GLOSSARY
A Reference for Understanding Key Terms

Active Management
Professional oversight by experienced investment managers who strategically select, monitor, and ladder structured notes to optimize the portfolio's risk-return profile and income potential.

Bank-Issued
Structured notes are issued by major financial institutions such as JPMorgan, Citibank, Barclays, and Morgan Stanley, leveraging their capital markets expertise to design investments with predetermined terms.

Barrier
A barrier establishes a threshold level, typically 20-30% below the note’s starting value. If the underlying index remains above this level throughout the note's term, the investor receives full principal back along with all coupon payments. If the barrier is breached, principal may be exposed to market decline.

Buffer
A buffer absorbs market declines up to a specified percentage, commonly 10-30%. Losses within the buffer do not affect principal; only market losses exceeding the buffer level impact principal at maturity.

Call/Callable Notes
Structured notes that the issuing bank may redeem before the stated maturity date, typically when predetermined conditions are met. When a note is called, the investor receives full principal back along with any accrued coupon payments, and the fund reinvests the proceeds into current opportunities.

Capital Markets Expertise
The sophisticated financial engineering capabilities that banks use to create structured notes with predetermined terms, combining traditional bond elements with equity-linked components to generate enhanced income potential.

Coupon
The regular income payment made by the issuing bank to note holders, typically expressed as an annualized percentage rate and paid in monthly installments. Unlike traditional bond coupons that vary with interest rates, structured note coupons are fixed at issuance based on the note's specific terms and risk-mitigation features. These coupon payments form the basis of BAMIX's monthly income distribution objective.

Custom-Negotiated Notes
Structured notes where Booster's management team works directly with issuing banks to secure specific terms, including coupon rates and risk mitigation features, that are aligned with the fund's investment objectives and current market conditions.

Distribution
Monthly income payments made to investors, derived primarily from coupon payments received from the fund's portfolio of structured notes. Distributions are not guaranteed and may vary based on portfolio composition, note maturities, and call features.

Enhanced Income Notes
The consumer-friendly term for income-oriented structured notes – bank-issued investments that combine fixed coupon payments with equity-linked performance.

Enhanced Income
Income potential that exceeds traditional fixed income investments, achieved through structured note design that incorporates equity-linked returns and the fund's active professional management in note selection and portfolio construction.

Equity-Linked
Describes how structured note returns and characteristics are connected to the performance of selected equity market indices. The equity-linked component enables enhanced coupon payments beyond traditional bond yields and determines principal at maturity. If underlying indices breach barrier levels, the principal may be at risk. This equity connection is what makes the notes a "hybrid" investment, combining debt and equity characteristics.

Income-Oriented Structured Notes
The technical term describing structured notes specifically designed to generate enhanced income through coupon payments while managing downside risk through built-in risk-mitigation features such as buffers or barriers. BAMIX invests exclusively in this category of structured notes.

Laddered Investing
A strategy where notes mature at staggered intervals throughout the year, helping to smooth income delivery, reduce reinvestment risk, and provide the flexibility to adapt to changing market conditions.

Maturity
The fixed end date of an individual structured note's term, at which point the issuing bank returns principal (subject to any barrier breaches) along with the final coupon payment. BAMIX holds notes with varying maturities to build a laddered portfolio.

Principal
The original amount invested in any investment vehicle.

Risk-Mitigation Features
Risk-mitigation features are built into structured notes at issuance to help manage downside exposure. These features include barriers, predefined thresholds below which principal may be at risk, and buffers, which absorb initial losses up to a specified percentage. Terms remain fixed throughout the note’s life.

Structured Notes
Bank-issued debt instruments that combine elements of traditional bonds with market-linked components. Each note has predefined terms for maturity, income and/or return potential, and risk-mitigation features, set at issuance.

Trigger Event
Occurs when the underlying index falls below the predefined barrier level during the note's term. Depending on the specific note structure, this may affect principal at maturity, although regular coupon payments usually continue.

Yield
The income generated by an investment, expressed as a percentage of the investment amount. Note: For fund materials, ‘distribution rate’ is often used instead, as distributions may include return of capital.

50/30/20 Allocation
A modernized portfolio framework where 50% is allocated to equities, 30% to traditional fixed income, and 20% to alternatives like BAMIX. This marks an evolution from the traditional 60/40 portfolio.

