Rational Strategic Allocation Fund Class A (RHSAX)

Overview

The fund described is a financial vehicle aiming towards achieving its investment goals by primarily engaging in a mix of investments in futures contracts on the S&P 500 Index as well as in income and yield-oriented securities. The strategy emphasizes a dual focus: maintaining notional exposure to the United States equity market through futures contracts, and investing in a diversified portfolio of underlying funds. This approach is designed to create economic exposure to U.S. equities up to the total value of the fund’s net assets, all while operating under normal market conditions and adhering to the fund's investment objectives. The Advisor plays a critical role in executing this strategy, utilizing its expertise to manage the investments in a way that aims to meet the predefined investment objectives of the fund.

Products and Services

• S&P 500 Index Futures Contracts

  This component of the fund's portfolio involves investing in futures contracts on the S&P 500 Index. These instruments are financial derivatives that obligate the buyer to purchase, and the seller to sell, the underlying S&P 500 Index at a predetermined future date and price. The objective of holding these contracts is to provide the fund with notional exposure to the movements in U.S. equity markets, facilitating a means to potentially profit from or hedge against market volatility.

• Income and Yield-Oriented Securities

  Another pillar of the fund's investment strategy involves the acquisition of income and yield-oriented securities. These are typically investments in bonds, dividend-paying stocks, or other securities that provide regular income. This part of the fund's portfolio aims to generate a steady income stream for the fund, adding an element of stability and regular return, which complements the growth potential offered by the S&P 500 Index futures contracts.

• Underlying Funds Investment

  In addition to direct investments in futures contracts and income-oriented securities, the fund also allocates assets to a variety of underlying funds. These funds can range in focus and composition but are selected based on their potential to contribute to the fund's income and growth objectives. By investing in a diversified array of underlying funds, the advisor aims to spread risk and tap into a broader range of investment opportunities than would be possible through direct investments alone.