HARD

HARD invests in commodity futures contracts that are expected to perform strongly during inflationary periods while still performing in more typical market environments. The portfolio is composed of futures contracts on hard commodities and commodity indices (crude, heating oil, natural gas, copper, gold, silver, corn, wheat, soybean, soybean oil, etc.). Using valuation and momentum signals, on a monthly basis, the adviser deploys forecasting models to determine price trends and long/short positions. A futures contract is positioned long when experiencing a positive price trend but takes short positions during a negative trend. However, the fund expects to maintain a net long bias. To avoid Schedule K-1 payments, the fund does not directly invest in commodity futures contracts. Instead, it gains commodity exposure by investing up to 25% of its assets in a wholly-owned Cayman Islands subsidiary. Thus, shareholders receive a Form 1099. The actively managed fund can also hold short-term US Treasury securities for direct investment or as collateral.