The fund seeks to track the performance of the benchmark index before fees and expenses by investing in 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.
The fund employs a passive or indexing approach designed to track the performance of the Index.
The Index employs a proprietary oil response strategy that seeks to identify companies whose performance is positively correlated with changes (increases or decreases) in the price of ICE Brent Crude Oil Futures (Brent Crude).
Next, the research team invests significantly in the securities that comprise the Index.
In addition, the research team employs a representative sampling strategy, which means that the fund will hold a portfolio of securities with generally the same risk and return characteristics of the Index.
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 to replicate the composition of the benchmark index, holding each security in approximately the same proportion as its weighting in the Index.
Also, the fund generally may invest up to 20% of its net assets in securities or other investments not included in the Index.
To the extent the Index concentrates in the securities of a particular industry or group of related industries, the fund will concentrate its investments to approximately the same extent as the Index.
