Fund Description

The fund invests at least 80% of its net assets in domestic equity securities and, under normal market conditions, is almost entirely invested in stocks. It seeks companies believed undervalued relative to the market based on estimated future earnings and cash flow, often with valuation ratios such as price-to-book below the S&P 500 Index average. Using fundamental research and proprietary modeling, it ranks a dynamic universe of the 500 largest U.S. public companies from cheapest to most expensive and, focusing on the cheapest-ranked companies, constructs a portfolio of stocks of companies it believes generally have earnings below normal levels, a plan to restore earnings to normal, and a sustainable business advantage. It may invest up to 20% in debt securities, including below investment-grade, and up to 20% of its net assets in securities of foreign issuers that are not publicly traded in the United States, including depositary receipts; it may invest without regard to this 20% limitation in securities of foreign issuers that are listed and traded on a domestic national securities exchange. It may focus on particular sectors.