Ocean Park Diversified
Income ETF
DUKZ
Primary Listing Exchange for the Fund: NYSE Arca
Summary Prospectus
July 1, 2024
Before you invest, you may want to review the Fund’s
prospectus, which contains more information about the Fund and its risks. The Fund’s prospectus and Statement of Additional Information,
both dated July 1, 2024, is incorporated by reference into this Summary Prospectus. You can obtain these documents and other information
about the Fund online at www.oceanparketfs.com. You can also obtain these documents at no cost
by calling 1-866-738-4363 or by sending an email request to OrderSierra@ultimusfundsolutions.com.
Investment Objectives: The Fund has two objectives,
to provide total return and to limit exposure to downside risk.
Fees and Expenses of the Fund: This table describes
the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the table and example below.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment) |
|
Management Fees |
0.65% |
Distribution and Service (12b-1) Fees |
0.00% |
Other Expenses (1) |
0.32% |
Acquired Fund Fees and Expenses (1)(2) |
0.21% |
Total Annual Fund Operating Expenses |
1.18% |
Fee Waiver and Reimbursement (3) |
(0.19)% |
Total Annual Fund Operating Expenses after Fee Waiver and Reimbursement |
0.99% |
| (1) | Based on
estimated amounts for the current fiscal year. |
| (2) | Acquired
Fund Fees and Expenses are the estimated average indirect costs of investing in other investment companies (the “Underlying Funds”).
The operating expenses in this fee table will not correlate to the expense ratio in the Fund’s financial highlights because the
financial statements include only the direct operating expenses incurred by the Fund. |
| (3) | The Adviser
has contractually agreed to waive its management fees and to make payments to limit Fund expenses, until January 31, 2026 so that the
total annual operating expenses (exclusive of (i) any front-end or contingent deferred loads; (ii) brokerage fees and commissions; (iii)
acquired fund fees and expenses; (iv) fees and expenses associated with investments in other collective investment vehicles or derivative
instruments (including for example options and swap fees and expenses); (v) borrowing costs (such as interest and dividend expense on
securities sold short); (vi) taxes; and (vii) extraordinary expenses, such as litigation expenses (which may include indemnification
of Fund officers and Trustees, contractual indemnification of Fund service providers (other than the Adviser)) of the Fund do not exceed
0.78% of its average daily net assets. These fee waivers and expense reimbursements are subject to possible recoupment from the Fund in
future years (within the three years from the date when the amount is waived or reimbursed) if such recoupment can be achieved within
the lesser of the foregoing expense limits or the then-current expense limits (after taking into account the recoupment amount). This
agreement may be terminated only by the Fund’s Board of Trustees, on 60 days’ written notice to the Adviser. |
Example: This Example is intended to
help you compare the cost of investing in the Fund with the cost of investing in other 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, and that the Adviser’s fee waiver
is only in effect for the term of the waiver. Although your actual costs may be higher or lower, based upon these assumptions your costs
would be:
Portfolio Turnover: The Fund pays transaction
costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover 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
Example, affect the Fund’s performance.
Principal Investment Strategies: The Fund is
an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by tactically allocating the
Fund’s assets between unaffiliated fixed income ETFs (“Underlying ETFs”) and cash equivalents. The universe of Underlying
ETFs is unconstrained and includes, but is not limited to, those which may invest in Treasury bonds, investment grade corporate and municipal
bonds, high yield (commonly known as “junk” bonds) corporate and municipal bonds, mortgage-backed securities, international
bonds, emerging market bonds, convertible bonds, preferred securities and bank loans. Underlying ETFs may invest in issues of any duration
or maturity. The Underlying ETFs that the Fund invests in may be passively managed or actively managed.
The Fund may invest without constraint in high
yield ETFs, international bond ETFs and emerging market bond ETFs. The Fund considers Underlying ETFs which principally invest in
non-investment grade debt issues to be high yield ETFs. The Fund considers Underlying ETFs which principally invest in emerging
market bond debt issues to be emerging market bond ETFs. The Fund considers emerging market issuers to be those located in countries
represented in the Morningstar Emerging Markets Index.
The Fund uses a “fund of funds” approach
and may engage in frequent trading.
Under normal market conditions, the Fund expects to
invest substantially all of its assets in Underlying ETFs. At times, the Fund may be fully or partially invested in cash equivalents.
