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Principal Risks of
Investing in the Fund:
- Value
Risk. A company may be
undervalued due to market or economic conditions,
temporary earnings declines, unfavorable
developments affecting the company and other
factors, or because it is associated with a market
sector that generally is out of favor with
investors. Undervalued stocks tend to be inexpensive
relative to their earnings or assets compared to
other types of stock. However, these stocks can
continue to be inexpensive for long periods of time
and may not realize their full economic value.
-
Management Risk. The
advisor’s value-oriented approach may fail to
produce the intended results. If the advisor’s
perception of a company’s worth is not realized in
the expected time frame, the Fund’s overall
performance may suffer.
- Small-Cap
and Mid-Cap Risk. Stocks
of small-capitalization and mid-capitalization
companies are more risky than stocks of larger
companies. Many of these companies are young and
have a limited track record. Their securities may
trade less frequently and in more limited volume
than those of more mature companies. As a result,
small-and mid-cap stocks may be significantly more
volatile than larger-cap stocks. Small-cap and
mid-cap companies also may lack the managerial,
financial or other resources necessary to implement
their business plans or succeed in the face of
competition. The prospects for a company or its
industry may deteriorate because of a variety of
factors, including disappointing operating results
or changes in the competitive environment. It may be
difficult to sell a small-cap or mid-cap stock, and
this lack of market liquidity can adversely affect
the Fund’s ability to realize the market price of a
stock, especially during periods of rapid market
decline.
- Foreign
Risk. Foreign securities
may experience more rapid and extreme changes in
value than securities of U.S. companies because the
securities markets of many foreign countries are
relatively smaller than those in the U.S. Foreign
issuers are not subject to the same degree of
regulation as U.S. issuers. Also, nationalization,
expropriation or confiscatory taxation or political
changes could adversely affect the Fund’s
investments in a foreign country. There is a risk
that fluctuations in the exchange rates between the
U.S. dollar and foreign currencies may negatively
affect the value of the Fund’s investments in
foreign securities.
- Interest
Rate Risk. Changes in
interest rates will affect the value of the Fund’s
investments in debt securities. Increases in
interest rates may cause the value of the Fund’s
investments to decline and this decrease in value
may not be offset by higher interest income from new
investments. Interest rate risk is greater for
investments in junk bonds.
- Credit
Risk. Changes in the
financial strength of an issuer may affect the
issuer’s ability to repay principal and to make
timely interest payments. The degree of risk for a
particular security may be reflected in its credit
rating. Junk bonds are subject to greater credit and
market risk than higher rated securities.
- Company
Risk. The value of the
Fund may decrease in response to the activities and
financial prospects of an individual company in the
Fund’s portfolio. The value of an individual company
can be more volatile than the market as a whole.
- Market
Risk. Overall stock market
risks may also affect the value of the Fund. Factors
such as domestic economic growth and market
conditions, interest rate levels and political
events affect the securities markets and could cause
the Fund’s share price to fall.
- An investment in
the Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other
government agency.
- The Fund is not a
complete investment program. As with any mutual fund
investment, the Fund’s returns will vary and you
could lose money.
Is the Fund Right for You?
The Fund may be suitable for:
- Long-term
investors seeking a fund with a value investment
strategy
- Investors who can
tolerate the risks associated with common stock
investments
- Investors willing
to accept the greater market price fluctuations of
smaller companies
You should carefully consider the investment
objectives, potential risks, management fees, and charges and expenses
of the Fund before
investing.
The Fund's
Prospectus
contains this and other information about the Fund, and
should be read carefully before
investing.
You may obtain a current
copy of the Fund's
Prospectus
by calling
1-800-788-6086.
The Fund's past performance does not guarantee
future results. The investment return and
principal value of an investment in the Fund will
fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their
original cost. Current performance of the Fund
may be lower or higher than the performance quoted.
Performance data current to the most recent month
end may be obtained by calling 1-800-788-6086.
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