The fund seeks total return by investing in companies across any size in the United States.
The sub-adviser’s investment process is designed to select companies that are trading at a discount to their estimated intrinsic value.
The research team uses a quantitative screen on a database of approximately 10,000 companies to identify companies with balance sheet strength, , a track record of consistent, above average profit growth, sustainable competitive advantages; and capable management.
In addition, the team reviews the business models of the companies identified during the initial screen to better understand the drivers of each company’s performance.
Next, this screen typically narrows the investable universe to 150 to 200 companies and uses valuation analysis to establish target purchase prices for each company.
The result of this process is a portfolio of 25 to 45 companies that demonstrate profitability trends. The fund may from time to time focus its investments in securities of companies in the same economic sector.
The fund may also invest up to 25% of its net assets in American Depositary Receipts, and there may be times when the fund will have a significant cash or cash equivalent position.
