STRATEGY OVERVIEW
The Fund employs a disciplined value investing strategy. To identify investments, we screen the International (common stocks and ADR's) large-cap universe for stocks with dividend yields above the MSCI EAFE Index average and with Price to Earnings (P/E), Price to Book (P/B), and Debt to Capital ratios below the MSCI EAFE Index average. After isolating those stocks that meet these criteria, fundamental research is employed to assess a company's balance sheet strength and historical payout ratios to assess whether the company will likely be able to maintain dividend strength. We seek to invest in companies with low historical dividend payout ratios and an earnings catalyst that will increase the likelihood of dividend growth and also contribute to stock price appreciation over a long-term investment horizon.
Portfolio Construction:
• Diversification across approximately 45-55 stocks
• Diversification across 25-35 industries
• No more than 5% (at cost) in one stock
• No more than 15% (at cost) in one industry
• Approximately 50% in ADR's
Mutual fund investing involves risk. Principal loss is possible. The Fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. The Fund invests in medium capitalization companies, which involve additional risks such as limited liquidity and greater volatility.
