Investment Process

ANALYZE

The analytical components of our investment process for executing the EAS Global Cycle Fund include top-down and bottom-up fundamental, quantitative and technical analyses. These analytical components are summarized as follows:

Top-Down: Assessment of the global investment climate for the identification and selection of attractive global themes that are in the midst of a long, positive business cycle.

Bottom-Up: Ongoing due diligence on the universe of Underlying Funds (and their managers) and selection of Underlying Funds that are attractive investments which embody the themes chosen.

Quantitative: Evaluation of all relevant Underlying Fund factors such as dividend rate, turnover, expense ratio and imbedded unrealized capital gains.

Technical: Once the other screening methods have been completed, charting analysis is conducted to analyze specific market conditions and determine the best entry and exit points for an Underlying Fund, in addition to intermediate increases and decreases.

ALLOCATE

Our allocation process is two-fold: first, at the macro level to the particular global themes identified, and second, to the specific funds and/or ETFs chosen which best represents that theme. We employ an in-depth research process at the top level, followed by a comprehensive bottom-up diligence process with regard to manager selection.

Our investment team meets each week to discuss and review the global economic landscape, conditions regarding the themes in the portfolio and any necessary allocation adjustments by theme and/or underlying holding. While we are not compelled to maintain a hedge at all times, it is not unusual for us to hold some sort of dedicated short position, either through a simple inverse ETF, dedicated short fund, put option or some combination thereof. We recognize the importance of minimizing the downside during all different market environments, and we believe it is critical to have the flexibility to hedge the portfolio when we feel necessary.

MONITOR

We follow with a disciplined, ongoing monitoring process. We regularly review the underlying fund investments and analyze market conditions. Our process aims to strike the best balance of current and future opportunity and risk, consistent with the Fund's objective of long-term growth of capital. We are patient investors, but are willing to act quickly and with high conviction when conditions warrant.