The fund seeks to maximize total return by investing in companies across any size 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 of natural resources companies and other investments that provide economic exposure to natural resources or natural resources companies.
Natural resources companies are U.S. and foreign companies that may own, explore, develop, produce, refine, transport, or market natural resources or that provide related equipment, infrastructure, or services.
Natural resources include energy commodities, such as oil, natural gas, coal and uranium; precious metals, such as gold, silver, platinum, palladium and rhodium; diamond; base metals, such as copper, lead and zinc; ferrous metals; agricultural commodities; and fertilizer commodities, such as potash, phosphate and nitrogen.
In selecting securities for the portfolio, the research team combines both top-down and bottoms-up analysis.
For the top-down analysis, the team utilizes its proprietary supply and demand models to form an outlook for a given commodity.
As part of the bottoms-up analysis, the team calculates an estimate of intrinsic value for the investment.
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 hold both U.S. and foreign securities (including emerging market securities).
Also, the fund may invest in derivatives, including long and short positions in futures and options.
At times, the fund may invest in registered investment companies and ETFs.
In addition, the fund may purchase securities issued in private placements and initial public offerings.
The fund also may participate in initial public offerings, as well as invest in debt securities of natural resources companies.
