The fund seeks primarily current income and secondarily capital appreciation by investing in companies in the United States.

The sub-adviser’s 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 significantly in U. S. preferred stock, and in derivat More

The fund seeks primarily current income and secondarily capital appreciation by investing in companies in the United States.

The sub-adviser’s 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 significantly in U. S. preferred stock, and in derivatives and other instruments that have economic characteristics similar to such investments.

The fund considers an issuer of preferred stock to be in the U. S. if it is organized under the laws of, or maintains a principal place of business in, the U.S., or the principal trading market for its securities is in the U.S.

Also, the fund considers an issuer of preferred stock to be in the U. S. if during its most recent fiscal year, it derived at least 50% of its revenues or profits from goods produced or sold, investments made, or services performed in the U.S., or has at least 50% of its assets in the U.S.

The team evaluates a company’s competitive position, its ability to earn a high return on capital and generate cash in excess of its growth needs, the reliability of its profits, and its access to additional capital.

In addition, when selecting preferred stock that are subject to a call provision, the team generally seeks to underweight or eliminate those that trade above the call price and exhibit a low or negative yield-to-call.

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 is non-diversified, which means that it can invest a greater percentage of its assets in any one issuer than a diversified fund can.

In addition, from time to time, the fund may focus its investments (i.e., invest more than 15% of its total assets) in particular sector.