U.S. Growth Equity Strategy

Investment Approach

The U.S. Growth Equity Strategy seeks to identify companies demonstrating strong current or prospective earnings growth relative to the overall market and relative to their peer group. A bottom-up approach is employed to construct a portfolio of the fastest-growing companies in the US economy. A focus on real earnings growth is used to build a strong foundation for the portfolio. This portfolio employs an active trading strategy designed to capture added value as these stocks fluctuate through their individual cycles of growth and earnings period announcements.

Key Considerations

• The Strategy seeks to capitalize on those companies that exhibit exceptionally strong earnings growth and momentum.
• The Strategy is actively managed and benchmark agnostic, which allows the investment team to pursue their best ideas without constraints at the sector or industry level.
• The Strategy employs a concentrated approach, typically holding 20-40 stocks, where the top ten holdings may represent more than half of the portfolio's total weight.

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.

A principal risk of growth stocks is that investors expect growth companies to increase their earnings at a certain rate that is generally higher than the rate expected for non-growth companies. If a growth company does not meet these expectations, the price of its stock may decline significantly, even if it has increased earnings. Growth companies also typically do not pay dividends. Companies that pay dividends may experience less significant stock price declines during market downturns.

This strategy invests in a limited number of securities. As a result, the portfolio's investment performance may be more volatile, as it may be more susceptible to risks associated with a single economic, political, or regulatory event than a peer that invests in a greater number of issuers. Turnover is also expected to exceed 400%.