MNA

About MNA

TheFund employs a “passive management” — or indexing — investment approach designed to track the performance of theUnderlying Index. The Advisor is the index provider for the Underlying Index. The Underlying Index seeks to employ a systematic investmentprocess designed to identify opportunities in companies whose equity securities trade in developedmarkets, including the U.S., and which are involved in announced mergers,acquisitions and other buyout-related transactions. The Underlying Index seeks to capitalize on the spreadbetween the current market price of the target company’s stock and the price received by the holder of that stock upon consummationof the buyout-related transaction. To be included in the Underlying Index, the announced transaction must be classified as friendly withthe 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 tobe received by shareholders of the target company.TheUnderlying 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. Component securities areremoved from the Underlying Index when (i) the transaction closes, (ii) the transaction isterminated or abandoned, if more than one year has elapsed since the transaction’s announcement, or (iii) if the transaction nolonger meets the Underlying Index’s spread and price requirements.TheFund invests, under normal circumstances, at least 80% of its net assets, plus theamount 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. SuchUnderlying Index Components will include primarily U.S. and non-U.S. equity securities. Undercertain circumstances described below, the UnderlyingIndex Components may also include U.S. Treasury bills. In addition, the Fund may invest upto 20% of its net assets in investments not included in its Underlying Index, but which theAdvisor believes will help the Fund track the Underlying Index. The Fund may also invest in one or more financial instruments, includingbut not limited to futures contracts and swap agreements (collectively, “Financial Instruments”).Pursuantto the Underlying Index’s rules, to the extent there are an insufficient number of target companies in which to invest, insufficientliquidity exists in such companies, or target companies are removed from the Underlying Index between monthly reconstitutions,the Underlying Index will allocate the available cash to one or more short-term fixed income ETFs and U.S. Treasury bills. In seekingto track the Underlying Index, the Fund may similarly invest in short-term fixed income ETFs and U.S. Treasury bills, but also may investin cash and other similar investments including money market instruments, high-quality short-term debt securities, or derivative securitiesthereon. To the extent the Fund invests in cashand 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 significantinvestments in cash and other similar investments.TheUnderlying Index may include as a component one or more ETFs advised by the Advisor (“Affiliated ETFs”) andthe Fund will typically invest in any Affiliated ETF included in the Underlying Index. TheFund also may invest in Affiliated ETFs that are not components of the index if such an investment will help the Fund track the UnderlyingIndex.