The sub-advisor screens U.S. listed small- and mid-capitalization companies, generally defined as companies with a market capitalization of between $1 billion and $50 billion, to exclude financial companies and unprofitable firms to identify the starting investment universe. The investment universe is further screened based on profitability, valuation, and capital allocation metrics to winnow the number of potential holdings down to approximately 200.

The sub-advisor analyzes the remaining companies further by evaluating their financial statements, event transcripts, investor presentations, and other company filings. In addition, a discounted cash flow valuation is performed to quantify the sub-advisor’s estimate of each company’s intrinsic value. The discount/premium to this intrinsic value offered by the prevailing market price coupled with the referenced quantitative screening process is combined with the qualitative analysis of company financial documents to determine the 100 holdings that are selected for inclusion in the Fund.