The 2ndVote Advisers American Freedoms Index (AMF Index) includes large and mid-cap US traded companies and excludes companies that oppose, censor, or restrict First Amendment rights concerning religion, expression, assembly, the right to petition, and other fundamental constitutional rights (which we refer to as “Basic Freedoms”) as evaluated by proprietary research from our affiliate, 2ndVote, Inc. (2ndVote Analytics). The methodology employed by the AMF Index then weights the remaining companies by utilizing a unique quantitative factor model, licensed from a third party, designed to rank companies that have financial characteristics that are expected to outperform the market in the then-current monetary regime. The resulting AMF Index is replicable, investable, rules-based, and transparent. We believe that effectively managing risk is a natural outgrowth of the dynamic methodology employed by the AMF Index, whose approach of re-evaluating stocks across various monetary regimes produces dynamic index exposures that are not stuck in static sectors, factors, styles, or strategy bets that move in and out of favor.
The index methodology employed by the AMF Index is not political in nature and includes the stocks that our models indicate should produce superior performance and do not oppose Basic Freedoms. A majority of the AMF Index constituent companies score neutral based on 2ndVote Analytics’ Basic Freedoms criterion, with the remainder scoring positive. Rebalancing is based on changes to the universe of AMF Index eligible securities and the financial metrics employed by the factor model. Changes to the AMF Index may take up to 60 days to implement.