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 invests in companies located anywhere in the world.
The research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research 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.
In addition, the team considers a company’s valuation multiple such as earnings, as well as profit margins 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 a significant amount of its net assets in the securities of companies located in emerging markets.
Also, the fund will invest its net assets in issuers located in at least three different countries (including the United States) and will invest at least 40% of its net assets in foreign securities.