SRHR

About SRHR

Undernormal circumstances, the Fund invests at least 80% of its net assets in Real Estate Investment Trusts (“REITs”) that arepublicly traded on domestic stock exchanges. In addition, the Fund strategically implements an option strategy consisting of writing(selling) U.S. exchange-traded covered call options on the REITs in the Fund’s portfolio. REITPortfolio RockyMountain Advisers, LLC (“RMA”), a sub-adviser to the Fund, will select approximately 20-30 REITs for inclusion in the Fund’sportfolio based on several quantitative and qualitative factors to isolate candidates likely to provide long-term capital appreciationand annual distribution growth. These factors include the REIT’s organic net operating income growth (defined as the net operatingincome growth attributable to the REIT’s existing businesses, excluding any income derived as a result of corporate activities,such as mergers and asset acquisitions), the estimated fair value of its underlying real estate properties, the quality of its underlyingreal estate properties, and RMA’s assessment of the REIT’s managerial team’s investment strategy (i.e. management’sstated strategy in regards to the management and operation of the REIT’s portfolio), experience, and alignment of incentives withthat strategy. In addition, RMA considers the REIT’s subsector focus (such as residential, self-storage, infrastructure, office,etc.) in the context of prevailing macroeconomic and industry trends when selecting REITs for the Fund’s portfolio.  REITsmay be sold when RMA observes a significant negative change in one of the selection factors such as a change in management or managementstrategy, the organic growth slows, or the valuation of the underlying assets declines. Additionally, in connection with the option strategydiscussed below, a REIT may be sold if a call option written by the Fund on that specific REIT is exercised. OptionStrategy TheFund also employs an option strategy by writing U.S. exchange-traded covered call options on select securities in the REIT portfoliowith the goal of generating additional income and selective repurchase of such options. A call option written (sold) by the Fund givesthe holder (buyer) the right to buy a certain security at a predetermined strike price from the Fund. The strategy generates income forthe Fund from the price (premium) paid by the buyer for the option contract. The intention of the Fund is to reduce risk and enhancetotal return by tactically selling call options on some or all of the securities in the REIT portfolio. The call options may not correspondto approximately 100% of the value of the securities held by the Fund, therefore representing a partially covered strategy. The Fundis not obligated to write call options on every REIT in the portfolio and at times, it may have very few call option positions. RMA determinesto sell a covered call on a particular security based on a variety of criteria, including, but not limited to, the premiums available,liquidity of the option contract or underlying REIT, the prospective capital appreciation of the security, and the market environment.The call options written (sold) may either be traditional exchange-listed options or FLexible EXchange (“FLEX”) options.The implications of the written (sold) FLEX call options are describe in more detail here: CallOptions – When the Fund sells a call option, the Fund receives a premium in exchange for an obligation to sell shares of a referenceasset at a strike price on the expiration date if the buyer of the call option exercises it. If the reference asset closes above thestrike price as of the expiration date and the buyer exercises the call option, the Fund will have to pay the difference between thevalue of the reference asset and the strike price. If the reference asset closes below the strike price as of the expiration date, thecall option may end up worthless and the Fund retains the premium. FLEXOptions – FLEX options are options guaranteed by the Options Clearing Corporation (OCC), that allow investors to customize keycontract terms, including expiration date, exercise style, and exercise price, and expanded position limits. Because FLEX options maynot trade regularly, a model-based valuation for the FLEX options that references the quoted prices for listed options may be used tovalue the FLEX options.