CANA

About CANA

The Fund is considered a “fund of funds”that seeks to achieve its investment objective by primarily investing in other exchange-traded funds (“ETFs”) and other exchange-tradedproducts (“ETPs”) including, but not limited to, exchange-traded notes (“ETNs”) (together, the “UnderlyingVehicles”), that offer diversified exposure to the major asset classes of the world. The Underlying Vehicles also provide diverseexposure to global regions (including developed and emerging markets), countries, styles (i.e., market capitalization, value,growth, etc.), and sectors. ·ETFs are registered investment companies whose shares are exchange-traded and give investors a proportional interest in the pool of securities and other assets held by the ETF. ·ETPs are exchange-traded equity securities whose value derives from an underlying asset or portfolio of assets, which may correlate to a benchmark, such as a commodity, currency, interest rate or index. ETFs are one type of ETP. ·ETNs are unsecured and unsubordinated debt securities whose value derives, in part, from an underlying asset or benchmark and, in part, from the credit quality of the securities’ issuer. The Fund will also write (sell) quarterly exchange-tradedcovered call options on each of the Fund’s positions in the Underlying Vehicles that have strike prices ranging from at-the-moneyto 3% out-of-the-money. The Fund’s covered call strategy reflects that the Fund writes call options on Underlying Vehicles onlyto the extent that the Fund owns a corresponding number of the Underlying Vehicles so that the Fund is able to cover any liability payableon the call options sold. Under normal circumstances, the Fund invests at least 80% of its net assets (plus borrowings for investmentpurposes) in an integrated strategy comprised of Underlying Vehicles and writing (selling) call options on the Underlying Vehicles. Writingcovered call options reduces the Fund’s volatility, provides steady cash flow from premiums and is an important source of the Fund’sreturn, although it also reduces the Fund’s ability to profit from increases in the value of its portfolio. The Fund uses a proprietarymethodology to determine the strike prices and premiums at which the Fund writes quarterly call options on the Fund’s UnderlyingVehicles. The Fund seeks to preserve and grow capital byproducing absolute returns with reduced volatility and manageable risk. The Fund invests in Underlying Vehicles that span the world’smajor asset classes and may include equities, bonds (including high yield bonds, which are commonly referred to as “junk bonds”),real estate (including real estate investment trusts (“REITs”)), commodities, and currencies. The Fund’s investmentadviser, Cambria Investment Management, L.P. (“Cambria” or the “Adviser”), will actively manage the Fund’sportfolio utilizing a quantitative strategy with risk management controls in an attempt to protect capital. Through Underlying Vehicles,the Fund may have exposure to companies in any industry and of any market capitalization. The Fund may also invest directly in othersecurities and financial instruments similar to those held by the Underlying Vehicles, including cash and cash equivalents. Cambria has discretion on a daily basis to activelymanage the Fund’s portfolio in accordance with the Fund’s investment objective and expects to write call options and rebalancethe Fund’s portfolio to target allocations, as established by Cambria in response to market conditions, on a quarterly basis. Asa result, the Fund may experience high portfolio turnover. When Cambria concludes that the risk/reward relationship is unfavorable incertain asset classes, Cambria will take the necessary steps to adjust the Fund’s market exposure to that asset class. Cambriamay sell a security to manage risk and/or if it identifies another investment it believes will outperform a current position.