The fund seeks total return by investing in large-size companies in the United States.
The core investment process is designed to highlight companies that exhibit total return characteristics. The process uses three independent analyses to evaluate companies.
In the broad universe analysis the team evaluates each stock relative to all other stocks in the large cap universe using financial and technical factors.
For the style-specific analysis the team evaluates each stock relative to its peers using a customized model which includes financial and technical factors specific to each style and market cap combination.
In the sector-specific analysis the team divides the universe into 11 economic sectors and evaluates each stock relative to its sector peers using financial and technical factors.
In addition, the research team uses a proprietary quantitative process to evaluate a stock’s growth or value traits, market capitalization, earnings volatility, earnings yield, financial leverage or currency sensitivity.
Next, the team narrows the investable universe to a list of stocks based on relative sensitivity.
The fund has the flexibility to focus in securities of companies in the same economic sector, including the technology sector.
The fund may invest up to 20% of its net assets in securities of foreign issuers.
The fund seeks total return by investing in mega-and large-size companies in the United States.
The investment process utilizes an actively managed, bottom up strategy to seek superior risk-adjusted performance from a list of companies in the benchmark index.
Next, the research team focuses on three principles when selecting investments for the fund one company at a time. First, the team analyzes a company’s value or earning power, which is the company’s ability to generate a profit for reinvestment in the company or distributions to shareholders.
The team uses return on investment as the best representation of earning power and invests in companies with rising or high returns on invested capital.
Second, the team uses proven valuation methods to identify attractively priced companies based primarily on elements of earning power.
Finally, the team assesses the material environmental, social, and governance factors that may affect a company’s performance.
The investment team constructs a diversified portfolio of 35 to 55 companies from the recommended list by the research team and the positions are generally 5% maximum at purchase.
The team takes a longer term view of the company, and accordingly, portfolio turnover will typically range between 20% and 50% annually.
The fund may also invest in exchange-traded funds and invest up to 20% of its net assets in securities denominated in foreign currencies or American Depositary Receipts.
The fund seeks total return by investing in small-size companies in 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 focuses on companies that are estimated to trade below their fair values.
In selecting securities for the portfolio, the research team relies on valuation multiples such as book value, sales, earnings, as well as earnings relative to enterprise value, and the discounted value of a company’s future cash flows.
Also, the research team integrates environmental, social and governance factors as part of its process.
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 has the flexibility to invest in a combination of growth and value companies.
From time to time, the fund may focus its investments in securities of companies in the same economic sector, including the industrials sector.
The fund may also invest in exchange-traded funds.
In addition, the fund may invest up to 20% of its net assets in securities denominated in foreign currencies or with non-U.S. headquartered companies that have American Depositary Receipts that trade on a United States exchange.
