The fund seeks capital appreciation in the long term by investing in companies in the United States.
The 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.
Then the research team employs a process that combines research, valuation and stock selection.
In selecting growth stocks, the team focuses on companies whose revenue growth potential is underappreciated by investors. The team specifically looks for companies that have a history of above-average growth or which the adviser believes will achieve above-average growth in the future.
Additionally, these companies exhibit characteristics such as a favorable supply/demand imbalance for the company’s product or service, underappreciated growth opportunities, differentiated business model, ability to gain market share, growth opportunities in emerging industries or those that emerge from industry changes.
Then in selecting value stocks, the team looks for undervalued companies which have durable franchises and the ability to grow intrinsic value per share.
Other factors in consideration include companies with sustainable competitive positions, market leadership, management and balance sheet strength.
The investment team also considers environmental, social and governance factors including accounting and tax policies, disclosure and investor communication, shareholder rights and remuneration policies on the cash flows when assessing investment opportunities.
Then the manager constructs a portfolio that holds no more than 40 stocks with the flexibility to hold cash when attractive investment opportunities are scarce.
The fund may invests in a focused portfolio of growth and value stocks with the flexibility to invest more heavily in either style based on market conditions.
The fund may also invest up to 20% of its net assets in securities of foreign companies, including depositary receipts.