The fund seeks capital appreciation in the long term by investing in 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.
The process employs a fund of funds strategy and invests in various affiliated and unaffiliated mutual funds and exchange-traded funds (Underlying Funds).
The Underlying Funds employ different and complementary investment styles to provide potential for growth.
Next, the research team invests in equity securities (through investment in Underlying Funds).
As part of the quantitative analysis, the team relies on proprietary asset allocation models, which employ various valuation techniques.
However, qualitative judgments are made based on assessments of factors, such as economic conditions, corporate earnings, monetary policy, market valuations, investor sentiment, and market technicals.
In addition, the team incorporates a futures overlay strategy that contains two specific risk management components, namely Volatility Management Overlay (VMO) and Put Replication Overlay (PRO).
The Volatility Management Overlay may increase exposures to a given asset class under certain market conditions while decreasing exposure during others.
The Put Replication Overlay is a structured hedging component designed to buffer the fund against portfolio losses.
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.
Additionally, the fund may invest up to 20% of its net assets in bond or alternative-style asset classes (through investment in Underlying Funds)