The fund seeks capital appreciation and current income in the long term by investing in mid-size companies in the United States.
The fund manages assets by hiring sub-advisers and currently works with three. The fund prefers a multi-manager investing approach to reduce volatility and downside risk.
The sub-advisors rely on fundamental analysis and changing economic trends to determine the earnings growth prospects of companies.
About 33.9% assets are allocated to Barrow, Hanley, Mewhinney & Strauss, LLC, 33.1% to WEDGE Capital Management, LLP, and 33% to Pzena Investment Management, LLC.
Barrow invests in companies with low price-to-earnings and price to book-value-ratios and high dividend yields in relation to the Russell Midcap Index. The sub-advisor identifies these companies through research and meetings with company management teams.
WEDGE focuses on identifying pricing discrepancies or unrecognized value among high quality market-leading companies that have defendable competitive advantages.
Pzena favors companies whose stock price is low relative to normal earnings power; current earnings are below normal; and management has a reasonable plan for earnings recovery.