Academy Veteran Impact ETF (VETZ US) – Portfolio Construction Methodology

The investment strategy underpinning the actively managed Academy Veteran Impact ETF is to generate income from a high-quality portfolio of USD investment-grade securitized credit linked to US service members, veterans, their survivors, and veteran-owned businesses. Under normal circumstances the fund maintains ≥80% of net assets in fixed income securities backed by loan pools tagged with veteran-eligibility codes, sourced primarily from agency mortgage-backed securities issued or guaranteed by Ginnie Mae, Fannie Mae, and Freddie Mac and from Small Business Administration loan pools. The sub-adviser applies a bottom-up process that screens eligible pools using third-party data, assesses consistency with the fund’s income and risk objectives, and uses TBA trading, cash management, and repurchase agreements to manage exposure, liquidity, and pipeline risk. Securities are limited to investment-grade ratings, and positions may be trimmed or sold when they no longer meet veteran-impact or investment criteria or when market conditions shift.

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