Under normal circumstances, the fund invests at least 80% of its net assets, plus borrowings for investment purposes, if any, in common stocks and other equity securities of small capitalization U.S. companies or in other investments with similar economic characteristics. Small capitalization companies are those companies whose market capitalizations at the time of investment do not exceed (i) $3 billion or (ii) the highest month-end market capitalization value of any stock in the Russell 2000 Index (the “Index”) for the previous 12 months, whichever is greater. Securities of companies whose market capitalizations no longer meet this definition after purchase by the fund still will be considered to be securities of small capitalization companies for purposes of the fund’s 80% investment policy. The size of companies in the Index changes with the market conditions and the composition of the Index. Equity securities in which the fund may invest include common stocks, preferred securities, convertible securities, securities of other investment companies and of real estate investment trusts (“REITs”), warrants and rights. The fund may invest up to 20% of its net assets in shares of companies with larger market capitalizations. The fund may invest up to 20% of its net assets (at the time of investment) in foreign securities.