Cash Drag
The potential reduction in portfolio returns caused by holding uninvested cash.

Closed-End Fund
An investment fund with a fixed number of shares that typically trades on exchanges. Interval funds like BAMIX are a specialized type of closed-end fund that offers periodic redemption opportunities.

Custodian
A financial institution that holds and safeguards fund assets, processes transactions, and provides reporting. BAMIX is available through Schwab and Fidelity as approved custodians.

Daily NAV Pricing
The fund's per-share value is calculated each business day by dividing total fund assets (minus operating expenses) by the total shares outstanding. This allows investors to purchase shares at the current fair market value daily.

Interval Fund
A type of closed-end investment fund that offers scheduled redemption opportunities—typically quarterly—at net asset value (NAV). Daily share purchases are available, but redemptions are limited to periodic intervals. This structure enables fund managers to invest in assets that benefit from longer holding periods, such as structured notes, while still providing investors with periodic access to capital.

Net Asset Value (NAV)
The per-share fair market value of the fund, calculated daily by taking total fund assets less operating expenses, divided by total shares outstanding.

Redemption Limits
The maximum amount investors can withdraw from an interval fund during a specified period, expressed as a percentage of total fund assets. This structure helps protect investors by preventing large, disruptive withdrawals while still providing regular liquidity opportunities. BAMIX allows quarterly redemptions up to 5% of total fund assets.

1099 Reporting
Standard tax reporting where the fund issues annual tax forms (1099-DIV) to investors, simplifying tax compliance by reporting distributions at the fund level rather than requiring tracking of individual note transactions.

Alternative Investments
Investment categories beyond traditional stocks and bonds, including structured products, private credit, real estate, and commodities. BAMIX is classified as an alternative investment, providing access to professionally managed structured note strategies.

Bond Replacement Strategy
An investment approach using alternative fixed income products to replace or supplement traditional bond allocations, potentially offering higher income and reduced interest rate sensitivity while maintaining the income-generation role within a portfolio.

Category-Creating
Describes an investment product that establishes an entirely new market segment or fund classification. BAMIX is positioned as category-creating by being one of the first professionally managed interval funds focused exclusively on income-oriented structured notes.

Conservative to Moderate Risk Profile
The target investor risk profile for BAMIX encompasses investors seeking portfolio stability and/or enhanced income generation. BAMIX is designed for investors ranging from conservative (income-focused) to moderate (diversification- and/or risk-return-optimization-focused).

Democratizing Access
Making professionally managed investment strategies available to a broader range of investors. BAMIX helps to democratize access to structured notes by eliminating high investment minimums, providing professional management, and offering simplified implementation through a single fund.

Broad Issuer Exposure
The portfolio's approach of holding notes across multiple bank issuers, maturity dates, barrier levels, and note structures to reduce concentration risk and target a more stable income stream. Note: While the Fund is classified as "non-diversified" per its prospectus, the portfolio maintains exposure across multiple issuers and structures.

Enhanced Income Potential
The fund's objective to generate higher monthly income than traditional fixed income investments through structured note coupons, without relying primarily on interest rate movements or equity market direction.

Fixed Income Alternative
An investment designed to serve similar portfolio functions as traditional bonds but through different mechanisms that may offer enhanced income potential or reduced interest rate sensitivity.

Fixed Income Enhancement
A portfolio strategy using alternative income investments to boost income potential and reduce interest rate sensitivity compared to traditional fixed income, while maintaining the income-generating and stability role within an overall portfolio allocation.

Hybrid Securities
Investment products combining features from multiple asset classes to create unique risk-return profiles. Structured notes are hybrid securities because they combine a debt instrument (bond) with equity-linked characteristics.

Missing Middle
The gap in the fixed income market between low-yield traditional investments (bonds, CDs) and high-minimum institutional alternatives (private credit, high-minimum structured products). BAMIX is designed to fill this missing middle by offering professionally managed structured note strategies with accessible minimums and simplified implementation.

Portfolio Allocation
The percentage of an investment portfolio dedicated to different asset classes or strategies. Financial advisors determine appropriate BAMIX allocation based on client income needs, risk tolerance, and overall portfolio objectives.

