The fund seeks capital appreciation in the long term by investing in small-size companies 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.
Next, the research team focuses on companies located outside the U.S., including emerging markets.
The team relies on fundamental analysis to focus on the market price of a company’s securities relative to its long-term earnings, asset value and cash flow potential.
The investment manager also considers a company’s valuation multiple such as earnings and liquidation value.
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 invest more than 25% of its net assets in the securities of issuers located in any one country.