The Bushido Capital US SMID Cap Equity Fund utilizes a systematic, fundamental value approach to individual stock selection that incorporates both quantitative and qualitative analysis. The Fund seeks to identify and invest in companies with the following characteristics: high free cash flow generation relative to the capital employed in the business, strong returns on capital over full economic cycles, management teams with track records of shareholder friendly capital allocation decisions, and current market prices trading for less than the portfolio manager’s estimate of the companies’ intrinsic value per share.

The sub-advisor screens U.S. listed small- and mid-capitalization companies, generally defined as companies with a market capitalization of between $1 billion and $50 billion, to exclude financial companies and unprofitable firms to identify the starting investment universe. The investment universe is further screened based on profitability, valuation, and capital allocation metrics to winnow the number of potential holdings down to approximately 200. The sub-advisor analyzes the remaining companies further by evaluating their financial statements, event transcripts, investor presentations, and other company filings. In addition, a discounted cash flow valuation is performed to quantify the sub-advisor’s estimate of each company’s intrinsic value. The discount/premium to this intrinsic value offered by the prevailing market price coupled with the referenced quantitative screening process is combined with the qualitative analysis of company financial documents to determine the 100 holdings that are selected for inclusion in the Fund.

The Bushido Capital US SMID Cap Equity ETF seeks to provide long-term capital appreciation.

NAV is the sum of all assets less any liabilities, divided by the number of shares outstanding.