The fund seeks capital appreciation in the long term by investing in companies 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 companies across non-U.S. developed and emerging markets by integrating comprehensive ESG criteria and traditional security selection.
The fund defines foreign companies as companies that are organized under the laws of a country outside the United States, or that have a minimum of 50% of their assets, or that derive a minimum of 50% of their revenue or profits, from businesses, investments, or sales outside of the United States.
Then the team prefers companies that have sustainable business models as well as superior ESG practices.
The research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research team focuses on high-quality companies that are estimated to trade below their fair values.
The team also considers companies with sound governance and capable management team.
Additionally, the research team integrates environmental, social and governance factors as part of its process.
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 manager seeks to identify companies that provide safe, desirable, high-quality products or services and market them in responsible ways.
Additionally, the fund may focus its investments in a particular sector or sectors of the economy.
However, the fund will avoid investments that have material direct revenues from production of nuclear power, tobacco, and/or weapons/firearms.