Kingsview Management : Targeted Volatility Program

Investment Strategy

The Targeted Volatility “TVP” strategy seeks opportunistic trades to take advantage of movements in market volatility. Options in the futures markets are utilized as the vehicle in which this is done and the Advisor will take long or short positions, thus taking a directional stance on volatility movements in certain markets. As events in the market lead to abnormal volatility, high or low, the trading will mostly be centered around, but not limited to, our belief that volatility reverts to historic mean levels. In formulating these options strategies, the Advisor may utilize a variety of options, including, but not limited to, options on: any price, index, spread or other financial indicator or any combination thereof, such as the price or value of an equity security, equity index or futures contract, the price or value appreciation or depreciation of a basket of securities and/or indices, or any other market selected by the Advisor. Option strategies may include, but will not be limited to, investments in call and put options, option spreads, and other option combinations. These option strategies are briefly described below. These options strategies are intended to provide issuer market capitalization and market diversification. The funds deposited in the futures trading accounts to margin futures positions on U.S. exchanges are required to be segregated pursuant to Section 4d(2) of the Commodity Exchange Act as amended (the CEA) and Commodities Futures Trading Commission (“CFTC”) rules there under, under which requirement the custodian may invest customer funds only in certain government securities and may not commingle customer funds with the custodian’s funds.

Risk Management

Risk management is a main priority of the Advisor. The Advisor actively manages the level of risk in its portfolio through the buying and selling of options with different expiration dates and strike prices. Risk is also managed by appropriately sizing positions in the portfolio and diversifying amongst different trading positions. The Advisor’s risk management may also include the realizing of losses to minimize or reduce risk, and the rolling of options positions to other strikes and/or expiration dates. The Advisor may purchase or sell futures contracts on occasion as part of a protective strategy. The Advisor may purchase U.S. Treasury Securities with funds on deposit with the FCM for the purpose of earning interest on those funds. However, like any security, the value of the Treasury securities can fluctuate in value and result in a loss if they must be sold to meet margin requirements.