The Fund invests at least 80% of its total assets in the component securities of the Index. The Fund uses a “passive” or indexing approach to try to achieve its investment objective. Unlike many investment companies, the Fund does not try to “beat” the Index and does not seek temporary defensive positions when markets decline or appear overvalued. The Fund will also invest, under normal circumstances, at least 80% of its net assets, plus borrowings for investment purposes, in U.S. exchange listed common stock of companies who engage in, to any extent, the manufacture, service, supply and distribution of personal and law enforcement defense equipment and protection services.

The Fund uses a replication strategy. A replication strategy is an indexing strategy that involves investing in the securities of the Index in approximately the same proportions as in the Index. However, the Fund may utilize a representative sampling strategy with respect to the Index when a replication strategy might be detrimental to shareholders, such as when there are practical difficulties or substantial costs involved in compiling a portfolio of equity securities to follow the Index, in instances in which a security in the Index becomes temporarily illiquid, unavailable, or less liquid, or as a result of legal restrictions or limitations (such as tax diversification requirements) that apply to the Fund but not the Index.

The AJN Self Defense U.S. Equity Index

The Index is a proprietary index designed to track the performance of a portfolio of the common stock of U.S. companies whose primary business is the manufacture, service, supply and distribution of personal and law enforcement defense equipment and protection services. As of December 31, 2023, the Index was comprised of 18 companies.

The initial universe of the Index constituents (the “Index Universe”) consists of all actively traded common stock of U.S. companies listed on an eligible U.S. exchange.  The index provider then filters the Index Universe to identify companies engaged in one of the following categories: i) the manufacture, wholesale or retail of firearms, ammunition, gun parts or other personal and law enforcement defense equipment; or ii) the manufacture of home security equipment or development of video surveillance and emergency management systems.  To be included as a component in the Index, the security must have a free-float market capitalization of greater than $100 million and a three-month average daily traded value of greater than $500,000.

The Index uses an equal weight approach.  The Index is rebalanced and reconstituted on a quarterly basis on the last business day of the quarter.  The Fund is rebalanced and reconstituted in accordance with the Index.  Additions and deletions to the Index components outside of the quarterly rebalance and reconstitution may be made based on corporate actions such as mergers, acquisitions, or bankruptcies or as a result of the constituent no longer meeting the objective criteria for inclusion.

The Index is developed by AJN Corp and licensed to the Advisor.  The Index is calculated, maintained, and distributed by an independent, third-party index calculation agent that is not affiliated with the Fund or the Advisor.  The Fund is non-diversified.

The Fund will concentrate its investments (i.e., hold more than 25% of its net assets) in a particular industry or group of related industries to approximately the same extent that the Index is concentrated. The Fund may also be focused on certain sectors from time to time to the same extent the Index is focused including the consumer discretionary, industrials, and technology sectors.