The fund seeks capital appreciation in the long term by investing in small-size companies in the United States.

The sub-adviser’s investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.

Next, the research team invests in companies that are estimated to trade below their fair values.

The research process is driven by fundamental analysis of one stock at a time. In selecting

The fund seeks capital appreciation in the long term by investing in small-size companies in the United States.

The sub-adviser’s investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.

Next, the research team invests in companies that are estimated to trade below their fair values.

The research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research team focuses on companies with sustainable, niche business models with the potential for high returns on capital.

The team also reviews companies on the basis of factors such as balance sheet quality, profitability, liquidity, size, and risk profile.

Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.

The fund may focus its investments in a particular sector or sectors.

Also, the fund may invest up to 10% of its net assets in foreign securities including emerging-market securities and securities of non-U.S. companies traded on a U.S. exchange.

Additionally, the fund may invest in initial public offerings, real estate investment trusts or other real estate-related equity securities, and certain exchange-traded funds.

The fund also invests 10% or less of its net assets in cash and cash equivalents, including repurchase agreements, money market securities, U.S. government securities, and other short-term investments.

In addition, the fund may invest in derivatives to a limited extent.