The fund seeks consistent repeatable returns across all market cycles, by investing in companies outside the United States.
The sub-adviser’s investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.
Next, the research team invests in ETFs and exchange-traded notes that seek to track a diversified basket of global indices and investment sectors.
In selecting securities for the portfolio, the research team focuses on the size, historical track record, diversification among indices, the correlation of an index to other indices and an ability to write covered call options on the particular ETP.
Also, the team may invest in individual securities. Individual security selection criteria include fundamental, behavior, qualitative and macro-economic data.
In addition, the team utilizes a proprietary strategy known as Volatility Enhanced Global Appreciation (VEGA).
The team seeks to participate in the appreciation of the underlying assets while reducing the overall volatility of a global portfolio through the use of options.
The option strategies utilized are limited to covered call writing, selling cash-secured puts, and purchasing protective puts.
Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.
The fund also may invest in exchange-traded products that invest directly in commodities or currencies.
The fund seeks to provide long exposure to the dry bulk shipping market through a portfolio of near-dated freight futures contracts on dry bulk indices, by investing in companies outside the United States.
The investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.
Next, the fund will hold freight futures with a weighted average of approximately three months to expiration, using a mix of one-to-six-month freight futures, based on the prevailing calendar schedule.
However, the fund intends to progressively increase its position to the next calendar quarter three-month strip while existing positions are maintained and settle in cash.
Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.
The Benchmark Portfolio includes a combination of Capesize, Panamax and Supramax Freight Futures.
The Benchmark Portfolio includes 50% exposure in Capesize Freight Futures contracts, 40% exposure in Panamax Freight Futures contracts and 10% exposure in Supramax Freight Futures contracts.
In addition, the Benchmark Portfolio does not include and the fund will not invest in swaps, non-cleared dry bulk freight forwards or other over-the-counter derivative instruments that are not cleared through exchanges or clearing houses.
The fund may hold exchange-traded options on Freight Futures.
The fund holds cash or cash equivalents such as U.S. Treasuries or other high credit quality, short-term fixed-income or similar securities for direct investment or as collateral for the U.S. Treasuries and for other liquidity purposes and to meet redemptions that may be necessary on an ongoing basis.
Also, the fund may realize interest income from its holdings in U.S. Treasuries or other market rate instruments.
The fund seeks to replicate the total return performance of the benchmark index, before fees and expenses, by investing in companies outside the United States.
As part of its strategy, the fund employs a passive or indexing approach.
The investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.
Next, the research team invests significantly in the securities of the Underlying Index and in American Depositary Receipts and Global Depositary Receipts based on the securities in the Underlying Index.
The Underlying Index is comprised of securities that rank among the highest dividend-yielding securities in each eligible category of alternative income investments.
Alternative income investments that are eligible for inclusion in the Underlying Index fall into one of four classes, such as Master Limited Partnerships and Infrastructure, Real Estate, Institutional Managers, and Fixed Income and Derivative Strategies.
Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.
The fund seeks to replicate the composition of the benchmark index, holding each security in approximately the same proportion as its weighting in the Index.
However, the fund may utilize a representative sampling strategy when there are practical difficulties or substantial costs involved in compiling a portfolio of equity securities to follow the Underlying Index.
The fund concentrates its investments in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.
Also, the fund may lend securities representing up to one-third of the value of its net assets.
The fund seeks to replicate the total return performance of the benchmark index, before fees and expenses, by investing in companies outside the United States.
The investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.
The Index consists of long positions in the online retailers included in the ProShares Online Retail Index (the Online Index) and short positions in the bricks and mortar retailers included in the Solactive-ProShares Bricks and Mortar Retail Store Index (the Retail Store Index).
Next, the research team invests significantly in the component securities of the Online Index.
However, the fund intends to obtain short exposure to the positions in the Retail Store Index by investing in derivatives.
The team utilizes a mathematical approach to determine the type, quantity and mix of investment positions the fund should hold to produce returns.
Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.
In addition, the fund may invest in or gain exposure to only a representative sample of the securities in the Index or to securities not contained in the Index or in financial instruments.
The fund seeks to remain fully invested at all times in securities and/or financial instruments that, in combination, provide exposure to the returns of the Index without regard to market conditions, trends or direction.
Also, the fund will concentrate or focus its investments in a particular industry or group of industries, country or region to approximately the same extent the Index is so concentrated or focused.
The fund invests in financial instruments, and estimates that its cash balances maintained in connection with the use of financial instruments will typically be held in money market instruments.
