Fund Description

Under normal circumstances, the fund invests at least 80% of its net assets plus any investment borrowings in equity securities of small market capitalization U.S. companies with value characteristics. Small-cap is defined by the market cap range of the Russell 2000 Index, and U.S. status is based on incorporation, primary listing, headquarters, or at least half of assets or revenues in the U.S. Value traits include below-average price-to-earnings, price-to-book, price-to-cash-flow, or price-to-sales ratios versus the Russell 2000. It may also invest in mid- and micro-cap companies, primarily through common stocks, REITs, and dividend-paying stocks. The manager allocates the fund's assets among different sub-advisors, and except for Brandywine Global Investment Management, LLC, each sub-advisor determines companies' earnings growth prospects using fundamental analysis based on internal and external research and considering changing economic trends; Brandywine Global employs a primarily quantitative strategy that focuses on buying stocks deemed less expensive based on price-to-earnings or price-to-book value and that have positive price momentum. Stocks are typically sold when no longer undervalued, fundamentals deteriorate, or better opportunities exist. The fund may have significant Financials exposure, invest cash in other investment companies (including a manager-advised government money market fund), use equity index futures, and lend securities.