Always Inspired. Always Active.

Small Cap Value Fund (Class A)  (PSLAX)

Pursuing capital appreciation through undervalued small companies

Highlights

Objective

The fund seeks capital appreciation.

Strategy and process

  • Small companies: Often overlooked by Wall Street analysts, the stocks of small companies can represent attractive opportunities.
  • Active value strategy: The portfolio manager seeks attractively valued companies with improving fundamentals or catalysts that may unlock value.
  • Rigorous research: The portfolio manager and a team of senior research analysts offer the collaboration of a boutique with the extensive resources of a large, global firm.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $10.36
0.58% | $0.06
$14.35
08/29/18
$8.60
12/24/18
Historical fund price

Fund facts as of 02/28/19

Total net assets
$270.16M
Turnover (fiscal year end)
469%
Dividend frequency
Annually
Number of holdings
177
Fiscal year-end
February
CUSIP / Fund code
746802610 / 0053
Inception date
04/13/99
Category
Value
Open to new investors
Ticker
PSLAX

Management team

Portfolio Manager



Performance

  • Total return (%) as of 12/31/18

  • Annual performance as of 12/31/18

Annualized Total return (%) as of 12/31/18

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge -19.79% 3.09% 1.73% 10.57%
After sales charge -24.40% 1.08% 0.53% 9.91%
Russell 2000 Value Index -12.86%7.37%3.61%10.40%

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes. Returns before sales charge do not reflect the current maximum sales charges as indicated below. Had the sales charge been reflected, returns would be lower. Returns at public offering price (after sales charge) for class A and class M shares reflect the current maximum initial sales charges of 5.75% and 3.50% for equity funds and Putnam Multi-Asset Absolute Return Fund, 4.00% and 3.25% for income funds and 2.25% and 0.75% for Putnam Floating Rate Income Fund, Short-Term Municipal Income, Short Duration Bond Fund, and Fixed Income Absolute Return Fund, respectively. Class B share returns reflect the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declining to 1% in the sixth year, and is eliminated thereafter (except for Putnam Floating Rate Income Fund, which is 3% in the first year, declining to 1% in the fourth year, and is eliminated thereafter). Class C shares reflect a 1% CDSC the first year that is eliminated thereafter. Performance for class B, C, M, N, R, and Y shares prior to their inception is derived from the historical performance of class A shares, adjusted for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares (with the exception of Putnam Tax-Free High Yield Fund and Putnam AMT-Free Municipal Fund, which are based on the historical performance of class B shares). Returns at public offering price (after sales charge) for class N shares reflect the current maximum initial sales charge of 1.50%. Class R5/R6 shares, available to qualified employee-benefit plans only, are sold without an initial sales charge and have no CDSC. Class Y shares are generally only available for corporate and institutional clients and have no initial sales charge. Performance for Class R5/R6 shares before their inception are derived from the historical performance of class Y shares, which have not been adjusted for the lower expenses; had they, returns would have been higher. Class A and M shares of Putnam money market funds have no initial sales charge. For a portion of the periods, some funds had expense limitations or had been sold on a limited basis with limited assets and expenses, without which returns would be lower.

Performance snapshot

  Before sales charge After sales charge
1 mt. as of 02/28/19 3.30% -2.64%
YTD as of 03/20/19 13.31% 6.80%

Risk-adjusted performance as of 02/28/19

Alpha (3 yrs.) -3.18
Sharpe ratio (3 yrs.) 0.64
Treynor ratio (3 yrs.) 10.65
Information ratio (3 yrs.) -0.83

Volatility as of 02/28/19

Standard deviation (3 yrs.) 16.55%
Beta 0.99
R-squared 0.94

Capture ratio as of 02/28/19

Up-market (3 yrs.) 84.00
Down-market (3 yrs.) 89.90

Lipper rankings as of 02/28/19

Time period Rank/Funds in category Percentile ranking
1 yr. 261/294 89%
3 yrs. 171/265 65%
5 yrs. 141/236 60%
10 yrs. 70/159 44%
Lipper category: Small-Cap Value Funds

Morningstar Ratings as of 02/28/19

Time period Funds in category Morningstar Rating
Overall 389
3 yrs. 389
5 yrs. 342
10 yrs. 233
Morningstar category: Small Value

Distributions

Record/Ex dividend date 12/06/18
Payable date 12/10/18
Income $0.217
Extra income --
Short-term cap. gain $1.465
Long-term cap. gain $0.268

Lipper rankings are based on total return without sales charge relative to all share classes of funds with similar objectives as determined by Lipper. Past performance is not indicative of future results.

