• Focus on meaningful change to identify opportunities
• Team-driven, sector focused management
• Capture market shifts by limiting exposure to growth or value
• Adherence to risk controls

Investment Process
The Diversified Large Cap Core strategy seeks superior returns through stock selection by a team of highly experienced portfolio managers, each of whom is responsible for specific sectors of the market.Focus on stock selection is enhanced by adhering to a discipline of being neither overweighted nor underweighted the sectors of the S&P 500.

Investment ideas are developed from a working universe of the 1,000 largest capitalization companies. Stocks are screened by sector managers with an explicit focus on change. Meaningful fundamental change, whether brought about by restructuring, management changes, new product cycles, secular changes in the balance of supply and demand, or even the enduring removal of weakness, produces investment opportunities. Fundamental research by each sector manager is aided by the use of a quantitative model that ranks 1,500 stocks on the basis of both valuation and fundamental change.

Sector managers must comply with two significant portfolio constraints: first, portfolios are managed to be neutral to the sector composition of the S&P 500 and second, portfolios are also managed to capture major market shifts by having a maximum of 60% of the portfolio weight in either the Russell 1000 Growth or Russell 1000 Value Index. Typically, sector managers seek consensus of the team on new ideas. Subject to risk controls, sector specific securities are selected by each manager with agreement by at least one other manager on the team.