DUNN Capital Management, LLC

(World Monetary)

Fund Investment Objectives

DUNN's flagship program, World Monetary and Agriculture ("WMA") was launched in 1984. WMA is a 100% systematic, quantitative, medium to long-term, trend following program encompassing a portfolio of global financial, energy, metal, and agricultural futures markets. The investment objective of DUNN's WMA Program is to extract profits from up and down trends, resulting in a return stream that exhibits very low correlation with traditional asset classes. From 1984 to 2006 it traded mostly financial futures, as they offered the most liquidity. DUNN implemented a material modification to the WMA program in March, 2006 when the number of futures traded increased from 26 to 52 and the number of models for each future was increased from 3 to a potential universe of over 100 models. In January 2013, DUNN implemented a new risk budgeting methodology. WMA's risk target is no longer fixed at a VaR of -20%. Instead the portfolio exposure is geared to current market conditions. WMA's risk target now varies daily and is high only when a preponderance of models are in agreement and the correlation matrix of our positions is favorable. This new risk-management methodology is referred to as the Adaptive Risk Profile ("ARP"). ARP serves to establish the size of WMA's portfolio positions based on a proprietary metric that incorporates expected returns, volatility and inter-market correlations. Extensive simulations show a VaR at the 99% confidence level in the range of -22% to -8%, with an average VaR -15%. The cumulative effect of the program enhancements are expected to reduce long-term annualized volatility from 34% to about 23% going forward.