HOME DISCIPLINE THE FUNDS MARKET COMMENT RESEARCH & INSIGHT KNOWLEDGE CENTER Our Mission The mission of the Hussman Funds is to serve our shareholders in a way that will improve lives. Our goal is not only to invest for long-term returns, but also to manage risk so that our shareholders can confidently maintain their saving and investment programs over the long-term. Our commitment to shareholders includes low investment minimums, a long-term full-cycle focus, protections against late-trading in the Funds, Codes of Ethics and personal investment stakes that align our interests with those of our shareholders, regular and extensive shareholder communications, and a clearly disclosed, pure no-load structure for fees and expenses (no 12b-1 fees, soft-dollar commissions, trailing fee arrangements, or multiple share classes). As part of our commitment to improving lives, the Investment Advisor to the Funds supports projects in medical research, education, and other charitable causes. These projects are funded solely through management fees earned by the Advisor, not by the Funds or shareholders. For more information, please visit the Hussman Foundation website. We are pleased when an institution chooses the Hussman Funds as a steward of its endowment. We are equally pleased when a parent chooses the Hussman Funds as the steward of a child’s education IRA. Whether large or small, these investments involve profound trust. We accept this trust seriously, and are dedicated to managing these assets with care. Our Commitment to Shareholders Low Minimums $1,000 for regular accounts, $500 for IRA and gift to minors accounts, $100 for automatic investment plans (except for an IRA or gift to minors account, which must be in amounts of at least $50). Long-Term Focus The objective of the Hussman Funds is to invest for long-term returns while managing risk. The Funds are intended for long-term investors following a disciplined saving and investing program. For this reason, the Funds impose a 1.5% redemption fee for investments of less than 60 days, even for exchanges between Funds. These fees become assets of the Funds for the benefit of shareholders. The Funds do not waive redemption fees in order to encourage investments by short-term traders, regardless of the potential size of those investments. Late-Trading Protections We prohibit late-trading in the Hussman Funds and have not entered into any agreements that would allow this activity. In accepting investments in the Hussman Funds through brokers and other financial intermediaries, the Funds rely on the legal and contractual obligation of these intermediaries that they are only processing mutual fund orders received from customers prior to 4:00 p.m. (Eastern time) for same day processing. The 4:00 trading cutoff is both a legal obligation and an implicit contractual requirement through the obligation of intermediaries to adhere to each Fund’s Prospectus. The Trust’s current master service agreement includes this cutoff explicitly, and includes indemnification provisions to further protect shareholders. Each intermediary accepting orders for the Hussman Funds is required to represent its adherence to these obligations under applicable regulations. We believe that several aspects of the Hussman Funds substantially reduce the risk of late or predatory trading. These include the 1.5% redemption fee applied to holding periods of less than 60 days, a hedging approach that often reduces the short-term volatility of the Funds, and the unlikelihood of the occurrence of “stale” prices in the types of portfolio securities most often held by the Funds. A Personal Stake in the Funds We invest our shareholders capital as carefully as we invest our own. This is not simply a principle, but a matter of fact. The majority of Dr. Hussman’s financial assets are invested in the Hussman Funds. All Fund transactions by the Advisor, its employees, and the officers and Trustees of the Fund are subject to the same cutoff times and redemption fees as applied to every shareholder. Code of Ethics Our duty to our shareholders requires a demanding standard of ethical behavior. The Code of Ethics of Hussman Strategic Advisors (formerly known as Hussman Econometrics Advisors), the Investment Advisor to the Funds, prohibits the Advisor and the Advisor’s employees from engaging in any self-dealing transaction to the detriment of the Funds, or any manipulative practice toward the Funds. Access persons of the Investment Advisor having information regarding portfolio purchases, sales or holdings of the Funds are required to file quarterly transactions reports, which are reviewed to monitor and prevent any abuses proscribed by Rule 17j-1 under the Investment Company Act of 1940. In addition, the Hussman Investment Trust (the Investment Company) has adopted a similar Code of Ethics relating to the trading and activities of its principal executive officers. A Focus on Both Return and Risk We believe that investors ultimately care about risk as well as performance. For this reason, our objectives