Strategy. Under normal circumstances, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of small -capitalization companies. The equity securities in which the Fund invests are primarily domestic common stock, but may also include securities of real estate investment trusts (REITs), warrants, rights, American Depositary Receipts (ADRs), and shares of investment companies, including exchange -traded funds (ETFs) designed to track small cap indices. The Funds advisor, Kennedy Capital Management LLC (the Advisor), defines small -capitalization companies as those with market capitalizations within the range of companies included in the Russell 2000 Value Index (the Index) at the time of purchase. The capitalization range of companies in the Index may change with … Show more… Under normal circumstances, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of small -capitalization companies. The equity securities in which the Fund invests are primarily domestic common stock, but may also include securities of real estate investment trusts (REITs), warrants, rights, American Depositary Receipts (ADRs), and shares of investment companies, including exchange -traded funds (ETFs) designed to track small cap indices. The Funds advisor, Kennedy Capital Management LLC (the Advisor), defines small -capitalization companies as those with market capitalizations within the range of companies included in the Russell 2000 Value Index (the Index) at the time of purchase. The capitalization range of companies in the Index may change with market conditions or due to changes in the composition of the Index. As of March 31, 2025, the market capitalization range of the companies comprising Index was between $1.0 million and $14.9 billion. Investments in companies that move above or below the capitalization range of the companies comprising the Index may continue to be held by the Fund in the Advisors sole discretion. The market capitalization of a security is measured at the time of purchase. In seeking to achieve the Funds investment objective, the Advisors investment approach utilizes fundamental, bottom -up research to identify companies that are able to reinvest in their businesses at attractive rates of return, and invest in those companies when prices do not, in the view of the Advisor, adequately reflect the companies potential value creation from those investments. The Advisor believes that the operating cash -flow returns of a business is the best measure of a companys performance and that the ability to reinvest cash flows into high return projects creates a powerful compounding effect, which in turn creates value for shareholders over time. The Advisor works in tandem with a research team of sector -specific analysts to perform fundamental analysis on new potential ideas for the strategy, as well as existing holdings, in order to invest across the full spectrum of value opportunities. Each company under consideration for investment is initially classified by the Advisors research team as one of these investment types: (i) Steady Compounder, (ii) Material Positive Change, (iii) Out of Favor, and (iv) Deep Value. Companies classified as Steady Compounder are established companies that are able to sustain evaluated levels of asset growth, have consistently high or expanding returns on invested capital and have high barriers to entry. Companies classified as Material Positive Change demonstrate structural change (e.g., management divesting an underperforming business segment) that improves asset growth and/or returns on invested capital (ROIC) or cash flow return on investment (CFROI) have a growth profile post -change and can be found anywhere along the growth life cycle. Companies classified as Out of Favor are those companies whose intrinsic business returns are undervalued and experience near term negative sentiment. Companies classified as Deep Value are those companies with a significant gap between intrinsic and market valuations and whose current levels of growth and ROIC/CFROI may be weak in comparison to their peers. This labor intensive, bottom -up approach, combined with discounted cash -flow valuation analysis, forms the basis of the Advisors investment process. The Advisor may sell all or a portion of a position of the Funds portfolio holding when in its opinion one or more of the following occurs, among other reasons: (i) there is a change in the Advisors analysis on a particular issuer; (ii) a companys stock price is at the high end of the companys historical range; (iii) the issuers fundamentals deteriorate; (iv) the Advisor identifies more attractive investment opportunities for the Fund; (v) the issuers market capitalization consistently exceeds the capitalization range of the Index; or (vi) the Fund requires cash to meet redemption requests. Show less