Rational Strategic Allocation Fund Class A (HBAFX)

Overview

The fund operates within the investment landscape, focusing on achieving its investment objective by mainly engaging in a diversified portfolio strategy. This approach incorporates investing in futures contracts pegged to the S&P 500 Index along with allocating assets into income-oriented securities. The fund operates under the guidance of its Advisor, adhering to identified market conditions, and aims to invest in a variety of underlying funds. It strategically excludes cash and cash equivalents that are earmarked for margin or collateral purposes. A notable part of its strategy involves maintaining notional exposure to the S&P 500 Index through investments in futures contracts. These contracts are meticulously selected to economically expose the fund to the U.S. equities market, up to an amount equivalent to the fund's net assets. This method is crafted to navigate and leverage market operations, positioning the fund to potentially capitalize on U.S. equities.

Products and Services

• Futures Contracts on the S&P 500 Index

These are financial derivatives that obligate the fund to buy or sell the S&P 500 Index at a predetermined future date and price. The intention behind investing in these contracts is to offer the fund economic exposure to U.S. equities, aiming to harness growth in line with the movements of the S&P 500. This facet of the fund’s investment strategy is fundamental in achieving its objective of growth through U.S. equity exposure.

• Income-oriented Securities

The fund allocates a portion of its assets into securities that are expected to generate income. These can include bonds, dividend-yielding stocks, or other financial instruments that provide regular income returns. This diversification strategy is designed to balance the fund's portfolio by incorporating investments that could potentially offer stable income alongside the growth-oriented exposure provided by the index futures contracts.

• Investment in Underlying Funds

Beyond direct investments in futures contracts and income-oriented securities, the fund engages in investments in a variety of underlying funds. This strategy is aimed at diversifying the investment portfolio further, excluding cash and cash equivalents reserved for margin or collateral. Through investing in these underlying funds, the fund aims to spread its exposure across different asset classes and investment strategies, enhancing the potential for risk-adjusted returns.