Growth Alpha II Fund

Fund Investment Objectives

The Formula Growth Alpha II strategy is designed for investors pursuing lower volatility equity investments providing consistent long-term capital appreciation and an attractive risk-adjusted return profile. The Alpha II Fund will maintain an equity and sectoral market exposure of between +/- 30% of the fund's overall net assets. It achieves this through a dynamic stock pairing strategy and a sectoral and market risk overlay model to effectively maintain the expected volatility of returns below that of traditional long-only mandates. In pursuing its investment objective, the fund manager utilizes its vast and deep experience of the North American markets and invest primarily in a portfolio of small to medium capitalization U.S. listed securities. Stock selection is principally based on fundamental business and security analysis criteria. The fund will typically buy undervalued companies in the middle of positive fundamental changes and sell short overvalued companies in the midst of negative fundamental changes.