| Investment Objective: |
The Towle Value ETF (the "Fund") seeks to achieve long-term capital appreciation by active investment strategy. The Sub-Adviser considers a company to be deeply undervalued if its enterprise value-to-sales is less than 1.5x at the time of purchase. The Sub-Adviser defines enterprise value to be a company's market capitalization plus debt less its cash and cash equivalents. The Sub-Adviser follows a disciplined, value-driven investment process rooted in its belief that investor biases create persistent market inefficiencies. By systematically acting on these inefficiencies, the Sub-Adviser seeks to unlock opportunities for long-term capital appreciation. The Fund's investment universe starts with publicly traded equity securities listed on a U.S. exchange. Next, the Sub-Adviser applies proprietary quantitative screens to assess liquidity, short interest, historical earnings, performance, and other factors. Furthermore, the Sub-Adviser has the discretion to allocate up to 25% of the Fund's total net assets to foreign securities, either directly or indirectly through the use of ADRs. |
