Strategy. The Fund is an actively-managed exchange-traded fund (ETF) that seeks capital appreciation. The Fund seeks to create an investment portfolio that has similar return characteristics as the hedge fund industry gross of fees returns. By creating an investment portfolio for the Fund with similar return characteristics as the hedge fund industrys gross of fees returns, the Funds sub-adviser, Unlimited Funds, Inc. (Unlimited or the Sub-Adviser), believes that the Funds net of fees returns may outperform the hedge fund industrys net of fees returns due to the relatively high fees and expenses charged by hedge funds versus the comparatively lower operating expenses of the Fund. The Sub-Adviser obtains publicly reported returns and fee data for the hedge fund industry from various … Show more… The Fund is an actively-managed exchange-traded fund (ETF) that seeks capital appreciation. The Fund seeks to create an investment portfolio that has similar return characteristics as the hedge fund industry gross of fees returns. By creating an investment portfolio for the Fund with similar return characteristics as the hedge fund industrys gross of fees returns, the Funds sub-adviser, Unlimited Funds, Inc. (Unlimited or the Sub-Adviser), believes that the Funds net of fees returns may outperform the hedge fund industrys net of fees returns due to the relatively high fees and expenses charged by hedge funds versus the comparatively lower operating expenses of the Fund. The Sub-Adviser obtains publicly reported returns and fee data for the hedge fund industry from various sources. The Sub-Adviser then seeks to create an investment portfolio with similar return characteristics (return, volatility, and correlation with other asset classes) as the hedge fund industry gross of fees returns primarily by investing in broad-based exchange-traded funds (Underlying ETFs) and futures contracts. The Investment Process The Sub-Adviser first determines the most recent months gross of fees returns of the hedge fund industry as a whole and of several individual hedge fund sectors that comprise the hedge fund industry (such as long/short equity, global macro, event-driven, fixed income arbitrage, emerging markets, managed futures, and multi-strategy) by reviewing publicly reported returns and fee information for the sector. Next, for each of the hedge fund sectors, the Sub-Adviser determines an investment portfolio of roughly 10-20 Underlying ETFs and futures contracts which best match the hedge fund sectors most recent publicly reported months gross of fees returns by using a proprietary machine learning algorithm (each, a Sector Portfolio). The selection of Underlying ETFs and futures contracts used as algorithm inputs is determined by the Sub-Advisers portfolio managers based upon their belief of what assets best capture the positioning (e.g., stock sectors, stocks vs. bonds) and factors (e.g., liquidity conditions, borrowing costs) driving the returns of each hedge fund sector. The proprietary machine learning algorithm analyzes the historical pattern of returns over several time frames to determine the Sector Portfolio that best matches the most recently publicly reported months hedge fund sector gross of fees returns, as well portfolio returns over various prior periods (as determined appropriate by the Sub-Adviser). The Sub-Adviser then aggregates each of the Sector Portfolios positions, which results in a total hedge fund industry model and, in turn, determines the Funds investment portfolio. The Sector Portfolios are weighted based upon the relative asset levels in each hedge fund sector (based on publicly reported data). The Funds investment portfolio will generally consist of 30 to 50 Underlying ETFs and futures contracts. Over time, through the use of this proprietary machine learning process, the Sub-Adviser expects the Fund to have similar return characteristics as the hedge fund industry gross of fees returns. The Sub-Adviser performs the foregoing analyses on an ongoing basis because hedge fund performance data for different indices (the Indices) is available at different times. The Sub-Adviser will frequently trade all or a significant portion of the holdings in the Funds investment portfolio as a result. What the Fund invests in: The Funds portfolio will generally consist of positions in 30 to 50 Underlying ETFs and futures contracts. In addition, the Fund may invest in swap agreements. Please see the heading titled Portfolio Construction, below, for more information about the Funds portfolio holdings. What the Fund will NOT do: The Fund is not a hedge fund, nor will it invest in hedge fund strategies or positions. For the avoidance of doubt: ? The Fund will not invest in hedge funds. ? The Fund will not seek to replicate the direct underlying holdings of hedge funds. ? The Fund will not engage in certain types of investment activities that are permissible for hedge funds. For example, hedge funds may use more leverage than the Fund, and hedge funds may invest a greater percentage of their assets in illiquid investments as compared to the Fund. Portfolio Construction The Fund invests primarily in Underlying ETFs and exchange-listed futures contracts. The Funds initial universe of ETF investments includes a broad range of primarily passively-managed ETFs. The initial universe may include, among others: ? Commodity ETFs that invest in commodities like oil and gold. ? Factor ETFs that invest primarily based on one of several investment factor categories, such as value and momentum. ? Fixed Income ETFs that invest in fixed income categories, such as treasuries, corporate bonds, municipal bonds, and high-yield bonds. ? Domestic, Global, and Foreign ETFs that invest in the U.S., developed markets, and/or emerging markets, as well as country-specific ETFs. ? Sector ETFs that invest primarily in one of several economic sectors, such as information technology and consumer discretionary. If there are several potential candidates for inclusion in the Funds portfolio, the Sub-Advisers selection criteria favor lower cost Underlying ETFs. In addition, the Funds portfolio will hold futures contracts to express long and short exposures if futures contracts are either lower cost or more accurately reflect the Sub-Advisers desired positioning for the Funds overall portfolio than investments in Underlying ETFs. The Fund can also invest in swap agreements for similar purposes. Please see the section of the Funds prospectus titled Additional Information about the Fund for a description of futures contracts and swap agreements. The Sub-Adviser adjusts the Funds portfolio on a frequent basis in light of its ongoing analysis of the Indices. As a result, the Fund will frequently trade all or a significant portion of the holdings in the Funds investment portfolio. The Fund is deemed to be non-diversified under the Investment Company Act of 1940, as amended (the 1940 Act), which means that it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund. Cayman Subsidiary The Fund intends to gain exposure to futures contracts and swap agreements either directly or indirectly by investing through a wholly-owned Cayman Islands subsidiary (the Subsidiary) that is advised by the Adviser. The Fund may invest up to 25% of its total assets in the Subsidiary. The Subsidiary will comply with the same 1940 Act requirements that are applicable to the Funds transactions in derivatives. In addition, the Subsidiary will be subject to the same fundamental investment restrictions and will follow the same compliance policies and procedures as the Fund. Unlike the Fund, the Subsidiary will not seek to qualify as a regulated investment company (RIC) under Subchapter M of the Internal Revenue Code of 1986, as amended (the Code). The Fund is the sole investor in the Subsidiary. The Adviser selects the Subsidiarys investments. Show less