FISCO Appreciation Plus Fund


Fund Investment Objectives

The investment objective of the Partnership is to produce equity-type returns without the attendant volatility. The Partnership's investment approach combines the use of government and agency securities for margining capacity with an active option writing strategy. The Partnership will expect to generate revenue from selling both put and call options on the S&P 500 Index. There will also be some fixed income interest from the government securities. The Partnership's investment portfolio is comprised of short-term U.S. government and agency bonds and options on the S&P 500. The options are used in a strategy that seeks to generate yield through premiums generated from selling option contracts that statistically are not expected to be exercised. While various mechanisms may be used from time to time to manage risk, investors are exposed to the significant risks associated with selling option contracts.