RORO provides exposure to either US small-cap and large-cap growth stocks or 20-year US Treasurys. While the fund is actively managed, the fund adviser follows the trading signals of a proprietary market risk index. Two hours prior to the NYSE market close each Friday, the index considers the relative price performance of the front-month contract for lumber futures and USD gold spot price. If lumber prices are outperforming gold, the index indicates a risk-on posture and the portfolio is adjusted to reflect up to 130% equity exposure through one or more US equity ETFs. If gold is outperforming lumber, the index indicates a risk-off posture and the portfolio shifts 100% of its exposure to ETFs holding Treasurys. The level of risk determines the portfolio exposure, it is a binary decision. Since the exposure may change frequently, investors should anticipate a high portfolio turnover rate.
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