Strategy. The Fund is actively managed using a model -based approach and seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its net assets, plus borrowings for investment purposes, in equity securities, including common stock, issued by U.S. -based large capitalization publicly listed companies that provide high shareholder yield. The Funds investment adviser, Cambria Investment Management, L.P. (Cambria or the Adviser), defines large capitalization companies as companies having a market capitalization of at least $10 billion. Cambria defines shareholder yield as the totality of returns realized by an investor from a companys cash payments for dividends, buybacks and debt paydowns. For purposes of this strategy, Cambrias quantitative algorithm calculates a companys shareholder yield by … Show more… The Fund is actively managed using a model -based approach and seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its net assets, plus borrowings for investment purposes, in equity securities, including common stock, issued by U.S. -based large capitalization publicly listed companies that provide high shareholder yield. The Funds investment adviser, Cambria Investment Management, L.P. (Cambria or the Adviser), defines large capitalization companies as companies having a market capitalization of at least $10 billion. Cambria defines shareholder yield as the totality of returns realized by an investor from a companys cash payments for dividends, buybacks and debt paydowns. For purposes of this strategy, Cambrias quantitative algorithm calculates a companys shareholder yield by considering the following characteristics: (i) dividend payments to shareholders, (ii) return of capital in the form of share buybacks ( i.e. , a companys repurchase of its own shares from the marketplace, which, in turn, reduces the number of outstanding shares for continuing shareholders or generates proceeds for existing shareholders), and (iii) paydown of a companys debt ( i.e. , reducing a companys outstanding debt). Cambria believes that, while any one of these measures of a companys cash flows, in isolation, is inadequate to determine the attractiveness of its equity securities, considered together these measures have the potential to result in the construction of a portfolio of companies with higher potential for income and capital appreciation. No less frequently than on a quarterly basis, utilizing its own quantitative model, Cambria selects the top 20% of stocks in the initial universe of U.S. -based , large capitalization, publicly listed companies based on their shareholder yield, as measured by dividend payments and net share buybacks. Cambria considers an issuer to be U.S. -based if it is domiciled, incorporated, or has substantial business activity in the United States and the primary equity security of such issuer is listed on a major U.S. stock exchange. Cambrias quantitative algorithm then factors in the remaining stocks debt paydowns and applies a number of value metrics to create a composite, including metrics such as, but not limited to, price -to-book (P/B) ratio, price -to-sales (P/S) ratio, price -to-earnings (P/E) ratio, price -to-free cash -flow (P/FCF or P/CF) ratio, and enterprise multiple (EV/EBITDA). The quantitative model then selects between 50 and 100 stocks for inclusion in the Funds portfolio that exhibit, in the aggregate, the best combination of shareholder yield characteristics and value metrics. The number of holdings in the Fund will be based on a number of factors, including the asset size of the Fund and the number of companies that satisfy Cambrias quantitative measurements at any one time. Although Cambria seeks to weight these stocks equally in the Funds portfolio, security weights may fluctuate in response to market conditions and investment opportunities that develop between the models quarterly calculations. As of August 1, 2025, the Fund had significant investment exposure to companies in the financials sector; however, the Funds sector exposure may change from time to time. Although the Fund employs a model -based investment approach based on Cambrias proprietary, quantitative algorithm, the Fund may sell a security when Cambria believes that the security is overvalued or better investment opportunities are available, to invest in cash and cash equivalents, or to meet redemptions. Cambria expects to adjust the Funds holdings at least quarterly to meet the investment criteria and target allocations ( e.g. , security weights) established by the Funds quantitative algorithm, but Cambria may adjust the Funds holdings more frequently in response to market events that develop between the models quarterly calculations. Show less