This is a notice of certain enhancements to the construction of the Transparent
Value Large-Cap Directional Series strategies. These changes will take effect on
Friday, (close of business) September 19th , 2014.
Enhancements to the respective methodologies include:
- Liquidity rules
- Component weighting
- Grandfathering of current components
Transparent Value continues to review and refine its investment
process with the goal of delivering stronger, steadier risk adjusted outcomes over
time. For details regarding the investment selection process please contact 1-855-883-8637.
Transparent Value is making the following changes to the index methodology used by the Transparent Value Large-Cap Growth, Transparent Value Large-Cap Value, Transparent Value Large-Cap Core and Transparent Value Small-Cap indexes.
The indexes will institute industry group targets (Global Industry Classification Standard - GICS Classification) to the indexes benchmarks: The Dow Jones U.S. Large-Cap Growth Total Stock Market (TSM) IndexSM, Dow Jones U.S. Large-Cap Value TSM IndexSM, Dow Jones U.S. Large-Cap TSM IndexSM, and the Dow Jones U.S. Small-Cap TSM IndexSM respectively.
The indexes will remove all factor screen criteria from the portfolio construction process.
The indexes are the underlying investments for the Transparent Value Large-Cap Growth Fund, Transparent Value Large-Cap Value Fund, Transparent Value Large-Cap Core Fund and Transparent Value Small-Cap Fund.
The changes will take place during the next rebalance, scheduled for close of business Friday, September 18, 2015. The changes are intended to help match the industry group target selection process to the benchmarks, provide benchmark like diversification, minimize a source of index volatility and reduce turnover while potentially improving risk-adjusted returns and reducing tracking error vs. the respected benchmarks.
For details regarding the investment selection process please contact
1-888-727-6885. Click here for important disclosures and pdf