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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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