The fund seeks primarily a high level of income and secondarily capital appreciation 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 invests in securities of dividend-paying companies located throughout the world.
The team favors companies that possess a high cash dividend, positive growth of free cash flow, share buyback programs, and net debt reductions.
In addition, the team prefers companies that are estimated to trade below their fair values relative to valuation multiples such as free cash flow and book value.
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 invests at least 40% of its net assets in securities of issuers located throughout the world, excluding the United States.
The fund may also invest up to 20% of its net assets in securities issued by companies located in emerging markets.
Additionally, the fund may invest up to 20% of its net assets in debt securities, including high-yield fixed-income securities rated below investment grade.
The fund may also invest up to 15% of its net assets in illiquid investments.