Investment Objective: The Kingsview Management Managed Account Program seeks to maximize investment returns by capitalizing on opportunities within the changing market environment within an acceptable risk level consistent with the preservation of the Program’s assets.

Investment Strategy: The Program follows a two-part strategy. First, the Manager creates credit spreads by simultaneously purchasing and selling put and call options with differing strike prices and expiration dates. Using primarily S&P 500 futures contracts, the Program’s assets profit from price differences between the long and short options due to the volatility inherent in the market, the spread between the market and option strike prices, and, most importantly, the decrease in the time to expiration of the options. Second, the Manager purchases out-of-the money puts with differing strike prices to hedge the downside risk associated with extreme downward events in the market and significant increases in volatility, and to take advantage of time premium decay rate differences.

No sales of naked S&P 500 options: Kingsview deems the sale of naked or un-covered options on the S&P 500 outside acceptable risk levels and therefore does not engage in the practice. At all times the Program’s assets will be long a greater number of puts than it is short.

Trading in futures and options on futures involves substantial risk and is not suitable for all investors. Past performance is not necessarily indicative of future results. Before investing, read all risk disclosures including those provided in the Disclosure Document

Manage Portfolio Delta: The Manager closely monitors the portfolio DELTA to signal a moderately bullish or bearish position in order to maintain acceptable exposure to market movements.

Hedging Downside Risk: Extra significance is placed on HEDGING the downside risk of the Program’s assets at all times due to the greater probability of an extreme downward event in the market. To hedge this risk, the Manager strategically purchases out-of-the-money put options with varying characteristics to reduce portfolio risk in the event of an extreme downward shift in the market.

Hedging Upside Risk: Under certain market conditions the Manager will also buy out-of-the-money calls to hedge against a quickly rising market.

Capital Preservation: Ongoing adjustments are made in order to preserve capital, maximize returns and minimize risk levels given current market conditions.