A government, municipal or corporate bond that pays a fixed rate of interest until the bond matures; or a preferred stock that pays a fixed dividend. Bond investors should carefully consider risks such as interest rate, credit, repurchase and reverse purchase transaction risks. Greater risk, such as increased volatility, limited liquidity, prepayment, non-payment and increased default risk, is inherent in portfolios that invest in high yield (“junk”) bonds or mortgage backed securities, especially mortgage backed securities with exposure to sub-prime mortgages.
A Fund may invest in derivatives, including futures, options, forwards and swaps. Investments in derivatives may cause the Fund’s losses to be greater than if it invests only in conventional securities and can cause the Fund to be more volatile. Derivatives involve risks different from, or possibly greater than, the risks associated with other investments. The Fund’s use of derivatives may cause the Fund’s investment returns to be impacted by the performance of securities the Fund does not own and result in the Fund’s total investment exposure exceeding the value of its portfolio.
Investment in non-US stocks. Investments in non-U.S. markets can involve risks of currency fluctuation, political and economic instability, different accounting standards and foreign taxation. Such securities may be less liquid and more volatile. Investments in emerging or developing markets involve exposure to economic structures that are generally less diverse and mature, and political systems with less stability than in more developed countries.
Dynamic style emphasizes investments in equity securities of companies that are believed to be currently undergoing or are expected to undergo positive change that will lead to stock price appreciation. Dynamic stocks typically have higher than average stock price volatility, characteristics indicating lower financial quality, (which may include greater financial leverage) and/or less business stability.
Defensive style emphasizes investments in equity securities of companies that are believed to have lower than average stock price volatility, characteristics indicating high financial quality, (which may include lower financial leverage) and/or stable business fundamentals.
Small capitalization investments involve stocks of companies with smaller levels of market capitalization (generally less than $2 billion) than larger company stocks (large cap). Small cap investments are subject to considerable price fluctuations and are more volatile than large company stocks. Investors should consider the additional risks involved in small cap investments.
Refers to US company stocks with a relatively mid market capitalization. The definition of mid cap can vary among brokerages, but generally it is a company with a market capitalization of between $2 billion and $10 billion. Stock represents ownership and control in a corporation and may pay dividends as well as appreciate in value.
Large capitalization investments involve stocks of companies generally having a market capitalization greater than $2 billion. The value of securities will rise and fall in response to the activities of the company that issued them, general market conditions and/or economic conditions.
Investment in U.S. company stocks. Stock represents ownership and control in a corporation and may pay dividends as well as appreciate or depreciate in value. The value of a stock will rise and fall in response to the activities of the company that issued it, general market conditions, and economic conditions.
