Fund Description

The fund seeks long-term capital appreciation and, under normal circumstances, invests at least 80% of net assets in equity securities of small-cap companies, generally those within the market-cap range of the Russell 2000 Value Index at purchase. It uses quantitative analysis and a proprietary multi-factor model assessing valuation, price momentum, earnings quality and other quantifiable characteristics to over- and underweight index securities in an effort to generate excess returns versus the index. It may sell holdings viewed as fully valued, unattractive, or to maintain desired portfolio characteristics. Many of the companies in which the fund invests retain their earnings to finance current and future growth and generally pay little or no dividends. Derivatives such as stock index futures may be used to equitize cash and enhance liquidity, and the fund may at times have focused sector exposure.