The fund seeks capital appreciation in the long term by investing in small-size companies in the United States.
The fund manages assets with the help of three sub-advisers namely Hotchkis and Wiley Capital Management, LLC, Los Angeles Capital Management LLC, and Vaughan Nelson Investment Management, LP.
The fund prefers a multi-manager investing approach with the aim of reducing volatility and downside risk.
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.
Next, the research team invests in value equity securities.
The team prefers companies that are estimated to trade below their fair values.
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 also invests in real estate investment trusts.
In addition, the fund may invest up to 30% of its net assets utilizing an index sampling strategy designed to match the performance of the Index.