The fund seeks capital appreciation and income by investing in mega-and large-size companies outside 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 invests at least 40% of the fund’s net assets in companies that maintain their principal place of business or conduct their principal business activities outside the U.S.
This may also include companies that have their securities traded on non-U.S. exchanges or that have securities that trade in the form of depositary receipts, companies that have been formed under the laws of non-U.S. countries, including those of emerging markets, or foreign currencies.
The team considers a company to conduct its principal business activities outside the U.S. if it derives at least 50% of its revenue or profits from business outside the U.S. or has at least 50% of its sales or assets outside the U.S.
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 may from time to time emphasize one or more sectors in selecting its investments, including the financial services sector.
Also, from time to time, the fund may focus its investments in certain countries or geographic areas, including Europe.
The fund may invest in derivatives, such as forward contracts for both hedging and non-hedging purposes.