p id="xdx_A8E_err--StrategyNarrativeTextBlock_gRBSNTB-RZV_z2NfqOoRc7r9" style="font: 9pt/11.5pt Arial, sans-serif; margin: 0pt 0pt 9pt; -sec-ix-redline: true; text-transform: none; color: #000000; text-indent: 0pt; text-align: justify"span style="text-transform: none"The Fund employs a “passive management” — or indexing — investment approach designed to track the performance of the/spanspan style="text-transform: none" Underlying Index. The Advisor is the index provider for the Underlying Index. The Underlying Index seeks to employ a systematic investment/spanspan style="text-transform: none" process designed to identify opportunities in companies whose equity securities/spanspan style="text-transform: none" trade in developed markets, including the U.S., and which are involved/spanspan style="text-transform: none" in announced /spanspan style="text-transform: none"mergers, acquisitions and other buyout-related transactions. The Underlying Index seeks to capitalize on the /spanspan style="text-transform: none"spread between the current market price of the target company’s stock and the price received by the holder of that stock upon consummation of the buyout-related transaction. To be included in the Underlying Index, the announced transaction must be classified as friendly with the target company’s board recommending that shareholders accept the offer and meet minimum size, liquidity and spread requirements. In addition, for transactions that involve an exchange of stock, the Underlying Index includes short exposure to the stock expected to be received by shareholders of the /spanspan style="text-transform: none"target company./span/p p style="font: 9pt/11.5pt Arial, sans-serif; margin: 0pt 0pt 9pt; -sec-ix-redline: true; text-transform: none; color: #000000; text-indent: 0pt; text-align: justify"span style="text-transform: none"The Underlying Index reconstitutes and rebalances monthly and component securities are weighted based on their market capitalization ranking, with a maximum component weight of 7.5% at the time of rebalance. /spanspan style="text-transform: none"Component securities are removed from the Underlying Index when (i) the transaction closes, (ii) the transaction /spanspan style="text-transform: none"is terminated or abandoned, if more than one year has elapsed since the transaction’s announcement, or (iii) if the transaction no longer meets the Underlying Index’s spread and /spanspan style="text-transform: none"price requirements./span/p p style="font: 9pt/11.5pt Arial, sans-serif; margin: 0pt 0pt 9pt; -sec-ix-redline: true; text-transform: none; color: #000000; text-indent: 0pt; text-align: justify"span style="text-transform: none"The Fund invests, under normal/spanspan style="text-transform: none" circumstances, at least 80% of its net assets, plus the/spanspan style="text-transform: none" amount of any borrowings for investment purposes, in the investments included in its Underlying Index (“Underlying Index Components”). The Underlying Index consists of a number of Underlying Index Components selected in accordance with its rules-based methodology. Such Underlying Index Components/spanspan style="text-transform: none" will include primarily U.S. and non-U.S. equity securities. Under certain /spanspan style="text-transform: none"circumstances/spanspan style="text-transform: none" described below, the Underlying Index Components may also include U.S. Treasury bills. In/spanspan style="text-transform: none" addition, the Fund may invest up to 20% of its/spanspan style="text-transform: none" net assets in investments not included in its Underlying Index, but which the Advisor believes will help the Fund track the Underlying Index. The Fund may also invest in one or more financial instruments, including but not limited to futures contracts and swap agreements (collectively, /spanspan style="text-transform: none"“Financial Instruments”)./span/p p style="font: 9pt/11.5pt Arial, sans-serif; margin: 0pt 0pt 9pt; -sec-ix-redline: true; text-transform: none; color: #000000; text-indent: 0pt; text-align: justify"span style="text-transform: none"Pursuant to the Underlying Index’s rules, to the extent there are an insufficient number of target companies in which to invest, insufficient liquidity exists in such companies, or target companies are removed from the Underlying Index between monthly reconstitutions,/spanspan style="text-transform: none" the Underlying Index will allocate the available cash to one or more short-term fixed income ETFs and U.S. Treasury bills. In seeking to track the Underlying Index, the Fund may similarly invest in short-term fixed income ETFs and U.S. Treasury bills, but also may invest in cash and other similar investments including money market instruments, high-quality short-term debt securities, or derivative securities thereon. To the /spanspan style="text-transform: none"extent/spanspan style="text-transform: none" the Fund invests in cash and cash equivalents, the Fund will not be pursuing a merger arbitrage strategy. During periods of market turbulence, natural disasters, health emergencies and other market or political or regulatory conditions that reduce or limit merger, acquisition and buyout activity, there may be fewer target companies eligible for inclusion in the Underlying Index and the Underlying Index and Fund may have significant investments in cash and other /spanspan style="text-transform: none"similar investments./span/p p style="font: 9pt/11.5pt Arial, sans-serif; margin: 0pt 0pt 9pt; text-transform: none; color: #000000; text-indent: 0pt; text-align: justify"span style="text-transform: none"The Underlying Index may include as a component one or more ETFs advised by the Advisor (“Affiliated ETFs”) and/spanspan style="text-transform: none" the Fund will typically invest in any Affiliated ETF included/spanspan style="text-transform: none" in the Underlying Index. The Fund also may invest in Affiliated ETFs that are not components of the index if such an investment will help the Fund track the /spanspan style="text-transform: none"Underlying Index./span/p