Strategy. Under normal market conditions, the Fund will invest at least 80% of its net assets plus any borrowings for investment purposes in equity securities issued by mid- and small-capitalization companies that BFA believes have above-average earnings growth potential. Equity securities include common stocks, preferred stocks, convertible securities, warrants and depositary receipts, though the Fund seeks to buy primarily common stock. Although universal definitions of small-capitalization companies and mid-capitalization companies do not exist, the Fund generally defines small-capitalization and mid-capitalization companies as those companies with market capitalizations, at the time of the Funds investment, comparable in size to the companies in the Russell 2500 Growth Index (between $11 million and $20 billion as of October 31, 2022). In the future, the … Show more… Under normal market conditions, the Fund will invest at least 80% of its net assets plus any borrowings for investment purposes in equity securities issued by mid- and small-capitalization companies that BFA believes have above-average earnings growth potential. Equity securities include common stocks, preferred stocks, convertible securities, warrants and depositary receipts, though the Fund seeks to buy primarily common stock. Although universal definitions of small-capitalization companies and mid-capitalization companies do not exist, the Fund generally defines small-capitalization and mid-capitalization companies as those companies with market capitalizations, at the time of the Funds investment, comparable in size to the companies in the Russell 2500 Growth Index (between $11 million and $20 billion as of October 31, 2022). In the future, the Fund may define small- or mid-capitalization companies using a different index or classification system. In selecting investments for the Fund, BFA focuses on equity securities of small- and mid-capitalization growth companies that are innovative. These are companies that have introduced, or are seeking to introduce, a new product or service that potentially changes the marketplace. In evaluating innovative companies, BFA seeks to identify, using its own internal research and analysis, companies capitalizing on innovation or that are enabling the further development of the theme of innovation in the markets in which they operate. The Fund may invest in shares of companies through initial public offerings (IPOs). The Fund may invest up to 25% of its assets in securities of foreign companies, including companies located in emerging markets. Foreign securities in which the Fund may invest may be U.S. dollar-denominated or non-U.S. dollar-denominated. The Fund may also invest in securities of other open- or closed-end investment companies, subject to applicable regulatory limits, that invest primarily in securities of the types in which the Fund may invest directly. The Fund classifies its investments in such investment companies as equity securities for purposes of its investment policies based upon such investment companies stated investment objectives, policies and restrictions. During temporary defensive periods ( i.e. , in response to adverse market, economic or political conditions), the Fund may depart from its principal investment strategies and may invest up to 100% of its total assets in liquid, short-term investments, including high quality, short-term securities. The Fund may not achieve its investment objectives under these circumstances. BFAs determination that it is temporarily unable to follow the Funds investment strategy or that it is impractical to do so will generally occur only in situations in which a market disruption event has occurred and where trading in the securities selected through application of the Funds investment strategy is extremely limited or absent. The Fund may lend securities representing up to one-third of the value of the Fund's total assets (including the value of the collateral received). Show less