The fund seeks to replicate total return performance of the benchmark index before fees and expenses by investing in small-and mid-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.
Next, the research team utilizes a sampling strategy to invest in a group of stocks representative of the sector allocations, financial characteristics, and other attributes of the index.
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 manager selects stocks based on industry, size, and other characteristics.
The portfolio holds each security in approximately the same proportion as its weighting in the Index.
The fund may also purchase stock index futures contracts and exchange-traded funds.
In addition, the fund lends its portfolio securities as a means of generating additional income.