The fund seeks capital appreciation by investing in companies across any size outside 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.
The fund’s sub-sub-adviser is Schroder Investment Management North America Limited.
Next, the research team focuses on securities of emerging market companies.
The team considers emerging market companies to be issuers listed or domiciled in, deriving a substantial portion of their revenues from, or having a substantial portion of their assets in emerging markets.
Emerging markets are those markets included in emerging market or equivalent classifications by the United Nations (and its agencies), or having per capita income in the low to middle ranges, as determined by the World Bank, or the fund’s benchmark index provider designates as emerging.
The research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research team focuses on companies demonstrating potential for above average earnings growth, attractive relative valuation, and proprietary advantages.
In addition, the research team integrates environmental, social and governance factors as part of its 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.
The manager seeks to allocate the fund’s investments among a number of different emerging market countries.