The fund seeks to replicate total return performance of the benchmark index before fees and expenses by investing in 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 invests in dividend-paying companies.

The team relies on a passive approach to investing that is designed to track the performance of the Index.

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 seeks to remain fully invested at all times in securities that, in combination, provide exposure to the Index without regard to market conditions, trends or direction.

The fund seeks to replicate the performance of the benchmark index, holding each security in approximately the same proportion as its weighting in the Index.

Additionally, the fund will concentrate its investments in a particular industry or group of industries to approximately the same extent as the Index is so concentrated.

The fund seeks capital growth and appreciation by investing in companies across any size in the United States.

The investment process is designed to highlight high-quality companies in the benchmark index exhibiting attractive long-term investment potential.

The research team screens growth-oriented companies whose revenue, earnings and/or cash flow are likely to grow faster than the economy.

Next the team looks at a number of factors in selecting securities, including stability and predictability of earnings growth, acceleration of earnings and/or revenue, improvement in profitability and market share, and sustainable generation of cash flows from operations.

The research process is driven by fundamental analysis of one stock at a time. The team seeks companies that are growing faster than the market and the overall economy, whose capital requirements are generated organically, and that have a history or potential for industry leading profitability.

Then the manager constructs a portfolio that holds the stocks of 35 to 50 companies that have top-line growth, margin structure, return profile, cash flow generation, capital structure, capital intensity, sustainable competitive position, management competency and valuation.

Other items considered include the total addressable market, sector and industry growth rates, and the variability and duration of the market’s growth.

Many of the companies in which the fund may invest have products or services in foreign markets and therefore, the fund may have indirect exposure to various foreign markets.

Additionally, the fund may invest in securities of companies across the valuation spectrum, including securities issued by growth and value companies.

The fund may invest in companies of any size, and of any industry, but the manager will generally emphasize large-capitalization companies.

The fund seeks capital appreciation in the long term by investing in large-size companies in the United States.

The investment process is designed to highlight high-quality companies exhibiting long-term earnings potential outlook. The process also assesses a company’s financial strength, earnings stability, and market leadership within its respective industry.

Next, the research team looks to exploit catalysts for multi-year earnings growth in companies that demonstrate sustainable competitive advantages.

The team in its top-down analysis seeks to identify current trends or themes which indicate specific industries that have the potential to experience multi-year growth. The various thematic catalysts include major macro-economic and political forces, cyclical inflections, changes in consumer behavior and technology shifts.

In the bottom-up analysis, the team focuses on companies estimated to grow faster than the market.

The team also considers whether a company has new products to introduce, has undergone cost restructuring or a management change, or has improved its execution.

Generally, the portfolio holds 40 to 50 stocks, including companies with products or services in foreign markets. The fund invests in securities that have the potential for capital appreciation, or that resist market decline.

Typically, the portfolio holds securities that display a history of improving sales and profits, management strength, ESG characteristics, established brand, dividend payment history, and prospects for capital return in the form of dividends and stock buybacks.

The fund has the flexibility to invest across any market capitalization, and also, invest in either growth or value stocks.

The fund seeks capital appreciation 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 focuses on securities of companies from countries considered to be emerging market countries or that are economically linked to emerging market countries.

According to the team, the issuer of a security or other investment generally is deemed to be economically linked to a particular country if the security or other investment is issued or guaranteed by the government of that country or any of its agencies, authorities or instrumentalities.

Also, the team considers whether the issuer is organized under the laws of, and maintains a principal office in, that country, or the issuer has its principal securities trading market in that country.

Other factors in consideration would be if the issuer derives 50% or more of its total revenues from goods sold or services performed in that country, or the issuer has 50% or more of its assets in that country, or the issuer is included in an index which is representative of that country.

Emerging market countries include, but are not limited to, those considered to be developing by the International Monetary Fund, the World Bank, the International Finance Corporation or one of the leading global investment banks.

The majority of these countries are likely to be located in Asia, Latin America, the Middle East, Central and Eastern Europe, and Africa.

In selecting securities for the portfolio, the research team combines a top-down analysis with a bottom-up stock selection process.

From a top-down standpoint, the team seeks to identify current trends or themes which indicate specific industries that have the potential to experience multi-year growth.

In addition, the team also focuses on factors such as growth momentum, liquidity in the market, systematic changes, demographics, and economic/business cycle.

The team also relies on factors that include political climate, inflation and foreign exchange rates, fiscal and central bank policies, demographics, oil-price sensitivity and any additional factors that could impact the region or sector.

