The fund seeks capital appreciation in the long term by investing in companies across any size 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 common stocks and securities that can be converted into common stocks, such as convertible bonds, convertible preferred stocks, options, and rights.
The team prefers companies with above average growth characteristics and below average valuations.
In selecting securities for the portfolio, the research team focuses on companies with durable above average growth in sales, earnings, and intrinsic value.
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’s holdings are diversified across the major economic sectors and individual companies.
The fund may also invest up to 35% of its assets in preferred stocks and warrants.
Additionally, the fund may invest up to 20% of its net assets in foreign securities either directly or through the purchase of sponsored or unsponsored American Depositary Receipts.