Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Value stocks may decline in price. Hedging and other strategic transactions may increase volatility and result in losses if not successful. Large company stocks could fall out of favor, and illiquid securities may be difficult to sell at a price approximating their value. The stock prices of small and midsize companies can change more frequently and dramatically than those of large companies. The fund may invest its assets in a small number of issuers. Performance could suffer significantly from adverse events affecting these issuers. Please see the fund’s prospectus for additional risks.
The small- and mid-cap segments of today’s international equity markets offer strong potential for investors seeking superior risk-adjusted returns as well as enhanced portfolio diversification.
While profit margins remain strong, elevated stock valuations and rising corporate debt could be warning signs for global equities. In such an environment, the best opportunities lie in the intersection between quality and value.
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