incorporate both long-term total return, as well as long-term return per unit of risk. Our goal is to outperform the broad stock and bond markets over the full market cycle (peak-to-peak or trough-to-trough) with less risk than experienced by passive approaches. Because this goal requires the ability to avoid risk during certain conditions, the Funds may not track overall market movements, particularly over short periods of time. There is no assurance that the Funds will achieve their objectives. Emphasis on Shareholder Interests and Social Responsibility In proxy matters involving the companies in which the Funds invest, we vote in a way that is intended to maximize the value of investments to shareholders, subject to reasonable standards of social responsibility. Any conflict between shareholder interests and the business interests of the Advisor are resolved in the way that will most benefit the shareholders of the Funds. When voting proxy ballots, we give substantial weight to the recommendation of management, in an attempt to give the company broad flexibility to operate as it believes is appropriate. However, we consider each issue on its own merits, and the position of a company’s management will not be supported in any situation where we view it to be against the best interests of shareholders, or against reasonable standards of ethical conduct and social responsibility. We strongly favor incentive compensation in the form of cash bonuses rather than stock or option grants. In contrast, we view stock and option incentive plans as hostile to the interests of shareholders, dilutive, subject to windfalls unrelated to financial performance, ineffective in enhancing the market value of equities, and poorly suited to increasing the long-term cash flows available to shareholders. We generally vote against stock and option incentive plans, and support expensing the full value of option grants on an accrual basis. In contrast to option incentive plans, we generally vote in favor of employee stock purchase plans (i.e. availability of stock purchase by employees at a fixed discount to market value). Though we see such plans as less effective than bonus plans, they are acceptable as a legitimate employment benefit. While we do not specifically restrict investments against particular industries such as tobacco, defense, nuclear power or other areas, we believe that corporate policy should adhere to reasonable standards of social responsibility. Proxy matters in this category, initiated primarily by shareholders, typically request that the company disclose or amend certain business practices. We believe that the marketing to minors of violent media, explicit material, or potentially addictive substances (alcohol, tobacco), or unrestricted availability having similar effect, is unethical and socially irresponsible. We generally vote in favor of resolutions to reasonably restrict such practices, provided that the actions required by the resolutions are sufficiently targeted and quantifiable. We believe that companies with substantial manufacturing activities in developing countries can limit risks to reputation, reduce legal liability, and enhance financial stability by adopting well-articulated human rights policies. We generally vote in favor of adopting such policies, particularly with regard to safety and workplace conditions, provided that they do not include restrictive provisions that unduly limit the ability of the company to operate competitively, or the flexibility of the company to determine the size and compensation of its labor force. We believe that shareholders should have voting power equal to their equity interest in the company and generally vote for proposals to lower barriers to shareholder action (e.g. limited rights to call special meetings, limited right to act by written consent). We will generally vote against proposals for a separate class of stock with disparate voting rights. A complete summary of our proxy voting policies and procedures for the Trust can be found in the most recent Statement of Additional Information for each Fund, available on the Prospectus page of this site. Shareholder Communication We believe that evaluating a mutual fund’s suitability for any investor requires a clear understanding of that fund’s investment approach. We provide extensive information about our investment approach, not only in the Prospectus of each Fund, but also in regular commentary about our investment outlook, special articles, and detailed analysis of market conditions. We appreciate your investment in the Hussman Funds, and we are grateful for your trust. – John P. Hussman, Ph.D. HOME DISCIPLINE THE FUNDS MARKET COMMENT RESEARCH & INSIGHT KNOWLEDGE CENTER Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. More current performance data through the most recent month-end are available at the Fund's website www.hussmanfunds.com or by calling 1-800-487-7626. Investors should consider the investment objectives, risks, and charges and expenses of the Funds carefully before