Coming in 2024

The advisor seeks to use quantitative research that follows the methods of the AIDBCS to determine the anticipated rise and fall of Bitcoin and gold. The AIDBCS is designed for long-term exposure within traditional asset allocation models and offers a low correlation to stocks.  The AIDBCS is intended to capture Bitcoin uptrends while incorporating dynamic allocations to gold and heavy exposure to cash to minimize the downside risk and volatility when compared to a pure Bitcoin investment. 

The AIDBCS methodology captures at least 20% of the AI Tactical Bitcoin index movements.  The Tactical Bitcoin approach captures the Bitcoin market's uptrends while incorporating dynamic exposure to gold and cash to minimize the downside risk of a standalone Bitcoin investment.    Unlike the Tactical Bitcoin Index, the AIDBCS will have heavy dedicated exposure to cash.  

Bitcoin Futures: ( 0% to 18%)

The Fund achieves an allocation to Bitcoin through Bitcoin futures.  Bitcoin futures are intended to track, although not lockstep, the price of Bitcoin.  The Fund only invests in standardized, cash-settled Bitcoin futures contracts traded on commodity exchanges registered with the Commodity Futures Trading Commission, such as the Chicago Mercantile Exchange (the “CME”). 

Gold and Gold Futures Contracts (0% to 17%)

The Fund achieves an allocation to gold through gold futures.  Gold futures are intended to track, although not lockstep, the price of gold.  The Fund invests in standardized gold futures contracts traded on commodity exchanges registered with the Commodity Futures Trading Commission, such as the Commodity Exchange Inc. (commonly known as COMEX), which is a part of the Chicago Mercantile Exchange Group.  

Cash Investments (75% to 100%)

To generate income, the fund's advisor allocates a significant portion of the Fund’s portfolio to cash investments.  Cash investments consist of high-quality short-term securities, including (i) U.S. Government securities, such as bills, notes, and bonds issued by the U.S. Treasury; (ii) money market funds and short-duration fixed income ETFs; (iii) corporate debt securities, such as commercial paper and other short-term unsecured promissory notes issued by businesses that are rated investment grade or determined by the advisor to be of comparable quality; and (iv) repurchase agreements (contracts in which a seller of securities, usually U.S. government securities or other money market instruments, agrees to buy the securities back at a specified time and price). 

The fund's advisor will allocate assets by incorporating three trend-following/factor-based models, that employ a rules-based methodology that largely depends on the relative performance of Bitcoin and gold, and the Fund’s portfolio will dynamically change based on the indicators described below.   

• Bitcoin to Gold Model: (9% to 11%)  When the relative trends of Bitcoin compared to gold weaken, based on the model’s “Bitcoin to Gold Indicator,” the allocation to Bitcoin futures is reduced, and allocation to gold futures increases.   
• Bitcoin to Cash Model: (6% to 7%)  When the relative trends of Bitcoin compared to cash weaken, based on the model’s “Bitcoin to Cash Indicator,” the allocation to Bitcoin futures is reduced, and allocation to cash increases. 
• Gold to Cash Model: (5% to 6%) When the relative trends of gold compared to cash weaken, based on the model’s “Gold to Cash Indicator,” the allocation to gold futures is reduced, and allocation to cash increases. 

The Fund's advisor re-weights allocations to the three models in a manner similar to the AI Dynamic Bitcoin Index.  The Fund’s allocation to these models may be driven by their relative performance for an extended period.  Each model is independently driven by its trend-following/factor-based methodology.  The Fund may allocate up to 25% of its net assets to Bitcoin futures, and up to 25% of its net assets to gold futures.  Allocations to the Dynamic Alpha instruments may shift frequently based on model signals.