Then the team narrows the investable universe to a list of companies with attractive long-term earnings growth potential, a superior debt/equity ratio, positive catalysts for change, proven management, competitive advantage, superior products, healthy balance sheets and/or good 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.

The fund may invest in A-Shares of certain Chinese companies through various connect programs with local stock exchanges in China.

Also, the fund may invest up to 100% of its net assets in foreign securities and may invest in depositary receipts of foreign issuers.

Additionally, the fund may also invest up to 20% of its net assets in companies that are not located in, or economically linked to, emerging market countries.

The fund seeks capital growth and appreciation by investing in companies across any size in the United States.

The investment process is designed to highlight companies in the benchmark index that are engaged within the energy sector, which includes all aspects of the energy industry, such as exploration, discovery, production, distribution or infrastructure of energy and/or alternative energy sources.

Next, the research team combines top-down and bottom-up analysis to identify potential investment opportunities.

The top-down process involves market analysis of the energy industry and geopolitical issues and identifying trends and sectors.

The research-oriented, bottom-up investment approach focuses on company fundamentals and growth prospects.

Then the team prefers companies operated with proven management teams and can generate above average capital growth and appreciation.

Then the manager constructs a portfolio from a list of companies favored by the research team and allocates capital based on its conviction level.

The portfolio typically holds a limited number of stocks, generally 30 to 50.

Also, the fund invests in a blend of value and growth companies and has the flexibility to invest up to 100% of its net assets in securities of foreign issuers.

The fund also may invest in companies that are not within the energy sector that are engaged in the development of products and services to enhance energy efficiency for the users of those products and services.

The fund is non-diversified, meaning that it may invest a significant portion of its net assets in a limited number of issuers.

The fund may have indirect exposure to various foreign markets through investments in companies domiciled or traded or doing business in emerging markets.

The fund seeks to provide 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 companies located largely in developed markets.

The team focuses on companies that have the ability to maintain and/or grow their dividends while providing capital appreciation over the long-term.

In selecting securities for the portfolio, the team favors higher-quality companies trading at reasonable valuations and/or growing their dividend with a relatively stable to improving fundamental outlook.

Other factors in consideration are a company’s history of fundamentals, ability to sustain its business model, growth potential, management proficiency and competitive environment.

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 portfolio typically holds between 40 and 60 companies.

Also, the fund invests at least 40% (or, if the manager deems it warranted by market conditions, at least 30%) of its net assets in securities of non-U.S. issuers.

The fund may invest in U.S. and non-U.S. issuers, including issuers located in emerging market countries, and may invest up to 100% of its net assets in foreign securities.

The fund seeks capital appreciation 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 stocks of U.S. and foreign companies (including depositary receipts of foreign issuers).

The team focuses on companies that are competitively well-positioned, gaining market share, have long-term growth potential, and/or operate in regions or countries that possess attractive growth characteristics.

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 superior companies that possess a unique, sustainable competitive advantage.

In addition, the team considers factors such as a company’s competitive position and its sustainability, growth and earnings potential and valuation, financials, management of the company, and strength of the industry.

Other factors in consideration are the company’s total addressable market, margin trends, switching costs, control of distribution channels, brand equity, and applicable economic, market and political conditions of the country in which the company is located and/or in which it is doing business.

Also, an overlay to its bottom-up analysis, the team considers factors such as the geographical economic environment, the political environment, regulatory policy, geopolitical risk and currency risk.

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 portfolio typically holds between 50 and 70 companies.

The fund invests in issuers of developed countries, including the U.S.

The fund has the ability to invest in issuers domiciled in or doing business in any country or region around the globe, including emerging markets.

Additionally, the fund may invest in securities of companies of any size, in a variety of sectors and industries.

Also, the fund invests at least 40% (or, if the manager deems it warranted by market conditions, at least 30%) of its net assets in foreign securities.

The fund seeks capital growth and appreciation by investing in large-size 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 focuses on securities traded largely in developed European and Asian/Pacific Basin markets.

The team looks to invest in mispriced countries, sectors, currencies, and stocks with attractive valuations.

In addition, the team favors cash-generating and reasonably valued companies that are exposed to global investment themes.

As part of its top-down global macro view, the team evaluates developments in global gross domestic product, business and product cycles, foreign exchange, relative valuations and politics around the world.

The research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research team evaluates individual companies based on various factors, such as free cash flow, sales growth, financial leverage, and return on invested capital.

To enhance potential return, the fund may invest in issuers located or doing business in emerging market countries.

The fund also may invest in depositary receipts of foreign issuers.

