DELISTED - The Fund's adviser seeks
to achieve the Fund's investment objective by investing primarily in (1) common stocks, (2) fixed income securities (i.e., high
yield bonds (commonly referred to as "junk bonds"), investment grade corporate bonds and government issued bonds), (3)
exchange-traded funds ("ETFs") that invest primarily in common stocks or fixed income securities and (4) options on
common stocks, equity index sector ETFs and equity indexes. The Fund will focus its ETF investments in index sector-based ETFs.
The Fund invests without restriction as to issuer or counterparty capitalization, country, currency, or fixed income security
credit quality or maturity, whether held directly or through ETFs. The Fund expects the fixed income portion of the portfolio
to have a duration of 10 years or less. Duration is a measure of a fixed income security's average life that reflects the present
value of the security's cash flow, and accordingly, is a measure of price sensitivity to interest rate changes. Duration is expressed
in years, like maturity, but it is a better indicator of price sensitivity than maturity because it takes into account the time
value of cash flows generated over the security's life. Future interest and principal payments are discounted to reflect their
present value and then are multiplied by the number of years they will be received to produce a value expressed in years. You
can estimate the effect of interest rates on a fixed income portfolio share price by multiplying the portfolio's duration by an
expected change in interest rates. For example, the values of a fixed income portfolio with a duration of three years would be
expected to fall approximately 3% if interest rates rose by one percentage point.
Fixed income securities
will be composed primarily of lower quality debt instruments, commonly known as "high yield" or "junk" bonds,
some of which may be delinquent, in default or structured as zero coupon bonds that do not pay interest until maturity. The Fund
defines junk bonds as those rated lower than Baa3 by Moody's Investors Service ("Moody's") or lower than BBB- by Standard
and Poor's Rating Group ("S&P"), or, if unrated, determined by the adviser to be of similar credit quality. The
adviser selects fixed income securities based on interest income, potential for capital appreciation or both. Foreign common stocks
will be represented primarily by American Depositary Receipts ("ADRs") and to a lesser extent, securities traded on
foreign exchanges. The Fund is non-diversified, which means that the Fund may take a larger position in a small number of companies
than a diversified fund.
The adviser uses in-depth
fundamental analysis to identify securities trading at levels that it believes offer an attractive long-term rate of return relative
to their inherent risk measured as the potential for a permanent impairment in the value of the security. The assessment of risk
and potential return is focused on the valuation, durability of the underlying businesses, and the capital allocation policies
of an issuer.
To hedge against market,
sector or security-specific declines, the adviser purchases protective put options, writes call options (including on assets the
Fund does not own), buys inverse ETFs or sells ETFs short. Such derivatives, used for hedging purposes, may represent up to 100%
of the Fund's investment portfolio. The adviser also uses options as substitutes for underlying assets.
The adviser sells securities when it believes they no longer provide a compelling return relative to risk,
fundamentals have deteriorated or more attractive investments are available. The adviser selects securities that it believes will
produce income from dividends and produce capital appreciation. Additionally, the Fund writes stock index and single stock options
to generate what is commonly referred to as income (although premiums received are classified as a capital transaction for accounting
and tax purposes and thus as source of capital appreciation) and to reduce exposure to stock market price declines, to the extent
of the call option premium received.
