Strategy. The Fund is an actively managed exchange-traded fund (ETF) that seeks to provide current income with an opportunity for capital appreciation by investing in a select group of companies that have a history of growing their dividends. Castellan Group, LLCs will serve as the Funds sub-adviser (the Castellan) and will be responsible for selecting the Funds investments. Castellan has developed a proprietary methodology for selecting investments that blends both quantitative and qualitative analysis. The Funds portfolio will consist of an equity sleeve of dividend paying stocks and an options sleeve that may provide additional income. Each sleeve is described below. Equity Sleeve In selecting equity securities for the Fund, Castellan will first apply a rules-based quantitative screening process that screens … Show more… The Fund is an actively managed exchange-traded fund (ETF) that seeks to provide current income with an opportunity for capital appreciation by investing in a select group of companies that have a history of growing their dividends. Castellan Group, LLCs will serve as the Funds sub-adviser (the Castellan) and will be responsible for selecting the Funds investments. Castellan has developed a proprietary methodology for selecting investments that blends both quantitative and qualitative analysis. The Funds portfolio will consist of an equity sleeve of dividend paying stocks and an options sleeve that may provide additional income. Each sleeve is described below. Equity Sleeve In selecting equity securities for the Fund, Castellan will first apply a rules-based quantitative screening process that screens U.S.-listed stocks and American Depositary Receipts (ADRs) for companies that have consistently increased their dividends for the last 10 years. Castellan then performs a qualitative review of each company, evaluating a companys balance sheet strength and financial leverage, earnings growth, free cash flows, short- and long-term payout ratios (i.e., the rate at which a company distributes earnings to its shareholders), the cyclicality of earnings, a companys leadership position in its industry, and the prospects for the industry. Castellan generally seeks companies that have demonstrated the ability to grow their free cash flows, earnings, and dividends while maintaining their financial strength. Castellan will also consider the quality and reputation of a companys management team, looking for those teams that have demonstrated the ability to strategically allocate company capital. The Fundss investment philosophy is based on the belief that dividend growth is a strong indicator of the quality of the company. Castellan believes that dividends are generally a sign of capital discipline, financial well-being, and business sustainability and that they are the hallmark of a high-quality company. At the end of this process, Castellan expects to invest the Funds assets in up to 50 mid- and large-capitalization dividend paying companies that satisfy its investment criteria. Covered Call Options Sleeve The Fund will also employ an option strategy in which it will opportunistically write (sell) or cover (buy) U.S. exchange-traded covered call options on certain of the equity securities in the Equity Sleeve to seek additional income (in the form of premiums on the options). A call option written (sold) by the Fund will give the holder (buyer) the right to buy a certain equity security at a predetermined strike price from the Fund. A premium is the income received by the writer of the option contract. In selling the covered calls, the Fund effectively sells its ability to participate in gains of the reference security beyond the predetermined strike price in exchange for the premium income received. The Fund employs an active covered call strategy that seeks to reduce investment risk and enhance total return by tactically selling short-term out-of-the-money covered calls on approximately 20% of the Funds Equity Sleeve holdings. Castellan, with the assistance of the Funds other sub-adviser, Arin Risk Advisors, LLC (Arin), will actively select the strike prices and expiration dates for the call options based on their judgment and market analysis. This investment strategy is not a systematic covered call strategy which involves a fund following a predetermined set of rules to select the underlying assets, strike prices, and expiration dates for all call options without regard to market conditions. Typically, the Fund will write call options with an expiry of 2 to 5 weeks though this period and the differences between the strike prices and the price of the underlying stock will vary. In addition, there may be times (i.e., during a period of extreme market volatility when premiums do not favor call writing) when Castellan instructs Arin not to write any call options on holdings within the Equity Sleeve. 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