for companies that have some or all of the following
attributes:
• a presence in expanding industries
• a superior and pragmatic growth strategy
• proprietary products, processes or services
• a potential for above-average unit and earnings growth
In pursuing its investment objective, the Fund has the
discretion to purchase some securities that do not meet its
normal investment criteria. In particular, the Fund may invest
in companies that are not now “blue chip” companies, but
which the Fund’s investment adviser believes have the
potential to become “blue chip” companies. These include:
• leading companies in smaller industries
• lesser known companies moving from a lower to a
higher market share position within their industry
group
The Fund’s investment adviser will generally sell a
portfolio security when the investment adviser believes:
• the security has achieved its value potential
• changing fundamentals signal a deteriorating value
potential
• other securities have a better performance potential
While this sell discipline may result in higher annual
portfolio turnover rates for the Fund, it also causes the Fund to
keep seeking better alternatives.
Principal Risks
Investors in the Fund may lose money. There are risks
associated with investments in the types of securities in which
the Fund invests. These risks include:
• Market Risk - The prices of the securities in which the
Fund invests may decline in response to adverse issuer,
political, regulatory, market, economic or other
developments that may cause broad changes in market
value, public perceptions concerning these
developments, and adverse investor sentiment or
publicity. In particular, events like the Russian military
invasion of Ukraine and the resulting actions taken by
the United States and European Union in levying broad
economic sanctions against Russia could continue to
have adverse effects on the price and liquidity of
investments, which could adversely affect financial
markets, and therefore, Fund performance. Similarly,
the recent conflict between Israel and Hamas in Gaza,
and the threat of future hostilities in the broader Middle
East region, may have similar adverse effects on
market volatility and global economic growth which
could adversely affect Fund performance. The impact
of any epidemic, pandemic or natural disaster, such as
COVID-19, or widespread fear that such events may
occur, could also negatively affect the global economy,
as well as the economies of individual countries, the
financial performance of individual companies and
sectors, and the markets in general in significant and
unforeseen ways. The risk of trade disputes with other
countries, the possibility of changes to some
international trade agreements, and government or
regulatory actions, including the imposition of tariffs or
other protectionist actions, could affect the economies
of many nations, including the United States, in ways
that cannot necessarily be foreseen at the present time.
The price declines of common stocks, in particular,
may be steep, sudden and/or prolonged. Price and
liquidity changes may occur in the market as a whole,
or they may occur in only a particular company,
industry, sector, or geographical region of the market.
These effects could negatively impact the Fund’s
performance.
• Growth Investing Risk - The investment adviser may
be wrong in its assessment of a company’s potential for
growth and the growth stocks the Fund holds may not
grow as the investment adviser anticipates. Finally,
there are periods when investing in growth stocks falls
out of favor with investors and these stocks may
underperform.
• Technology Companies Risk - Technology
companies may be subject to greater business risks and
may be more sensitive to changes in economic
conditions than other companies. The earnings of
technology companies may fluctuate more than those
of other companies because of short product cycles
(technological obsolescence) and competitive pricing.
Finally, there are periods when investing in stocks of
technology companies falls out of favor with investors
and these stocks may underperform.
• Consumer Discretionary Companies Risk - The
success of consumer product manufacturers and
retailers is tied closely to the performance of the
overall domestic and international economy, interest
rates, competition and consumer confidence. The
earnings of such companies may also be closely tied to
disposable household income and consumer spending.
• Medium Capitalization Companies Risk - There is a
risk that the securities of medium capitalization
companies may have limited liquidity and greater price