The fund seeks capital appreciation by investing in small-and mid-size 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 foreign companies.
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 a company’s financial statements and management record and structure.
Additionally, the team considers a company’s operations, product development and industry competitive position.
In addition, the team prefers companies with conservatively-capitalized balance sheets, high and consistent internal rates of return, and a favorable market position within healthy and growing industries.
The team also considers the effect of worldwide trends on the growth of particular business sectors and looks for companies that may benefit from those trends.
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.