Strategy. In seeking to meet its investment objective, under normal conditions, at least 80% of the Equity Funds assets will be invested in a diversified portfolio of common stocks according to the investment style of the Adviser. For purposes of this policy, assets shall mean net assets plus the amount of any borrowings for investment purposes (although the Equity Fund is not currently authorized by the Board to do so). The Adviser invests primarily in companies domiciled in the United States and chooses investments in common stocks based on its judgment of fundamental value, which emphasizes stocks that the Adviser judges to have favorable dividend yields and growth prospects relative to comparable companies. Factors deemed particularly relevant in determining fundamental value … Show more… In seeking to meet its investment objective, under normal conditions, at least 80% of the Equity Funds assets will be invested in a diversified portfolio of common stocks according to the investment style of the Adviser. For purposes of this policy, assets shall mean net assets plus the amount of any borrowings for investment purposes (although the Equity Fund is not currently authorized by the Board to do so). The Adviser invests primarily in companies domiciled in the United States and chooses investments in common stocks based on its judgment of fundamental value, which emphasizes stocks that the Adviser judges to have favorable dividend yields and growth prospects relative to comparable companies. Factors deemed particularly relevant in determining fundamental value include: ? earnings ? dividend and market price histories ? balance sheet characteristics ? perceived management skills Changes in economic and political outlooks, as well as corporate developments affecting individual companies, can influence specific security prices. The Equity Fund typically invests in stocks of companies that have a total market capitalization of at least $10 billion and, in the Advisers opinion, have institutional ownership that is sufficiently broad to provide adequate liquidity suitable to the Funds holdings. The Adviser uses both top-down and bottom-up approaches, and investment selections are made using a fundamental approach. Top-down research involves the study of economic trends in the domestic and global economy, such as the fluctuation in interest or unemployment rates. These factors help to identify industries and sectors with the potential to outperform as a result of major economic developments. Bottom-up research involves detailed analysis of specific companies. Important factors include industry characteristics, profitability, growth dynamics, industry positioning, strength of management, valuation and expected return for the foreseeable future. Particular attention is paid to a companys ability to pay or increase its current dividend. The Adviser will sell securities for any one of three possible reasons: ? When another company is found by the Adviser to have a higher current dividend yield or better potential for capital appreciation and dividend growth. ? If the industry moves in an unforeseen direction that negatively impacts the positioning of a particular investment or if the companys strategy, execution or industry positioning itself deteriorates. The Adviser develops specific views on how industries are likely to evolve and how individual companies will participate in industry growth and change. ? If the Adviser believes that a companys management is not acting in a forthright manner. The Fund may lend portfolio securities to brokers, dealers and other financial organizations that meet capital and other credit requirements or other criteria established by the Funds Board. Loans of portfolio securities will be collateralized by liquid securities and cash. The Fund may invest cash collateral received in securities consistent with its principal investment strategy. Show less