PDN

About PDN

TheFund generally will invest at least 90% of its total assets in the securities that comprise the Underlying Index, as well as Americandepositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that represent securities in the UnderlyingIndex. Strictlyin accordance with its guidelines and mandated procedures, FTSEInternational Limited (“FTSE”) in conjunction with Research Affiliates LLC (“RA” together with FTSE, the “IndexProvider”), compiles, maintains and calculates the Underlying Index, which is comprised of securities of small- and mid-capitalizationcompanies that are classified as “developed” within the country classification definition of FTSE, excluding the United States.TheUnderlying Index is designed to track the performance of the small- andmid-capitalization companies in developed markets based on their cumulative scores (“Fundamental Value”), selected from theconstituents of the FTSE Developed ex US Total Cap Index, as determined by the Index Provider. The Underlying Index selects and weightscompanies based on their Fundamental Values, which are derived from the following four fundamental measures of firm size: book value,cash flow, sales and dividends. Asof December 31, 2023,the Underlying Index was comprised of 1,490constituents representing 45countries and with market capitalizations ranging from $36.4million to $77.6billion. TheFund employs a “full replication” methodology in seeking to track theUnderlying Index, meaning that the Fund generally invests in all of the securities comprising the Underlying Index in proportion to theirweightings in the Underlying Index.TheFund intends to be“diversified,”as defined inthe Investment Company Act of 1940, as amended (the “1940 Act”),to the extent that the Underlying Index is diversified. The Fundmay become “non-diversified” as defined in the 1940Act solely as a result of a change in relative market capitalizationor index weighting of one or more constituents of the Underlying Index. Should the Fund become “non-diversified,” it willno longer be required to meet certain diversification requirements under the 1940 Actand may invest a greater portion of its assets in securities ofa small group of issuers or in any one individual issuer than can a diversified fund.Shareholder approval will not be sought when the Fund crosses from diversified to non-diversified status solelydue to a change in relative market capitalization or index weighting of one or more constituents of the Underlying Index.In seeking to track the Underlying Index, the Fund was managed as diversified as of October 31, 2023.ConcentrationPolicy. The Fund will concentrate its investments (i.e., invest25% or more ofthe value of its totalassets) in securities of issuers in any one industry or group of industries only to the extent that the Underlying Index reflects a concentrationin that industry or group of industries. The Fund will not otherwise concentrate its investments in securities of issuers in any one industryor group of industries.