Generally, the fund invests in securities of large-capitalization companies, however it may invest in securities issued by companies of any size.

Also, the fund may invest up to 100% of its total assets in foreign securities.

The fund seeks capital growth and appreciation by investing in small-size companies outside the United States.

The sub-advisers’ 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.

The process utilizes a blend strategy to research for both growth and value stocks, or to stocks with characteristics of both.

Next, the research team focuses on companies located in developed markets outside the United States and Canada. The team also may invest in companies located in emerging markets.

Then the team looks for attractively-valued companies that demonstrate growth at a reasonable price prospects.

In addition the team also considers companies that possess innovative and cost-effective products and services, with future growth potential.

Also, the team favors companies with a durable competitive advantage operated with proven management teams.

As part of its research process, the team also meets company management.

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.

Many of the companies in which the manager may invest have diverse operations, with products or services in foreign markets. The fund may focus a portion of its investments in a particular sector or sectors of the economy. 

Additionally, the fund may invest in depositary receipts such as American Depositary Receipts, European Depositary Receipts and Global Depositary Receipts of foreign issuers.

The fund seeks capital appreciation in the long term by investing in large-size companies in the United States.

The investment process uses screens to identify companies demonstrating improving growth prospects or levels of profitability and returns.

The research process is driven by fundamental analysis of one stock at a time. Next, the research team looks for companies that it believes possess dominant market positions and sustainable competitive advantage.

In addition, the team considers factors such as a company's brand loyalty, proprietary technology, economies of scale, strength of management, and level of competitive intensity.

The team also examines the interaction and bargaining power between a company, its customers, suppliers and competitors and the threat of substitute products.

The process also concentrates on the level of profitability, capital intensity, cash flow and capital allocation measures, as well as earnings growth rates and valuations of companies.

 The fund typically generally holds 40 to 60 stocks of companies with a demonstrated ability to sustain unit growth and high profitability.

The fund seeks to provide total return by investing in companies across any size outside 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 invests in securities of companies in the real estate or real estate-related industries.

The team focuses on companies that qualify for U.S. federal income tax purposes as real estate investment trusts, or entities similar to REITs formed under the laws of a country other than the U.S.

In addition, the team considers companies located in any country that derive at least 50% of their revenues from the ownership, construction, financing, management or sale of commercial, industrial or residential real estate or that have at least 50% of their assets invested in such real estate.

Also, the team considers companies located in any country that are primarily engaged in businesses that sell or offer products or services that are closely related to the real estate industry.

In selecting securities for the portfolio, the research team employs a research-based investment process that combines top-down market research, bottom-up company analysis and a quantitative assessment of relative value.

The top-down analysis focuses on an understanding of economic conditions and real estate fundamentals.

The research process is driven by fundamental analysis of one stock at a time. As part of the bottom-up analysis, the team focuses on understanding each company’s risk profile and growth prospects.

The quantitative assessment of relative value includes ranking companies on the basis of premiums and discounts to intrinsic value.

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 invest in companies located in any country, including any emerging market country.

Also, the fund invests at least 40% (or, if the manager deems it warranted by market conditions, at least 30%) of its net assets in securities of non-U.S. issuers.

Additionally, the fund has the flexibility to invest across market capitalizations but may invest significantly in large- and mid-capitalization companies.

The fund is non-diversified, meaning that it may invest a significant portion of its net assets in a limited number of issuers.

The fund seeks capital growth and appreciation 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.

As part of its process, the investment team employs a fund-of-funds strategy.

Next, the research team invests primarily in Class N shares of certain Ivy Funds global/international mutual funds.

Each underlying Ivy Fund, in turn, invests in a diversified portfolio of foreign equity securities of issuers in developed as well as emerging markets, and, a mixture of investment grade bonds issued by foreign corporations and governments.

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 seeks capital return by investing in mid-size companies in the United States.

The investment process combines macroeconomic review with individual stock analysis. The research team starts with a list of companies in the benchmark index. The research team is using quantitative research to highlight companies with financial strength, attractive earnings growth, and superior return on capital.

Next, the research team with the help of qualitative analysis reviews sustainability of business model, management effectiveness and earnings durability.

The fund favors high-quality companies with above average growth outlook.

The fund seeks capital appreciation and current income by investing in mid-size companies in the United States.

The investment process combines bottom-up stock picking with the top down macroeconomic analysis.

The stock selection process is designed to identify companies that exhibit attractive total return characteristics.  The fund’s investment process is driven by quantitative research and fundamental analysis of one stock at a time.

