Sanrio Co., Ltd. (SJ8)

Overview

The fund is designed to provide investors with exposure to the United States equity market by primarily investing in a diversified portfolio of stocks. These stocks are selected based on a multifactor approach, encapsulated in the RAFI Multi-Factor U.S. Index. This methodology aims to combine several investment factors such as size, value, momentum, low volatility, and quality into one coherent strategy. The objective is to achieve a balanced exposure across these dimensions, which are believed to provide sources of excess returns. By investing at least 80% of its assets in the constituents of the RAFI Multi-Factor U.S. Index, the fund seeks to closely track the performance of the index, which is constructed using a rules-based approach to identify and weight companies based on fundamental measures of size like earnings, revenues, and book value.

Products and Services

• Investment in RAFI Multi-Factor U.S. Index Component Securities

  The fund's core product offering involves investing a significant portion of its assets in the stocks that make up the RAFI Multi-Factor U.S. Index. This approach leverages a multifactor strategy to select stocks, aiming to balance exposure across various investment factors believed to influence stock performance. By doing so, the fund seeks to replicate the performance of the index, potentially offering investors diversified exposure to the U.S. stock market.

• Rules-Based Approach to Stock Selection

  Utilizing a rules-based system, the index provider identifies and weights stocks within the fund's portfolio. This process is grounded in the construction of five factor portfolios—each of which emphasizes a different investment factor. These portfolios are then equally weighted to form a comprehensive portfolio where individual stocks are further weighted by their fundamental size measures, such as earnings, revenues, and book value. This systematic and methodical approach aims to select stocks that are believed to offer the potential for excess returns while maintaining a disciplined investment strategy.