Market Risk - This is the risk that the value of the
Fund's investments will fluctuate as the stock markets
fluctuate and that prices overall will decline, perhaps severely,
over short-term or long-term periods. You may lose money by
investing in the Fund.
Value Investing Risk - Investing
in undervalued securities involves the risk that such securities may
never reach their expected market value, either because the market
fails to recognize a security's intrinsic worth or the expected value
was misgauged. Such securities may decline in value even though they
are already undervalued.
Non-Diversification Risk - The Fund
is ''non-diversified,'' meaning that it invests its assets in a smaller
number of companies than many other funds. As a result, your investment
in the Fund has the risk that changes in the value of a single security
may have a significant effect, either negative or positive, on the
Fund's net asset value per share (''NAV'').
Foreign (Non-U.S.) Risk. - This is the
risk that the value of the Fund's investments in securities of foreign
issuers will be affected adversely by foreign economic, social and
political conditions and developments or by the application of foreign
legal, regulatory, accounting and auditing standards or foreign taxation
policies or by currency fluctuations and controls. The risks to the Fund
and, therefore, to yourinvestment in the Fund, of investing in foreign
securities include expropriation, settlement difficulties, market illiquidity
and higher transaction costs. The prices of foreign securities may move in
a different direction than the prices of U.S. securities. In addition, the
prices of foreign securities may be more volatile than the prices of U.S.
Currency Risk - This refers to the risk
that securities that trade or are denominated in currencies other than
the U.S. Dollar may be affected by fluctuations in currency exchange
rates. An increase in the strength of the U.S. Dollar relative to a foreign
currency will generally cause the U.S. Dollar value of an investment
denominated in that currency to decline. Currency risk may be hedged or
unhedged. Unhedged currency exposure may result in gains or losses as a
result of a change in the relationship between the U.S. Dollar and the
respective foreign currency.
Small-Cap and Mid-Cap Company Risk
- Investing in securities of small-cap and mid-cap companies may involve
greater risks than investing in securities of larger, more established
issuers. Small-cap and mid-cap companies may be engaged in business within
a narrow geographic region, be less well-known to the investment community
and have more volatile share prices. These companies often lack management
depth and have narrower market penetrations, less diverse product lines and fewer
resources than larger companies. Moreover, the securities of such companies often
have less market liquidity and, as a result, their stock prices often react more
strongly to changes in the marketplace.
Risks of Investing in a Managed Fund
- Performance of individual securities can vary widely. The investment decisions
of the Adviser may cause the Fund to underperform other investments orbenchmark
indices. The Fund may also underperform other mutual funds with similar investment
strategies. The Adviser may be incorrect in assessing a particular industry or
company, including the anticipated earnings growth of the company. The Adviser may
not buy securities at the lowest possible prices or sell securities at the highest
possible prices. As with any mutual fund investment, there can be no guarantee that
the Fund will achieve its investment goals.
When there is no willing buyer and a security cannot be readily sold at the desired
time or price, the Fund may need to accept a lower price or may not be able to sell
the security at all. An inability to sell securities, at the Fund's desired price or
at all, can adversely affect the Fund's value or prevent the Fund from being able to
take advantage of other investment opportunities.