Fund Description: WBI Power Factor High Dividend ETF is an exchange-traded index fund or index ETF which is a separate portfolio of the Absolute Shares Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The WBI Power Factor High Dividend ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the Solactive Power Factor High Dividend Index. INDEX DESCRIPTION: The Solactive Power Factor High Dividend Index is designed to select securities from the Solactive US Broad Market Index (the Parent Index) that exhibit certain yield and fundamental value characteristics. The Parent Index includes large, mid- and small-cap securities listed in the U.S., including approximately the 3,000 largest U.S. companies that are selected and weighted according to free float market capitalization. The Parent Index is adjusted semi-annually in May and November. Issuers undergoing initial public offerings may be added to the Parent Index on a quarterly basis, consistent with the Parent Index’s selection methodology. In particular, the Index is designed to select equity securities from the Parent Index with an above-average forecasted dividend yield, scored on the basis of three fundamental value characteristics (the Power Factors): Price to trailing 12-month diluted earnings from continuing operations ratio (P/E); Price to trailing 12-month free cash flow (P/CF); and Price to trailing 12-month sales ratio (P/S). FUND STRATEGY: The Fund seeks to achieve its investment objective by attempting to track the investment results of the Index. Under normal circumstances the Fund will invest at least 80% of its total assets in the securities of the Index. A passive or indexing approach is used to try to achieve the Fund’s investment objective. Unlike many investment companies, the Fund does not try to outperform the Index and does not seek temporary defensive positions when markets decline or appear overvalued. The Fund generally will use a replication strategy. A replication strategy is an indexing strategy that involves investing in the securities of the Index in approximately the same proportions as in the Index. However, the Fund may utilize a representative sampling strategy with respect to the Index when a replication strategy might be detrimental or disadvantageous to shareholders, such as when there are practical difficulties or substantial costs involved in compiling a portfolio of equity securities to replicate the Index, in instances in which a security in the Index becomes temporarily illiquid, unavailable or less liquid, or as a result of legal restrictions or limitations (such as tax diversification requirements) that apply to the Fund but not the Index. FUND MANAGEMENT: Millington Securities, Inc., serves as the advisor for the Fund and WBI Investments, Inc., serves as the sub-advisor to the Fund.