The Large Cap Core Stock Portfolio invests a majority of its net assets in equity securities of large capitalization companies that may include both "growth" and "value" stocks, and may represent high quality companies across all market sectors. The Portfolio seeks a dividend yield of at least 75% of the dividend yield of the S&P 500® Index. Because of the importance of current income and growth of income, dividends paying stocks are favored, but the Portfolio also may invest in non-dividend paying stocks.
In selecting investments, management looks for characteristics such as strong management teams, solid balance sheets, consistent earnings growth and leading market share in their industries. The Portfolio may be broadly diversified, potentially reflecting all sectors of the S&P 500® Index. Economic outlook determines the relative attractiveness of market sectors and sector weights may differ from those in the S& P 500® Index, reflecting the economic outlook.
For this purpose, large capitalization equity investments are those whose market capitalizations are above the largest stock in the bottom quartile of the S&P 500® Index. The market cap of companies in the Portfolio and the Index will change over time due to market forces and the periodic rebalancing of the Index. However, the Portfolio will not sell a stock just because the company has fallen to a market capitalization below that of the largest bottom quartile of the S&P 500® Index and, on occasion, may purchase small and medium capitalization companies with a market capitalization below that of the largest stock in the bottom quartile of that Index.