Fund Description

The fund seeks capital appreciation by investing primarily in a diversified portfolio of equity securities, including common and preferred stock. Under normal circumstances, it invests at least 80% of net assets (plus borrowings for investment purposes) in equities of companies the adviser views as undervalued with good prospects for long-term capital appreciation. It is primarily large-cap, typically investing more than half of net assets in large, well-established companies, with lesser investments in small- and mid-cap stocks, and may purchase foreign securities directly on foreign markets. The adviser reviews the company's income statement, cash flow statement and balance sheet, analyzes the company's sustainable strategic advantage and management team, and upon initial investment determines whether the stock represents relative value by considering valuation relative to its own valuation history and to similar companies in the same industry; as part of its approach, the adviser seeks to invest in companies with sustainable business practices and may evaluate whether to hold or sell if it believes fundamentals will deteriorate, the stock has little potential for appreciation, or the company no longer meets sustainable investment expectations.