Principal Investment Strategy
The Fund pursues its investment objective by investing, under normal circumstances, at least 80% of its net assets in equity securities of companies with market capitalizations, at the time of purchase, within the range of companies comprising the Russell MidCap
®
Value Index. The Fund may invest a portion of its assets in equity securities of foreign companies traded on U.S. exchanges, including American and Global Depositary Receipts (ADRs and GDRs).
The Adviser invests in companies that it believes to be high quality based on criteria such as market share position, profitability, balance sheet strength, competitive advantages, management competence and the ability to generate excess cash flow. The Adviser uses a bottom-up investment process in conducting fundamental analysis to identify companies that have sustainable returns trading below the Adviser's assessment of intrinsic value and prospects for an inflection in business fundamentals that will enable the stock price to be revalued higher. The Adviser may sell a security if it believes the stock has reached its fair value estimate, if a more attractive opportunity is identified or if the fundamentals of the company deteriorate.
As of December 31, 2013, the Russell MidCap
®
Value Index included companies with approximate market capitalizations between $1 billion and $27 billion. The size of companies in the index changes with market conditions and the composition of the index.
For purposes of the Fund's investment strategy, "net assets" includes any borrowings for investment purposes.
There is no guarantee that the Fund will achieve its objective.
Principal Risks
The Fund's investments are subject to the following principal risks:
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Value stocks may fall out of favor with investors and may underperform growth stocks in an up market. The intrinsic value of value stocks may never be fully recognized by the market or their price may decline.
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Mid cap stocks may fall out of favor relative to stocks of larger or smaller companies.
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The portfolio manager may not execute the Fund's principal investment strategy effectively.
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A company's earnings may not increase as expected.
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Foreign securities (including ADRs and GDRs) could be affected by factors not present in the U.S., including expropriation, confiscation of property, and difficulties in enforcing contracts. Compared to U.S.
companies, there generally is less publicly available information about foreign companies and there may be less governmental regulation and supervision of foreign companies. Foreign securities generally experience more volatility than their domestic counterparts.
You may lose money by investing in the Fund. The likelihood of loss may be greater if you invest for a shorter period of time.
By itself, the Fund does not constitute a complete investment plan and should be considered a long-term investment for investors who can afford to weather changes in the value of their investment.