The investment objective of the Small Cap Value strategy is capital appreciation. This strategy normally invests its assets in common stocks of small capitalization U.S. companies whose stocks we consider to be undervalued. We consider small cap companies to be those with market capitalizations at the time of purchase in the range of those found in the Russell 2000® Value Index.
The Small Cap Value strategy may also invest in stocks with high cash dividends or payout yields relative to its broader index. However, it may also invest in stocks that do not pay dividends, have growth potential unrecognized by the market or have undergone changes in business or management that indicate growth potential.