Investment Objective

Seeks long-term after-tax capital appreciation. 

Investment Approach

The Fund invests in stocks of large and mid-cap U.S. companies with positive momentum. A stock is considered to have positive momentum if it has performed well in the prior twelve months relative to other stocks in the investment universe of large and mid-cap U.S. stocks.

The Fund uses a systematic approach to construct its portfolio that starts with the investment universe, ranks the stocks in the universe by their total return over the prior twelve months excluding the last month, selects those that rank in the top third, weights them by market capitalization, and rebalances at least quarterly.

The Fund employs a tax management strategy which considers the potential impact of federal income tax on shareholders’ investment return. This tax management strategy is generally designed so investors receive lower distributions of realized capital gains than funds that do not take tax consequences into account. However, investors should not expect that there will be no capital gain distributions. The tax management techniques will include:

  • harvesting losses to offset realized gains;  
  • deferring realizations of net capital gains; 
  • limiting the purchase of high dividend yield stocks; and 
  • choosing a tax accounting method that reduces the tax liability. 

The Fund is expected to have annual turnover near or in excess of 100%, and will therefore employ optimization and other sophisticated techniques to keep transaction costs as low as possible. The Fund will maintain flexibility to trade opportunistically in order to strike a balance between maintaining the desired exposure to positive momentum while attempting to keep transaction costs low.

Performance Summary