Knowledge Leaders Developed World ETF (KLDW) Exchange: NYSE ARCA

The Fund invests primarily in equities the advisor considers to be highly innovative companies or "knowledge leaders." The portfolio will include a diversified mix of mid- and large-cap companies from the developed world including North America, Europe and Asia.   The Fund's advisor considers knowledge leaders to be companies that have demonstrated histories of successfully employing their research and development and have built competitive advantages using their own firm-specific resources such as proprietary knowledge, intellectual property or a unique distribution mechanism. Based on academic research, the advisor believes the market is generally inefficient at valuing such high growth companies because traditional financial data overlooks hidden value in such companies' assets.   Using a proprietary methodology based on academic research, the advisor evaluates all of the equity securities in an investment universe comprised of companies in the top 85% of the market capitalization of the 22 traditional developed countries (excluding Hong Kong) with a stock price greater than $1, eliminating those companies with the lowest 10% trading liquidity (shares traded multiplied by share price). The advisor's methodology is applied to create an intangible-adjusted financial history for each remaining company. The methodology does this by making adjustments to each company's reported financial data since 1980 (or since the company's inception, if later) that cause intangible investments to be treated as identical to tangible investments. For this purpose, intangible assets include research and development, advertising, brand development, and employee training expenses. The methodology then applies the advisor's "knowledge leaders" screen, a proprietary, quantitative process used to measure a company's intangible-adjusted financial history for knowledge and innovation intensity, financial strength, and profitability. Companies are graded on a "pass/fail" basis and those companies that pass each level of the screen are identified as knowledge leaders. The Fund's advisor then constructs an equity portfolio from the group of knowledge leader stocks that in the advisor's opinion has the greatest liquidity characteristics. The Fund will not hold the entire group of knowledge leader securities.   Under normal circumstances, at least 80% of the Fund's assets will be invested in securities the Fund's advisor identifies as knowledge leaders at the time of investment, with not more than 25% in any one industry. Under normal market conditions, the Fund will invest at least 40% of its net assets in securities of companies located outside the United States. A company will be considered to be located outside the United States if it is domiciled in and tied economically to one or more non-U.S. countries and may include stocks of companies that trade in the form of depositary receipts. From time to time, the Fund may have a significant portion of its assets invested in a specific sector or geographical area.   The Fund will invest primarily in securities issued by companies with market capitalizations over $500 million and may also invest in other investment companies, ETFs, cash, cash equivalents and money market instruments.   When the Advisor believes that current market, economic, political or other conditions are unsuitable and would impair the pursuit of the Fund's investment objective, the Fund may invest some or all of its assets in cash or cash equivalents. When the Fund takes a temporary defensive position, the Fund may not achieve its investment objective.