Principal Investment Strategy
The Fund pursues its investment objective by investing primarily in common stocks of companies that currently pay dividends or are expected to begin paying dividends in the near future, with an emphasis on high quality growing businesses of companies that have increased their dividends over time. The Fund seeks to invest in companies that are paying a growing dividend and that can be purchased at a valuation deemed reasonable by the Adviser.
The Fund may invest in securities of companies that are mid or large cap, but will invest primarily in large cap securities.
The Fund, under normal circumstances, will invest at least 80% of its net assets in dividend paying equity securities and securities immediately convertible or exchangeable into common stock traded on U.S. exchanges and issued by established companies. This includes foreign companies listed or traded on U.S. exchanges or American and Global Depositary Receipts (ADRs and GDRs) of foreign companies. The Fund will not change this policy unless it notifies shareholders at least 60 days in advance.
In making investment decisions for the Fund, the Adviser will invest the Fund's assets in stocks of companies that have exhibited characteristics of a high-quality growing business. The Adviser seeks to identify companies that have a track record of paying out, or the capability of paying out, higher dividends over time and can be purchased at a valuation deemed reasonable by the Adviser. The Adviser may sell a security if it believes the price objective for the stock has been reached, if more attractive opportunities are identified, or if the fundamentals of the company deteriorate.
For purpose 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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Growth stocks may be more sensitive to changes in current or expected earnings than the values of other stocks, and they may fall out of favor if the companies' earnings growth does not meet expectations.
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Large cap dividend paying stocks may fall out of favor relative to the overall market.
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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 strategies effectively.
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A company's earnings or dividends may not increase as expected.
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An issuer's credit quality may be downgraded, an issuer defaults, or the rate of inflation increases.
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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.