The fund seeks to provide high total investment return 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 global equity securities.
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 companies that are estimated to trade below their fair values.
Also, the team considers companies that have the potential to generate attractive total returns over a long-term investment horizon.
The team also evaluates companies on the basis of factors such as value, estimated dividends, and interest rates.
Other factors in consideration would be economic and political conditions, potential for economic growth and possible changes in currency exchange rates.
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 may invest in both developed and emerging markets.
Additionally, the fund may utilize derivatives, including options, futures, swaps, and forward contracts, both to seek to increase the return of the fund and to hedge the value of its assets against adverse movements in currency exchange rates, interest rates and movements in the securities markets.
Also, the fund may invest in indexed and inverse securities, and in non-U.S. currencies.
In addition, the fund may own foreign cash equivalents or foreign bank deposits.
Furthermore, for temporary defensive purposes and in case of unusually large cash inflows or redemptions, the fund may invest without limitation in cash, cash equivalents, money market securities, or other high quality fixed-income securities.