LKOR

LKOR is passively-managed to invest in USD-denominated long-term corporate bonds selected for value characteristics. The objective of the fund is to potentially deliver a higher total return than the broader US corporate bond market. The portfolio is optimized based on a proprietary Composite Alpha calculation and effective duration. Composite Alpha is determined by combining each issue's quality and value scores along with their respective weights. The Quality score is a quantitative ranking that focuses on corporate finance, profitability measures and financial solvency. The value score is a quantitative measure including market and fundamental valuations, including issuer default risk. The index excludes bonds ranking in the lowest quintile of non-financial sectors of the Composite Alpha score. At the monthly reconstitution, LKOR's sector exposure and effective duration is adjusted to be similar to its parent index. Individual issuer exposure is capped at 3.0%. Prior to May 1, 2020, LKOR follows the Northern Trust Credit-Scored U.S. Long Corporate Bond Index.