KCAL Food Security ETF

The Subversive Food Security ETF (Ticker: KCAL) is an actively managed exchange-traded fund that seeks to achieve its investment objective of long term capital appreciation by investing in a portfolio of publicly-listed equity securities of companies that intersect the production, distribution, or delivery of food, or companies that invest in technology and tools necessary to support the global food security. Under normal market conditions, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in securities of Food Security Companies. Securities eligible for inclusion in the Fund’s investable universe include publicly listed equity securities of U.S. and foreign (including emerging markets) issuers.

In selecting investments for the Fund, we will apply a top-down approach, utilizing primarily quantitative factors, but also considering qualitative factors with a view toward growth and earning potential. In the selection process, we will give greater weight to Food Security Companies whose primary business models and growth prospects are dedicated to the actual production of food or the infrastructure or the applications that support global food security.

In our selection process, we will also factor in global macroeconomic events that affect the global food supply chain, such as the invasion of Ukraine, as well as the long-term effects of climate change on food production and prices. In doing so, we seek to identify companies that are positioned to help the global economy manage the inflationary shocks resulting from the global pandemic response and the truly
supply-driven food chain shocks that we believe will result in generally higher prices on food inputs and higher interest rates/weaker currency among those countries where the risk of interruptions in the global food supply chain are highest.

As water security is food security, the Fund will invest in companies in and related to the water industry. The Fund’s investments in the water industry will typically be in the form of investments in publicly traded desalination plants, publicly traded derivatives instruments, or a future, market-based method of investing in the price of water. The Fund will concentrate its investments in the securities of issuers in the food and agriculture group of industries.