The fund seeks to replicate the total return 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.
As part of its strategy, the fund employs a passive management or indexing investment approach.
Next, the research team invests significantly in securities that comprise the Underlying Index.
The Underlying Index is designed to track the overall performance of equity securities of North American Pipeline Companies.
Pipeline companies engage in the business of transporting natural gas, crude oil and refined products, storing, gathering and processing such gas, oil and products and local gas distribution.
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 up to 20% of its net assets in certain index futures, options, options on index futures, swap contracts or other derivatives, cash and cash equivalents, other investment companies, as well as in securities and other instruments not included in the Underlying Index.
Additionally, the fund will concentrate its investments in a particular industry or group of industries to approximately the same extent that the Underlying Index concentrates in an industry or group of industries.