The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

The up-market capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has risen. The ratio is calculated by dividing the manager’s returns by the returns of the index during the up-market, and multiplying that factor by 100. The down-market capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has dropped. The ratio is calculated by dividing the manager’s returns by the returns of the index during the down-market and multiplying that factor by 100.


Holdings

Top 10 holdings as of 02/28/19

Vermilion Energy 2.02%
Cedar Fair Lp 1.45%
Encana Corp 1.45%
American Equity Investment Life Holding 1.44%
Iberiabank Corp 1.24%
Sp Plus Corp 1.24%
Chemical Financial Corp 1.23%
Dave Buster'S Entertainment 1.23%
Madison Square Garden The 1.22%
Hancock Whitney Corp 1.21%
Top 10 holdings, percent of portfolio 13.73%

Full portfolio holdings as of 12/31/18

CEDAR FAIR LP 2.76%
VERMILION ENERGY INC 1.93%
AMERICAN EQUITY INVT LIFE HL 1.47%
CLEAN HARBORS INC 1.43%
DAVE & BUSTER'S ENTERTAINMEN 1.36%
MADISON SQUARE GARDEN CO- A 1.22%
CAESARS ENTERTAINMENT CORP 1.18%
CELESTICA INC 1.16%
SALVATORE FERRAGAMO SPA 1.11%
LOGMEIN INC 1.09%
JETBLUE AIRWAYS CORP 1.05%
PINNACLE FINANCIAL PARTNERS 1.04%
ALLEGHENY TECHNOLOGIES INC 1.03%
ANDEAVOR LOGISTICS LP 0.96%
MYR GROUP INC/DELAWARE 0.93%
IMAX CORP 0.88%
WESTERN ALLIANCE BANCORP 0.88%
BLOOMIN' BRANDS INC 0.87%
CLARUS CORP 0.84%
EAGLE MATERIALS INC 0.83%
IBERIABANK CORP 0.83%
CYPRESS SEMICONDUCTOR CORP 0.78%
MAGELLAN HEALTH INC 0.78%
DEUTZ AG 0.77%
RLJ LODGING TRUST 0.76%
SEALED AIR CORP 0.76%
CARS.COM INC 0.75%
BERRY GLOBAL GROUP INC 0.74%
HAIN CELESTIAL GROUP INC 0.73%
PAGSEGURO DIGITAL LTD-CL A 0.72%
BJ'S WHOLESALE CLUB HOLDINGS 0.71%
DONNELLEY FINANCIAL SOLUTION 0.71%
LIONS GATE ENTERTAINMENT-A 0.70%
NEXANS SA 0.70%
INDEPENDENT BANK GROUP INC 0.69%
KNOWLES CORP 0.69%
CROSS COUNTRY HEALTHCARE INC 0.67%
VIPSHOP HOLDINGS LTD - ADR 0.67%
AVAYA HOLDINGS CORP 0.66%
BERKSHIRE HILLS BANCORP INC 0.66%
BROOKS AUTOMATION INC 0.66%
NORDSTROM INC 0.66%
BAIN CAPITAL SPECIALTY FINAN 0.65%
MEET GROUP INC/THE 0.64%
CRAFT BREW ALLIANCE INC 0.62%
LATTICE SEMICONDUCTOR CORP 0.62%
NUANCE COMMUNICATIONS INC 0.62%
TRIBUNE PUBLISHING CO 0.62%
BROOKDALE SENIOR LIVING INC 0.61%
WISDOMTREE INVESTMENTS INC 0.61%
CARPENTER TECHNOLOGY 0.60%
COOPER TIRE & RUBBER 0.60%
GAMING AND LEISURE PROPERTIE 0.60%
GRANITE CONSTRUCTION INC 0.60%
NEWFIELD EXPLORATION CO 0.59%
PAPA JOHN S INTL 0.59%
AVNET INC 0.58%
HERSHA HOSPITALITY TRUST 0.57%
INVESTORS BANCORP INC 0.57%
PATTERSON-UTI ENERGY INC 0.56%
II-VI INC 0.55%
MACQUARIE INFRASTRUCTURE COR 0.55%
ACUITY BRANDS INC 0.54%
ARES CAPITAL CORP 0.54%
DMC GLOBAL INC 0.54%
NVENT ELECTRIC PLC 0.54%
