Strategy. The Fund invests, under normal circumstances, at least 80% of its assets in equity securities of non-U.S. companies. The Funds 80% policy is a non-fundamental investment policy that can be changed upon 60 days prior written notice to shareholders. Equity securities include common stocks, preferred stocks, depositary receipts such as American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) and European Depositary Receipts (EDRs), Real Estate Investment Trusts (REITs), and interests in other investment companies, including other exchange-traded funds that invest in equity securities. The Fund may invest in securities of companies domiciled in both developed and emerging markets. The Funds sub-adviser, Los Angeles Capital Management LLC (Los Angeles Capital), employs a quantitative investment process for security selection and risk management. … Show more… The Fund invests, under normal circumstances, at least 80% of its assets in equity securities of non-U.S. companies. The Funds 80% policy is a non-fundamental investment policy that can be changed upon 60 days prior written notice to shareholders. Equity securities include common stocks, preferred stocks, depositary receipts such as American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) and European Depositary Receipts (EDRs), Real Estate Investment Trusts (REITs), and interests in other investment companies, including other exchange-traded funds that invest in equity securities. The Fund may invest in securities of companies domiciled in both developed and emerging markets. The Funds sub-adviser, Los Angeles Capital Management LLC (Los Angeles Capital), employs a quantitative investment process for security selection and risk management. Los Angeles Capitals Dynamic Alpha Stock Selection Model (the Model) is a proprietary quantitative model used to build equity portfolios that adapt to market conditions. The Model considers a range of valuation, earnings and management characteristics to identify current drivers of return. Los Angeles Capital believes that investor attitudes towards key investment risks change over the course of a market cycle and are a key determinant in explaining security returns. Utilizing these characteristics, Los Angeles Capital seeks to construct a risk-controlled, forward-looking portfolio designed to adapt to changing market conditions. By including fundamental data inputs for a universe of global equity securities and, through the use of statistical tools, the Model estimates expected returns based on each securitys risk characteristics and the expected return to each characteristic in the current market environment. Return forecasts are developed through a three-step process. ? First, the research process measures each securitys exposure to different risk factors through an analysis of financial statements, earnings forecasts, and statistical properties of historic stock returns. ? Second, the Model determines the risk premium or price of each risk factor through a rigorous attribution and statistical analysis of the returns related to each of the risk factors over the recent past. ? Third, return forecasts are developed by combining each companys exposure with the risk premium associated with each risk factor. Risk factors taken into account can change over time. Security weights are assigned through an integrated optimization process that is model driven, which identifies the portfolio with the highest expected return for an acceptable level of risk. The Funds portfolio is rebalanced periodically using the quantitative Model. Los Angeles Capital seeks to generate incremental investment returns above the Funds benchmark, while attempting to control investment risk relative to the benchmark. While Los Angeles Capital does not set price targets or valuation constraints, it will sell a security if it no longer has the desired risk characteristics, or if there are concerns about a particular companys merits. As economic conditions change and investor risk preferences evolve, Los Angeles Capitals forecasts will change accordingly. The Fund will typically hold 100-140 securities, although depending on market conditions the number of holdings could go below 100. Show less