Track Record
Brookstone Capital Management's extensive experience managing $2 billion in structured notes through its separately managed account (SMA) strategy forms the foundation of BAMIX's investment approach. This more than ten-year track record highlights the deep expertise behind the fund's management.

Beta
A measure of an investment’s price sensitivity relative to a market benchmark, typically the S&P 500. A beta of 1.0 indicates the investment moves in line with the market; a beta below 1.0 indicates reduced sensitivity.

Bond Duration Risk
The sensitivity of traditional bond prices to interest rate changes, with longer-duration bonds experiencing greater price volatility when rates move.

Concentration Risk
The risk from having excessive exposure to a single investment, issuer, or asset class. BAMIX manages concentration risk through portfolio exposure across multiple bank issuers, maturity dates, and note structures.

Inflation Risk
The risk that rising prices will erode the purchasing power of fixed income investments over time. BAMIX seeks to address inflation concerns by offering enhanced income potential that may better keep pace with rising costs than traditional fixed income.

Interest Rate Risk
The risk that rising interest rates will cause traditional bond prices to fall, as existing bonds become less attractive compared to new bonds offering higher yields.

Interest Rate Sensitivity
The degree to which an investment's value changes in response to interest rate movements. BAMIX offers reduced interest rate sensitivity compared to traditional bonds due to structured note mechanics.

Issuer Risk
The credit risk associated with the financial institution that issues a structured note. If the issuer experiences financial difficulties, note holders may lose principal regardless of underlying index performance. BAMIX manages issuer risk through exposure across major global banking institutions.

Low Correlation
The investment characteristic where performance doesn't move in lockstep with traditional stocks or bonds, offering portfolio benefits. BAMIX demonstrates low correlation to both equity markets and traditional fixed income.

Market Volatility
The degree of price fluctuation in financial markets over time. BAMIX's structured notes are designed to help manage exposure to market volatility through built-in barriers that provide predefined risk-mitigation features.

Risk-Managed Exposure
BAMIX's approach to managing investment risk through: (1) portfolio exposure across multiple income-oriented structured notes from various issuers and maturities, and (2) downside risk-mitigation features (barriers) embedded within each structured note to help control potential losses while targeting consistent income generation.

Fiduciary
An investment advisor who is legally required to act in their clients' best interests. BAMIX is specifically designed for fiduciary advisors (RIAs) who follow this standard of care and need simplified access to sophisticated structured note strategies.

Professional Management
Active oversight by Booster Asset Management and sub-advisor Brookstone Capital Management eliminates the need for individual investors or advisors to research, negotiate, and track multiple structured notes manually. This management includes strategic note selection, broad issuer exposure, laddering optimization, and reinvestment decisions.

SMA (Separately Managed Account)
An investment account in which securities are owned directly by the investor but managed by professional portfolio managers. Brookstone's $2 billion structured note SMA strategy, built over a decade, forms the proven foundation for BAMIX's investment approach.

Sub-Advisor
An investment management firm hired to manage a fund's portfolio on behalf of the primary fund company. Brookstone Capital Management, a $12+ billion RIA, serves as sub-advisor to Booster Asset Management, bringing deep structured note expertise and a proven track record.

TAMP (Turnkey Asset Management Platform)
A service provider offering investment management, research, and administrative support to financial advisors. Brookstone Capital Management operates as a TAMP and brings this institutional infrastructure and expertise to Booster Asset Management as sub-advisor.

S&P 500
A market-capitalization-weighted index tracking 500 of the largest U.S. publicly traded companies across multiple sectors. It is widely regarded as the leading benchmark for U.S. large-cap equity performance.

Euro Stoxx 50 (SX5E)
A market-capitalization-weighted index tracking 50 of the largest companies across the Eurozone, spanning multiple countries and sectors. It serves as a leading benchmark for European large-cap equity performance.

NASDAQ 100
An index comprising 100 of the largest non-financial companies listed on the NASDAQ stock exchange, with significant concentration in technology and growth-oriented sectors.

Russell 2000
An index measuring the performance of approximately 2,000 smaller U.S. companies, serving as the primary benchmark for the U.S. small-cap equity market.

Dow Jones Industrial Average (DJIA)
A price-weighted index of 30 prominent U.S. companies representing major sectors of the economy. One of the oldest and most widely recognized market benchmarks.