The Fund generally invests at least 80% of its net assets in equity securities including common and preferred stock and American Depositary Receipts (ADRs), and at least 40% of its net assets in investments of issuers located outside the United States.
The Fund may invest up to 33% of its net assets in securities of issuers located in emerging markets countries. The Fund’s portfolio normally consists of between 50-60 securities, but this number may fluctuate depending on market conditions. The Fund may have exposure to and hold non-U.S. currencies.
Renaissance, the Fund’s subadvisor, seeks to invest in high-quality growth companies that are experiencing positive changes in earnings expectations and whose securities appear to trade at reasonable valuations. Renaissance employs a disciplined decision-making process to create and manage a diversified growth-oriented equity portfolio, and their investment process combines both quantitative and qualitative analysis:
- Utilizes a multi-dimensional quantitative screening process/scoring system to identify stocks that exhibit a specific set of characteristics, combined with a focused fundamental overlay to identify the best candidates
- Employs traditional qualitative analysis to evaluate whether companies actually exhibit the desired attributes with minimal risk exposure
- Utilizes a dynamic approach to continually refine the factors screened to reflect new and long-term changes in market conditions
- Sells a security if the security no longer meets Renaissance’s quantitative or qualitative criteria for high quality growth potential