The Small-Cap Equity investment strategy seeks to generate long-term total returns that outpace those of its benchmark, the Russell 2000® Index.
The portfolio management team seeks to invest in smaller domestic companies that appear to have favorable prospects for significant long-term capital appreciation.
The portfolio management team uses proprietary quantitative models based on financial and investment theories to evaluate and score a broad universe of stocks in which the Fund invests. These models typically weigh many different variables, including the valuation of the individual stock versus the market or its peers, future earnings and sustainable growth prospects, and the price and volume trends of the stock. The score is used to form the portfolio, along with the following additional inputs: weightings of the stock, and its corresponding sector, in the benchmark; correlations between the performance of the stocks in the universe; and trading costs.
Small-Cap Equity portfolios are subject to certain risks such as market and investment style risk. Investments in small- to medium-sized corporations are more vulnerable to financial risks and other risks than larger corporations and may involve a higher degree of price volatility than investments in the general equity markets.
This material is provided for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate.