The Fund is an actively-managed exchange-traded fund (“ETF”). The Fund is a “fund of funds,” meaning that it primarily invests its assets in the shares of unaffiliated Underlying Funds that are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), rather than in securities of individual companies. The Fund invests primarily in Underlying Funds that are ETFs and invest in a broad set of U.S. dollar-denominated investment grade fixed income securities. These include securities issued or guaranteed by the U.S. government, its agencies or instrumentalities, corporate bonds, mortgage- and asset-backed securities, and other debt instruments. 

The Fund’s investment process uses an analytical framework to capture expected term and credit premiums. This includes an assessment of securities’ expected income and capital appreciation based on the shape of the yield curve, seeking securities with high expected returns.  The portfolio manager will use different Underlying Funds to target different parts of the yield and credit curves based on the expected return implied by those curves.

The Fund may seek to avoid receiving dividend income by avoiding purchasing Underlying Funds near their dividend date and temporarily rotating into different but similar Underlying Funds on the ex-dividend date of each Underlying Fund to avoid receiving a dividend distribution. This strategy allows the Fund to avoid time lags between receipt and reinvestment of distributions that could detract from the Fund's performance, possible distortions of allocation weights across Underlying Funds, and reduce certain reinvestment trading frictions.

Under normal market conditions, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in fixed income securities or Underlying Funds that primarily invest in fixed income securities. Fixed income securities in which the Fund and Underlying Funds may invest include investment grade corporate bonds and notes issued by U.S. and foreign corporations, securities issued by U.S. and foreign governments and their agencies, instrumentalities, or sponsored corporations—including supranational organizations. For purposes of this policy, investment grade corporate bonds are publicly- and privately-offered debt securities issued by private issuers that are rated in the four highest credit categories (AAA, AA, A, BBB, or an equivalent rating) by at least one nationally recognized rating agency or are unrated securities that the Adviser considers to be of comparable quality.

The Fund expects to maintain a weighted average duration within 2 years of the weighted average duration of the Bloomberg U.S. Aggregate Bond Index, as calculated by the Adviser. Duration is used to assess the sensitivity of a security’s price to changes in interest rates. The Fund may invest more than 25% of its total assets in U.S. Treasury, federal agencies and instrumentalities obligations.

The Fund may also engage in securities lending. Collateral received by the Fund in connection with loaning its securities may consist of cash and U.S. government securities. Cash collateral may be invested in eligible securities, such as a government money market fund. 

The Fund has elected to be and intends to qualify each year for treatments as a regulated investment company (“RIC”) under Subchapter M of Subtitle A, Chapter 1, of the Internal Revenue Code of 1986, as amended (the “Code”).

Under normal market conditions, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in fixed income securities or Underlying Funds that primarily invest in fixed income securities. Fixed income securities in which the Fund and Underlying Funds may invest include investment grade corporate bonds and notes issued by U.S. and foreign corporations, securities issued by governments and their agencies, instrumentalities, or sponsored corporations—including supranational organizations. For purposes of this policy, investment grade corporate bonds are publicly- and privately-offered debt securities issued by private issuers that are rated in the four highest credit categories (AAA, AA, A, BBB, or an equivalent rating) by at least one nationally recognized rating agency or are unrated securities that the Adviser considers to be of comparable quality. The Fund may invest more than 25% of its total assets in U.S. Treasury, federal agencies and instrumentalities obligations.