The fund seeks to maximize capital appreciation by investing in small-size companies in the United States.
The sub-adviser’s investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.
Next, the research team invests in growth-oriented common stocks of companies traded on U.S. stock exchanges or in the over-the-counter market.
The team favors companies that are trading at a discount to their growth rate.
In selecting securities for the portfolio, the research team focuses on companies that have a product or service with a superior value proposition, as well as a positive business outlook.
Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.
The fund may also engage in securities lending.