The Fund may also engage in securities lending of its portfolio securities.
The Fund’s investment adviser, Ocean Park Asset
Management, LLC (the “Adviser”), employs a proprietary trend following strategy to generate buy and sell signals for Underlying
ETFs. The Adviser calculates upper and lower bands for each Underlying ETF. The upper and lower bands are offset above and below a short-term
exponential moving average. A “Buy signal”, which identifies a potential uptrend for an Underlying ETF candidate, is determined
by a security’s price rising above both the recent low of its upper band and a secondary moving average. The Adviser uses quantitative
analysis to determine which Underlying ETFs to purchase. The Fund has no limits or constraints on the number or type of Underlying ETFs
in which it can invest.
An Underlying ETF is sold when a security’s price
falls below the recent high of its lower band (a “Sell signal”), the goal being to limit drawdowns of the overall Fund. When
a position is sold, the proceeds may be invested in an alternative Underlying ETF or temporarily invested in cash equivalents. Cash equivalents
may include, but are not limited to, U.S. Treasury bills, money market funds and ETFs that primarily invest in investment grade short-term
bonds. The Adviser periodically reviews the allocation of the Underlying ETFs and may make adjustments to the Underlying ETF holdings,
including adding or removing Underlying ETFs.
Principal Investment Risks: As with all funds,
there is the risk that you could lose money through your investment in the Fund. Many factors affect the Fund’s net asset value
and performance.
The following describes the risks the Fund bears
with respect to its investments. As with any fund, there is no guarantee that the Fund will achieve its goal.
- Credit Risk. Issuers of debt securities
may not make interest or principal payments, resulting in losses to the Fund. In addition, the credit quality of securities held by the
Fund or an Underlying Fund may be lowered if an issuer’s financial condition changes. These risks are more pronounced for securities
with lower credit quality, such as those rated below BBB- by S&P or another credit rating agency.
- Interest Rate Risk. Fixed income securities
are subject to the risk that securities could lose value because of interest rate changes. Fixed income securities with longer maturities
are subject to greater price shifts as a result of interest rate changes than fixed income securities with shorter maturities. Floating
or adjustable rate securities (such as most loans) typically have less exposure to interest rate fluctuations than other fixed income
securities and their exposure will generally be limited to the period of time until the interest rate on the security is reset.
- High Yield Bond Risk. Lower-quality bonds,
known as “high yield” or “junk” bonds, present greater risk than bonds of higher quality, including an increased
risk of default. An economic downturn or period of rising interest rates could adversely affect the market for these bonds and reduce
an Underlying Fund’s ability to sell its bonds. The lack of a liquid market for these bonds could decrease an Underlying Fund’s
share price, potentially resulting in losses for the Fund.
- Municipal Bond Risk. Municipal securities
are subject to the risk that legislative changes and local and business developments may adversely affect the yield or value of the Fund’s
investments in such securities. Municipal general obligation debt issuers may not be able to levy or collect enough taxes as necessary
to make full and timely payments to investors. Municipal revenue obligation debt issuers may experience shortfalls in revenues, such as
sales taxes, fuel taxes, or hotel occupancy taxes, generated by the particular project being financed.
- Mortgage-Backed Security Risk. When the
Fund has investment exposure to mortgage-backed securities through an Underlying Fund , the Fund is subject to the risk that, if the underlying
borrowers fail to pay interest or repay principal, the assets backing these securities may not be sufficient to support payments on the
securities, resulting in losses for the Underlying Fund.
- Convertible Bond Risk. Convertible bonds
are hybrid securities that have characteristics of both bonds and common stocks and are subject to debt security risk and conversion value-related
equity risk. Convertible bonds are similar to other fixed-income securities because they usually pay a fixed interest rate and are obligated
to repay principal on a given date in the future. The market value of fixed-income securities tends to decline as interest rates increase.
Convertible bonds are particularly sensitive to changes in interest rates when their conversion to equity feature is small relative to
the interest and principal value of the bond. Convertible issuers may not be able to make principal and interest payments on the bond
as they become due. Convertible bonds may also be subject to prepayment or redemption risk. If a convertible bond held by a Fund is called
for redemption, the Fund will be required to surrender the security for redemption, convert it into the issuing company’s common
stock or cash at a time that may be unfavorable to a Fund.
