The fund seeks capital appreciation in the long term by investing in small-size companies outside the United States.

The 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.

The process employs a fund of funds strategies, which means the portfolio generally allocates its assets among oth More

The fund seeks capital appreciation in the long term by investing in small-size companies outside the United States.

The 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.

The process employs a fund of funds strategies, which means the portfolio generally allocates its assets among other funds (the Underlying Funds).

The Underlying Funds are The Canadian Small Company Series, The Japanese Small Company Series, The Asia Pacific Small Company Series, The United Kingdom Small Company Series and The Continental Small Company Series of The DFA Investment Trust Company.

Each Underlying Fund invests in companies utilizing a market capitalization weighted approach in each country or region designated by the manager.

Next, the research team evaluates companies on factors such as free float, momentum, trading strategies, liquidity, relative price, profitability, and investment characteristics.

In assessing relative price, the team relies on valuation multiples such as cash flow or earnings.

However, in assessing profitability, the team considers ratios of earnings or profits from operations relative to book value or assets.

Additionally, in assessing a company’s investment characteristics, the team considers ratios such as recent changes in assets divided by total assets.

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 portfolio consists of a broad range of securities of primarily small Canadian, Japanese, United Kingdom, Continental European and Asia Pacific companies.

Also, the portfolio may have some exposure to small capitalization securities associated with other countries or regions.

The fund and underlying funds may lend their portfolio securities to generate additional income.