Strategy. Under normal market conditions, the portfolio managers will invest at least 80% of the funds net assets in small cap companies. The portfolio managers consider small cap companies to include those with market capitalizations no larger than that of the largest company in the S&P Small Cap 600 Index or the Russell 2000 Index. Though market capitalization will change from time to time, as of June 30, 2025 , the market capitalizations of the largest companies in the S&P Small Cap 600 Index and the Russell 2000 Index were $13.02 billion and $15.89 billion , respectively. In selecting stocks for the fund, the portfolio managers look for equity securities of smaller companies whose stock price may not reflect the companys … Show more… Under normal market conditions, the portfolio managers will invest at least 80% of the funds net assets in small cap companies. The portfolio managers consider small cap companies to include those with market capitalizations no larger than that of the largest company in the S&P Small Cap 600 Index or the Russell 2000 Index. Though market capitalization will change from time to time, as of June 30, 2025 , the market capitalizations of the largest companies in the S&P Small Cap 600 Index and the Russell 2000 Index were $13.02 billion and $15.89 billion , respectively. In selecting stocks for the fund, the portfolio managers look for equity securities of smaller companies whose stock price may not reflect the companys value, with a focus on companies with a favorable income-paying history that have prospects for income payments to continue or increase. The portfolio managers consider a company to have a favorable income-paying history if, since the company began paying dividends, it has shown a track record of consistent dividend payments in normal market environments. To determine whether a company has prospects for income payments to continue or increase, the investment team analyzes the projected earnings power of the company relative to the income payout ratio. The investment team conducts bottom up, fundamental research to analyze the fair value of a companys business based on financial quality, business quality, and management quality using a proprietary scorecard and a price target system for the stock. The team arrives at price targets using estimated revenue, profit, and multiple assumptions for the periods one and three years in the future to determine if the stock is currently undervalued, fairly valued, or overvalued. The managers attempt to purchase the stocks of these undervalued companies and hold each stock until the price has increased to, or is higher than, a level the managers believe more accurately reflects the fair value of the company. The fund may invest in equity securities issued by real estate investment trusts (REITs) and, depending on the appropriateness to the fund's strategy and availability in the marketplace, purchase securities of companies in initial public offerings (IPOs) or shortly thereafter. The portfolio managers may sell stocks from the funds portfolio if they believe a stock no longer meets their valuation criteria, a stocks risk parameters outweigh its return opportunity, more attractive alternatives are identified or specific events alter a stocks prospects. The fund may engage in active and frequent trading of portfolio securities to achieve its principal investment strategies. This may cause higher transaction costs and may affect performance. It may also result in the realization and distribution of capital gains. Show less