The fund seeks capital appreciation in the long term by investing in companies in the United States.
The fund manages assets with the help of two sub-advisors namely Wellington Management Company LLP and T. Rowe Price & Associates, Inc.
The sub-advisers’ investment process focuses on companies that are estimated to be financially sound, valued conservatively by the market, and have improving prospects.
T. Rowe Price uses internal research to identify companies that appear to be undervalued or may be out of favor for temporary reasons but have good prospects for capital appreciation and dividend growth.
The sub-adviser generally looks for companies with an established operating history; above-average dividend yield and a sound balance sheet. The sub-adviser also considers financial characteristics such as low stock price relative to a company’s underlying value as measured by assets, cash flow, or business franchises.
Wellington Management focuses on high quality, reasonably-valued companies that have demonstrated the willingness to return value to shareholders.
The sub-adviser’s investment process employs bottom-up fundamental research to identify undervalued stocks that have the potential for significant rewards in the long term.
The sub-advisers each are responsible for a portion of the portfolio, although they may manage different amounts of the fund’s net assets. The sub-advisers may purchase a security if they believe there could be an increase in value as a result of management change, an extraordinary corporate event, a new product introduction or innovation, or a favorable competitive development.
The portfolio may at times have significant exposure to one or more industries or sectors, and may hold a portion of its assets in cash or cash equivalents.
The fund generally will not invest more than 30% of its net assets in securities of foreign issuers.