Strategy. The Fund uses a passive management (or indexing) approach to track the total return performance, before fees and expenses, of the Index. Pence Transformers Index The Index is a rules-based index that measures the performance of U.S.-listed common equity securities, including American Depositary Receipts (ADRs) for foreign securities, of companies poised to benefit from a significant disruption and/or transformation of consumer behavior and technological innovation. Examples of significant disruptions and/or transformation of consumer behavior and technological innovation include, but are not limited to, (i) advancements in autonomous driving capabilities and electric vehicle technology disrupting the automobile manufacturers and trucking sub-industries; (ii) changes in consumer behavior shifting retail sales from brick and mortar businesses to digital channels transforming the internet and … Show more… The Fund uses a passive management (or indexing) approach to track the total return performance, before fees and expenses, of the Index. Pence Transformers Index The Index is a rules-based index that measures the performance of U.S.-listed common equity securities, including American Depositary Receipts (ADRs) for foreign securities, of companies poised to benefit from a significant disruption and/or transformation of consumer behavior and technological innovation. Examples of significant disruptions and/or transformation of consumer behavior and technological innovation include, but are not limited to, (i) advancements in autonomous driving capabilities and electric vehicle technology disrupting the automobile manufacturers and trucking sub-industries; (ii) changes in consumer behavior shifting retail sales from brick and mortar businesses to digital channels transforming the internet and digital marketing retail sub-industry; (iii) recent developments in cellular data speeds and improvements in mobile technologies disrupting the interactive media and services sub-industry; and (iv) new technologies that provide carbon offsets for existing business models or the development of greener alternatives to existing energy production transforming the renewable electricity producers sub-industry. Securities eligible for inclusion in the Index must be classified in one of the following sub-industries of the Global Industry Classification Standard (GICS). The sub-industries eligible for inclusion in the Index are subject to change upon each quarterly rebalance of the Index. Sub-Industries Aerospace & Defense Electronic Components Renewable Electricity Application Software Electronic Equipment & Instrument Restaurants Automobile Manufacturers Electronic Manufacturing Services Semiconductor Materials & Equipment Automotive Parts & Equipment Heavy Electrical Equipment Semiconductors Broadline Retail Hotels, Resorts & Cruise Lines Specialized Consumer Services Cargo Ground Transportation Independent Power Producers & Energy Traders Specialty Chemicals Communications Equipment Industrial Machinery & Suppliers Systems Software Consumer Electronics Interactive Home Entertainment Technology Distributors Copper Interactive Media & Services Technology Hardware, Storage & Peripherals Data Processing & Outsourced Services Internet Services & Infrastructure Transaction & Payment Processing Services Electric Utilities IT Consulting & Other Services Electrical Components & Equipment Passenger Ground Transportation Companies are screened from the universe of eligible securities based on descriptions of a company in regulatory filings ( e.g. , financial statements, annual reports), investor presentations, analyst reports, and industry-specific publications. In seeking companies that are expected to have market dominance, the Index analyzes the following quantitative factors that, in the opinion of Pence Capital Management, LLC (the Index Provider), provide an indication of a significant disruption and/or transformation of consumer behavior and technological innovation: research and development (R&D) spending as a percentage of sales, projected sales, and projected sales growth. The screening of the Index is performed by the Index Provider, and the Index was developed in 2021 by the Index Provider. To be included in the Index, a company must have (i) a minimum float-adjusted market capitalization of $2 billion, (ii) a minimum liquidity threshold of an average daily traded value of $2 million over a three-month period, and (iii) a consensus analyst rating above 3.0. Broker-dealers issue ratings based on an analysts measure of a stocks expected performance in a given time period, where a rating of 5.0 is the strongest ranking ( e.g. , buy) and 1.0 is the weakest ranking ( e.g. , sell). A consensus rating is the average of all brokers recommendations which have updated their recommendation in a given time period. To be eligible for inclusion in the Index, there must be at least five analysts making a recommendation for the company (except for ADRs and newly-listed securities). An ADR may be included in the Index with fewer than five analysts ratings, if the underlying security for which the ADR is based on has at least five analysts making a recommendation for the company. Newly-listed securities may also be included in the Index with fewer than five analysts ratings ( i.e. , a company that is post-IPO but may not have wide analyst coverage due to IPO lock-up periods) if a company is in one of the specified industries, has a minimum market capitalization over $2 billion, and has projected revenue over $200 million. The Index is reconstituted (i.e., Index constituents are added or deleted and weightings within each category are reset to equal-weight) after the close of business on the third Friday of March, June, September, and December. At the time of each reconstitution of the Index, Index constituents are added or deleted based on company data as of the last business day of February, May, August, and November, respectively, and the Index constituents are equally weighted within the following categories based on closing prices as of ten business days prior to the reconstitution date. Category classifications that are used to determine constituent weights are analyzed upon quarterly rebalances and are subject to change upon each quarterly rebalance. Category 1 (20% weight) U.S.-based companies with over $150 billion market capitalization Category 2 (30% weight) U.S.-based companies with $20 billion to $150 billion market capitalization Category 3 (25% weight) U.S.-based companies with $2 billion to $20 billion market capitalization Category 4 (15% weight) international companies with over $30 billion market capitalization Category 5 (10% weight) international companies with $2 billion to $30 billion market capitalization The aggregate weight of U.S.-based companies (companies in Categories 1, 2, and 3) is capped at 75%. If the Index does not identify any companies in one or more of those categories, the excess weight will be equally distributed to the remaining category or categories ( e.g. , if there are no Category 2 companies identified, then Category 1 would be weighted at 35% and Category 3 would be weighted at 40%). If the Index does not identify any U.S.-based companies, then Category 4 would be weighted at 60% and Category 5 would be weighted at 40%. The remaining 25% of the Index is made up of international companies (Categories 4 and 5). If the Index does not identify any companies in either category, the excess weight will be distributed to the other category ( e.g. , if there are no Category 4 companies identified, then Category 5 would be weighted 25%). If the Index does not identify any international companies, the excess weight will be equally distributed among Categories 1, 2 and 3 ( e.g. , Category 1 would be weighted 28.3%, Category 2 would be weighted 38.3%, and Category 3 would be weighted 33.4%). As of December 31, 2025, there were 244 companies in the Index, with a market capitalization ranging from $2.0 billion to $4.5 trillion. The Index consists only of mid- and large-capitalization companies greater than $2 billion at the time of each reconstruction. The Funds Investment Strategy The Fund will generally use a replication strategy to achieve its investment objective, meaning the Fund will generally invest in all of the component securities of the Index in the same approximate proportions as in the Index. However, the Fund may use a representative sampling strategy, meaning it may invest in a sample of the securities in the Index whose risk, return, and other characteristics closely resemble the risk, return, and other characteristics of the Index as a whole, when the Funds sub-adviser believes it is in the best interests of the Fund ( e.g. , when replicating the Index involves practical difficulties or substantial costs, an Index constituent becomes temporarily illiquid, unavailable, or less liquid, or as a result of legal restrictions or limitations that apply to the Fund but not to the Index). The Fund generally may invest in securities or other investments not included in the Index, but which the Funds sub-adviser believes will help the Fund track the Index. For example, the Fund may invest in securities that are not components of the Index to reflect various corporate actions and other changes to the Index (such as reconstitutions, additions, and deletions). To the extent the Index concentrates ( i.e. , holds more than 25% of its total assets) in the securities of a particular industry or group of related industries, the Fund will concentrate its investments to approximately the same extent as the Index. As of December 31, 2025, the Index had significant exposure to the information technology and industrial sectors. Show less