The fund seeks capital appreciation in the long term by investing in mega-and large-size companies in the United States.
The investment process is focused on well-established companies in the benchmark index that can deliver superior risk adjusted returns.
The process analyzes factors such as a company’s operations, risk profile, growth expectations and valuation of its securities.
Then the research team relies on the fundamentally-driven bottom-up economic value added process to find shareholder value creators and avoid shareholder value destroyers.
The team also focuses on a company’s ability to generate favorable returns in light of current growth prospects, market position and expertise, brand value, and pricing power.
In addition, the team reviews a company’s financial strength, profit margin changes, return on capital improvement, sustainability of revenue growth, and ability to generate cash flow.
Other factors that the team considers is a company’s management strength, commitment to shareholders’ interests, dividends or current income, market share gains, innovation and reinvestment, and corporate governance.
Then the manager constructs a high conviction diversified portfolio of 40 to 65 companies concentrated in the top 20 names.
The fund generally maintains a fully-invested posture. However, the fund may also take temporary defensive positions and hold up to 100% of its portfolio in cash or cash equivalent positions.
The fund has the flexibility to invest a portion of its net assets in small-and medium capitalization companies.
The fund seeks capital appreciation in the long term and current income by investing in companies outside the United States.
The 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 securities issued by U.S. and foreign (non-U.S.) infrastructure-related companies.
According to the team, an infrastructure-related company has at least 50% of its assets consisting of infrastructure assets, or 50% of its gross income or net profits attributable to, or derived (directly or indirectly) from the ownership, management, construction, development, operation, use, creation or financing of infrastructure assets.
Infrastructure assets include transportation assets, utility assets and social assets.
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 factors such as a company’s operations, risk profile, growth expectations and valuation.
In addition, the team utilizes an Economic Value Added framework to select investments. The team believes markets often undervalue or overvalue a company’s ability to create or destroy wealth. The framework seeks to identify and exploit these investment opportunities.
As part of the process, the team evaluates a company’s ability to generate favorable returns, market position and expertise, brand value, pricing power, financial strength, profit margin changes, and return on capital improvement.
Other factors in consideration are a company’s durability of revenue growth, ability to generate cash flow, management teams that are aligned with shareholders’ interests, dividends or current income, market share gains, innovation and reinvestment, and corporate governance.
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.
Also, the fund will invest at least 40% of its net assets in securities of companies organized or located in at least three non-U.S. countries.
The fund may also engage in transactions in foreign currencies.
Additionally, the fund’s investments in securities of foreign issuers may include sponsored or unsponsored depositary receipts, such as American Depositary Receipts and Global Depositary Receipts.
