The fund seeks current income and capital appreciation in the long term by investing in mid-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 primarily in dividend paying companies with investment grade credit ratings.
The research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research team evaluates companies on the basis of expected future profits, or sustainable revenue and/or asset growth, or cash investment needed to support expected growth.
In addition, the team also considers a company’s normalized earnings and free cash flow, as well as valuation relative to normalized earnings and free cash flow after giving consideration to growth potential and financial strength.
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 balanced portfolio of debt and equity securities aims to generate returns that exceed the Consumer Price Index by 3% per year while preserving capital.
Weightings between equity and fixed income securities will be tactically allocated based on prospective return potential and risk factors.
The fund seeks to deliver superior, risk-adjusted returns over full market cycles.
The fund seeks capital appreciation in the long term by investing in companies in the United States.
The value oriented investment process looks for out-of-favor companies with compelling earnings or price metrics.
The process starts with a list of companies in the benchmark and applies quantitative research to identify underappreciated companies with the potential to deliver superior returns over a full market cycle.
The research process is driven by fundamental analysis of one stock at a time. Next, the team assesses a company’s expected sustainable revenue and/or asset growth; expected cash investment needed to support expected growth; normalized earnings and free cash flow.
The team also considers valuation relative to normalized earnings and free cash flow after giving consideration to growth potential and financial strength.
Then using the research team work the investment team constructs a high conviction, concentrated portfolio of best ideas that holds 25 to 35 companies. The fund is managed using a long-term approach to security selection.
Generally, investments will be made with an intended investment horizon of three years, although individual investments may be held for shorter or longer time periods.
The fund generally focuses on companies with an investment grade debt rating, a history of paying dividends, and a market capitalization among the top 1,000 companies in the United States.
The fund may also invest up to 25% of its net assets in government and corporate debt securities of any maturity.
The fund also may invest up to 20% of its net assets in securities of foreign issuers. Additionally, up to 15% of the fund’s net assets may be invested in a combination of convertible securities, options on stocks, warrants and rights and other non-money market fund investment companies.
