The fund seeks total returns in the long term by investing in mid-size companies in 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 seeks to invest in high-quality companies that exhibit above-average growth potential.
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 have the potential for superior growth, increasing profitability, sustainable revenue and earnings streams, attractive valuations and sound capital structures.
In addition, the team considers companies with new or innovative products or services; adaptive or creative management; excellent financial and operational capabilities, balance sheet strength, and profit potential.
As part of the process, the team also reviews the macroeconomic environment, with a focus on factors such as interest rates, inflation, consumer confidence and corporate spending.
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 does not invest in corporations that derive substantial revenue from alcohol, tobacco, pornography, pork, gambling, hydraulic fracturing, private prisons or weapons industries.
Additionally, the fund will not invest in securities or other instruments that derive revenue from the receipt of interest from lending arrangements, preferred stocks and convertible securities.
