Strategy. The Fund, under normal market conditions, will invest primarily in equity securities, including common stocks, preferred stocks, limited partnership interests, interests in limited liability companies, real estate investment trusts (REITs) or other trusts and similar securities. 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 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. While the Fund typically invests in equity securities, it may also invest in debt securities, including below investment grade fixed-income securities (commonly … Show more… The Fund, under normal market conditions, will invest primarily in equity securities, including common stocks, preferred stocks, limited partnership interests, interests in limited liability companies, real estate investment trusts (REITs) or other trusts and similar securities. 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 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. While the Fund typically invests in equity securities, it may also invest in debt securities, including below investment grade fixed-income securities (commonly known as junk bonds). A fixed-income security is considered below investment grade quality when none of the three major rating agencies (Moodys Investors Service, Inc., Fitch Ratings, Inc. or S&P Global Ratings) have rated the securities in one of their top four ratings categories. Vaughan Nelson Investment Management, L.P. (Vaughan Nelson) 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. exchange-traded equity investment universe. Vaughan Nelson then narrows the investment universe by using fundamental analysis to construct a portfolio of 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 also employ its value driven investment philosophy to identify out-of-favor or misunderstood debt securities. 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. The Fund also may: Invest in convertible preferred stock and convertible debt securities. Invest in publicly traded master limited partnerships. Invest in foreign securities, including emerging market securities, traded in U.S. markets directly or through depositary receipt programs such as American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs). Invest in REITs. Invest in securities offered in initial public offerings (IPOs), securities issued pursuant to Rule 144A under the Securities Act of 1933 (Rule 144A securities) and other privately placed investments such as private equity investments. Show less