Under normal circumstances, the Fund will invest at least 80% of its net assets in treasury securities, treasury-related securities or derivatives that provide exposure to treasury securities and treasury money-market funds and exchange-traded funds (“ETFs”). The Fund seeks to achieve its investment objectives primarily through exposure to long and short futures contracts on longer-term US Treasury securities (securities with maturities of 6 years or longer). The Fund may achieve such exposure to US Treasury futures by investing in a commodity pool that invests in such futures contracts or by entering into a swap or option with a counterparty on the returns of the commodity pool. The Fund may invest up to 25% of its total assets in commodity pools.

The Fund’s exposure to long and short US Treasury futures seeks to replicate the returns of the Long/Short US Treasuries Index (the “Index”) created by ProfitScore Capital Management, Inc. (“ProfitScore”). The Index is determined by a directional trading strategy created by ProfitScore which seeks to predict the daily direction of the value of US Treasury markets. The strategy consists of independent models which each analyze different data streams to predict the direction of US Treasury markets. Each model produces a daily positive, negative or neutral signal. The signals from each model are weighted and aggregated to determine a daily positive, negative or neutral signal for the overall model. If the signal is positive, the Fund will have exposure to long US Treasury futures. If the signal is negative, the Fund will have exposure to short US Treasury futures. If the signal is neutral, the Fund will allocate to cash and cash equivalents. While the Fund’s exposure to US Treasury futures is based upon the strategy utilized by the Index, the Fund itself is not an index fund.

The Fund also allocates a portion of its assets to fixed income securities for the purpose of generating income. The Fund may invest directly or indirectly in fixed income securities of any maturity. Such fixed income investments will be rated investment grade by Standard & Poor’s or Moody’s at the time the investment is made. The Fund may invest directly in U.S. Treasury bonds. The Fund may also invest in exchange traded funds (“ETFs”), money market funds or open end mutual funds, including affiliated mutual funds (collectively, “Underlying Funds”) whose principal investment strategy is to invest primarily in investment grade fixed income securities of U.S. issuers of any size, including smaller issuers. To the extent the Fund invests in any affiliated Underlying Funds, it will waive its advisory fee with respect to the portion of the Fund that is invested in any such affiliated fund.

The adviser will consider a variety of factors in determining whether to sell a fixed income investment: changes in market condition, changes in credit quality, changes in prospects for alternative investment possibilities or return opportunities for other fixed income instruments, current return expectation of such security, any changes in interest rates, liquidity of the security, and cash needs of the Fund. If a fixed income investment is downgraded after purchase the adviser may, but is not obligated to, dispose of such investment.

The Fund may engage in frequent trading in executing its principal investment strategies. 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 securities at any one time than a diversified fund.