Investment objective & strategy
As of Oct. 31, 2025 · prospectusObjective. The funds investment objective is to seek capital appreciation.
Strategy. Under normal market conditions, the fund invests at least 80% of its net assets in common stocks and other equity-type securities (including preferred stock, convertible securities and hybrid securities) of small and mid-capitalization companies in the United States. The investment adviser currently defines small and mid-capitalization companies to be companies whose market capitalizations typically fall within the range of the Russell 2500 Index or the Russell Midcap Index. As of July 1, 2025, the largest company for the Russell 2500 Index had a market capitalization of approximately $24.1 billion and the largest company for the Russell Midcap Index had a market capitalization of approximately $83.3 billion. The market capitalization of the companies included in the Russell 2500 Index and the … Under normal market conditions, the fund invests at least 80% of its net assets in common stocks and other equity-type securities (including preferred stock, convertible securities and hybrid securities) of small and mid-capitalization companies in the United States. The investment adviser currently defines small and mid-capitalization companies to be companies whose market capitalizations typically fall within the range of the Russell 2500 Index or the Russell Midcap Index. As of July 1, 2025, the largest company for the Russell 2500 Index had a market capitalization of approximately $24.1 billion and the largest company for the Russell Midcap Index had a market capitalization of approximately $83.3 billion. The market capitalization of the companies included in the Russell 2500 Index and the Russell Midcap Index will change with market conditions. The fund strives to maintain a fully invested portfolio. The fund is nondiversified, which allows it to invest a greater percentage of its assets in any one issuer than would otherwise be the case. The investment adviser uses a system of multiple portfolio managers in managing the funds assets. Under this approach, a portfolio is divided into segments managed by individual managers. For more information regarding the investment process of the fund, see the Management and organization section of this prospectus. The fund relies on the professional judgment of its investment adviser to make decisions about the funds portfolio investments. The basic investment philosophy of the investment adviser is to seek to invest in attractively valued companies that, in its opinion, represent good, long-term investment opportunities. Securities may be sold when the investment adviser believes that they no longer represent relatively attractive investment opportunities.
Top holdings
As of Feb. 28, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| CAPITAL GROUP CENTRAL CASH FUND | CMQXX | $12.85M | 3.31% |
| US FOODS HOLDING CORP | — | $10.15M | 2.62% |
| VAIL RESORTS INC | — | $7.36M | 1.90% |
| EXELON CORP | — | $7.33M | 1.89% |
| BROWN & BROWN | — | $7.11M | 1.83% |
| RENAISSANCERE HLDGS LTD | — | $7.03M | 1.81% |
| COMFORT SYSTEMS USA INC | — | $6.90M | 1.78% |
| LKQ CORP | — | $6.60M | 1.70% |
| YUM! BRANDS INC | — | $5.81M | 1.50% |
| CAPITAL ONE FINANCIAL CORP | — | $5.55M | 1.43% |
Portfolio moves
Nov 30, 2025 → Feb 28, 2026How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.
Similar funds
Funds whose portfolios most overlap this one, by weight| Fund | Overlap | Net exp. |
|---|---|---|
| U.S. Small and Mid Cap Equity Fund | 91% | 0.54% |
| Capital Group U.S. Small and Mid Cap ETF · CGMM | 81% | 0.51% |
| SMALLCAP World Fund Inc · SMCWX, RSLAX, RSLBX, RSLCX, RSLEX, RSLFX, SCWCX, SCWFX, CSPAX, CSPCX, CSPEX, CSPFX, SMCFX, RLLGX, RSEBX, RSLDX, SFCWX, TWSFX, TSFFX, FSWFX, FSFWX | 21% | 0.65% |
Footnotes
- Expense ratio as of October 31, 2025, from the fund's prospectus.
- Net assets and holdings count as of February 28, 2026, from the fund's N-PORT filing.
- Total return for calendar year 2025, before tax and after fund expenses. Computed by compounding the twelve monthly total returns the fund reported in its SEC N-PORT filings for 2025 (the latest prospectus does not yet chart this year).
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