Strategy. Under normal circumstances, the Fund will invest at least 80% of its net assets (plus any borrowings made for investment purposes) in mid-capitalization companies. For these purposes, mid-capitalization companies are those that, at the time of purchase, have market capitalizations within the capitalization range of the Russell Midcap Value Index, an unmanaged index that measures the performance of companies with lower price-to-book ratios and lower forecasted growth values within the broader Russell Midcap Index. While the market capitalization range for the Russell Midcap Value Index fluctuates, at December 31, 2024, it was $355.11 million to $70.9 billion. However, the Fund may invest in companies with smaller or larger capitalizations. Equity securities may take the form of stock in corporations, limited … Show more… Under normal circumstances, the Fund will invest at least 80% of its net assets (plus any borrowings made for investment purposes) in mid-capitalization companies. For these purposes, mid-capitalization companies are those that, at the time of purchase, have market capitalizations within the capitalization range of the Russell Midcap Value Index, an unmanaged index that measures the performance of companies with lower price-to-book ratios and lower forecasted growth values within the broader Russell Midcap Index. While the market capitalization range for the Russell Midcap Value Index fluctuates, at December 31, 2024, it was $355.11 million to $70.9 billion. However, the Fund may invest in companies with smaller or larger capitalizations. Equity securities may take the form of stock in corporations, limited partnership interests, interests in limited liability companies, real estate investment trusts (REITs) or other trusts and similar securities representing direct or indirect ownership interests in business organizations. Vaughan Nelson Investment Management, L.P. (Vaughan Nelson) invests in medium-capitalization companies 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 a 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 stocks selling at a relatively low value based on business fundamentals, economic margin analysis and discounted cash flow models. Vaughan Nelson selects companies that it believes are out of favor or misunderstood. 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 those expected at the time of investment. The Fund may also: Invest in foreign securities, including emerging markets securities. Invest in other investment companies, to the extent permitted by the Investment Company Act of 1940. 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