Dividend and Income Risk. Companies that have historically paid dividends may reduce or eliminate their dividends in the future, particularly during periods of financial stress or economic downturn. A reduction in dividend payments by Fund holdings would reduce the income generated by the Fund and may cause the Fund’s share price to decline. There is no guarantee that the companies in the Fund’s portfolio will continue to pay dividends at their historical rates or at all. The Fund’s focus on dividend-paying securities may also cause it to underperform relative to funds that do not have such a focus during periods when dividend-paying stocks are out of favor. High dividend yields can sometimes indicate financial distress rather than a healthy capital return program. The Sub-Adviser seeks to avoid so-called “dividend traps”—companies with high current yields that are likely to be cut—but there is no guarantee that the Sub-Adviser’s screening process will successfully identify all such situations.

Equity Market Risk. The equity securities held in the Fund’s portfolio may experience sudden, unpredictable drops in value or long periods of decline in value. This may occur because of factors that affect securities markets generally or factors affecting specific issuers, industries, or sectors in which the Fund invests. Common stocks, such as those held by the Fund, are generally exposed to greater risk than other types of securities, such as preferred stock and debt obligations, because common stockholders generally have inferior rights to receive payment from issuers. Securities in the Fund’s portfolio may underperform in comparison to securities in the general financial markets, a particular financial market, or other asset classes, due to a number of factors. Factors that could impact the market value of an equity security include a company’s business performance, investor perceptions, stock market trends and general economic conditions.

Market Capitalization Risk. 

Sector Risk. Although the Fund will invest across multiple sectors, the focus on dividend-paying securities with strong shareholder yield characteristics may result in meaningful exposure to certain sectors—such as financials, utilities, energy, consumer staples, and industrials—that have historically featured higher dividend payout rates. Adverse developments in any of these sectors could disproportionately affect the Fund.

Economic and Market Risk. Economies and financial markets throughout the world are becoming increasingly interconnected, which increases the likelihood that events or conditions in one country or region will adversely impact markets or issuers in other countries or regions. Securities in the Fund’s portfolio may underperform in comparison to securities in the general financial markets, a particular financial market, or other asset classes, due to a number of factors, including inflation (or expectations for inflation), deflation (or expectations for deflation), interest rates, global demand for particular products or resources, market instability, financial system instability, debt crises and downgrades, embargoes, tariffs, sanctions and other trade barriers, regulatory events, other governmental trade or market control programs and related geopolitical events. In addition, the value of the Fund’s investments may be negatively affected by the occurrence of global events such as war, terrorism, environmental disasters, natural disasters or events, country instability, and infectious disease epidemics or pandemics. The imposition by the U.S. of tariffs on goods imported from foreign countries and reciprocal tariffs levied on U.S. goods by those countries also may lead to volatility and instability in domestic and foreign markets.

Interest Rate Risk. Dividend-paying equity securities may behave similarly to fixed income instruments and may decline in value when interest rates rise, as investors may prefer higher-yielding bonds over dividend stocks. Rising rates may also increase the cost of capital for companies that rely on debt to fund operations and buyback programs.

Models and Data Risk. The Sub-Adviser’s proprietary research is reliant on models and third-party data. When models and data prove to be incorrect or incomplete, any decisions made in reliance thereon expose the Fund to potential risks. Some of the models used to construct the Fund are predictive in nature. The use of predictive models has inherent risks. For example, such models may incorrectly forecast future behavior, leading to potential losses. In addition, in unforeseen or certain low-probability scenarios (often involving a market disruption of some kind), such models may produce unexpected results, which can result in losses for the Fund. Furthermore, because predictive models are usually constructed based on historical data supplied by third parties, the success of relying on such models may depend heavily on the accuracy and reliability of the supplied historical data.

New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions. There can be no assurance that the Fund will maintain an economically viable size.