The fund seeks capital appreciation in the long term by investing in small-and mid-size companies outside the United States.
The sub-advisers’ 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 process considers federal tax implications when making investment decisions with respect to individual securities to seek to provide a tax advantage.
Next, the research team focuses on securities of non-U.S. value companies, with higher profitability, associated with countries with developed and emerging markets, which may include frontier markets.
In assessing relative price, the team relies on valuation multiples such as cash flow or earnings.
Also, the team evaluates companies on factors such as free float, momentum, trading strategies, liquidity, size, relative price, profitability, and investment characteristics.
However, in assessing profitability, the team considers ratios of earnings or profits from operations relative to book value or assets.
Additionally, in assessing a company’s investment characteristics, the team considers ratios such as recent changes in assets divided by total assets.
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 may lend its portfolio securities to generate additional income.