ISCF: Optimizing Ex-US Small-Cap Investments with a Multifactor Approach

Sep 18, 2025 at 11:05 AM
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This analysis delves into the strategic rationale behind prioritizing small-cap investments in international markets, rather than their large-cap counterparts, and introduces ISCF as a potent vehicle for this approach. By employing a multifactor selection process, ISCF aims to identify top-performing companies, thereby fostering a portfolio that offers both reduced volatility and strong returns. A notable aspect contributing to its appeal is the significant dividend yield of 3.84%, a factor that often goes overlooked but plays a crucial role in enhancing overall performance and stabilizing investments.

The global economic landscape outside the United States presents a unique opportunity where smaller companies often demonstrate greater intrinsic value compared to larger corporations. This distinctive market dynamic suggests that investors may find more compelling growth prospects and better valuations within the ex-US small-cap sector. ISCF capitalizes on this by meticulously evaluating companies using a sophisticated multifactor model. This model goes beyond traditional metrics, incorporating various elements to pinpoint businesses with solid fundamentals, sustainable growth potential, and robust market positions, ultimately aiming to capture superior returns while mitigating risks inherent in smaller enterprises.

Furthermore, ISCF's strategy is designed not only to achieve competitive total returns but also to ensure a smoother investment journey by minimizing market fluctuations. The deliberate choice of companies through a multifactor lens helps in constructing a diversified and resilient portfolio. The 3.84% dividend yield, while often secondary in focus for growth-oriented investments, provides a consistent income stream. This yield acts as a buffer during periods of market downturn, contributing to overall portfolio stability and enhancing the investor's total return experience, making it a critical, yet frequently underestimated, component of ISCF's investment proposition.

The comprehensive approach of ISCF, combining a keen focus on the undervalued ex-US small-cap market with a rigorous multifactor selection strategy and a healthy dividend yield, offers a compelling investment solution. This blend provides a unique advantage, aiming for both robust performance and enhanced stability in the international equities space.