MOAT

About MOAT

The Fund normally invests at least 80% of its total assets in securities that comprise the Fund’s benchmark index. The Morningstar Wide Moat Focus Index is comprised of securities issued by companies that Morningstar, Inc. (“Morningstar” or the “Index provider”) determines to have sustainable competitive advantages based on a proprietary methodology that considers quantitative and qualitative factors (“wide moat companies”). Wide moat companies are selected from the universe of companies represented in the Morningstar® US Market IndexSM, a broad market index representing 97% of U.S. market capitalization. The Morningstar Wide Moat Focus Index targets a select group of wide moat companies: those that according to Morningstar’s equity research team are attractively priced as of each Morningstar Wide Moat Focus Index review. Out of the companies in the Morningstar Wide Moat Focus Index that Morningstar determines are wide moat companies, Morningstar selects companies to be included in the Morningstar Wide Moat Focus Index as determined by the ratio of Morningstar’s estimate of fair value of the issuer’s common stock to the price. Morningstar’s equity research fair value estimates are calculated using a standardized, proprietary valuation model. Wide moat companies may include medium-capitalization companies. The Fund’s 80% investment policy is non-fundamental and may be changed without shareholder approval upon 60 days’ prior written notice to shareholders.As of December 31, 2024, the Morningstar Wide Moat Focus Index included 51 securities of companies with a full market capitalization range of between approximately $7.51 billion and $3.13 trillion and a weighted average full market capitalization of $171.27 billion. These amounts are subject to change.The Fund, using a “passive” or indexing investment approach, attempts to approximate the investment performance of the Morningstar Wide Moat Focus Index by investing in a portfolio of securities that generally replicates the Morningstar Wide Moat Focus Index. Unlike many investment companies that try to “beat” the performance of a benchmark index, the Fund does not try to “beat” the Morningstar Wide Moat Focus Index and does not seek temporary defensive positions that are inconsistent with its investment objective of seeking to replicate the Morningstar Wide Moat Focus Index.The Fund may become "non-diversified" as defined under the Investment Company Act of 1940, as amended (the “Investment Company Act of 1940”), solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the Morningstar Wide Moat Focus Index. This means that the Fund may invest a greater percentage of its assets in a limited number of issuers than would be the case if the Fund were always managed as a diversified management investment company. The Fund intends to be diversified in approximately the same proportion as the Morningstar Wide Moat Focus Index. Shareholder approval will not be sought when the Fund crosses from diversified to non-diversified status due solely to a change in the relative market capitalization or index weighting of one or more constituents of the Morningstar Wide Moat Focus Index.The Fund may concentrate its investments in a particular industry or group of industries to the extent that the Morningstar Wide Moat Focus Index concentrates in an industry or group of industries. As of September 30, 2024, each of the information technology, industrials, health care and consumer staples sectors represented a significant portion of the Fund.