Investment Objective
Long-term capital appreciation and current income are pursued primarily through investments in U.S. stocks with larger market capitalizations. The Fund uses a multi-manager approach to accomplish this.
TEAM OF MANAGERS
The Fund is sub-advised by three complementary asset managers:
-
Barrow: Bottom-up analysis, with P/E and P/B
ratios below the market and dividend yield above
the market.
-
Brandywine Global: Substantially undervalued,
with dividend-paying companies receiving greater
emphasis.
-
H&W: Sustainable cash flows and strong balance
sheets, undervalued relative to tangible assets and
long-term normal earnings power.
-
MFS: Undervalued, high-quality companies with
sustainable, durable franchises, significant free cash
flow and strong management teams.
STRENGTH IN DIVERSIFICATION
-
The multi-manager approach brings diversification
to the Fund and helps protect it from singlemanager
risk.
-
The Fund’s bottom-up portfolio construction is
well diversified at the security, industry and
stock levels.
-
The Fund’s assets may also include preferred
stocks, convertible securities, American
Depositary Receipts and foreign stocks traded
on U.S. exchanges.
-
As larger-cap companies return to their
historical valuations, the Fund is well
positioned to take advantage of this.
- They look for companies with below-average price-to-earnings ratios and below-average price-to-book-value ratios.
- They also seek companies with above-average dividend yields and above-average return on equity or earnings growth potential.
Sub-Advisors (%)
| Hotchkis and Wiley Capital Management, LLC |
30.3
|
| Brandywine Global Investment Management, LLC |
30.0
|
| Barrow, Hanley, Mewhinney & Strauss, LLC |
29.6
|
| Massachusetts Financial Services Co. |
10.1
|