The Fund is actively managed using a model-based approach and seeks to achieve its investment objective by investing, under normal market conditions, at least 80 percent of its net assets, plus borrowings for investment purposes, in equity securities, including common stock, issued by U.S.-based large capitalization publicly listed companies that provide high shareholder yield. The Funds investment adviser, Cambria Investment Management, L.P. (Cambria or the Adviser), defines large capitalization companies as companies having a market capitalization of at least dollar 10 billion. Cambria defines shareholder yield as the totality of returns realized by an investor from a companys cash payments for dividends, buybacks and debt paydowns. For purposes of this strategy, Cambrias quantitative algorithm calculates a companys shareholder yield by considering the following characteristics: (i) dividend payments to shareholders, (ii) return of capital in the form of share buybacks (i.e., a companys repurchase of its own shares from the marketplace, which, in turn, reduces the number of outstanding shares for continuing shareholders or generates proceeds for existing shareholders), and (iii) paydown of a companys debt (i.e., reducing a companys outstanding debt). Cambria believes that, while any one of these measures of a companys cash flows, in isolation, is inadequate to determine the attractiveness of its equity securities, considered together these measures have the potential to result in the construction of a portfolio of companies with higher potential for income and capital appreciation.