CADENCE BANCORP 0.53%
ACCURAY INC 0.52%
SYNNEX CORP 0.52%
TRIPLEPOINT VENTURE GROWTH B 0.51%
BRUNSWICK CORP 0.50%
FRONTDOOR INC 0.50%
GROUPON INC 0.50%
FIRST HORIZON NATIONAL CORP 0.49%
MERIDIAN BANCORP INC 0.49%
DELTA APPAREL INC 0.48%
FIRST MERCHANTS CORP 0.48%
MASTEC INC 0.48%
TURNING POINT BRANDS INC 0.48%
WASHINGTON FEDERAL INC 0.48%
CHINA TRADITIONAL CHINESE ME 0.47%
LUMENTUM HOLDINGS INC 0.46%
DEL TACO RESTAURANTS INC 0.45%
PARSLEY ENERGY INC-CLASS A 0.45%
PENN NATIONAL GAMING INC 0.45%
A10 NETWORKS INC 0.44%
MATADOR RESOURCES CO 0.44%
SPORTSMAN'S WAREHOUSE HOLDIN 0.44%
EVOQUA WATER TECHNOLOGIES CO 0.43%
STERICYCLE INC 0.43%
DRIL-QUIP INC 0.42%
INTERFACE INC 0.42%
MANITEX INTERNATIONAL INC 0.41%
ATS AUTOMATION TOOLING SYS 0.40%
CECO ENVIRONMENTAL CORP 0.40%
SPROUTS FARMERS MARKET INC 0.40%
TESSCO TECHNOLOGIES INC 0.40%
WILLSCOT CORP 0.40%
WORLD FUEL SERVICES CORP 0.40%
HUB GROUP INC-CL A 0.39%
PERSPECTA INC 0.39%
PROGRESS SOFTWARE CORP 0.39%
SELECT MEDICAL HOLDINGS CORP 0.38%
UMPQUA HOLDINGS CORP 0.38%
PHOTRONICS INC 0.37%
ROAN RESOURCES INC 0.37%
WILLDAN GROUP INC 0.37%
ACADIA HEALTHCARE CO INC 0.36%
HERC HOLDINGS INC 0.36%
CALLON PETROLEUM CO 0.35%
JACK IN THE BOX INC 0.35%
RED ROBIN GOURMET BURGERS 0.35%
EVERTZ TECHNOLOGIES LTD 0.34%
GOLUB CAPITAL BDC INC 0.34%
SUNOCO LP 0.34%
CARROLS RESTAURANT GROUP INC 0.33%
HERITAGE INSURANCE HOLDINGS 0.33%
MAGNOLIA OIL & GAS CORP 0.33%
PERFICIENT INC 0.33%
UNION BANKSHARES CORP 0.33%
CONTROL4 CORP 0.32%
PACIFIC PREMIER BANCORP INC 0.32%
COOPER-STANDARD HOLDING 0.31%
HANESBRANDS INC 0.31%
QUANEX BUILDING PRODUCTS 0.31%
SCHNEIDER NATIONAL INC-CL B 0.31%
VECTRUS INC 0.31%
W.R. GRACE & CO 0.31%
SELECT ENERGY SERVICES INC-A 0.30%
SENSIENT TECHNOLOGIES CORP 0.30%
CISION LTD 0.29%
RHEINMETALL AG 0.28%
SANDRIDGE ENERGY INC 0.28%
TRINITY INDUSTRIES INC 0.28%
AXALTA COATING SYSTEMS LTD 0.27%
COASTAL FINANCIAL CORP/WA 0.27%
FCB FINANCIAL HOLDINGS-CL A 0.27%
HANCOCK WHITNEY CORP 0.27%
NATURAL GAS SERVICES GROUP 0.27%
PROPETRO HOLDING CORP 0.27%
STERLING CONSTRUCTION CO 0.27%
OCEANFIRST FINANCIAL CORP 0.26%
POWELL INDUSTRIES INC 0.26%
REXNORD CORP 0.26%
STERLING BANCORP/DE 0.26%
TRIVAGO NV - ADR 0.26%
AZZ INC 0.25%
BERRY PETROLEUM CORP 0.25%
CONSOL ENERGY INC 0.25%
MASTERCRAFT BOAT HOLDINGS IN 0.25%
QORVO INC 0.25%
RIVIERA RESOURCES INC/LINN 0.25%
VOXX INTERNATIONAL CORP 0.25%
BROOKLINE BANCORP INC 0.24%
CARTERS INC 0.24%
CLOUDERA INC 0.24%
CONSTRUCTION PARTNERS INC-A 0.24%
ELF BEAUTY INC 0.24%
SHUTTERSTOCK INC 0.24%
AMERICAN EAGLE OUTFITTERS 0.23%
CITI TRENDS INC 0.23%
INFORMATION SERVICES GROUP 0.23%
MINERALS TECHNOLOGIES INC 0.23%
STONECO LTD-A 0.23%
ZYNGA INC - CL A 0.23%
MAJOR DRILLING GROUP INTL 0.22%
SAIA INC 0.22%
ADVANCED ENERGY INDUSTRIES 0.21%
