The fund has five institutional and investor share classes. The Fund’s sub-adviser is The London Company, a registered investment adviser with $3.2 billion in assets under management and $6.3 billion in total entity assets as of March 31. The London Company, of Richmond, Virginia, has more than 12 years of experience in managing an income equity strategy.
The Fund seeks to generate a highly competitive dividend income stream. A second objective is investing in stocks to deliver capital appreciation. The London Company will select the Fund’s holdings using a proprietary approach to portfolio construction, typically investing in 30 to 40 stocks, primarily of companies with an average market capitalization of $70 billion or more, along with smaller market capitalization companies and an allocation to preferred shares.
The London Company will use its balance-sheet optimization model, designed to identify high-return-on-capital companies, to choose securities. These companies typically are over-capitalized and have excess amounts of cash on their balance sheets that may be used to fund organic growth or create value for shareholders in the form of higher dividends or share buy-back programs.