Welthy U.S. Market Challenger Fund

The Fund seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its net assets in one or a combination of equity securities and equity-linked instruments that, in the aggregate, are designed to provide investment exposure to a broad universe of large-capitalization U.S. companies. The Adviser constructs and maintains that universe under its own methodology, weighted by float-adjusted market capitalization. The Fund does not seek to track, and is not managed against, any third-party index.

The Fund currently expects to hold the majority of its equity exposure directly and to obtain the balance through exchange-traded equity index futures, with total equity exposure modestly above the value of the Fund's net assets. Assets not required as margin or collateral are invested in short-duration, high-quality instruments. The Adviser determines the balance between directly held securities and derivatives from time to time, having regard to the implied financing cost of the derivatives, the yield available on unencumbered assets, the Fund's tax position and its liquidity requirements.

The Fund is managed with the objective of minimizing net realized capital gain distributions. The Adviser operates a systematic loss-harvesting process within the directly held portfolio: the portfolio is reviewed on a recurring basis for positions held at an unrealized loss beyond a defined threshold; qualifying tax lots are sold and the exposure maintained through a substitute security with similar characteristics, selected so as not to be substantially identical for the purpose of Section 1091 of the Internal Revenue Code; and the original position becomes eligible for repurchase after the applicable wash-sale period. The Adviser maintains lot-level cost basis records and applies specific-lot identification on disposals. The Adviser operates this process to the best of its abilities across the directly held portfolio, and the breadth of that portfolio develops as the Fund grows. The Fund remains subject to the distribution requirements applicable to regulated investment companies and will make taxable distributions to shareholders.