The Fund is an actively managed exchange-traded fund (“ETF”) that seeks broad-equity market exposure, as well as exposure to certain individual equity securities while also employing an options overlay strategy (via risk-defined options) to seek to limit potential losses and to generate additional income.

Core Capital Appreciation Strategy

The Fund’s Core Capital Appreciation Strategy involves two elements. First, the Fund seeks to obtain broad-based equity market exposure by investing in passively managed U.S. large-cap equity ETFs that track broad equity indices. The Fund’s sub-adviser, Unity Wealth Partners LLC (the “Sub-Adviser”), selects indices that provide broad exposure to U.S. large cap stocks and selects specific ETFs tracking those indices based on favorable liquidity and fees. Second, the Fund will invest directly in stocks of individual U.S. large-cap growth, large-cap value, and mid-cap growth companies that meet certain growth dynamics discussed below. Typically, approximately 30% to 70% of the Fund’s equity exposure will be in passively-managed ETFs and 30% to 70% will be in individual stocks.

The Sub-Adviser will maintain exposure to broad-based, passively-managed ETFs at all times to ensure the Fund is diversified and has coverage of the major indices (e.g., S&P 500, Nasdaq, and Dow Jones Industrial Average). This ETF exposure forms the foundation of the Fund, allowing it to participate in broad market movements. The level of exposure may be adjusted based on various factors, including macroeconomic developments, valuation, and technical indicators. The Sub-Adviser generally prefers individual stocks over ETFs when factors like competitive advantages, growth rates relative to sector and peers, business models, and financial strength favor holding individual stocks.

In the process of selecting individual companies for inclusion, the Sub-Adviser assesses factors such as:

Additionally, the Sub-Adviser looks for established industry leaders with, in the Sub-Adviser’s assessment, attractive valuation metrics and growth potential.

The Sub-Adviser may also estimate the intrinsic value of a company’s stock and its growth potential by considering, among other things, economic, financial and qualitative factors. These include key metrics such as Price-to-Earnings (P/E) ratio and the Price/Earnings to Growth (PEG) ratio, as well as considerations of the total addressable market, company fundamentals such as balance sheet strength and dividend yield, as well as company valuation relative to its sector and/or peer group. Furthermore, the Sub-Adviser analyzes emerging trends within each sector and evaluates each stock position to capitalize on these trends. Please see “Additional Information About the Fund” for information about the financial terms discussed above.

In addition, the Sub-Adviser will evaluate certain companies for their value potential. This assessment involves identifying instances of mispricing where the Sub-Adviser believes value will ultimately be reflected in the company’s stock price. The Fund’s holdings of value stocks are intended to complement its overall growth orientation and offer opportunities for potential appreciation.

The Sub-Adviser actively integrates both long-term and short-term investment strategies into the core strategy portfolio construction process. When the price of a Fund position (stock or ETF) has experienced a significant increase, the Sub-Adviser may sell a portion of that position to maintain a balanced portfolio allocation. The Sub-Adviser utilizes technical indicators (such as Relative Strength Index, moving averages and Bollinger Bands, described further below), to inform its selling decisions. These indicators provide additional insight into market trends and momentum shifts, aiding the Sub-Adviser in making informed investment decisions. The Sub-Adviser also utilizes fundamental analysis such as valuation metrics and growth rates to inform its selling decisions. Please see “Additional Information About the Fund” for information about the financial terms discussed above.

Options Overlay Strategies

The Fund employs a number of options overlay strategies to seek to limit potential losses (as discussed below for each strategy) from its Core Capital Appreciation Strategy and to generate additional income. The Fund’s options overlay strategy seeks to take advantage of market inefficiencies, volatility and specific market outlooks while adhering to disciplined risk management principles. Additionally, the Fund’s options strategy has the potential to generate premium income via the sale of option contracts.

This strategy grants flexibility to dynamically hedge against downside risks or capitalize on market opportunities as conditions evolve. Adjustments to options positions are made swiftly and efficiently to align with changing market dynamics or investment objectives.

The Fund’s options overly strategies include covered calls, put spreads, call spreads, and iron condors. Each strategy involves buying and selling options contracts individually or in various combinations with predetermined strike prices and expiration dates.

When employing a covered call strategy, the Fund will hold a long position in an asset and sell call options on that same asset to seek to generate income through premiums. The strategy aims to generate income through the premiums received from selling the call options, while also potentially benefiting from potential appreciation in the underlying asset up to the amount of the strike price.   

The use of a covered call strategy will limit the potential gains the Fund may realize on long holdings in the underlying asset. If the underlying asset increases significantly in price, the Fund may be required to sell the shares at a lower price than it could have obtained by simply selling the asset on the open market.     

The Fund’s portfolio allocated to each options strategy is subject to a defined maximum potential loss, providing downside protection. With the exception of covered calls, the Fund’s option trades will be risk-defined via option spreads, and the maximum loss (i.e., the maximum amount the Fund could lose on a given options trade) of any given option is equal to the difference between the strike prices of the two options in the spread less the premium income received. For covered calls, the Fund’s risk is that the underlying asset rises in value above the strike price, and the Fund is obliged to sell the asset at the lower, predetermined price.

The options overlay strategy may generate income through the premium received from selling options contracts.

The Fund will invest in liquid options contracts to seek to minimize “slippage,” which is the difference between the expected price of a trade and the actual price at which the trade is executed. This difference can occur due to various factors, such as market volatility, order size, and liquidity.

Cash Reserves

The Fund will maintain an allocation to cash (e.g., money market funds and short-term U.S. Treasury securities), which will fluctuate based on market conditions and investment opportunities. Generally, the Fund’s cash position will range between 0-20% of the Fund’s portfolio value. This cash will be utilized to cover any risk-defined option trades and seek to take advantage of favorable market conditions for equity purchases.

Portfolio Holdings/Attributes:

The Fund’s Core Capital Appreciation Strategy portfolio will generally be comprised of between 40 and 50 individual stocks and 2 to 10 broad-based, large-cap ETFs.

The Fund’s overall portfolio allocation will generally reflect: (i) 60-100% equity exposure, (ii) 0-20% options exposure, and (iii) 0-20% cash exposure.

The Fund will invest, under normal circumstances, at least 80% of its net assets plus the amount of borrowings for investment purposes, in the Fund’s Core Capital Appreciation Strategy and Options Strategy.

The Fund is classified as a diversified fund under the 1940 Act.