Strategy. The Portfolio seeks to achieve its investment goal by investing, under normal circumstances, in a portfolio of stocks economically tied to at least three foreign (non-U.S.) countries. The stocks are selected by the Portfolios subadviser, Pacific Investment Management Company, LLC (PIMCO), and sub-subadviser, Research Affiliates, LLC (Research Affiliates), from a broad universe of companies whose securities are sufficiently liquid. For portfolio construction, the subadviser and the sub-subadviser use a rules-based model developed by Research Affiliates (the RAE methodology) that selects stocks using quantitative signals that indicate higher expected returns, e.g. , value, quality and momentum ( i.e. , whether a companys share price is trending up or down). The model then weights selected stocks using their fundamental measures of company … Show more… The Portfolio seeks to achieve its investment goal by investing, under normal circumstances, in a portfolio of stocks economically tied to at least three foreign (non-U.S.) countries. The stocks are selected by the Portfolios subadviser, Pacific Investment Management Company, LLC (PIMCO), and sub-subadviser, Research Affiliates, LLC (Research Affiliates), from a broad universe of companies whose securities are sufficiently liquid. For portfolio construction, the subadviser and the sub-subadviser use a rules-based model developed by Research Affiliates (the RAE methodology) that selects stocks using quantitative signals that indicate higher expected returns, e.g. , value, quality and momentum ( i.e. , whether a companys share price is trending up or down). The model then weights selected stocks using their fundamental measures of company size, e.g. , sales, cash flow dividends and book value. Actual stock positions in the Portfolio, which drift apart from target weights as market prices change, are rebalanced to target weights periodically. The sub-subadviser, among other things, provides the subadviser with the constituents and target weights for the Portfolio. The RAE methodologys systematic portfolio rebalancing reflects a value orientation, as the Portfolio would be invested in securities that are believed to be undervalued in the market. Portfolio managers do not have discretion with respect to the allocations determined by the RAE methodology. The RAE methodology is not updated according to any predetermined schedule. The Portfolio seeks to remain invested in securities indicated for investment by the RAE methodology even when the values of those securities are declining. The RAE methodology would indicate that a stock position should be sold when the companys price overstates its economic size as measured by its fundamental size. Additionally, the RAE methodology may indicate that a stock should be sold because it has become more expensive or has reduced quality or momentum relative to other companies within the universe of investable stocks. The Portfolio may invest, without limitation, in equity securities and equity-related securities, including common and preferred securities and equity derivatives, and there is no limitation on the market capitalization range of the issuers of equity securities in which the Portfolio may invest. The Portfolio may invest in depositary receipts if pricing and liquidity are more attractive than ordinary equity securities of foreign companies. The Portfolio may also invest in real estate investment trusts (REITs). The Portfolio may invest, without limitation, in securities and instruments denominated in foreign currencies and in securities of foreign issuers, including emerging market issuers. Show less