Equity Securities Risk - The value of equity
securities held by the Fund may decline as a result of factors directly related to a company, a particular industry or industries, or general market
conditions that are not specifically related to a company or an industry.
Market Risk - The
value of the Fund’s investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting (or perceived to affect) specific issuers
held by the Fund, particular industries represented in the Fund’s portfolio, or the overall securities markets. A variety of factors can increase the
volatility of the Fund’s holdings and markets generally, including political or regulatory developments, recessions, inflation, deflation, rapid
interest rate changes, bank failures, war or acts of terrorism, sanctions, tariffs, natural disasters, outbreaks of infectious illnesses or other
widespread public health issues, general outlook for corporate earnings, or adverse investor sentiment generally. Certain events may cause instability
across global markets, including reduced liquidity and disruptions in trading markets, while some events may affect certain geographic regions, countries,
sectors and industries more significantly than others. These adverse developments may cause broad declines in an issuer’s value due to short-term market movements or for significantly longer periods during more prolonged market downturns.
Foreign Securities Risk - Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse issuer, political, geopolitical (including war or armed conflict), regulatory, market,
currency valuation, or economic or other developments, and can perform differently than the U.S. market. Current tariffs, sanctions, or the threat of
potential tariffs, sanctions or similar measures may also impair the value or liquidity of affected securities and negatively impact the Fund.
Currency Risk - Adverse fluctuations in exchange rates between the U.S. dollar and other currencies may cause the Fund to lose money on investments denominated in foreign currencies.
Growth Stock Risk - A growth style of investing is subject to the risk that returns on growth stocks are less than returns on other styles of investing or the overall stock market. Growth stocks can be volatile for several reasons. Since they usually reinvest a high proportion of earnings in their own business, they may not pay the dividends usually associated with value stocks that can cushion their decline in a falling market. Also, since investors buy these stocks because of the expected superior earnings growth, earnings disappointments may result in sharp price declines.
Geographic Concentration
Risk - Events negatively affecting the fiscal stability of a particular country or region in which the Fund focuses its investments may cause the value of its shares to decrease, perhaps significantly.
Emerging Markets Risk - Emerging market countries
generally have economic structures that are less diverse and mature, and political systems that are less stable, than those of developed countries. The
economies of countries with emerging markets may be based predominantly on only a few industries, may be highly vulnerable to changes in local or global
trade conditions, and may suffer from limited reliable access to capital, extreme debt burdens, less established financial market operations or volatile
inflation rates. The securities markets of emerging market countries may be subject to manipulation and have historically been extremely volatile and less liquid than more developed markets. These market conditions may continue or worsen. Investments in these countries may be subject to heightened political, geopolitical (including war or armed conflict), economic, legal, market, currency and tariff risks, as well as other adverse local or regional developments, including heightened risk of war and ethnic, religious and racial conflicts. The imposition of sanctions, exchange controls (including repatriation restrictions), confiscations, trade restrictions (including tariffs), and other government restrictions by the U.S. and other governments, as well as problems in share registration, settlement or custody, may also result in losses. Differences in regulatory, accounting, auditing, and financial reporting and recordkeeping standards could impede the availability of reliable information to evaluate and monitor local companies and impact the Fund’s performance. There is also the risk of adverse foreign currency exchange rate fluctuations, which may cause the value of securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time.
Large-Size Company Risk - Large-size companies are
generally more mature and may be unable to respond as quickly as smaller companies to new competitive challenges, such as changes in technology and
consumer tastes, and may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion.
Small- and Medium-Size Company Risk - The stocks of
small- and medium-size companies often trade in lower volumes, may be less liquid, and are subject to greater or more unpredictable price changes than
stocks of larger companies. Such companies may also have limited markets, financial resources or product lines, may lack management depth, and may be more
vulnerable to adverse business or market developments. Accordingly, stocks of small- and medium-size companies tend to be more sensitive to changing economic, market, and industry conditions, tend to be more volatile and less liquid than stocks of larger companies, especially over the short term, and are less likely to survive or accomplish their goals, with the result that the value of their stock could decline significantly. In addition, there may be less publicly available information concerning small- and medium-size companies upon which to base an investment decision.
