As we move into the spring of 2025, we are pleased to share the latest insights and performance of the Derivatix Fund during the first quarter.

Market Summary

The first quarter of 2025 presented challenges for U.S. equity markets, with the S&P 500 declining by -4.6%. This downturn reflects ongoing concerns about inflationary pressures and geopolitical uncertainties, which have led to increased market volatility. Despite these headwinds, sectors such as energy and utilities showed resilience, while technology stocks faced greater challenges due to rising interest rates and cautious investor sentiment.

While the Federal Reserve maintained a steady approach to monetary policy, the broader economic environment has been marked by mixed corporate earnings reports and subdued consumer spending. These factors have contributed to a cautious outlook for equities in the near term.

Derivatix Fund Performance

Against this backdrop, the Derivatix Fund demonstrated its ability to manage downside risk effectively. For Q1 2025, the fund posted a return of -4.1%, outperforming the S&P 500’s decline of -4.6%. This slight outperformance highlights our commitment to capital preservation during volatile periods.

Looking at longer-term metrics, Derivatix continues to deliver superior returns:

• Since inception, the fund has achieved a cumulative return of 272.1%, significantly outpacing the S&P 500’s 183.2%.
• The average annual return stands at an impressive 14.6%, compared to the S&P 500’s 11.4%.
• For the 3-year period, Derivatix posted a return of 22.1%, slightly below the S&P 500’s 24%. Although slightly trailing in strong bull markets, our strategy excels in preserving capital during downturns.

Our disciplined investment approach, which leverages options-based strategies and dynamic asset allocation, continues to provide stability and long-term value for our investors. While short-term fluctuations are inevitable, our focus remains on delivering consistent growth while mitigating risks.

As always, we thank you for your trust and partnership in navigating these dynamic markets. We remain committed to our mission of balancing robust risk management with sustainable long-term performance.