The fund seeks total return by investing in 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 invests in securities of domestic and foreign public utilities and energy companies.
According to the team, utilities companies, including those organized as master limited partnerships, are companies involved to a significant extent in providing infrastructure-related products, services or equipment for the generation, transmission or distribution of electricity, gas or water, or telecommunications activities, including broadband and video services.
The team considers energy companies, including those organized as MLPs, as companies involved to a significant extent in infrastructure-related activities, such as the discovery, development, production, generation, transmission, refinement, measurement or distribution of energy.
In selecting securities for the portfolio, the research team focuses on companies that offer the potential for positive total return during a three to five year period on the basis of a company’s market capitalization, balance sheet strength, estimated dividends, and current and estimated earnings and cash flow.
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 invests at least 25% of its net assets in companies involved to a significant extent in the Utilities and/or Energy Industries.
Also, the fund may invest in municipal utility companies, including rural electric cooperatives and similar organizations.
