Strategy. The Fund, under normal market conditions, will invest primarily in equity securities, including common stocks, preferred stocks and real estate investment trusts (REITs). The Fund is non-diversified, which means that it may invest a greater percentage of its assets in a particular issuer and may invest in fewer issuers than a diversified fund. Typically, the Funds portfolio will generally hold 20 to 40 securities. The Fund may invest in companies with any market capitalization, although, it will typically focus its investments in mid- to large-capitalization companies. A company will be considered to be a mid- to large- capitalization company if its capitalization is $5 billion or higher. Vaughan Nelson Investment Management, L.P. (Vaughan Nelson or the Subadviser) invests in companies … Show more… The Fund, under normal market conditions, will invest primarily in equity securities, including common stocks, preferred stocks and real estate investment trusts (REITs). The Fund is non-diversified, which means that it may invest a greater percentage of its assets in a particular issuer and may invest in fewer issuers than a diversified fund. Typically, the Funds portfolio will generally hold 20 to 40 securities. The Fund may invest in companies with any market capitalization, although, it will typically focus its investments in mid- to large-capitalization companies. A company will be considered to be a mid- to large- capitalization company if its capitalization is $5 billion or higher. Vaughan Nelson Investment Management, L.P. (Vaughan Nelson or the Subadviser) invests in companies of all market capitalizations with a focus on those companies meeting Vaughan Nelsons return expectations. Vaughan Nelson uses a bottom-up value oriented investment process in constructing the Funds portfolio. Vaughan Nelson seeks companies with the following characteristics, although not all of the companies selected will have these attributes: Companies earning a positive return on capital with stable-to-improving returns. Companies valued at discount to their asset value. Companies with an attractive and sustainable dividend level. In selecting investments for the Fund, Vaughan Nelson generally employs the following strategies: Vaughan Nelson employs a value-driven investment philosophy that selects securities selling at a relatively low value based on discounted cash flow models. Vaughan Nelson selects companies that it believes are out-of-favor or misunderstood. Vaughan Nelson starts with the entire U.S. equity investment universe. Vaughan Nelson then narrows the investment universe by using fundamental analysis to construct a portfolio of generally 20 to 40 securities. Vaughan Nelson uses fundamental analysis to construct a portfolio that, in the opinion of Vaughan Nelson, is made up of quality companies with the potential to provide significant increases in share price over a three year period. Vaughan Nelson will generally sell a security when it reaches Vaughan Nelsons price target or when the issuer shows a change in financial condition, competitive pressures, poor management decisions or internal or external forces reducing future expected returns from the investment thesis. Show less