- Bank Loan Risk. The market for loans, including
bank loans, loan participations, and syndicated loan assignments may not be highly liquid and the holder may have difficulty selling them.
These investments expose the Fund to the credit risk of both the financial institution and the underlying borrower. Bank loans settle
on a delayed basis, potentially leading to the sale proceeds of such loans not being available for a substantial period of time after
the sale of the bank loans. Changes in short-term market interest rates will directly affect the yield on the shares of a fund whose investments
are invested in floating rate debt securities. If short-term market interest rates fall, the yield on the Fund’s shares will also
fall. Conversely, when short-term market interest rates rise, because of the lag between changes in such short-term rates and the resetting
of the floating rates on the floating rate debt securities in the Fund’s portfolio, the impact of rising rates will be delayed to
the extent of such lag. A significant portion of floating rate loans in which an Underlying ETF invests may be “covenant lite”
loans that may contain fewer or less restrictive constraints on the borrower and/or may contain other characteristics that would be favorable
to the borrower, limiting the ability of lenders to take legal action to protect their interests in certain situations.
- Preferred Security Risk. The value of
preferred securities will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value
of preferred security. Preferred securities are also subject to credit risk, which is the possibility that an issuer of a preferred security
will fail to make its dividend payments.
- Treasury Securities Risk. U.S. Treasury
obligations may differ from other securities in their interest rates, maturities, times of issuance and other characteristics and may
provide relatively lower returns than those of other securities. Similar to other issuers, changes to the financial condition or credit
rating of the U.S. government may cause the value of the Fund’s investment exposure to U.S. Treasury obligations to decline.
- Foreign Risk. Foreign markets can be
more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, economic developments or currency
exchange rates and can perform differently from the U.S. market. The net asset value of the Fund will fluctuate based on changes in the
value of the foreign securities held by any Underlying Funds that invest in such securities. When all or a portion of an Underlying Fund’s
portfolio securities trade in a market that is closed when the market for its shares is open, there may be changes from the last quote
of the closed market and the quote from the Underlying Fund’s domestic trading day, which could lead to differences between the
market value of its shares and the Underlying Fund’s NAV.
- Emerging Market Risk. Underlying Funds
may invest in emerging market countries. Investing in emerging markets involves not only the risks described below with respect to investing
in foreign securities, but also other risks, including exposure to economic structures that are generally less diverse and mature, limited
availability and reliability of information material to an investment decision, and exposure to political systems that can be expected
to have less stability than those of developed countries. The market for the securities of issuers in emerging market typically is small,
and a low or nonexistent trading volume in those securities may result in a lack of liquidity and price volatility.
- ETF Structure Risks. The Fund is structured
as an ETF and as a result is subject to the special risks, including:
- Not Individually Redeemable. The Fund’s
shares (“Shares”) are not redeemable by retail investors and may be redeemed only by the Authorized Participants at NAV and
only in Creation Units. An Authorized Participant may incur brokerage costs purchasing enough Shares to constitute a Creation Unit. While
the Fund expects that redemptions will be solely made in-kind, the Fund may accept cash as a component of a redemption by an Authorized
Participant from time to time.
- Trading Issues. Trading in Fund shares
on the NYSE Arca (the “Exchange”) may be halted due to market conditions or for reasons that, in the view of the Exchange,
make trading in Shares inadvisable, such as extraordinary market volatility. An active trading market for the Shares may not be developed
or maintained.
- Market Price Variance Risk. The market
prices of Shares will fluctuate in response to changes in NAV and supply and demand for Shares and will include a “bid-ask spread”
charged by the exchange specialists, market makers or other participants that trade the particular security. The market price of the Shares
may deviate from the Fund’s NAV, particularly during times of market stress, with the result that investors may pay significantly
more or significantly less the Shares than the Fund’s NAV, which is reflected in the bid and ask price for the Shares or in the
closing price.
- Authorized Participant Risk. Only an
Authorized Participant may engage in creation or redemption transactions directly with the Fund. The Fund has a limited number of institutions
that may act as Authorized Participants on an agency basis (i.e., on behalf of other market participants). To the extent that Authorized
Participants exit the business or are unable to proceed with creation or redemption orders with respect to the Fund and no other Authorized
Participant is able to step forward to create or redeem Creation Units, Fund shares may be more likely to trade at a premium or discount
to net asset value and possibly face trading halts or delisting. Authorized Participant concentration risk may be heightened for ETFs
that invest in securities or instruments that have lower trading volumes.
