Fund Description

The fund invests at least 80% of net assets (plus any borrowings for investment purposes) in equity securities of small-capitalization issuers and in derivatives or other instruments with similar economic characteristics. The fund considers a small-capitalization issuer to be one that has a market capitalization no larger than the market capitalization of the largest capitalized issuer included in the MSCI ACWI Small Cap Index during the most recent 11-month period (based on month-end data) plus the most recent data during the current month. It primarily holds common and preferred stock, and can also invest in depositary receipts, rights and warrants, including up to 10% of net assets in warrants. It may invest without limit in foreign securities, including emerging and developed markets, target exposure to at least three countries, invest at least 30%-40% outside the U.S. under normal circumstances, hold U.S. dollar or local-currency securities, invest up to 10% in China A-shares, and use derivatives such as forward currency contracts for hedging. Managers use a long-term, bottom-up fundamental process emphasizing balanced portfolio construction and typically sell when better opportunities arise or confidence in fundamentals or valuation declines.