The fund seeks capital appreciation 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 securities that offer the potential for capital appreciation based on novel, superior, or niche products or services; sound operating characteristics; quality of management; an entrepreneurial management team; and opportunities provided by mergers, divestitures, or new management.
Also, the research team integrates environmental, social and governance factors as part of its process.
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.
Based on market or economic conditions, the fund may focus in one or more sectors of the market.