screening process that scores U.S.-listed stocks and American Depositary Receipts (ADRs) based on a variety of factors, including but not limited to, a companys profitability metrics (e.g., gross margin, operating margin, return on investment, and debt-to-equity ratio), market capitalization, analyst coverage (i.e., what are the analysts saying about the company), recent price momentum, and earnings estimates to establish a score for each company. Companies that score well relative to these factors are considered buy candidates. Buy candidates may include small-, mid-, and large-capitalization companies. Castellan next reviews each buy candidate to screen out any companies that may be facing company and/or industry specific headwinds, such as, but not limited to, an upcoming corporate action (e.g., merger or acquisition), a pending change in its management team, or an accounting or regulatory issue. Castellans qualitative review process is designed to identify issues that may not be captured by the quantitative process. By looking for these types of issues, Castellan is attempting to identify and avoid investing in potential value traps. A value trap is defined as a company that is considered inexpensive based on current valuation multiples but is likely to have poor price performance over the subsequent year. At the end of this process, Castellan expects to invest the Funds assets in the equity securities of up to 50 companies. Options Sleeve Castellan, with the assistance of the Funds other sub-adviser, Arin Risk Advisors, LLC (Arin), will manage the Funds Options Sleeve. The Fund may elect to buy and/or sell options on equity securities for a number of purposes, including hedging, investment exposure, or speculative purposes. An options contract is an agreement between a buyer and seller that gives the purchaser of the option the right to buy (in the case of a call option), or to sell (in the case of a put option), a particular asset at an agreed upon price (commonly known as the strike price) at a specified future date. The Funds option trading will generally involve buying call options and/or selling (writing) put options or combinations of options. Buying call options provides the Fund with the right, but not the obligation, to buy the underlying security at a specified price, while selling (writing) put options will generate premium income for the Fund and require the Fund to buy the stock at predetermined price. For example, based on instructions from Castellan, Arin may buy call options on a stock that Castellan is bullish about. When buying a call option on a stock, Castellan is looking to increase (leverage) the Funds exposure to the stock without actually buying the stock. If the stock increases in value above the call option strike price, Castellan may elect to exercise the option and buy the shares at the strike price. Castellan also may elect to sell (write) put options on a stock when it is seeking to own the stock. For example, when a buy candidate is selling at a price above what Castellan is willing to pay it may elect to sell a put option on the stock at a (lower) price it is willing to pay. If the stock decreases in value below the strike price, Castellan may elect to exercise the option and buy the shares at the strike price. General Portfolio Information The Fund is considered to be non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. The Fund will sell, reduce, or close positions according to changes in Castellans investment analysis. In addition, Castellan will actively monitor the Funds sector diversification, looking to maintain no more than 20% of the Funds assets in any one sector. Show less