- Management Risk. The Adviser’s dependence
on its investment strategy and judgments about the attractiveness, value and potential appreciation of particular asset classes in which
the Fund invests will in some cases prove to be incorrect and have negative impacts on performance. The Fund is actively managed using
proprietary investment strategies and processes. There can be no guarantee that these strategies and processes will be successful.
- Market and Geopolitical Risk.The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions
in one region or financial market may adversely impact issuers in a different country, region or financial market. Securities in the Fund’s
portfolio may underperform due to inflation (or expectations for inflation), interest rates, global demand for particular products or
resources, natural disasters, pandemics, climate-change and climate-related events, epidemics, terrorism, international conflicts, regulatory
events and governmental or quasi-governmental actions. The occurrence of global events similar to those in recent years may result
in market volatility and may have long term effects on both the U.S. and global financial markets.
- Portfolio Turnover Risk. As to the portion
of the portfolio invested in ETFs, turnover may result in higher brokerage commissions, dealer mark-ups and other transaction costs.
- Underlying Fund Risk. Each Underlying
Fund is subject to specific risks, depending on its investments. Underlying Funds are also subject to investment advisory fees and other
expenses, which are indirectly borne by the Fund. As a result, your overall cost of investing in the underlying securities and other assets
will be higher than the cost of investing directly in them and may be higher than other funds that invest directly in securities. Shares
of ETFs may trade at a discount or a premium in market price if there is a limited market in such shares and are also subject to brokerage
and other trading costs, which could result in greater expenses to the Fund.
- Securities Lending Risk. Securities lending
involves a possible delay in recovery of the loaned securities, a possible delay in receiving additional collateral (to cover an increase
in the market value of the loaned securities or a decrease in the value of any securities collateral), or a possible loss of rights in
the collateral should the borrower fail financially. There is a risk that a borrower may default on its obligations to return loaned securities,
which could negatively impact the Fund. The Fund could also lose money if the value of the collateral decreases.
Performance: Because the Fund is a newly launched
ETF, no performance information is presented for the Fund at this time. In the future, performance information will be presented in this
section of this Prospectus. Also, shareholder reports containing financial and performance information will be mailed to shareholders
semi-annually.
Investment Adviser: Ocean Park Asset Management,
LLC (the “Adviser”) is the Fund’s investment adviser.
Trading Sub-Adviser: Exchange Traded Concepts,
LLC is the Fund’s trading sub-adviser.
Investment Adviser Portfolio Managers: Kenneth
L. Sleeper, MBA, PhD, Managing Director, Ryan Harder, CFA, Chief Investment Strategist and James St. Aubin, CFA, CAIA, Chief Investment
Officer, are portfolio managers of the Fund. Each portfolio manager has served the Fund as portfolio manager since it commenced operations
in July 2024. Each portfolio manager is jointly and primarily responsible for the day-to-day management of the Fund.
Purchase and Sale of Fund Shares: Individual
Shares may be purchased and sold in secondary market transactions through a broker dealer or at market price. Shares are listed for trading
on the Exchange and trade at market prices rather than NAV. Shares may trade at a price that is greater than, at, or less than NAV. An
investor may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase Shares (bid) and
the lowest price a seller is willing to accept for Shares (ask) when buying or selling Shares in the second market (the “bid-ask
spread”). Because the Fund has only recently commenced investment operations, no information on the Fund’s net asset value,
market price, premiums and discounts and bid-asks spreads are presented at this time. In the future, this information will be presented
in this section of the Prospectus and on the Fund’s website at www.oceanparketfs.com.
Tax Information: Dividends and capital gain
distributions you receive from the Fund, whether you reinvest your distributions in additional Fund shares or receive them in cash, are
taxable to you at either ordinary income or capital gains tax rates unless you are investing through a tax-deferred account such as an
IRA or 401(k). However, these dividend and capital gain distributions may be taxable upon their eventual withdrawal from tax-deferred
plans.
Payments to Broker-Dealers and Other Financial Intermediaries:
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest
by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your
salesperson or visit your financial intermediary’s website for more information.