COREPOINT LODGING INC 0.21%
FRANKLIN COVEY CO 0.21%
GRAY TELEVISION INC 0.21%
ATLAS AIR WORLDWIDE HOLDINGS 0.20%
CHAPARRAL ENERGY INC-CLASS A 0.20%
CONDUENT INC 0.20%
ENCANA CORP 0.20%
MELLANOX TECHNOLOGIES LTD 0.20%
SUNOPTA INC 0.20%
ULTRA CLEAN HOLDINGS INC 0.20%
UNIVERSAL STAINLESS & ALLOY 0.20%
NEWMARK GROUP INC-CLASS A 0.19%
RTW RETAILWINDS INC 0.19%
TITAN MACHINERY INC 0.19%
BENCHMARK ELECTRONICS INC 0.18%
BIG LOTS INC 0.17%
KBR INC 0.17%
PVH CORP 0.17%
CONS TOMOKA LAND CO-FLORIDA 0.15%
HOUSTON WIRE & CABLE CO 0.15%
JABIL INC 0.15%
SOUTHWESTERN ENERGY CO 0.15%
TERRITORIAL BANCORP INC 0.15%
LSI INDUSTRIES INC 0.14%
STEELCASE INC-CL A 0.14%
AGROFRESH SOLUTIONS INC 0.13%
PRG-SCHULTZ INTL INC. 0.13%
STOLT-NIELSEN LTD 0.13%
GEOSPACE TECHNOLOGIES CORP 0.12%
HERMAN MILLER INC 0.12%
LIMONEIRA CO 0.12%
RANGE RESOURCES CORP 0.12%
TEGNA INC 0.12%
UNIFI INC 0.12%
UPLAND SOFTWARE INC 0.12%
KFORCE INC 0.11%
PENN VIRGINIA CORP 0.11%
FRANK'S INTERNATIONAL NV 0.10%
HEALTHSCOPE LTD 0.10%
POTBELLY CORP 0.10%
BEASLEY BROADCAST GRP INC -A 0.09%
FREIGHTCAR AMERICA INC 0.09%
ROKU INC 0.09%
TTM TECHNOLOGIES 0.09%
AMERICAN RENAL ASSOCIATES HO 0.08%
EXTERRAN CORP 0.08%
EXTREME NETWORKS INC 0.08%
GULFPORT ENERGY CORP 0.08%
STERLING BANCORP INC/MI 0.08%
GATES INDUSTRIAL CORP PLC 0.07%
GREAT LAKES DREDGE & DOCK CO 0.07%
ICHOR HOLDINGS LTD 0.07%
US XPRESS ENTERPRISES INC -A 0.07%
AMPLIFY ENERGY CORP 0.06%
GULF ISLAND FABRICATION INC 0.06%
AXT INC 0.05%
CLH 20190418 C 40.00UBS 0.05%
FRANKLIN FINANCIAL NETWORK 0.05%
MACK-CALI REALTY CORP 0.05%
ADTRAN INC 0.04%
DFIN 20190418 C 12.50CITI 0.04%
FGL HOLDINGS 0.03%
HORTONWORKS INC 0.03%
LOGM 20190315 C 70.00CITI 0.03%
GRA 20190315 C 60.00CITI 0.02%
AEO 20190215 C 19.00CITI 0.01%
BEL FUSE INC-CL A 0.01%
CCRN 20190315 C 7.50CITI 0.01%
CPE 20190719 C 7.00BCBP 0.01%
EXP 20190418 C 65.00CITI 0.01%
GTES 20190215 C 12.50UBS 0.01%
HBI 20190418 C 13.00BCBP 0.01%
HUN 20190215 C 20.00BANKAM 0.01%
MTX 20190215 C 55.00MSCIL 0.01%
SRCL 20190215 C 40.00CITI 0.01%
WETF 20190315 C 7.00BCBP 0.01%
ADTN 20190118 P 11.00UBS 0.00%
AXTA 20190118 P 21.00BCBP 0.00%
CHARAH SOLUTIONS INC 0.00%
CONDOR HOSPITALITY TRUST INC 0.00%
DDS 20190104 P 60.00CITI 0.00%
DRQ 20190315 C 35.00BANKAM 0.00%
FEYE 20190104 P 16.00BCBP 0.00%
FL 20190104 P 52.50BCBP 0.00%
FLR 20190118 C 42.50CITI 0.00%
GCO 20190118 P 45.00CITI 0.00%
GCP APPLIED TECHNOLOGIES 0.00%
OCFC 20190118 P 22.50CITI 0.00%
ON 20190118 P 17.00BCBP 0.00%
OUT 20190118 P 17.50CITI 0.00%
SUN 20190118 P 27.50CITI 0.00%
TMST 20190215 C 10.00BCBP 0.00%
BJ 20190118 C 20.00CITI -0.01%
MLNX 20190118 P 92.50UBS -0.01%
MLNX 20190118 P 95.00CSI -0.01%
ON 20190118 P 16.00UBS -0.01%
AXTA 20190118 P 25.00GSI -0.02%
GCO 20190118 P 45.00CSI -0.03%

