The fund normally invests at least 80% of its net assets (plus any borrowings for investment purposes) in securities of small-cap companies. The fund defines a small-cap company as a company whose market capitalization falls below the maximum market capitalization in the Russell 2000® Index, MSCI USA Small Cap Index, or MSCI World Small Cap Index (after systematically removing any companies that cannot reasonably be considered a small-cap company from the high end of the range of each index).

The market capitalizations of the companies in the indexes change over time and the indexes are periodically reconstituted to ensure that they continue to accurately reflect the small-cap equity market. As of December 31, 2025, the largest market capitalization represented across these indexes (after removing any outlier companies) was $30 billion. Any derivatives that provide exposure to the investment focus suggested by the fund’s name, or to one or more market risk factors associated with the investment focus suggested by the fund’s name, are counted (as applicable) toward compliance with the fund’s 80% investment policy.

The fund primarily invests in common stocks. Some of the principal measures used to identify stocks are: price/earnings ratio, price/book value ratio, dividend yield, price/cash flow, undervalued assets, and/or restructuring opportunities.

The fund intends to widely diversify holdings by industry and issuer, and stock selection will result in a blended style which may reflect either a growth or value investment approach. A growth approach may look for companies with above average sales and earnings growth, and a value approach may seek to invest in companies whose stock prices are low in relation to their real worth or future prospects.

While most assets are typically invested in U.S. common stocks, the fund may invest in foreign stocks in keeping with its objective(s).

At times, the fund may have a significant portion of its assets invested in the same economic sector, such as industrial and business services.