Rockefeller US Small Cap Core Fund Class I (RKSIX)

Overview

This fund is primarily focused on investing in the equity securities of U.S. small capitalization companies, dedicating at least 80% of its net assets, in addition to any borrowed funds intended for investment purposes, to such financial instruments. Small capitalization companies, typically characterized by their market value, are seen as having significant growth potential compared to larger corporations. The emphasis on equity securities such as common stocks, preferred stocks, rights, depositary receipts including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs), and Real Estate Investment Trusts (REITs) reflects a diversified approach to investment in this sector. Moreover, the fund reserves the ability to invest up to 20% of its net assets in equity securities of foreign companies, allowing for a global diversification that includes investments through ADRs and GDRs. This strategic allocation aims to balance the inherent risks of investing in small cap companies while seeking to capitalize on the potential for significant returns.

Products and Services

• Equity Securities of U.S. Small Capitalization Companies

  The fund commits at least 80% of its net assets to acquire equity securities of U.S. small capitalization companies. This category is the bedrock of the fund's investment strategy, targeting companies that exhibit potential for high growth margins. Investing in small caps involves a higher risk due to their volatile nature but offers the promise of significant rewards, capitalizing on the nimble and often innovative operations these companies are known for.

• Common Stocks and Preferred Stocks

  Common and preferred stocks form the primary components of the fund's investment portfolio. Common stocks provide shareholders with a slice of ownership in a company, with the potential for variable dividends and voting rights. Preferred stocks come with a higher claim on assets and earnings than common stocks, including fixed dividends, making them a more stable investment but with generally less growth potential.

• Rights

  Investing in rights allows shareholders the opportunity to purchase additional shares of a company at a predetermined price before a certain date. This strategy can provide investors with a fast route to capitalizing on potential stock increases, leveraging their existing investment towards greater equity in promising small cap companies.

• Depositary Receipts (ADRs and GDRs)

  ADRs and GDRs enable the fund to invest in foreign companies through securities that are traded on U.S. exchanges, combining the advantage of trading in domestic markets with exposure to foreign investments. These instruments are crucial for diversifying the portfolio beyond the U.S. small cap market, offering a blend of growth potential and risk mitigation through geographic and economic diversification.

• REITs

  Real Estate Investment Trusts (REITs) offer the fund an avenue to invest in real estate markets without having to directly purchase properties. This form of investment is attractive for gaining exposure to the real estate sector, with REITs often paying out a majority of their taxable income as dividends to investors. It introduces a level of stable income to the fund's portfolio, alongside the capital appreciation sought from other equity investments.

• Equity Securities of Foreign Companies

  Up to 20% of the fund's net assets can be allocated to equity securities of foreign companies, including through the use of ADRs and GDRs. This not only allows for higher growth potential by investing in emerging and developed markets outside the U.S. but also aids in hedging against domestic market volatility. It provides the portfolio with a balanced global exposure, aiming for a well-rounded investment approach.