investing. For this and other information, please obtain a Prospectus and read it carefully. The Hussman Funds have the ability to vary their exposure to market fluctuations depending on overall market conditions, and they may not track movements in the overall stock and bond markets, particularly over the short-term. While the intent of this strategy is long-term capital appreciation, total return, and protection of capital, the investment return and principal value of each Fund may fluctuate or deviate from overall market returns to a greater degree than other funds that do not employ these strategies. For example, if a Fund has taken a defensive posture and the market advances, the return to investors will be lower than if the portfolio had not been defensive. Alternatively, if a Fund has taken an aggressive posture, a market decline will magnify the Fund’s investment losses. The Distributor of the Hussman Funds is Ultimus Fund Distributors, LLC., 225 Pictoria Drive, Suite 450, Cincinnati, OH, 45246. The Hussman Strategic Growth Fund has the ability to hedge market risk by selling short major market indices in an amount up to, but not exceeding, the value of its stock holdings. However, the Fund may experience a loss even when the entire value of its stock portfolio is hedged if the returns of the stocks held by the Fund do not exceed the returns of the securities and financial instruments used to hedge, or if the exercise prices of the Fund's call and put options differ, so that the combined loss on these options during a market advance exceeds the gain on the underlying index. The Fund also has the ability to leverage the amount of stock it controls to as much as 1 1/2 times the value of net assets, by investing a limited percentage of assets in call options. The Hussman Strategic Allocation Fund invests primarily in common stocks, bonds, and cash equivalents (such as U.S. Treasury bills and shares of money market mutual funds, aligning its allocations to these asset classes based on prevailing valuations and estimated expected returns in these markets. The investment strategy adds emphasis on risk-management to adjust the Fund’s exposure in market conditions that suggest risk-aversion or speculation among market participants. The Fund may use options and futures on stock indices and Treasury bonds to adjust its relative investment exposures to the stock and bond markets, or to reduce the exposure of the Fund’s portfolio to the impact of general market fluctuations when market conditions are unfavorable in the view of the investment adviser. The Hussman Strategic Total Return Fund has the ability to hedge the interest rate risk of its portfolio in an amount up to, but not exceeding, the value of its fixed income holdings. The Fund also has the ability to increase the interest rate exposure of its portfolio through limited purchases of Treasury zero-coupon securities and STRIPS. The Fund may also invest up to 30% of assets in alternatives to the U.S. fixed income market, including foreign government bonds, utility stocks, convertible bonds, real-estate investment trusts, and precious metals shares. The Hussman Strategic International Fund invests primarily in equities of companies that derive a majority of their revenues or profits from, or have a majority of their assets in, a country or country other than the U.S., as well as shares of exchange traded funds ("ETFs") and similar investment vehicles that invest primarily in the equity securities of such companies. The Fund has the ability to hedge market risk by selling short major market indices using swaps, index options and index futures in an amount up to, but not exceeding, the value of its stock holdings. These may include foreign stock indices, and indices of U.S. stocks such as the Standard and Poor's 500 Index. Foreign markets can be more volatile than U.S. markets, and may involve additional risks. The Prospectus of each Fund contains further information on investment objectives, strategies, risks and expenses. Please read the Prospectus carefully before investing. The Market Climate is not a formula but a method of analysis. The term "Market Climate" and the graphics used to represent it are service marks of Hussman Strategic Advisors (formerly known as Hussman Econometrics Advisors). The Fund Manager has sole discretion in the measurement and interpretation of market conditions. Information relating to the investment strategy of each Fund is described in its Prospectus and Statement of Additional Information. A schedule of investment positions for each Fund is presented in the annual and semi-annual reports. Except for articles specifically citing investment positions held by the Funds, general market commentary does not necessarily reflect the investment position of the Funds. Open Disclosure Notice in a Separate Window For more information about investing in the Hussman Funds, please call us at: 1-800-HUSSMAN (1-800-487-7626) 513-326-3551 outside of the United States Site and site contents © 2021 Hussman Strategic Advisors