The fund seeks capital appreciation in the long term 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 equity securities of companies located throughout the world, including the United States.
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 have a track record of long-term growth in revenue and earnings, and estimated superior future growth.
Also, the team prefers companies that are industry leaders with durable competitive advantages, proven management teams, little or no debt; and attractive relative valuations.
In selecting securities, the team also considers factors such as political risk, monetary policy risk, and regulatory 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 fund invests at least 40% of its net assets in companies organized, headquartered or doing a substantial amount of business outside the United States including emerging and frontier market countries.
According to the team, a company is considered to be in an emerging or frontier country or market if the company has been organized under the laws of, has its principal offices in, or has its securities principally traded in, the emerging or frontier country or market.
The investment team also considers if the company derives at least 50% of its revenues, net profits or incremental revenue growth (typically over the past five years) from, or has at least 50% of assets or production capacities in, the emerging or frontier country or market.
In addition, the team considers a company that has at least 50% of its assets, or derives at least 50% of its revenues from business, outside the United States as doing a substantial amount of business outside the United States.
The fund generally will invest in the securities of companies located in different regions and in at least three different countries.
However, from time to time, the fund may invest a significant portion of its net assets in the securities of companies in one or a few countries or regions.
The fund may make significant investments in certain sectors or group of sectors within a particular industry or industries from time to time.
Also, the fund’s investments in depository receipts may include American, European, Canadian and Global Depository Receipts.
The fund has the flexibility to invest across market capitalizations but generally invests in the securities of large, established multinational companies.
