The fund seeks primarily capital appreciation in the long term and secondarily current income by investing in 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 equity securities.
The team evaluates a company’s valuation multiples on the basis of book value and earnings.
In addition, the team also considers attributes such as a company’s return on equity, earnings growth, and cash flow.
In selecting securities for the portfolio, the research team focuses on trends in industries and companies, earnings power, growth and other 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 focus its investments in a particular sector or sectors of the economy.
The fund may also invest up to 20% of its net assets in foreign currency-denominated securities.
Additionally, the fund may invest up to 15% of its net assets in illiquid securities, including securities that are illiquid by virtue of the absence of a readily available market or legal or contractual restrictions on resale.
The fund may participate as a purchaser in initial public offerings of securities.