The fund seeks capital appreciation in the long term by investing in companies across any size in the United States.
The sub-advisor’s investment process is designed to highlight undervalued companies in the benchmark index that are selling at a substantial discount to their estimated intrinsic value.
The investment team looks for both growth and value opportunities, utilizing the present value of estimated future cash flows to measure intrinsic value.
Then the research team looks for companies that demonstrate key growth drivers, sustainable cash flow production, and high returns on capital, sustainable competitive advantages, and capable management teams.
The team relies on fundamental research to assess a company on the basis of key assumptions that drive sales, margins, and asset intensity.
Then the manager constructs a portfolio that holds stocks of best-of-breed companies and the portfolio is so constructed to focus its investments in a particular sector or sectors of the economy.
Also, the sub-advisor has the flexibility to invest up to 20% of its net assets in securities of foreign issuers, including American Depositary Receipts and Global Depositary Receipts.