The fund seeks long-term capital appreciation by investing in small-cap companies in international markets outside the United States.
The investment process is designed to identify companies with strong financial position, attractive earnings history and are estimated to offer strong long-term prospects.
The research process is focused on evaluating individual companies for its business model, earnings durability, market leadership, competitive dynamic, and management effectiveness.
The fund prefers to hold between 40 and 90 companies that offer the most attractive upside potential and are trading at most compelling valuations to their long term prospects.
The fund primarily invests in companies operating in developed international markets but may invest in emerging markets as well.
The fund may invest in companies through equity securities issued as Global Depository Receipts, American Depository Receipts, and European Depository Receipts. In addition, the fund may invest in real estate companies or trusts and limited or master limited partnerships.
In addition, the fund may concentrate its investment from time to time in one economic sector.
The fund seeks to appreciate capital through investing in small-size companies located outside the United States.
The fund is sub-advised by Thompson, Siegel & Walmsley LLC (TSW).
The investment process starts with a list of companies in the benchmark MSCI EAFE Small Cap Index between the market capitalizations of $200 million to $8 billion. The research team then identifies a list of companies that are estimated to outperform the benchmark using fundamental analysis, qualitative and quantitative methods using a four-factor valuation screen.
The investment team then looks for companies with near-term catalyst to revalue stock higher and realize the long term intrinsic value. The team practices a strict sell discipline and sells the stock if the investment thesis is no longer valid or the market presents a significantly better investment opportunity.
