The fund seeks capital appreciation in the long term by investing in small-size companies in the United States.
The fund manages assets with the help of two sub-advisers namely Wellington Management Company LLP and Invesco Advisers, Inc.
The fund prefers a multi-manager investing approach with the aim of reducing volatility and downside risk.
The sub-advisers’ 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 companies that offer potential for long-term growth.
Wellington Management focuses on companies that are experiencing or will experience rapid earnings or revenue growth.
Invesco utilizes fundamental research to select securities for the fund’s portfolio.
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 also may invest up to 20% of its net assets in foreign securities, including emerging market securities.
The fund may at times have significant exposure to one or more industries or sectors.
Also, the fund may hold a portion of its assets in cash or cash equivalents.