The fund seeks to outperform a traditional 60/40 mix of global equity and fixed income investments 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 process employs a fund of funds strategy to invest in other registered investment companies, including other actively managed exchange-traded funds and index-based ETFs (collectively, Underlying Investments), that provide exposure to a broad range of asset classes.
Also, the research team typically invests approximately 40% to 70% of the fund’s net assets in Underlying Investments that principally invest in equity securities of any market capitalization.
Such Underlying Investments may invest principally in specific sectors of the economy, such as healthcare, financials, real estate, and energy, or in broader swaths of domestic, foreign, or global equity markets.
Additionally, the Underlying Investments may invest in equity securities of U.S. or foreign companies; debt obligations of U.S. or foreign companies or governments; or other assets, and the fund may also invest directly in such equity securities, debt obligations, or other assets.
Furthermore, the team invests approximately 20% to 50% of the fund’s net assets in Underlying Investments that principally invest in debt obligations.
In selecting securities for the portfolio, the research team utilizes a combination of top-down and bottom-up analyses.
In the quantitative trend-based analysis, the team focuses on the investment styles, sectors, geographic regions and asset classes with the greatest potential for positive absolute returns and the highest returns relative to other styles, sectors, regions, and asset classes.
As part of its bottom-up fundamental analysis, the team seeks to identify those asset classes with attractive absolute values and values relative to other asset classes.
The team selects specific Underlying Investments based on an evaluation of their market exposure, liquidity, cost, and historic tracking error relative to their underlying index or benchmark.
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 allocates its net assets across asset classes, industries, and geographic regions, subject to certain diversification and liquidity considerations.
In addition, the fund may lend its portfolio securities to brokers, dealers, and other financial organizations.
The fund seeks current income 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.
Next, the research team invests in repurchase agreements collateralized by U.S. government securities and, to a lesser extent, directly in individual fixed income instruments.
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 invest directly in U.S. government securities, such as U.S. Treasuries and U.S. agency securities, which may include mortgage-backed securities issued or guaranteed by the U.S. government, federal agencies.
Also, the fund may invest in U.S. government sponsored instrumentalities, such as the Government National Mortgage Administration, the Federal Housing Administration , the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.
In addition, the fund may utilize the To Be Announced market for MBS investments.
The portfolio may also include cash and cash equivalents, as well as investments in ETFs and other investment companies that provide exposure to securities similar to those securities in which the fund may invest in directly.
Additionally, the fund may invest up to 15% of its net assets in illiquid investments, including illiquid repurchase agreements.
