Investors should note the following risks associated with "Congressional Effect" investing: The ability to meet it investment objectives is directly related to investment of assets - whether in managed account form or Fund form. Principal investment strategy and investment methodology is based on the Congressional Effect, but this investment strategy and methodology has not been widely applied in practice. Use of an investment strategy based on the Congressional Effect may be ineffective because the Congressional Effect may not produce expected results, either for short or long-term periods. Moreover, the Advisor cannot give any guarantee that the Congressional Effect observed during past periods will continue to be observed in the future. Therefore, there is no guarantee that the desired results with be produced. An investor may lose money.
While the Advisor periodically (at least daily) inquires as to whether each house of Congress is in session, the Advisor may not be able to make an accurate determination as to whether or not Congress is in session or intends to be in session at all times due to difficulties in obtaining legislative schedules, and unexpected or unannounced changes in such schedules. Because the investment strategy depends in large part on accurately determining when Congress is in session, inaccurate information about whether or not Congress is in session could negatively impact investment performance.
Because the Advisor generally only expects to achieve capital appreciation during periods when Congress is out of session, Congressional Effect investing may be susceptible to market timers who attempt to invest immediately before Congress is in recess, and divest immediately before Congress convenes. Such market timing could present risks for investors with long-term interests in the strategy, which may include, among other things, interference with efficient portfolio management, increased brokerage and administrative costs, forcing the Advisor to hold excess levels of cash to meet redemption requests, and an increase in costs. Although the Advisor has adopted certain policies and procedures intended to identify and to discourage frequent trading, including a redemption fee, it cannot ensure that all such activity can be identified or terminated.
Finally, the Advisor will buy and sell portfolio securities in response to whether Congress is in session or out of session, without regard to the length of time they have been held. The Advisor anticipates a generally substantial movement all of its portfolio from “in session” investments (Cash and Cash Equivalents) to “out of session” investments (S&P 500 futures contracts) and vice versa each time Congress changes its session status. Since Congress’s in session status can change daily, the portfolio may change rapidly (e.g., within a single trading day) a number of times during the year. Since portfolio turnover involves paying brokerage commissions and other transaction costs, portfolio changes cause additional expenses.
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- Information you provide directly to us on applications or other forms, correspondence or through conversations (such as your name, social security number, address, phone number, assets, income, date of birth, occupation, etc.).
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WE CAREFULLY LIMIT AND CONTROL THE SHARING OF YOUR INFORMATION. In order to protect customer privacy, we carefully control the way in which any information about you is shared. It is our policy to not disclose any nonpublic personal information about you or former customers to anyone, except as permitted or required by law. We are permitted by law to disclose all of the information we collect as described above to our affiliates, Advisors, sub Advisors, transfer agents, broker-dealers, administrators or any firms that assist us in maintaining and supporting the financial products and services provided to you. For example, our transfer agents need information to process your transactions, and our outside vendors need information so that your account statements can be printed and mailed. However, these parties are not permitted to release, use or transfer your information to any other party for their own purpose.