Strategy. The Fund employs a passive management (or indexing) investment approach designed to track the total return performance, before fees and expenses, of the Index. The Index is based on a proprietary methodology developed and maintained by Index Design Group (the Index Provider), an affiliate of Pacer Advisors, Inc., the Funds investment adviser (the Adviser). The Index The Index uses an objective, rules-based methodology to provide exposure to large and mid-capitalization non-U.S. companies in developed markets with high free cash flow yields. Companies with high free cash flow yields are commonly referred to as cash cows. Free Cash Flow (FCF): A companys cash flow from operations minus capital expenditures. Enterprise Value (EV): A companys market capitalization plus its debt and minus … Show more… The Fund employs a passive management (or indexing) investment approach designed to track the total return performance, before fees and expenses, of the Index. The Index is based on a proprietary methodology developed and maintained by Index Design Group (the Index Provider), an affiliate of Pacer Advisors, Inc., the Funds investment adviser (the Adviser). The Index The Index uses an objective, rules-based methodology to provide exposure to large and mid-capitalization non-U.S. companies in developed markets with high free cash flow yields. Companies with high free cash flow yields are commonly referred to as cash cows. Free Cash Flow (FCF): A companys cash flow from operations minus capital expenditures. Enterprise Value (EV): A companys market capitalization plus its debt and minus its cash and cash equivalents. Free Cash Flow Yield: FCF / EV The initial index universe is derived from the component companies of the FTSE Developed ex US Index. The initial universe of companies is screened based on their average projected free cash flows and earnings (if available) over each of the next two fiscal years. Companies with no forward year estimates available for free cash flows or earnings will remain in the Index universe. Companies with negative average projected free cash flows or earnings are removed from the Index universe. Additionally, financial companies, other than real estate investment trusts (REITs), and companies with a market capitalization of less than $3 billion are excluded from the Index universe. The remaining companies are ranked by their average daily trading value (ADTV) for the prior three months. The 500 companies with the highest ADTV are then ranked by their free cash flow yield for the trailing twelve month period. The equity securities of the 100 companies with the highest free cash flow yield are included in the Index. At the time of each rebalance of the Index, the companies included in the Index are weighted in proportion to their trailing twelve month free cash flow, and weightings are capped at 2% of the weight of the Index for any individual company. As of June 30, 2025, the Index did not have significant exposure to companies in any countries, and the companies included in the Index had a market capitalization of $3 billion to $297 billion. As of June 30, 2025 the Index had significant exposure to the industrials sector. The Index is reconstituted and rebalanced semi-annually as of the close of business on the 3 rd Friday of June and December based on data as of the 1 st Friday of the applicable rebalance month. The Funds Investment Strategy The Fund is classified as diversified under the Investment Company Act of 1940, as amended (the 1940 Act). However, the Fund may become non-diversified solely as a result of a change in the relative market capitalization or index weighting of one or more constituents of the Index. Under normal circumstances, at least 80% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the component securities of the Index and investments that have economic characteristics that are substantially identical to the economic characteristics of such component securities ( e.g. , depositary receipts). The Adviser expects that, over time, the correlation between the Funds performance and that of the Index, before fees and expenses, will be 95% or better. The Fund will generally use a replication strategy to achieve its investment objective, meaning it will invest in all of the component securities of the Index in the same approximate proportion as in the Index. Show less