Index (the “Dow Jones Index.” The Dow Jones Deep Value IndexSM is designed to reflect the performance of companies meeting the Deep Value investment criteria in the market, and to reflect the industry breakdown of the global market. The Underlying Index generally is comprised of [ ] securities. The Underlying Index was created and is maintained by Dow Jones Indexes.
They did not specify a trading symbol or expense ratio in the initial filing.
Principal Investment Strategies The Fund uses a “passive management”–or indexing–investment approach designed to track the performance of the Underlying Index. As its primary strategy, the Fund generally attempts to replicate the performance of the Underlying Index by investing all or substantially all of its assets in the securities that make up the Underlying Index. The Fund generally uses a representative sampling strategy to achieve its investment objective, meaning it generally will invest in a sample of the securities in the Underlying Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Underlying Index as a whole. The Fund may invest a portion of its assets in securities not included in its Underlying Index but which the Adviser or the sub-adviser, Esposito Securities, LLC (“Sub-Adviser”), believes will help the Fund track its Underlying Index. “Deep Value” investing refers to the strategy that seeks to identify and invest in such stocks and wait for the market to realize their true value. A deep value investor searches for value in the equity market and aims to invest in fundamentally sound companies that are relatively undervalued due to short term non-recurrent reasons. These reasons include factors like the market not being able to assess its changing fundamentals or the long term potential of the stock not being understood and valued by the market or even stock underperformance owing to rumors. The Dow Jones Deep Value IndexSM is an index maintained by Dow Jones Indexes based on a stringent and published methodology. The Underlying Index is an equal-weighted index consisting of [ ] securities, each of which is an equity security. As of [ ], 2012, the Underlying Index’s three largest stocks were [ ], [ ], and [ ] and its three largest industries were [ ], [ ] and [ ]. As of [ ], 2012, the capitalization of companies represented in the target index ranged from $[ ] billion to $[ ] billion. The securities composing the Underlying Index include equity securities of U.S. and foreign companies. Dow Jones Indexes (the “Index Provider”) is the creator of the Dow Jones U.S. Deep Value IndexSM. Stocks are screened so that the indexes cover only securities that are well-traded and accessible to investors. After filtering out companies engaging in unacceptable business activities, financial ratio filters are applied to exclude, among other things, companies with unacceptable levels of debts or interest income. Securities are selected for the Underlying Index so as to represent the most liquid securities meeting the Deep Value investment criteria in the market, and to reflect the industry breakdown of the global market. Additional factors considered when applying the process described above include relative size and turnover, country and economic weightings, and the relative financial health of the companies. Under normal circumstances, however, at least 80% of the Fund’s total assets will be invested in securities included in the Underlying Index representing such securities. The Fund may invest the remainder of its assets in securities not included in the Underlying Index but which the Adviser and Sub-Adviser believe will help the Fund track its Underlying Index, and in futures contracts, options and swaps, as well as cash and cash equivalents. The Adviser has engaged the Sub-Adviser for the day-to-day management of the Fund, including generally having the responsibility for determining the securities in which the Fund will invest. The Adviser expects that, over time, the correlation between the Fund’s performance and that of the Underlying Index, before fees and expenses, will exceed 95%. A correlation percentage of 100% would indicate perfect correlation. If the Fund uses a replication strategy, it can be expected to have greater correlation to the Underlying Index than if it uses a representative sampling strategy.
For the complete filing click: HERE