FAQ

1. Once the indicators signal offense or defense, what is the opportunity set for the funds?

In offensive mode, ATACX can invest in U.S. large cap ETFs, U.S. small cap ETFs, or Emerging Market ETFs. In defensive mode, ATACX can invest in long duration bonds or short duration bonds.

In offensive mode, BROTX can invest in U.S. cyclical sector ETFs (ex: Technology, Financials, Energy, etc.). In defensive mode, BROTX can invest in U.S. defensive sector ETFs (ex: Consumer Staples, Utilities, etc.).

2. How do you manage risks in the portfolios?

We manage risks by using diversified ETFs and employing a strategy that seeks to decrease the beta in our portfolios ahead of periods of market stress. It is important to note that while both funds can get defensive ahead of high volatility periods, this does not mean that volatility in the funds will not be higher at times than the stock market’s. Rather, fund volatility characteristics tend to be different than a simple buy and hold passive index.

3. Why don’t the Funds go to cash or use short positions during defensive periods?

In our research, using bonds (ATACX) and defensive sectors (BROTX) as the lower beta options are superior to cash and short positions over a full market cycle. The funds are built to perform during a full market cycle which includes bull and bear market environments. Using cash and short positions can lead to significant underperformance during bull market periods.

4. Do the Funds use Leverage?

BROTX does not use leverage. ATACX may use up to 133% leverage when in offensive mode. The rationale for using leverage only during offensive mode is that such periods tend to be associated with lower volatility. Leverage can be additive to returns during periods of lower volatility.

5. What is the turnover rate in the Funds?

The funds are intended be active risk management vehicles. As such, they are expected to have a high portfolio turnover which could exceed 1,000% on an annual basis, depending on market conditions. This is likely to result in short-term capital gains.

Disclosures

Diversification does not assure a profit nor protect against a loss in a declining market.

Mutual fund investing involves risk. Principal loss is possible. Because the Funds invest primarily in ETFs, they may invest a greater percentage of its assets in the securities of a single issuer and therefore is considered non-diversified. If a Fund invests a greater percentage of its assets in the securities of a single issuer, its value may decline to a greater degree than if the fund held were a more diversified mutual fund. The Funds are expected to have a high portfolio turnover ratio which has the potential to result in the realization by the Fund and distribution to shareholders of a greater amount of capital gains. This means that investors will be likely to have a higher tax liability. Because the Funds invest in Underlying ETFs an investor will indirectly bear the principal risks of the Underlying ETFs, including but not limited to, risks associated with investments in ETFs, large and smaller companies, real estate investment trusts, foreign securities, non-diversification, high yield bonds, fixed income investments, derivatives, leverage, short sales and commodities. The Fund will bear its share of the fees and expenses of the underlying funds. Shareholders will pay higher expenses than would be the case if making direct investments in the underlying funds. The Beta Rotation Fund is new with no operating history and there can be no assurances that the fund will grow or maintain an economically viable size.

The Fund’s investment objectives, risks, charges, expenses and other information are described in the statutory or summary prospectus, which must be read and considered carefully before investing. You may download the statutory or summary prospectus or obtain a hard copy by calling 855-ATACFUND or visiting www.atacfund.com. Please read the Prospectuses carefully before you invest.

Duration is a commonly used measure of the potential volatility of the price of a debt security, or the aggregate market value of a portfolio of debt securities, prior to maturity. Securities with a longer duration generally have more volatile prices than securities of comparable quality with a shorter duration.

Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.

While the fund is no-load, management and other expenses still apply.

The Funds are only offered to United States residents, and information on this site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of our Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.