Objective And StrategyObjective
StrategyThe adviser utilizes a trend-following methodology that seeks to take advantage of trends and momentum in the U.S. stock market, as represented by the S&P 500 and the DJIA. Using a quantitative and qualitative approach that evaluates cyclical and seasonal trends in the market and employs a tactical overlay based on political and macro level economic events. When trends indicate that conditions are favorable for U.S. equities, the Portfolio will seek to gain exposure to the U.S. equities through investment in Index ETFs. During periods in which the adviser anticipates the highest probability for gains, the Portfolio will seek to invest in Leveraged ETFs in order to maximize potential returns. When trends indicate that market conditions are unfavorable for U.S. equities, the Portfolio will invest in Cash Instruments. The Portfolio will typically hold only a single category of investments at any given time. The adviser generally expects the Portfolio to be invested in ETFs approximately 70% of the time during a typical calendar year. The adviser’s strategy is based on long-term historical analyses and does not primarily attempt to anticipate market movements based on current conditions; rather, it attempts to isolate the periods of time where the U.S. equities has the greatest likelihood of capital appreciation in the longer term. When trends are most favorable, the adviser seeks to maximize the Portfolio’s exposure to the U. S. equities through Leveraged ETFs. The investment program will emphasize active management, with an emphasis on capturing profits on short-term movements. This policy will result in the Portfolio taking frequent trading positions. The Portfolio’s portfolio turnover and brokerage commission expenses may exceed those of most investment entities of comparable size.