The fund seeks capital appreciation in the long term by investing in small-size 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 invests in high-quality dividend-paying stocks.
The research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research team focuses on companies with perceived competitive advantages.
The team also evaluates a company’s historical revenue growth, earnings growth, long-term debt/capital, dividend history and cash flows.
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.
From time to time, the fund may have significant positions in particular sectors, including the Industrials sector.
The fund’s equity investments may include common stocks, depositary receipts that may include American Depositary Receipts, master limited partnerships, U.S. dollar-denominated foreign stocks traded on U.S. exchanges, and real estate investments trusts.
Additionally, the fund may invest cash balances in other investment companies, including money market funds.
The fund may lend its securities to broker-dealers and other institutions to earn additional income.