Investment Strategies of the Fund
Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities of foreign issuers. The Fund may also invest up to 30% of its total assets in emerging market equity securities. The Fund will invest in securities of at least three different countries,
including the United States. The Fund normally invests in common stock, preferred stock, rights, warrants and
American Depository Receipts (ADRs). The Subadviser considers equity securities of foreign issuers (or foreign
securities) to be equity securities: (1) issued by companies with their principal place of business or
principal office or both, as determined in their reasonable discretion, in a country other than the U.S.; or
(2) issued by companies for which the principal securities trading market is a country other than the
The Subadviser uses bottom-up stock selection, based on in-depth fundamental research as the cornerstone of their investment process. During each stage of the process, it also considers the influence on the investment theses of top-down factors such as macroeconomic forecasts, real economic growth prospects, fiscal and monetary policy, currency issues, and demographic and political risks. Sector and country weights result from, rather than determine, their stock-selection decisions. The Subadviser’s investment process seeks companies that it believes are undervalued in the marketplace compared to
their intrinsic value. Additionally, the Subadviser seeks to identify catalysts that will unlock value, which
will then be recognized by the market. The Subadviser may purchase securities across any market capitalization
and may use forward foreign currency exchange rate contracts to hedge against the movement in the value of
The Subadviser conducts ongoing review, research, and analysis of their portfolio holdings. The Fund may sell a stock if it achieves its investment objective for the position,
if a stock’s fundamentals or price change significantly, if they change their view of a country or
sector, or if the stock no longer fits within the risk characteristics of the Fund’s portfolio.
In order to
generate additional income, the Fund may lend portfolio securities to broker-dealers and other financial
institutions provided that the value of the loaned securities does not exceed 30% of the Fund’s total
assets. These loans earn income for the Fund and are collateralized by cash and securities issued or guaranteed
by the U.S. Government or its agencies or instrumentalities. Investors will be given at least 60 days’
written notice in advance of any change to the Fund’s 80% investment policy set forth above.
Risks of Investing in the Fund
As with any mutual fund, there can be no assurance that the Fund’s investment objective will be met or that the net return on an investment in the Fund will exceed what could
have been obtained through other investment or savings vehicles. Shares of the Fund are not bank deposits and are not guaranteed or insured by any bank, government entity or the Federal Deposit Insurance Corporation. If the value of the assets of the Fund goes down, you could lose money.
The following is a summary of the principal risks of investing in the Fund.
Management Risk. The investment style or strategy used by the subadviser may fail to produce the intended result. The subadviser’s assessment of a particular security or
company may prove incorrect, resulting in losses or underperformance.
Equity Securities Risk. The Fund invests predominantly in equity securities and is therefore subject to the risk that stock prices will fall and may underperform other asset classes. Individual stock prices fluctuate from day-to-day and may decline significantly. The prices of individual stocks may be negatively affected by poor company results or other factors affecting individual prices, as well as industry and/or economic trends and developments affecting industries or the securities market as a whole.
Derivatives Risk. The prices of derivatives may move in unexpected ways due to the use of leverage and other factors and may result in increased volatility or losses. The Fund may not be able to terminate or sell derivative positions, and a liquid secondary market may not always exist for derivative positions.
Large-Cap Companies Risk. Investing in large-cap companies carries the risk that due to current market conditions these companies may be out of favor with investors. Large-cap companies may be unable to respond quickly to new competitive challenges or attain the high growth rate of successful smaller companies.
Mid-Cap Company Risk. Investing in mid-cap companies carries the risk that due to current market conditions these companies may be out of favor with investors. Stocks of mid-cap companies may be more volatile than those of larger companies due to, among other reasons, narrower product lines, more limited financial resources and fewer experienced managers.
Small-Cap Company Risk. Investing in small-cap companies carries the risk that due to current market conditions these companies may be out of favor with