The Fund uses a "passive management" (or indexing) approach to seek to track the total return performance, before fees and expenses, of the Index. The Life + Liberty Freedom 100 Emerging Markets Index is a freedom-weighted emerging markets equity index.Life + Liberty Freedom 100 Emerging Markets IndexThe Index is designed to track the performance of a portfolio of approximately 100 equity securities listed in emerging market countries. Thereafter, country inclusion and weights are determined based on quantified data covering 79 personal and economic freedom factors. Factors are categorized into three main types of freedoms: the rights to life (such as absence of terrorism, human trafficking, torture, and political detentions), liberty (such as rule of law, due process, freedom of the press, freedom of religion, freedom of assembly), and property (such as marginal tax rates, access to international trade, business regulations, established monetary and fiscal institutions, and size of government). A quantitative model is used to weigh the countries based on human and economic freedom metrics as described below. Securities within countries are then selected based upon market capitalization ("market cap") and liquidity metrics (90-day average daily volume of shares traded on a public exchange or "Market Liquidity") and are subsequently market cap-weighted. The Index excludes state owned enterprises ("SOE") from the security selection process. The Index was developed in 2017 by Life + Liberty Investments, LLC, the Fund's index provider (the "Index Provider").The Index UniverseConstruction of the Index begins with the universe of common and preferred stocks (or their depositary receipts) of emerging markets countries, (collectively, the "Eligible Emerging Markets").Market Capitalization ScreensThe Index Provider determines the emerging markets eligible to be included in the Index at the time of each annual reconstitution of the Index based primarily on the market capitalization of each emerging market relative to the aggregate world market capitalization. Eligible Emerging Markets with a market capitalization of at least 0.15% of current global market capitalization plus an average market capitalization of at least 0.15% for the prior three years are included in the Index. After inclusion, an Eligible Emerging Market is retained in the Index so long as its Freedom Score (defined below) does not fall below a disqualifying level.Country Selection and WeightingThe Index methodology continues its rules-based process by further screening each Eligible Emerging Market by its composite freedom score ("Freedom Score"). This score determines each Eligible Emerging Market's inclusion and weight in the index. The Freedom Score is derived using a combination of 79 quantified personal and economic freedom factors compiled by [ ], a leading independent global think-tank. The Freedom Score is translated by the Index Provider into a relative weight for each Eligible Emerging Market which can be positive or negative. Eligible Emerging Market countries with positive weights are included in the Index. Based on the Index rules, the higher a given Eligible Emerging Market's Freedom Score, the higher its relative weighting in the Index. The lower a given Eligible Emerging Market's Freedom Score, the lower its relative weight in the Index. As of February 14, 2019, ten Eligible Emerging Markets were included in the Index (each, an "Index Market"). At the conclusion of this step, the country weights are established.Component Selection and WeightingThe index securities' universe includes all companies, other than SOEs, that are domiciled in each of the selected emerging market countries. The third-party index calculation agent (Solactive AG or "the "Calculation Agent") determines the country of domicile for each security included in the index securities universe. The top ten securities within each Eligible Emerging Market are identified, based on market capitalization and Market Liquidity. All securities must meet a minimum trading volume on a public exchange and market capitalization requirement, otherwise they will be excluded. Either local shares or depositary receipts can be used in the Index depending on which is more liquid and whether the country of domicile has restrictive foreign ownership requirements. The Index Components are then individually weighted within each country based on their market capitalization. SOEs are defined by the Index Provider as companies with 20% or more government ownership and are excluded from the Index. The Index may include small-, mid-, and large-capitalization companies; however, the rules of the Index will naturally favor large-capitalization companies with Market Liquidity. At the conclusion of this step, the individual security weights within each country will be established.Portfolio ConstructionThe Index is assessed annually in January of each year at which time the Index is reconstituted and rebalanced by the Index Provider. Component changes are made after the market close on the third Friday of January and become effective at the market open on the next trading day.
life: absence of terrorism, human trafficking, torture, and political detentions;liberty: rule of law, due process, freedom of the press, freedom of religion, freedom of assembly; andproperty: marginal tax rates, access to international trade, business regulations, established monetary and fiscal institutions, and size of government.