The fund seeks capital appreciation and dividend income by investing in large-size U.S. companies.
The investment process starts with a list of companies in the benchmark index and the research team uses quantitative techniques and fundamental analysis to narrow the list of investable companies.
The process is designed to highlight companies with proven earnings powers and dividend-paying capabilities in the long term but not reflected in the current market prices.
The process looks for companies with attractive long term earnings power over five-years that includes ups and downs of the economy and various economic conditions and peaks and troughs of earnings. The fund also prefers companies that are deemed to have capacity to generate growing free cash flows and management’s willingness to share a portion of it with shareholders.
The fund favors companies that are ranked high on discount to long term valuations.