The process first identifies companies with financial strength, sustainable dividend yield; consistent revenue, earnings, and cash flow; and a potential for returning capital to shareholders.

Next, the investment team reviews the macroeconomic environment with a focus on interest rates, inflation, consumer confidence and corporate spending.

The fund emphasizes dividend-paying and other income-producing securities and has an equally weighted portfolio.    

The fund seeks capital growth and appreciation 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 companies with operations throughout the world that own, explore or develop natural resources and other basic commodities or supply goods and services to such companies.

According to the team, natural resources includes energy, alternative energy, industrial products, forest products, base metals, precious metals and minerals, and agricultural products.

In selecting securities for the portfolio, the research team combines top-down market analysis with bottom-up company analysis.

The team invests in a blend of value and growth companies.

In addition, the team prefers well-managed companies that can generate above-average capital growth and appreciation.

Also, the team favors high quality companies exhibiting the potential for sustainable long-term growth and that are low-cost leaders with a track record of superior producing assets.

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 portfolio holds between 30 and 60 companies.

The fund invests in foreign companies and U.S. companies that have principal operations in foreign jurisdictions.

In addition, the fund also may have exposure to companies located in, and/or doing business in, emerging markets.

The fund may use forward currency contracts in an effort to manage foreign currency exposure.

The fund is non-diversified, meaning that it may invest a significant portion of its net assets in a limited number of issuers.

The fund seeks to track the total return performance of a benchmark index before fees and expenses by investing in companies across any size outside 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 invests a significant portion of the fund’s net assets in a combination of securities and derivatives that track the performance of the Index.

In addition, the team focuses on investments connoted by the Index.

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 will concentrate its investments in a particular industry or group of industries to approximately the same extent as the Index is so concentrated.

Additionally, the fund seeks to remain fully invested at all times in securities that, in combination, provide exposure to the Index without regard to market conditions, trends or direction.

The fund seeks to track total return performance of the benchmark index before fees and expenses by investing in small-and 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.

The process utilizes a passive investing style to track the performance of the benchmark index.

Next, the research team invests in dividend-paying stocks.

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 seeks to replicate the composition of the benchmark index, holding each security in approximately the same proportion as its weighting in the Index.

Additionally, the fund will concentrate its investments in a particular industry or group of industries to approximately the same extent as the Index is so concentrated.

The fund seeks to remain fully invested at all times in securities that, in combination, provide exposure to the Index without regard to market conditions, trends or direction.

At times, the fund may invest in securities not contained in the Index.

The fund seeks capital appreciation by investing in companies outside 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 invests in securities of issuers located in, or with significant business, assets, or operations in, countries throughout the world other than the United States.

The team looks to invest in companies from a universe generally consisting of the 1,500 largest non-U.S. companies that it believes are undervalued on the basis of current price to an estimated normal level of earnings.

Then the team narrows the investable universe to a list of companies that are lagging in market price for temporary reasons and whose future earnings power is not reflected in their current valuations.

Then the research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research team favors companies that are trading at a substantial discount to their estimated intrinsic value with superior long-term growth potential.

In addition, the team evaluates a company’s financial health and business prospects, estimated earnings, and a competent management team.

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 portfolio generally holds 60 to 80 stocks on the basis of valuation, risk and diversification. 

From time to time, the fund may invest significantly in securities of companies in the same economic sector.

Generally, the manager invests up to 10% of the fund’s portfolio in emerging markets.

According to the investment team, a company is considered to be located in an emerging market country if it is organized under the laws of, or has a principal office in, an emerging country.

Other factors in consideration would be if it has a class of securities whose principal securities market is in an emerging country, or if it derives 50% or more of its total revenue from goods produced, sales made or services provided in one or more emerging countries, or if it maintains 50% or more of its assets in one or more emerging countries.

The fund seeks capital appreciation by investing in companies across any size in the United States.

The investment process is designed to invest in securities of science and technology companies around the globe.

The investment team considers science and technology companies as companies whose products, processes or services are being, or are expected to be, significantly benefited by the use or commercial application of scientific or technological developments or discoveries.

The team believes such companies derive a competitive advantage by the application of scientific or technological developments or discoveries to grow their business or increase their competitive advantage.

Next, the research team emphasizes growth potential in selecting stocks; meaning it looks for companies with accelerated earnings growth.

Then the research process is driven by fundamental analysis of one stock at a time. The research team then reviews a company’s earnings potential, quality of management, valuation, financial statements, industry position/market size potential and macroeconomic conditions, as well as whether a company’s products and services have high barriers to entry.

