Fund Description

The fund invests at least 80% of net assets (plus any borrowings for investment purposes) in securities of small-capitalization issuers, including derivatives and instruments with similar economic characteristics. It invests primarily in equity securities and depositary receipts of foreign issuers, mainly common and preferred stock, and may include China A-shares. 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 Russell 2000 Index during the most recent 11-month period (based on month-end data) plus the most recent data during the current month. It targets exposure tied to at least three non-U.S. countries and may invest up to 40% in emerging markets. The strategy uses bottom-up fundamental research, supported by quantitative analysis, portfolio construction, and risk management, and emphasizes issuers with earnings or revenue growth potential and a strong EQV profile (Earnings, Quality, Valuation). The fund can invest in derivative instruments, including forward foreign currency contracts and futures contracts; it can use forward foreign currency contracts to hedge against adverse movements in the foreign currencies in which portfolio securities are denominated, and it can use futures contracts to gain exposure to the broad market in connection with managing cash balances or to hedge against downside risk.