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.
Next, the research team focuses on securities issued by non-U.S. companies. The team focuses on developed markets, but may also invest in emerging- and frontier-market investments.
The team defines non-U.S. 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 significant portion of their revenue or profits, from businesses, investments, or sales outside of the United States.
In addition, the team favors companies that are estimated to trade below their fair values.
The research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research team relies on dividend yields, management strength, cash flow and valuation multiples such as book value and earnings to identify companies that meet its investment criteria.
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 up to 15% of its net assets in illiquid securities and may also participate in Initial Public Offerings.