Strategy. The Fund is an actively managed exchange-traded fund (ETF) that seeks to achieve its investment objective by investing in the equity securities of small-capitalization companies that Argent Capital Management LLC, the Funds sub-adviser (the Sub-Adviser), believes are high quality, enduring businesses. Equity securities include common stocks and American Depositary Receipts (ADRs) evidencing ownership in common stocks. Under normal circumstances, at least 80% of the Funds net assets, plus any borrowings for investment purposes, will be invested in small-capitalization companies. The Sub-Adviser defines small-capitalization companies as the approximately 2,000 smallest companies by market capitalization. The Fund will generally hold 35 to 45 stocks. While it is anticipated that the Fund will invest across a range of industries, certain sectors may be … Show more… The Fund is an actively managed exchange-traded fund (ETF) that seeks to achieve its investment objective by investing in the equity securities of small-capitalization companies that Argent Capital Management LLC, the Funds sub-adviser (the Sub-Adviser), believes are high quality, enduring businesses. Equity securities include common stocks and American Depositary Receipts (ADRs) evidencing ownership in common stocks. Under normal circumstances, at least 80% of the Funds net assets, plus any borrowings for investment purposes, will be invested in small-capitalization companies. The Sub-Adviser defines small-capitalization companies as the approximately 2,000 smallest companies by market capitalization. The Fund will generally hold 35 to 45 stocks. While it is anticipated that the Fund will invest across a range of industries, certain sectors may be overweighted compared to others because the Sub-Adviser seeks best investment opportunities regardless of sector. The sectors in which the Fund may be overweighted will vary at different points in the economic cycle. The Sub-Advisers multi-step investment process is based primarily on qualitative bottom-up fundamental research. The qualitative research and analysis performed by the Sub-Adviser emphasizes identifying enduring businesses. The Sub-Adviser believes that enduring businesses are those that have growing cash flows, a durable competitive position and allocate capital wisely. The Sub-Advisers qualitative fundamental analysis is performed to identify what it considers to be enduring businesseshigh quality businesses with the following characteristics: Growing Cash Flows : The Sub-Adviser believes growing cash flows unlocks the long-term power of compounding and looks for companies with: Predictable revenue streams Positive free cash flow generation and growth Durable Competitive Position: Companies that can evolve and thrive in changing business environments which the Sub-Adviser believes helps moderate downside risk. The Sub-Adviser looks for companies with: Above-average returns on capital Sustainable business models and competitive advantages (i.e., favorable industry dynamics, adaptability in changing market conditions, and resilient economics over a full cycle) Allocates Capital Wisely: Companies that are proven to be good stewards of their shareholders capital and have accomplished management teams with aligned interests, which the Sub-Adviser believes provides downside protection in challenging times, exhibited by: History of capital allocation aligned with shareholder value creation (i.e., reinvestment in the business and/or acquisitions at increasing rates of return followed by share repurchases and dividends) Investment grade balance sheet (i.e., limited use of debt to fund the business, low debt ratios, and high debt-service coverage) The qualitative analysis is driven by bottom-up, company-level fundamental research and focuses on individual stocks from the investment universe that meet the Sub-Advisers investment criteria. This analysis includes conducting an in-depth review of company financials, gaining an understanding of the companys industry dynamics and competitive positioning, assessing company management, and evaluating the companys operating metrics (e.g., sales and earnings estimate revisions, returns on invested capital, gross and operating margin profiles). Companies that make it through this diligent, rigorous analysis are what the Sub-Adviser considers to be high quality, enduring businesses. The process is designed to be selective. Sector distribution emerges as a result of the Sub-Advisors bottom-up approach. Valuation is considered after analysis of the companys business and industry dynamics and is a final component in balancing downside protection of the portfolio with upside potential. Valuation is viewed through a multi-dimensional lens including absolute metrics versus its history and peers, relative valuation metrics versus its history and peers, along with scenario analysis, focusing on paying fair prices for the right types of businesses. The investment process begins by screening the approximately 2,000 smallest companies by market capitalization for market liquidity, with only those companies with an average daily trading volume of $1 million or more making it to the next step. These companies are then further screened by utilizing a proprietary quantitative screening process to rank them based on factors that measure quality, value, growth, and stability, helping to further narrow the investment universe. The Sub-Adviser then conducts the qualitative bottom-up fundamental research described above. Companies are generally purchased at approximately a 1-3% weight in the Fund and can grow to a cap of approximately 8%. All stocks in the portfolio are continually monitored, but overall changes generally occur monthly. Portfolio changes may occur more frequently when major events such as public health crises, geopolitical events such as war or terrorism, trade disputes, economic shocks, amongst others are believed by the Sub-Adviser to likely have an impact on the Funds portfolio. The Sub-Advisers sell discipline is guided by the same process used to originally screen the investment universe. An investment becomes a sell candidate if it is no longer considered to be an enduring business by the Sub-Adviser, it exhibits poor performance, when a better investment opportunity becomes available, or if the company is acquired. Show less