Fees and Expenses

Shareholder fees (fees paid directly from your investment)

The Fund does not impose any sales load, deferred sales charge, or redemption fee on purchases or sales of Fund shares in the primary market through Creation Unit transactions. Certain financial intermediaries may impose account fees, commissions, or service charges on your transactions in secondary market purchases and sales of Fund shares; those charges are retained by the intermediary and are not paid to the Fund, the Adviser, or the Trust.

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Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)

Management fee.................................................... 0.49%
Distribution and/or service (12b-1) fees.......................... None
Other expenses (including administration, custody, transfer agency,
  legal, audit, registration, printing, and Trustees’ fees)....... 0.05%
Acquired fund fees and expenses (underlying funds in which the
  Fund may invest from time to time, if any)...................... 0.00%
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Total annual fund operating expenses.............................. 0.54%

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Expense example

The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

1 year........... $ 55
3 years.......... $173
5 years.......... $302
10 years......... $674

This example does not reflect brokerage commissions that you may pay when purchasing or selling Fund shares in the secondary market. The example also does not reflect any account-level fees charged by your financial intermediary.

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Portfolio turnover

The Fund pays transaction costs, such as brokerage commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the expense example, affect the Fund’s performance. During the most recent fiscal period, the Fund’s portfolio turnover rate was approximately [__]% of the average value of its portfolio (exclusive of securities with maturities of one year or less). A number will be provided after the Fund has operated for a complete fiscal year.

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Payments to financial intermediaries

The Adviser, out of its own resources and not from Fund assets, may compensate broker-dealers, banks, trust companies, and other intermediaries for shareholder servicing, sub-accounting, networking, platform access, and participation in educational seminars. These payments create a conflict of interest for an intermediary to favor the Fund over other funds. Intermediaries may also receive revenue sharing or other payments from unaffiliated fund complexes; ask your financial intermediary for details.

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Management fee; contractual fee waiver and/or expense reimbursement (if applicable)

The Trust and the Adviser have entered into an investment advisory agreement under which the Adviser receives a unified management fee at the annual rate of 0.49% of the Fund’s average daily net assets. Out of this fee, the Adviser pays substantially all expenses of the Fund, including custody, transfer agency, fund accounting, administrative services, registration fees, legal, audit, Trustees’ ordinary expenses, and routine operational costs, other than interest, taxes, brokerage commissions and other transaction costs, litigation expenses, extraordinary expenses, and acquired fund fees and expenses, if any.

The Adviser has contractually agreed to waive its fee and/or reimburse Fund expenses to limit Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement to 0.54% of average daily net assets through [date], unless sooner terminated by the Board. This agreement may be terminated only by the Board. Fee waivers and reimbursements are subject to possible recoupment by the Adviser within three years from the date the expense was waived or reimbursed, if such recoupment would not cause the Fund to exceed the lesser of the expense limitation in place at the time of waiver/reimbursement or the expense limitation in place at the time of recoupment.

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Brokerage allocation

Decisions regarding the selection of broker-dealers and the negotiation of commission rates are made by the Adviser subject to Board oversight and policies designed to seek best execution. The Adviser may cause the Fund to pay a broker-dealer providing research and other services that constitute “soft dollars” under Section 28(e) of the Securities Exchange Act of 1934, where permitted.