Fund Description

The fund invests at least 80% of net assets (plus any borrowings for investment purposes) in equity securities of U.S.-based regional banks and normally invests more than 25% in these companies, making it concentrated in the banking industry. Regional banks may include commercial banks, industrial banks, savings and loans, and financial and bank holding companies. Equity holdings may include common and preferred stocks and equivalents such as depositary receipts, rights, warrants, and publicly traded limited partnerships across market capitalizations. The manager uses fundamental financial analysis to identify securities that appear comparatively undervalued and may invest in companies positioned for a merger. The fund may also invest in other U.S. and foreign financial services companies, such as money center banks; it may invest up to 5% of net assets in stocks of companies outside the financial services sector and up to 5% of net assets in below-investment-grade bonds; and it may invest in derivatives to a limited extent.