PACER BARINGS SECURED CREDIT FLEX ETF PBSC Stock Analysis

About PACER BARINGS SECURED CREDIT FLEX ETF

Barings LLC (the “Sub-Adviser”) or Baring International Investment Limited (the “Sub-Sub-Adviser”) seeks to achieve the Fund’s investment objective by actively managing a portfolio that primarily invests in income producing debt instruments, as described below. Under normal circumstances, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in debt instruments that are secured by collateral. These secured debt instruments of domestic or foreign issuers will include, but are not limited to, fixed and floating rate corporate bonds and notes (high yield bonds or securities that are sometimes called “junk bonds” or non-investment grade securities), first lien and second lien floating rate corporate loans (including “covenant lite” loans which have few or no financial maintenance covenants), debt investments in structured products including collateralized loan obligations (“CLOs”) and collateralized bond obligations, listed and unlisted corporate debt obligations, and secured convertible securities. The corporate debt instruments in which the Fund invests are generally expected to be rated below investment grade, meaning a rating below BBB- (or equivalent by a nationally recognized statistical rating organization “NRSRO”), or if unrated is determined by the Sub-Adviser or Sub-Sub-Adviser to be of comparable credit quality. The Fund may invest across CLO debt rating categories (AAA, AA, A, BBB, BB); however, it anticipates that the average rating for the overall portfolio will typically be below investment grade, meaning below BBB-. In purchasing investments for the Fund, the Sub-Adviser and Sub-Sub-Adviser seek to make investments that provide a high level of current income from below investment grade credit investments while having structural protection from collateral security. There can be no assurance that the liquidation of any collateral securing a secured debt instrument would satisfy the borrower’s obligation in the event of nonpayment of scheduled interest or principal payments, whether due or upon acceleration, or that the collateral could be liquidated, readily or otherwise. In the event of bankruptcy or insolvency of a borrower, the Fund could experience delays or limitations with respect to its ability to realize the benefits of the collateral, if any, securing a debt instrument. The collateral securing a debt instrument, if any, may lose all or substantially all its value in the event of the bankruptcy or insolvency of a borrower.The Fund may also invest in other senior and subordinated corporate debt obligations (such as bonds, debentures, notes, and unregistered Rule 144A securities), zero coupon bonds, hybrid securities, perpetual bonds, unsecured loans, subordinated loans, delayed funded loans, revolving credit facilities, preferred securities, payment in-kind securities, and other asset backed securities. The amount that the Fund will invest in other securities and instruments will vary from time to time and, as such, may constitute a material part of the Fund’s portfolio on any given date, based on the Sub-Adviser and/or Sub-Sub-Adviser’s assessment of prevailing market conditions. The Fund also may invest in equity securities (consisting of common and preferred stocks, warrants and rights, and limited partnership interests), but will invest in such equity investments only when seeking capital appreciation.The Fund intends to primarily make debt investments that are U.S. dollar denominated; however, may invest up to 30% of its net assets in debt holdings that are denominated in foreign currencies. Although the Fund’s investment in non-U.S. dollar denominated holdings may be on a currency hedged or unhedged basis, under normal circumstances, the Fund will seek to hedge its exposure to foreign currency to U.S. dollars, described further below. The secondary market on which high yield debt investments are traded may be less liquid than the market for investment-grade…