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. The impact of any epidemic, pandemic or
natural disaster, 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
volatility than securities of large capitalization
companies, which can negatively affect the Fund’s
ability to sell these securities at quoted market prices.
• Smaller Capitalization Companies Risk - Small
capitalization companies typically have relatively
lower revenues, limited product lines and lack of
management depth, and may have a smaller share of
the market for their products or services, as compared
to large and medium capitalization companies. There is
a risk that the securities of small capitalization
companies may have limited liquidity and greater price