Fund Description

The fund invests, under normal circumstances, at least 80% of net assets (plus any borrowings for investment purposes) in securities of small-capitalization companies and in derivatives and other instruments with similar economic characteristics, focusing on undervalued small-cap equities, primarily common stock. The fund considers a small-capitalization company to be one that has a market capitalization, at the time of purchase, no larger than the market capitalization of the largest capitalized company 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 may invest up to 15% in REITs and up to 25% in foreign issuers, including emerging markets and depositary receipts. The fund can invest in derivative instruments including forward foreign currency contracts, futures contracts and options; it can use forward foreign currency contracts to seek to hedge against adverse movements in foreign currencies or otherwise manage foreign currency exchange risk, use futures contracts to seek exposure to certain asset classes, and use options to seek investment return or to mitigate risk and to hedge against adverse movements in foreign currencies. It follows a fundamental, issuer-focused value approach emphasizing intrinsic value and business quality.