investments.
In addition, local, regional or global events such as war, acts of terrorism,
spread of infectious diseases or other public health issues,
recessions, or other events could have a significant negative impact on the Fund
and its investments. For example, the coronavirus disease 2019 (COVID-19) global
pandemic and the ensuing policies enacted by governments and central banks have
caused and may continue to cause significant volatility and uncertainty in
global financial markets, negatively impacting global growth prospects. While
the U.S. has resumed “reasonably” normal business activity, many countries
continue to impose lockdown measures. Additionally, there is no guarantee that
vaccines will be effective against emerging variants of the disease. As this
global pandemic illustrated, such events may affect certain geographic regions,
countries, sectors and industries more significantly than others. These events
also adversely affect the prices and liquidity of the Fund’s portfolio
securities or other instruments and could result in disruptions in the trading
markets. Any of such circumstances could have a materially negative impact on
the value of the Fund’s shares and result in increased market volatility. During
any such events, the Fund’s shares may trade at increased premiums or discounts
to their net asset value and the bid/ask spread on the Fund’s shares may
widen.
NEW
FUND RISK. The Fund is new and
has no performance history or assets as of the date of this prospectus. The Fund
expects to have fewer assets than larger funds. Like other new funds, large
inflows and outflows may impact the Fund’s market exposure, and in turn, the
Fund’s returns for limited periods of time.
NON-DIVERSIFICATION
RISK.
The Fund is classified as “non-diversified” under the 1940 Act. As a result, the
Fund is only limited as to the percentage of its assets which may be invested in
the securities of any one issuer by the diversification requirements imposed by
the Internal Revenue Code of 1986, as amended. The Fund may invest a relatively
high percentage of its assets in a limited number of issuers. As a result, the
Fund may be more susceptible to a single adverse economic or regulatory
occurrence affecting one or more of these issuers, experience increased
volatility and be highly invested in certain
issuers.
NON-U.S.
SECURITIES RISK. Non-U.S. securities
are subject to higher volatility than securities of domestic issuers due to
possible adverse political, social or economic developments, restrictions on
foreign investment or exchange of securities, capital controls, lack of
liquidity, currency exchange rates, excessive taxation, government seizure of
assets, the imposition of sanctions by foreign governments, different legal or
accounting standards, and less government supervision and regulation of
securities exchanges in foreign countries.
OPERATIONAL
RISK. The Fund is subject
to risks arising from various operational factors, including, but not limited
to, human error, processing and communication errors, errors of the Fund’s
service providers, including the Sub-Advisor, counterparties or other
third-parties, failed or inadequate processes and technology or systems
failures. The Fund relies on third-parties for a range of services, including
custody. Any delay or failure relating to engaging or maintaining such service
providers may affect the Fund’s ability to meet its investment objective.
Although the Fund and the Fund's investment advisor seek to reduce these
operational risks through controls and procedures, there is no way to completely
protect against such risks.
PORTFOLIO
CORRELATION RISK. The Fund’s portfolio
is composed of both equity securities and written call options. Because the
equity securities held by the Fund are securities contained in the Index and the
options are written on the S&P 500® Index or ETFs that
track the S&P 500® Index, the fund's
investments are not correlated, meaning their performance is independent of one
another. Market events may impact one position held by the Fund more than the
other position and the returns from the Fund's investments in equity securities
and written call options may not move in the same direction as one
another.
PORTFOLIO
TURNOVER RISK. High portfolio
turnover may result in the Fund paying higher levels of transaction costs and
may generate greater tax liabilities for shareholders. Portfolio turnover risk
may cause the Fund’s performance to be less than
expected.
PREMIUM/DISCOUNT
RISK.
The market price of the Fund’s shares will generally fluctuate in accordance
with changes in the Fund’s net asset value as well as the relative supply of and
demand for shares on the Exchange. The Fund’s investment advisor cannot predict
whether shares will trade below, at or above their net asset value because the
shares trade on the Exchange at market prices and not at net asset value. Price
differences may be due, in large part, to the fact that supply and demand forces
at work in the secondary trading market for shares will be closely related, but
not identical, to the same forces influencing the prices of the holdings of the
Fund trading individually or in the aggregate at any point in time. However,
given that shares can only be purchased and redeemed in Creation Units, and only
to and from broker-dealers and large institutional investors that have entered
into participation agreements (unlike shares of closed-end funds, which
frequently trade at appreciable discounts from, and sometimes at premiums to,
their net asset value), the Fund’s investment advisor believes that large
discounts or premiums to the net asset value of shares should not be sustained.
During stressed market conditions, the market for the Fund’s shares may become
less liquid in response to deteriorating liquidity in the market for the Fund’s
underlying