the underlying instruments within the ELN. ELN in which the The funds invested are derivative instruments specially designed to combine the economic characteristics of S&P 500 Indices and call options written as a single note. The ELNs provide recurring cash flows to the Fund based on the premiums for call options issued by ELNs and constitute a
important source of return for the Fund. ELNs will be included as equity securities for the purpose of calculating the 80% policy. Investing in ELNs may reduce the volatility of the Fund as the ELN revenues would reduce the potential losses incurred by equity portfolio of the Fund. However, due to the purchase options subscribed within an ELN, the investment would also reduce the The Fund’s ability to take full advantage of potential increases in value of its equity portfolio.

Investment process: in the management of the equity portion of the portfolio, the advisor uses a three-step process that combines search, promotion and selection of securities. The research the results allow the advisor to rank the companies according to this he believes to be their relative value. The more a company is
estimated value in relation to the current market price of its shares, the more the company is undervalued. The valuation of the advisor rankings are produced using various models that quantify the research team’s findings. After the company securities are classified, the advisor seeks to build a portfolio with a level of volatility lower than that of the S&P 500 index. its investment process, the advisor seeks to assess the impact of environmental, social and governance (“ESG”) factors on the companies in which the Fund invests. The adviser’s appreciation is based on a proprietary analysis of key opportunities and risks across industries to seek to identify significant financial issues on the Fund’s investments in securities and determine the main issues who deserve a commitment with the management of the company. Those valuations may not be conclusive and company securities may be purchased and held by the Fund for other reasons as important ESG factors.

The Fund buys and sells securities (security selection) in in accordance with its investment policies, using research and evaluation rankings as the basis. In general, the advisor chooses securities identified as attractive and plans to sell them when they seem less attractive. With attractive assessment, the advisor often takes a number of other criteria into account
comprising:

Main investment risks of the Fund

The Fund is subject to management risk and may not reach its objective if the advisor’s expectations regarding instruments or markets are not satisfied.

The Fund is subject to the main risks mentioned below, each of which may have an unfavorable effect on the net asset value (NAV) of the Fund, the market its price, performance and ability to achieve its investment objective.

Stock market risk. The price of equity securities can go up or down due to changes in the overall market or changes in a the company’s financial situation, sometimes quickly or in an unpredictable way. These price movements may result from factors affecting sole proprietorships, sectors or industries selected for the the Fund’s portfolio or the securities market as a whole, such as changes in economic or political conditions. When the value of Fund securities fall, your investment in the Fund decreases in value.

General market risk. Economies and Financial Markets across the world are increasingly interconnected, which increases the likelihood that events or conditions in a country or region will have a negative impact on the markets or issuers in other countries or regions. The securities in the Fund’s portfolio may underperformance compared to general finance securities markets, a particular financial market or other asset classes due to to a number of factors, including inflation (or expectations
inflation), deflation (or deflation expectations), interest rates, global demand for particular products or resources, market instability, debt crises and downgrades, embargoes, tariffs, sanctions and other trade barriers, regulatory events, other government trade or market control programs and related geopolitical events. In addition, the value of the Fund’s assets investments may be adversely affected by the occurrence of
global events such as war, terrorism, environmental disasters, natural disasters or events, country instability and infectious diseases disease epidemics or pandemics.

For example, the outbreak of COVID-19, a new coronavirus disease, negatively affected economies, markets and sole proprietorships around the world, including those of which the Fund invests. The effects of this pandemic on the public health and business and market conditions, including trade suspensions and closings of trading, may continue to have a significant negative impact on the performance of the Fund
investments, increase the volatility of the Fund, have a negative impact on the The fund’s arbitrage and pricing mechanisms exacerbate the political, social and economic risks for the Fund, and have a negative impact on large segments of businesses and populations. The operations of the Fund may be interrupted as a result, that may contribute to the negative impact on investment performance. In addition, governments, their regulators, or self-regulatory organizations can take action response to the pandemic affecting the instruments in which the Fund invests, or the issuers of these instruments, in a manner which could have a significant negative impact on the performance of the Fund return on investments. The full impact of COVID-19 pandemic, or other future epidemics or pandemics, is currently unknown.