The fund seeks capital appreciation in the long term 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.
According to the investment team, investments are deemed to be foreign if an issuer’s domicile or location of headquarters is in a foreign country.
The team also considers an issuer that derives a significant proportion of its revenues or profits from goods produced or sold, investments made, or services performed in a foreign country or has at least 50% of its assets situated in a foreign country.
Also, investments are deemed to be foreign if the principal trading market for a security is located in a foreign country; or it is a foreign currency.
Next, the research team focuses on foreign equity securities.
The team employs a multiple sleeve structure to select potential securities for the portfolio. Each of these sleeves is managed independently of each other.
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.
Additionally, the manager also may allocate a portion of the fund’s assets in securities that may complement the risk factor biases of the other sleeves.