The fund seeks capital appreciation in the long term by investing in small-size companies in the United States.
The fund prefers a multi-style, multi-manager investing approach with the aim of reducing volatility and downside risk.
The fund allocates portions of its net assets among sub-advisers who employ distinct investment styles.
The fund manages assets with the help of five sub-advisers namely Cooke & Bieler, L.P., Jackson Square Partners, LLC, Kennedy Capital Management, Inc., Parametric Portfolio Associates LLC, and Pzena Investment Management LLC.
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.
Parametric seeks to track the total return performance of the benchmark index before fees and expenses as closely as possible without requiring the fund to realize taxable gains.
Cooke & Bieler focuses on companies that it believes will compound value over time.
Jackson Square invests in growth-oriented companies that it believes have long-term capital appreciation potential and may grow faster than the U.S. economy.
In selecting securities, KCM relies on its fundamental analysis of a security’s value.
Pzena utilizes a value equity strategy based on a fundamental, bottom-up research process.
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.