The fund seeks capital appreciation in the long term by investing in companies across any size 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 common stocks and securities that can be converted into common stocks, such as convertible bonds, convertible preferred stocks, options, and rights.
The team prefers companies with above average growth characteristics and below average valuations.
In selecting securities for the portfolio, the research team focuses on companies with durable above average growth in sales, earnings, and 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’s holdings are diversified across the major economic sectors and individual companies.
The fund may also invest up to 35% of its assets in preferred stocks and warrants.
Additionally, the fund may invest up to 20% of its net assets in foreign securities either directly or through the purchase of sponsored or unsponsored American Depositary Receipts.
The fund seeks capital appreciation in the long term 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.
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 companies that are trading at discounts to their estimated intrinsic value for temporary reasons.
In addition, the team also evaluates companies on the basis of valuation multiples such as earnings, as well as balance sheet strength, cash flow, and capital usage efficiency.
Other factors in consideration would be management style and adaptability, market share, product lines and pricing flexibility, distribution systems, and use of technology to improve productivity and quality.
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 approximately between 60 and 70 companies diversified across economic sectors.
The fund may also invest up to 20% of its assets in foreign securities either directly or through the purchase of sponsored or unsponsored American Depositary Receipts.
