The fund seeks current income and capital appreciation by investing in companies in 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 fund typically invests approximately 75% to 95% of its net assets in investment-grade corporate bonds (the Fixed Income Strategy) and invests the remainder of its assets in U.S. stocks, while limiting downside risk (the Equity Strategy).
As part of the Fixed Income Strategy, the team seeks exposure to U.S. dollar-denominated, investment-grade corporate bonds of U.S. and non-U.S. issuers with maturities between one and eight years.
For the Equity Strategy, the team focuses on small-, mid-, and large-capitalization U.S. stocks by purchasing exchange-listed call options on approximately ten to twenty individual stocks or depositary receipts or on one or more other ETFs that principally invest in U.S. equity securities.
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 seeks capital appreciation by investing in small-size companies in 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.
Next, the research team invests significantly in equity securities of small-capitalization U.S. companies.
The fund’s equity securities primarily include common stocks, real estate investment trusts, and American Depositary Receipts.
The team favors high-quality, growing companies that are estimated to trade below their fair values.
Additionally, the team prefers dividend-paying companies with superior growth potential, higher quality, and lower valuation.
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 invest in securities offered in an initial public offering or in companies that have recently completed an IPO.