Then the manager constructs a portfolio of stocks from a list of companies in the benchmark index favored by the research team and allocates capital based on its conviction level. The portfolio generally holds 35 to 60 stocks.

Many of the companies in which the manager invests have products or services in foreign markets. Therefore, the fund may have indirect exposure to various foreign markets through investments in these companies, even if the fund is not invested directly in such markets.

The fund may also invest in companies that utilize science and/or technology as an agent of change to significantly enhance their business opportunities.

The fund may invest without limitation in foreign securities, including securities of issuers within emerging markets.

The fund is non-diversified, meaning that it may invest a significant portion of its net assets in a limited number of issuers.
 

The fund seeks total return by investing in companies in the United States.

The sub-adviser’s investment process looks to invest in the securities of companies in the real estate or real estate-related industries.

The investment team considers real estate securities to include securities of issuers that receive at least 50% of their gross revenue from the construction, ownership, leasing, management, financing or sale of residential, commercial or industrial real estate.

Also, the team considers real estate-related securities to include securities issued by companies primarily engaged in businesses that sell or offer products or services that are closely related to the real estate industry.

Next, the research process is driven by fundamental analysis of one stock at a time. Then the research team focuses on an issuer’s financial condition and valuation, financial performance, quality of management, policies and strategies, real estate properties and competitive market condition.

Other key attributes that the team considers is an issuer’s liquidity, transparency, diversification, return history and cash flow growth potential, as well as portfolio quality, market exposure, capital structure, business strategy risk, income volatility and corporate governance.

In addition, the team prefers issuers demonstrating durable earnings growth potential, or those that are trading at discounts to their estimated intrinsic value.

Additionally, the research team emphasizes companies exhibiting superior profitability and return on investment characteristics, a dominant market position, stable property management and high-quality buildings and building maintenance.

As part of its process, the team also considers macro-economic and technical factors impacting real estate securities.

Then the manager constructs a portfolio from a list of companies in the benchmark index favored by the research team and allocates capital based on its conviction level.

The fund seeks capital appreciation 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 combines top-down and quantitative analysis with fundamental, bottom-up research.

When assessing potential investment opportunities, the team considers companies that exhibit relative strength and positive identifiable catalysts.

Additionally, the team seeks companies that demonstrate consistent or positively trending fundamentals.

The team also prefers companies with favorable margins and return on invested capital), a durable competitive advantage, experienced management with appropriate incentives and a stable capital structure.

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.

In addition, the manager looks to diversify the fund’s holdings among sectors, as well as among growth and value companies.

The portfolio holds between 40 and 60 stocks.
 

The fund seeks capital appreciation 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 invests in companies positioned in new or emerging industries that exhibit the potential for higher growth.

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 higher-quality companies with sustainable growth prospects.

The team also considers quality of management and superior financial characteristics (e.g., return on assets, return on equity, operating margin) in identifying companies.

In addition, the team seeks companies that exhibit successful and scalable business models.

Also, the team prefers companies in markets that are growing at rates substantially in excess of the average industry and/or the general economy.

Other factors in consideration are a company that is a leader in its industry with a proven management team whose interests are aligned with those of shareholders.

The team emphasizes a company that is experiencing upward margin momentum, a growth in earnings, revenue and sales and/or positive cash flows.

Additionally, the team favors a company that is increasing market share and/or creating increasing barriers to entry either through technological advancement, marketing, distribution or some other innovative means; or that emphasizes organic growth.

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’s investments in equity securities may include common stocks that are offered in initial public offerings.
 

The fund seeks capital appreciation by investing in mega and large-size companies in the United States.

The investment process is designed to highlight undervalued companies that are trading at a significant discount relative to their estimated intrinsic value.

The process focuses on companies that may be out of favor for temporary reasons but have prospects for long-term continued and consistent growth.

The process starts with a list of companies in the benchmark index and narrows the list to include those that meet hurdles on growth, earnings and valuation criteria.

Next, the research team utilizes evaluates a company’s intrinsic value on the basis of cash flow generation, and valuation multiples such as earnings and book value.

The team also considers factors such as a company’s growth potential, changes in share count, and working capital. The team also looks for identifiable catalysts that will help the companies achieve their estimated intrinsic values.

Generally, the portfolio holds 30 to 45 securities. Many of the companies in which the fund may invest have products or services in foreign markets and therefore, the fund may have indirect exposure to various foreign markets.

Although the fund primarily invests in securities issued by large-capitalization companies, it has the flexibility to invest its assets across market capitalizations.