JCO

JETS Contrarian Opportunities Index Fund

The JETS Contrarian Opportunities Index Fund seeks to provide a cost effective and transparent vehicle for those who wish to invest in a manner consistent with a contrarian investment strategy. Contrarians tend to seek companies that appear to be temporarily out of favor and have relatively strong fundamentals. To this end, the fund is managed with the goal of replicating the performance of the fund's benchmark, the Dow Jones U.S. Contrarian Opportunities Index.

The fund employs a "passive" management approach. This means that the fund's advisor does not attempt to select stocks based on research, but instead seeks to track the benchmark's performance as closely as possible. The fund will invest primarily in the stocks that compose the index and possibly other securities that may help the fund to correlate with the benchmark performance. The fund seeks to remain fully invested at all times and to keep cash balances to a minimum.

The Dow Jones U.S. Contrarian Opportunities IndexSM follows a rules-based methodology to select stocks in a manner that would be considered consistent with a contrarian investment strategy. The index is an equal weighted index consisting of 125 U.S. securities. The index, maintained by Dow Jones, is based on a stringent and published methodology and consists solely of common stocks consistent with contrarian investment principles.

The index is designed to track companies that have underperformed in recent years, but that have strong fundamentals relative to other companies. Stocks are chosen semiannually from a broad market universe screened to identify securities ranked lowest by three-year trailing total return performance. From this pool of eligible securities, stocks are selected according to rankings by ten qualitative factors. The index is calculated on both a price-return and total-return basis with a base value of 100 set at December 31, 1991. Securities are selected for the index so as to represent the most liquid securities meeting contrarian investment criteria. One cannot invest in an index.