CEMP uses a strategic beta indexing approach that combines fundamental criteria with volatility weighting to seek to improve an investor’s ability to outperform traditional indexing strategies.
The Fund seeks to provide investment results that track the performance of the CEMP US Large Cap 500 Long/Cash Volatility Weighted Index (the “Long/Cash Index”) before fees and expenses. INDEX DESCRIPTION
The Long/Cash Index tactically reduces its exposure to the equity markets during periods of significant market declines and reinvests when market prices have further declined or rebounded. The CEMP US Large Cap 500 Long/Cash Volatility Weighted Index is based on the month-end price of the CEMP US Large Cap 500 Volatility Weighted Index (the “Reference Index”). LONG/CASH METHODOLOGY
The exit and reinvestment methodology of the Long/Cash Index is based on the month-end value of the Reference Index relative to its All-Time Highest Daily Closing Value (“AHDCV”). AHDCV is the highest daily closing price the Reference Index has achieved since its inception date. Exit Strategy:
All measurements for the exit strategy are based on month-end values of the Reference Index.
• If the Reference Index has declined 10% (or more) from its AHDCV, the Long/Cash Index will liquidate 75% of its equity exposure at month-end.
• When the Long/Cash Index is less than 100% invested in its equity securities, the remaining assets in the Long/Cash Index will be invested in 30-day Treasury bills (or equivalents). Reinvestment Strategy:
All measurements for re-investment are based upon month-end values of the
• If the Reference Index has increased back to or above the point of exit (10% decline from AHDCV), the assets that were liquidated will be reinvested, resulting in the Long/Cash Index being 100% invested in equity securities.
• If the Reference Index has declined further and is now 20% or more below the Reference Index’s AHDCV, 25% of the Long/Cash Index will be reinvested back in its equity securities. The Long/Cash Index will then be approximately 50% invested in equity securities.
• If the Reference Index has declined further and is now 30% or more below the Reference Index’s AHDCV, another 25% of the Long/Cash Index will be reinvested in its equity securities. The Long/Cash Index will then be approximately 75% invested in equity securities.
• If the Reference Index has declined further and is now 40% or more below the Reference Index’s AHDCV, another 25% of the Long/Cash Index will be reinvested in its equity securities. The Long/Cash Index will then be approximately 100% invested in equity securities.
An investor should consider the fund’s investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information about the fund can be found in the fund’s prospectus, or, if applicable, the summary prospectus. To obtain a copy, visit the prospectus page. Read the prospectus carefully before investing. All investing involves risk, including potential loss of principal. There is no guarantee that the Fund will achieve its objective.
Strategies intended to hedge risk may be partly or wholly unsuccessful. The value of the Fund’s investments in fixed income securities will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities owned by the Fund. Conversely, if rates fall, the value of the fixed income securities generally increases. The Fund is not actively managed and does not, therefore, seek returns in excess of the Index. The Fund’s return may not match the return of the Index. The value of the equity securities in which the Fund invests may decline in response to developments affecting individual companies and/or general economic conditions. The Fund may be subject to liquidity risk if the Advisor is not able to acquire or sell underlying securities held by the Fund at a price that is acceptable to the Advisor. Indexes are unmanaged statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index. The Funds are distributed by Victory Capital Advisers, Inc. ("VCA"), memberFINRA and SIPC
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