The managers may also even include a currency-hedged component to limit foreign exchange risks. According to the prospectus, the fund may “enter into certain derivative transactions, principally currency forward contracts; currency futures contracts; equity futures contracts (including equity index futures contracts); and options, including equity options (including equity index options). These derivatives may be used to enhance Fund returns, increase liquidity, gain exposure to certain instruments or markets in a more efficient or less expensive way and/or hedge risks associated with its other portfolio investments.”
FLIO’s investment managers will apply a “bottom up,” fundamental long-term approach that focuses on the market price of a company’s securities relative to the investment managers’ evaluation of the company’s long-term earnings, asset value and cash flow, favoring those that are financially strong with favorable growth potential and sustainable competitive advantages, when determining allocations. Additionally, other considerations may include a company’s price-to-earnings ratio, profit margins and liquidation value.
Current regional weights include Europe 44.5%, Asia 37.6%, North America 8.5%, Mid-East/Africa 2.4%, Latin America 2.1% and Australia/New Zealand 1.9%.
Top sector weights include industrials 18.5%, financials 15.1%, consumer discretionary 14.3%, information technology 11.8% and health care 8.1%. Top holdings include Tencent Holdings 2.8%, BPost 2.5, Anheuser Busch Inbev 2.1%, WisdomTree India Earnings Fund (EPI) 2.1% and Samsung Electronics 2.0%.
For more information on new fund products, visit our new ETFs category.