The fund seeks capital appreciation in the long term by investing in small-size companies in 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 securities of U.S. small cap companies.

The team utilizes a market capitalization weighted approach to purchase a broad and diverse group of readily marke

The fund seeks capital appreciation in the long term by investing in small-size companies in 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 securities of U.S. small cap companies.

The team utilizes a market capitalization weighted approach to purchase a broad and diverse group of readily marketable equity securities of U.S. small cap companies.

Also, the team considers factors such as a company’s free float, size, value, momentum, trading strategies, liquidity, profitability, and investment characteristics.

The team also favors companies that are inexpensive on the basis of book value.

In assessing value, the team relies on valuation multiples on the basis of cash flow or earnings.

However, in assessing profitability, the team considers ratios of earnings or profits from operations relative to book value or assets.

Additionally, in assessing a company’s investment characteristics, the team considers ratios such as recent changes in assets or book value scaled by assets or book 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 lend its portfolio securities to generate additional income.