The fund seeks capital appreciation in the long term by investing in companies across any size in the United States.
The investment strategy attempts to create a portfolio with similar characteristics to the benchmark index with the potential to provide excess returns relative to the Index.
The research team uses fundamental research to consider factors such as the quality of a company’s management team and its business franchise, earnings growth potential and its market sector, and valuation.
The fund uses a disciplined portfolio construction process whereby it weights each sector and industry approximately the same proportion as in the Index. Within each sector and industry, the individual holdings weight can vary significantly from their weighting within the benchmark index.
The enhanced index fund attempts to outperform the benchmark index by overweighting those stocks that are viewed favorably relative to their weighting in the Index, and underweighting or avoiding those stocks that are viewed negatively.
Generally, the portfolio is fully invested and seeks to be sector neutral when compared to the benchmark index.
The fund may purchase a security if it believes there could be an increase in value as a result of an extraordinary corporate event, a new product introduction or innovation, a favorable competitive development, or a management change.