The fund seeks capital appreciation in the long term 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 takes long and short positions in one or more exchange-traded funds that seek to track the performance of the S&P 500 Index and by entering into S&P 500 Index-related options and options on S&P 500 related ETFs.
The team utilizes various proprietary analytical investment models to take certain long or short positions in the S&P 500 Index, one or more S&P 500-related ETFs, and S&P 500-related futures, and also may enter into S&P 500 Options.
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 purchase and write (sell) call and put options on the S&P 500 Index and on S&P 500-related ETFs for the purpose of obtaining equity exposure or generating income.
In addition, the fund may also invest up to 10% of its net assets in leveraged or inverse ETFs that seek to deliver multiples (long), or the inverse (short), of the performance of the S&P 500 Index, respectively.
Additionally, to respond to certain adverse market, economic, political or other conditions, the fund may invest 100% of its assets, without limitation, in Cash Instruments.
