Fiscal Year End
The fund seeks long-term growth of capital by investing primarily in common stocks of small growth companies.
The fund will normally invest at least 80% its net assets in small-cap growth companies defined as those whose market capitalization is within the range of or smaller than the Standard & Poorís 500 Index. The portfolio will be very broadly diversified, and the top 25 holdings will not constitute a large portion of assets. This broad diversification should minimize the effects of individual security selection on fund performance.
The fund could be appropriate for a portion of your stock investments if you seek capital growth over a long period and are comfortable with the fundís risk profile. The fund can be used in both regular and tax-deferred accounts, such as IRAs.
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Small companies may offer greater opportunity for capital appreciation than larger, more established companies. Also, the fundís broad diversification may make it less volatile than small-cap growth funds that have more concentrated portfolios. In addition, portfolio turnover should be lower than in the average small-cap fund, which may reduce the investorís potential capital gains tax exposure.
The fundís share price can fall because of weakness in the broad market, a particular industry, or specific holdings. Investing in small companies involved greater risk than is customarily associated with larger companies. In addition, growth stocks can have steep price declines if their earnings disappoint investors. Finally, the fundís investment approach could fall out of favor with the investing public, resulting in lagging performance versus other types of stock funds.