The fund seeks capital appreciation in the long term by investing in small-size companies outside 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 focuses on international companies that have the potential to generate attractive returns with lower downside risk.
The research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research team favors quality companies that are trading at attractive valuations.
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 focused portfolio holds approximately 25 to 45 securities of exceptional companies operating in sectors that offer attractive potential.
The fund may invest a portion of its net assets in emerging markets securities and may, from time to time, have significant investments in a particular sector or country.