KAIZEN HEDGED PREMIUM SPREADS FUND CLASS I (KZSIX) Exchange: NMFQS

DELISTED - Under normal circumstances, the Fund pursues its investment objective primarily by simultaneously purchasing and writing (selling) put or call options on major equity indexes (e.g., the S&P 500® Index and the NASDAQ 100 Index (NDX)). A put is an option contract giving the owner the right (but not the obligation) to sell a specified amount of an underlying asset at a set price within a specified time. A call is an option contract giving the owner the right (but not the obligation) to buy a specified amount of an underlying security at a specified price within a specified time. This strategy is referred to as a "credit spread" or "vertical credit spread." More specifically, a credit spread entails the simultaneous purchase and sale of options of the same type (puts or calls) with respect to the same index and with the same expiration date, but at different exercise ("strike") prices. The Fund's returns are driven by the premiums received by the Fund when writing options (puts or calls) from purchasers seeking protection below a certain level of asset decline (through a put) or seeking participation in the asset price increase above a certain level (through a call).   The Fund's advisor will enter into credit spreads for the Fund based upon the advisor's determination of the volatility environment of the stock market. The advisor determines the volatility environment through a proprietary process that analyzes daily market prices for various exchange-traded volatility instruments such as VIX® futures. Based on this analysis, volatility environments are classified as normal, elevated, or stressed.   ● Normal volatility environment – generally when prices of near-term (1-2 months) exchange-traded volatility instruments are lower than the prices of medium-term (3-6 months) exchange-traded volatility instruments.   ● Elevated volatility environment – generally when prices of near-term exchange-traded volatility instruments are the same as or similar to prices of medium-term exchange-traded volatility instruments.   ● Stressed volatility environment – generally when prices of near-term exchange-traded volatility instruments are higher than the prices of medium-term exchange-traded volatility instruments.   Once the volatility environment is determined, the Fund's advisor will invest in credit spreads that it believes are appropriate for the state of the volatility environment. The Fund's investment exposure to and number of credit spreads will vary based on the state of the volatility environment. During a normal volatility environment, the Fund's portfolio will generally have the highest investment exposure to and enter into the largest number of credit spreads. During times of elevated volatility, the Fund will reduce its investment exposure to and number of credit spreads in order to reduce the Fund's volatility and risk of decline.   After investment positions are established, the advisor employs an investment process that continuously analyzes prices for exchange-traded volatility instruments. The volatility environment of the stock market is determined on a daily basis. The Fund's advisor seeks to identify changes in the volatility environment that would signal a more cautious investment stance, or a more aggressive investment stance, dependent upon the direction of change. The Fund's advisor will respond to changing levels of volatility if the change is great enough to produce a new volatility environment signal. In particular, open credit spreads may be closed when the volatility environment changes and strike prices and sizes for new credit spreads will be adjusted to reflect the change in volatility environment.   The Fund typically writes index put options and call options with weekly and monthly expirations. The Fund will generally have up to 15 credit spreads at any given time, with up to 25% exposure to a single equity index credit spread (measured at the time of purchase). The equity indexes with respect to which the Fund will purchase and write options are generally based on a mixture of underlying securities.   The Fund may also seek to enhance returns by investing in the following types of securities: exchange-traded funds ("ETFs"), including inverse ETFs, and exchange-traded notes ("ETNs"), that track the CBOE Volatility Index® (the "VIX®"); options on such ETFs and ETNs; and/or options on the VIX®. Using a continuous quantitative process, the advisor monitors trends in the VIX® to determine if it is rising or falling and selects investments accordingly. Based on this process, when the advisor determines the VIX® is rising the Fund may invest in VIX ETFs and ETNs and/or related options; and when the advisor determines the VIX® is falling the Fund may invest in inverse VIX® ETFs and ETNs and/or related options.   In addition to the credit spread strategy, the Fund also intends to use a hedging strategy to seek to mitigate losses relating to sustained equity market declines. A declining market generally negatively affects the Fund's credit put spreads. To seek to hedge against this, the Fund intends to purchase and sell call and put options or futures on the VIX®. The VIX® is based on real-time prices of options on the S&P 500 Index and is designed to reflect investors' consensus view of future expected stock market volatility. It is compiled, maintained and owned by the Chicago Board Options Exchange, Incorporated ("CBOE"). The value of such a VIX® hedge typically increases during sustained equity market declines, and the Fund's strategy seeks to mitigate a portion of the losses on the Fund's credit put spreads during such declines. The extent of the Fund's VIX® hedges varies depending on the Fund's investment exposure to credit spreads and the expense of VIX® hedges.   All futures and options positions held by the Fund are exchange-traded and collateralized with cash, cash equivalents (for example, Treasury Bills and money market fund shares), other listed options or debt rated investment grade by at least one nationally recognized statistical rating organization ("NRSRO"). The Fund segregates cash or other liquid assets (for example, Treasury Bills and money market fund shares) in an amount equal to the Fund's obligations under each put option sold by the Fund so that each option sold is secured, or "covered." The Fund will limit the use of leverage by ensuring that the aggregate value of the underlying indexes (as measured by the strike price of the options) of the put options sold will not exceed the Fund's total net assets.   The Fund is "non-diversified" for purposes of the Investment Company Act of 1940, as amended (the "1940 Act"), which means that the Fund may invest in fewer issuers at any one time than a diversified fund.