The fund’s objective is to appreciate capital by investing in small-size companies in the U.S.
The sub-advisor’s investment process focuses on companies between the market capitalization of $150 million and $4 billion. The research team then narrows companies using financial screens and quantitative metrics and identifies companies with above-average earnings growth and return on capital.
The team then reviews one company at a time and identifies companies with sustainable business models and long term earnings growth prospects. The fund favors companies with stocks trading at a reasonable price to their peers and long-term growth outlook.