The Fund seeks to achieve its investment objectives by investing primarily in the equity securities of dividend paying domestic companies that the Fund’s advisor, Donald L. Hagan LLC, dba Day Hagan Asset Management (the “Advisor”), believes to be undervalued based on its proprietary equity selection model. While the Fund may invest in companies of any market capitalization without limitation, the Advisor expects that, under normal market conditions, its equity selection model will create a portfolio focused on large capitalization companies. The equity securities in which the Fund may invest include common stock and real estate investment trusts (“REITs”). To the extent the Fund does not invest in equity securities, the Advisor may utilize money market funds and/or exchange-traded funds (“ETFs”) that primarily hold investment grade, short term, fixed income securities to generate income and preserve capital.

The Advisor selects securities using its proprietary equity selection model. The Advisor believes that purchasing securities of strong companies within strong sectors provides a higher probability of success.  The Fund's holdings are determined by screening companies for measures of balance sheet strength and fundamental soundness.

The Advisor then classifies the companies selected by the screening process into sectors based on their primary business activities. The Advisor believes that stocks within the same sector often rise and fall as a group because similar overlying economic and valuation factors exist for all members of a sector.   Additionally, the Advisor determines whether each sector has an adequate number of underlying companies that pass the screening process.  

The Advisor next evaluates the relative attractiveness of those sectors by using its proprietary selection model which uses historical adjusted cash flow data. When a sector is paying a historically high adjusted cash flow yield, the sector, and the companies in that sector, are considered by the Advisor to be priced at an attractive value.  Conversely, when a sector has a historically low adjusted cash flow yield, the Advisor believes the sector, and the companies in that sector, are priced too high and are unattractive.

The Advisor’s investment model is based on the belief that adjusted cash flow metrics provide a historically objective and controlled means of valuation. The research process utilizes a "weight-of-the-evidence" approach, which is designed to provide a historically-based perspective on current risks and rewards. The process provides the flexibility to seize opportunities in the marketplace in a rational, quantitative and unemotional manner.