The fund seeks capital appreciation in the long term by investing in small-and mid-size companies outside the United States.
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 focuses on stocks of rapidly-growing companies outside the U.S.
The team emphasizes companies exhibiting durable above-average earnings growth over the long term.
Also, the team prefers companies with quality management, strength of franchise, reasonable valuation, and superior cash flows that are at an advantageous point in the company life cycle.
In addition, the team favors companies that are trading at reasonable prices in relation to present or anticipated earnings, cash flow, or book value.
Additionally, the team favors companies with leading market positions, attractive business niche, attractive or improving franchise or industry position, and proven management teams.
The team also seeks companies with consistent or improving earnings and/or cash flow; and sound or improving balance sheet.
However, the research process is driven by fundamental analysis of one stock at a time.
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 invests with an awareness of the global economic backdrop and the outlook for certain industries, sectors, and individual countries.
However, country allocation is driven largely by stock selection.
The fund invests in a variety of industries in developed and emerging markets throughout the world.