The fund seeks to replicate the total return performance of the benchmark index, before fees and expenses, by investing in companies across any size 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 component securities of the Underlying Index (Component Securities).
The Component Securities primarily consist of senior loans to domestic or foreign corporations, partnerships and other entities that operate in a variety of industries and geographic regions, which may include emerging markets.
The Underlying Index is a rules-based index consisting of some of the largest, most liquid Leveraged Loans, as measured by the number of active market participants trading the security and the dollar face amount of outstanding senior loans issued.
Additionally, the research team employs a representative sampling strategy to invest in a representative sample of securities that collectively has an investment profile similar to the Underlying 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 may invest 20% of its net assets in securities not included in the Underlying Index.
Also, the fund may invest in participations in Senior Loans and may purchase assignments of portions of Senior Loans from third parties.
