The fund seeks primarily capital appreciation and secondarily current income by investing in large-size companies in the United States.
The sub-advisor employs a proprietary statistically driven approach to identify undervalued companies relative to valuation multiples such as earnings, sales, or cash flow.
As part of its process, the research team implements a multiple-model approach to look for companies with the relevant value metrics, price momentum and financial strength.
The team prefers a quality tilt for participation in up markets and risk mitigation in down markets.
In addition, the team applies a risk review for diversification, portfolio characteristics and tax impact.
Next, the models are combined into a portfolio intended to outperform the benchmark index. From time to time, the manager may have significant positions in particular sectors, including the financial sector.
The fund also has the flexibility to invest in stocks of mid-capitalization companies and lend its securities to broker-dealers and other institutions to earn additional income.