The fund seeks high total return by investing in companies across any size 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 securities of foreign companies in a number of developed and emerging markets outside of the U.S.
The team defines foreign companies as companies that are organized under the laws of a foreign country, or whose principal trading market is in a foreign country.
Other factors in consideration would be companies that have a majority of their assets, or that derive a majority of their revenue or profits, from businesses, investments or sales outside of the United States.
The team narrows the investable universe to a list of companies with estimated future free cash flow margins, returns on capital employed, low revenue growth that are overpriced.
Next, the team ranks securities on the basis of characteristics such as quality, growth, valuation, capital returns and earnings revisions.
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 in a particular sector or sectors of the economy.