Investment Philosophy

IRONs investment philosophy focuses on delivering highly competitive absolute and risk-adjusted returns within a framework that emphasizes minimizing downside risk.

We believe the best source and primary driver of excess returns from investing in credit over the long-term is not a result of security selection but is instead a result of modifying exposure and maintaining optimal exposure to credit asset classes through time. By modifying exposures and mitigating downside risk (through liquid hedging measures when warranted) we seek to achieve the following versus many traditional and alternative asset classes over full market cycles:

• Strong absolute and relative risk-adjusted returns
• Relatively lower correlation levels
• Lower levels of drawdown and volatility
• Strong diversification when added to many traditional and alternative fixed income and core investment portfolios

Our investment process is focused on effectively managing risk and modifying our exposure to the credit markets on a measured and disciplined basis through time.

Diversification does not ensure a profit or guarantee against loss.

An investment in an exchange-traded fund (ETF) generally presents the same primary risks as an investment in a conventional fund (i.e. one that is not exchange traded) that has the same investment objectives, strategies, and policies. The price of an ETF can fluctuate up or down, and the Fund could lose money investing in an ETF if the prices of the securities owned by the ETF go down. In addition, ETFs may be subject to the following risks that do not apply to conventional funds: (i) the market price of an ETFs shares may trade above or below their net asset value; (ii) an active trading market for an ETFs shares may not develop or be maintained; or (iii) trading of an ETFs shares may be halted if the listing exchanges officials deem such action appropriate, the shares are delisted from the exchange, or the activation of market-wide circuit breakers (which are tied to large decreases in stock prices) halts stock trading generally.

The Fund’s prospectus contains this and other information about the Fund, and should be read carefully before investing. You may obtain a current copy of the Fund’s prospectus by calling 1-877-322-0575 or download a prospectus. Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted.

Performance data current to the most recent month end may be obtained by calling our toll-free number. Of course there can be no assurance that the funds will achieve their objectives or that their investment strategies will be successful. Distributed by Unified Financial Securities, Inc. 2960 N. Meridian St. Ste. 300, Indianapolis, IN 46208 (Member FINRA). No investment strategy, including a total return strategy, can ensure a profit or protect against loss.

Sharpe Ratio: This risk-adjusted measure was developed by Nobel Laureate William Sharpe. It is calculated by using standard deviation and excess return to determine reward per unit of risk. The higher the Sharpe ratio, the better the fund’s historical risk-adjusted performance. *

Sortino Ratio:The Sortino ratio, a variation of the Sharpe ratio, differentiates harmful volatility from volatility in general by using a value for downside deviation.

The Sortino ratio is the excess return over the risk-free rate divided by the downside semi-variance, and so it measures the return to bad volatility. (Volatility caused by negative returns is considered bad or undesirable by an investor, while volatility caused by positive returns is good or acceptable.) In this way, the Sortino ratio can help an investor assess risk in a better manner than simply looking at excess returns to total volatility, as such a measure does not consider how often returns are positive as opposed to how often they’re negative.

Annualized Standard Deviation: This statistical measurement of dispersion about an average, depicts how widely a mutual fund’s returns varied over a certain period of time. Investors use the standard deviation of historical performance to try to predict the range of returns that are most likely for a given fund. When a fund has a high standard deviation, the predicted range of performance is wide, implying greater volatility. *

Alpha: The premium an investment portfolio earns above a certain benchmark. A positive alpha indicates that the investor earned a premium over that index. In terms of portfolios; a description of the extraordinary reward obtained from the portfolio. The better the management of the portfolio, the more positive the alpha. **

Beta: The measurement of a dependent variables volatility relative to an independent variable (i.e. an index). Beta is the percent change in the price of the dependent variable given a 1% change in the independent variable. This reveals if the dependent moves in step with the independent variable; where a beta of 1.0 indicates perfect alignment. Beta is a measure of risk; the higher the beta, the higher the risk. **

Heteroskedasticity: A collection of random variables is heteroskedastic if the distribution of observations is spread more widely than the rest of the sample.

Kurtosis: Is a measure of whether the data are peaked or flat relative to a normal distribution. A high Kurtosis distribution has a sharper peak and longer, fatter tails, while a low kurtosis distribution ha a more rounded peak and shorter, thinner tails. The kurtosis for a normal distribution is three.

Max Drawdown: Measures the magnitude of the worst loss an investor could have incurred by investing in that security. **

R-Squared: R-Squared is the measure of correlation between a fund and the market (benchmark). It is calculated by regressing the fund against an appropriate index over time. Values range between 0 and 1. The higher the value of R-Square, the greater the correlation between the two. *

Skewness: Is a measure of symmetry, or more precisely, the lack of symmetry. The skewness for a normal distribution is zero. Negative skeweness indicates that the left tail is long relative to the right tail.

Correlation Coefficient: It is a statistical measure that indicates the strength and direction to which the movements of two variables are related. The value will range between -1 and 1. The coefficient of -1 means the two variables are in a perfect negative (decreasing) linear relationship while +1 means a perfect positive (increasing) linear relationship. A coefficient of zero means the two variables are independent of each other. The values presented in the table are computed based on Pearson method, which quantifies the linear relationship between two investments based on monthly returns and it assumes both linearity and normal distribution of returns.

Credit Default Swap (CDS): A Credit Default Swap is an over-the-counter, tradable, credit derivative contract that is similar to an insurance policy. The CDS is a bilateral contract in which one party (usually known as the protection buyer) pays a fee or premium to another party (generally referred to as the protection seller) to protect against a financial loss they may incur if a credit event (usually a default) occurs with respect to the underlying bond issuer (reference entity). ***

Credit Default Swap Index (CDX): A credit derivative composed of a basket of credit entities. The contracts are standardized to create a more liquid product for specific market segments such as high yield and investment grade bonds.

Source: *Morningstar **Bloomberg ***Standard & Poors

The Merrill Lynch High Yield Master II is a widely recognized bond index. It is representative of a broader range of securities than is found in the Funds portfolio. The BarCap Agg (Barclays Capital US Aggregate Bond Index) is the rebranded Lehman Aggregate Bond Index, a widely recognized measure of the US bond market. The S&P 500 Index is a widely recognized unmanaged index of equity prices and are representative of a broader market and range of securities than is found in the Funds portfolio. The Dow Jones Credit Suisse Hedge fund Index is compiled by Credit Suisse Hedge Fund Index LLC and CME Group Index Services LLC. It is an asset-weighted hedge fund index and includes only funds, as opposed to separate accounts. The Dow Jones Credit Suisse Fixed Income Arbitrage Hedge Fund Index is a subset of the Dow Jones Credit Suisse Hedge Fund Index that measures the aggregate performance of fixed income arbitrage funds. Fixed income arbitrage funds typically attempt to generate profits by exploiting inefficiencies and price anomalies between related fixed income securities. The Dow Jones Credit Suisse Multi-Strategy Hedge Fund Index is a subset of the Dow Jones Credit Suisse Hedge Fund Index that measures the aggregate performance of multi-strategy funds. Multi-strategy funds typically are characterized by their ability to allocate capital based on perceived opportunities among several hedge fund strategies. The Indices returns do not reflect the deduction of expenses, which have been deducted from the Funds returns. The Indices returns assume reinvestment of all distributions and do not reflect the deduction of taxes and fees. Individuals cannot invest directly in these Indices, however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index. Management fees of 1.00% annually have been deducted from the Funds results. Therefore, all Fund results shown are net of fees. The advisors advisory fees are described in our ADV Part II.