The Fund is an actively managed broad-market exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing at least 90% of its assets in Founder-Led Companies, specifically, common equities or real estate investment trust (“REIT”) securities listed on a U.S. exchange. No more than 10% of assets may be invested in non-founder-led companies. At least 80% of assets will be invested in 100 of the largest 200 Founder-Led Companies, based on market cap, and up to 20% of assets will be invested in additional Founder-Led securities including Founder-Led IPOs and Founder-Led Companies outside of the 100. The Fund will not invest in any private security. The first year of trading, the Fund may transitorily hold preferred equities, bonds, ADRs, GDRs, and ETFs and may hold more than 10% of assets in non-founder-led companies. Founder Factor investing is the signature element of the Adviser’s investment strategy to select securities capable of generating superior expected risk-adjusted returns.

The Adviser defines a “Founder” as a person who has profound influence on a company’s identity and trajectory from its nascent stages; this includes one or more individuals who conceptualize a new business and bring it into commercial operation as well as those who take over an existing idea or early-stage company and propel it to significant success and scale. The Adviser defines a “Founder-Led Company” as a business managed by a “Founder Chief,” defined as a Founder serving as a Chief officer, most often as Chief Executive Officer (CEO), Chief Technology Officer (CTO), Chief Scientific Officer (CSO), or Chief Medical Officer (CMO). The Adviser defines a “Founder-Led IPO” as a Founder-Led or Founder-Run Company making an initial public offering (“IPO”) of its securities to the public on a stock exchange for the first time and has been trading one year or less. The Adviser defines the “Founder Factor” as investing in companies based on their Founder-Led status.

Under normal market conditions, the Fund will not concentrate (invest >25% of its total assets) in any single GICS Industry Group, with the exception of Software, Semiconductors and Semiconductor Equipment, Technology Hardware Storage and Peripherals, IT Services, Electronic Equipment Instruments and Components, Communications Equipment, Diversified Financials, or Interactive Media & Services, which are not subject to this concentration restriction. At inception, the Fund expects to be concentrated in Software.

To capture the growth of the general economy and also to reduce sector risk, Fund securities will be selected from across five or more GICS Sectors, most commonly but not limited to the Technology, Financials, Consumer Discretionary, Communication Services, Health Care, Industrials, and Real Estate sectors, and Fund securities will be selected from across 20 or more GICS Industries, most commonly but not limited to the Software, Capital Markets, Interactive Media and Services, Financial Services, Semiconductor, Oil & Gas, Communications Equipment, and Hotels Restaurants and Leisure industries.

The Fund intends to invest in a portfolio of securities such as, but not limited to, NVDA, META, TSLA, ORCL, PLTR, CRM, BLK, ANET, APP, COF, PANW, BX, CRWD, PLD, ICE, HOOD, DASH, RBLX, COIN, and REGN.  Actual holdings and weights may differ at launch and will vary after launch due to ongoing portfolio management, rebalancing, and market conditions, in accordance with the investment objectives, policies, and restrictions described herein.  The Fund may invest in small-, medium-, and large-capitalization companies. The Fund may invest in foreign companies, which the Adviser defines as company with a headquarters outside the U.S., but only if the securities are listed on a U.S. exchange.

Portfolio Construction

The Adviser employs two complementary approaches to portfolio construction.

The systematic, rules-based framework is designed to help the Adviser make wise investment decisions, better navigate market cycles, and remove emotional decision making in the investment process at:

The Adviser applies its two complementary approaches using the following multi-step process:

At the Adviser’s discretion, a security held by the Fund of a company being acquired may be sold after the acquisition announcement or held until the acquisition closes. If sold, the security may be replaced by a new security or not replaced until the next quarterly rebalancing and reconstitution with the cash proceeds reinvested on a pro rata basis. If a Founder announces plans to step down or step away from their Chief role and no co-Founder serves in a Chief role or plans to assume a Chief role, at the Adviser’s discretion, the security may be sold. After a period of time away, if a Founder returns to a Chief role, the security of that company may be repurchased at the discretion of the Adviser.

The Fund is “non-diversified” under the Investment Company Act of 1940 (“1940 Act”) because the fund sets a maximum weight of 7.5% per security so will not commonly meet the requirements of the diversification rule, which requires at least 75% of assets to be composed of securities with a maximum weight of 5% per security.

The Fund is designed for investors who share our long-term fundamental investment philosophy. The philosophy is not about timing the market but about maintaining consistent exposure to the market’s most compelling secular growth stories based on the consistent and timely analysis of objective data across market cycles. The Adviser recognizes that stocks with high earnings growth and premium valuations relative to peers may be volatile in the short run but benefit from the power of time and innovation longer term. Based on this philosophy, the Fund may not be appropriate for investors with a short-term investment time horizon (less than 5 years), who have a low tolerance for volatility, or who prefer to invest in stocks trading at discount valuations versus peers.

By investing in a Founder Factor strategy, the Fund tends to follow a growth investment style, investing in companies expected to grow sales and earnings at a faster rate than peers, often driven by innovation, market share increases, disruptive ideas, and expanding addressable markets. The Founder Factor tends to identify Founders, Founder-Led Companies, and Founder-Led Stocks with common enduring characteristics:

Founders tend to be irreverent visionaries, inspiring leaders, independent thinkers, charismatic communicators, relentless operators, and courageous problem solvers who persevere through challenges with passion and unwavering commitment. Founders often attract and unite top talent around a compelling purpose, the moral authority to take bold risks and quickly pivot towards success, and the expert intuition to leverage the unique capabilities of their businesses and teams to create sustained competitive advantages (i.e. economic moats), which have the potential to generate superior risk-adjusted returns over time.

Founder-Led Companies tend to challenge the status quo and disrupt industries with groundbreaking ideas and strategies.

Founder-Led Companies tend to “grow up” with venture cultures that emphasize speed, scale, innovation, analytics, continuous learning, resilience, and an unrelenting desire to create something new and useful for customers. Founder-Led Companies generally hold more patents, invest more in research and development (R&D), invest in more capital expenditures (capex), participate in more mergers & acquisitions (M&A), grow sales and earnings at a faster pace, pay fewer dividends, repurchase fewer shares, and run balance sheets with more cash than debt.

The Adviser concludes that Founder-Led Stocks are capable of generating superior risk-adjusted returns. Based on our signature Founder Factor investment strategy and growth investment style, respectively, the Fund may be unsuitable for investors who have a risk tolerance inconsistent with this strategy or style. Prospective investors should carefully consider their financial situation and consult a financial advisor before investing.