Global All-Cap Value Strategy

Investment Approach

The Global All-Cap Value Strategy invests in companies that demonstrate compelling growth potential, but have been ignored or discarded by the general marketplace. Employing bottom-up research, the Strategy's management team is neither distracted by prevailing market sentiment nor other emotional indicators. Research is used to identify companies with catalysts including hidden assets, successful restructuring potential, the ability to initiate or increase a dividend, or temporary undervaluation due to country risk or sector underperformance. Allocations to cash and larger capitalization companies may be used to reduce portfolio risk.

Key Considerations

• Focusing on global opportunities, the Strategy seeks undervalued companies undergoing restructuring, with limited sell-side research coverage, or located in emerging markets.
• The Strategy's disciplined, bottom-up research process focuses on companies that exhibit low price-to-earnings, low price-to-free-cash flow, and an attractive dividend policy.
• Foreign currency exposure is actively hedged in an effort to help control currency risk.

Important Information

This strategy invests in equity securities and is subject to the risk that equity security prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the strategy's equity securities may fluctuate drastically from day-to-day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in an equity-based strategy. You could lose all or some of your investment.

International securities involve special risks, including currency fluctuation, lower liquidity, different accounting methods and economic and political systems, and higher transaction costs.

Value stocks tend to be inexpensive based on various measures of their intrinsic value. These stocks are inexpensive because they are out of investor favor for one or more reasons. The goal is to identify value stocks that will increase in price and ultimately reflect their intrinsic value over time. Risks that may prevent value stocks from appreciating include: the portfolio manager's inability to correctly estimate a stock's intrinsic value, the market's inability to realize the stock's intrinsic value over time, or a poorly performing business causes the intrinsic value of the stock to decline.

The smaller capitalization companies in which the strategy invests may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small companies may have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Small cap stocks may be very volatile and the price fluctuations of the portfolio may reflect that volatility. It may be more difficult to sell a large quantity of shares of one small cap issuer.