Prior top 10 holdings

Top 10 holdings as of 02/28/19
Vermilion Energy
Cedar Fair Lp
Encana Corp
American Equity Investment Life Holding
Iberiabank Corp
Sp Plus Corp
Chemical Financial Corp
Dave Buster'S Entertainment
Madison Square Garden The
Hancock Whitney Corp
Holdings represent 13.73% of portfolio
Top 10 holdings as of 01/31/19
Cedar Fair Lp
Vermilion Energy
Dave Buster'S Entertainment
American Equity Investment Life Holding
Caesars Entertainment Corp
Talend
Imax Corp
Madison Square Garden The
Vipshop Holdings
Celestica
Holdings represent 15.26% of portfolio
Top 10 holdings as of 12/31/18
Cedar Fair Lp
Vermilion Energy
American Equity Investment Life Holding
Clean Harbors
Dave Buster'S Entertainment
Madison Square Garden The
Caesars Entertainment Corp
Celestica
Salvatore Ferragamo Spa
Logmein
Holdings represent 14.68% of portfolio
Top 10 holdings as of 11/30/18
Cedar Fair Lp
Vermilion Energy
Wr Grace
American Equity Investment Life Holding
Jetblue Airways Corp
Stericycle
Lions Gate Entertainment Corp
Caesars Entertainment Corp
Sierra Wireless
Celestica
Holdings represent 13.70% of portfolio

Portfolio composition as of 02/28/19

Common stock 95.65%
Cash and net other assets 4.35%

Equity statistics as of 02/28/19

Median market cap $1.44B
Weighted average market cap $2.53B
Price to book 1.57
Price to earnings 13.16

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Investments in small and/or midsize companies increase the risk of greater price fluctuations. Value stocks may fail to rebound, and the market may not favor value-style investing. Stock prices may fall or fail to rise over extended periods of time for a variety of reasons, including general financial market conditions, changing market perceptions, changes in government intervention in the financial markets, and factors related to a specific issuer, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. These risks are generally greater for small and midsize companies. From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors, which would make the fund more vulnerable to adverse developments affecting those industries or sectors. You can lose money by investing in the fund.

Top industry sectors as of 02/28/19

Financials 21.88%
Industrials 18.10%
Information technology 15.21%
Consumer discretionary 11.97%
Energy 8.95%
Materials 5.17%
Communication services 4.40%
Cash and net other assets 4.35%
Health care 3.70%
 
Other
6.27%
Real estate 3.39%
Consumer staples 1.57%
Utilities 1.31%

The unclassified sector (where applicable) includes exchange traded funds and other securities not able to be classified by sector.

Sectors will vary over time.


Expenses

Expense ratio

Class A Class B Class C Class M Class R Class R5 Class R6 Class Y
Total expense ratio 1.48% 2.23% 2.23% 1.98% 1.73% 1.16% 1.06% 1.23%
What you pay 1.48% 2.23% 2.23% 1.98% 1.73% 1.16% 1.06% 1.23%

Sales charge

Investment Breakpoint Class A Class B Class C Class M Class R Class R5 Class R6 Class Y
$0-$49,999 5.75% 0.00% 0.00% 3.50% -- -- -- --
$50,000-$99,999 4.50% 0.00% 0.00% 2.50% -- -- -- --
$100,000-$249,999 3.50% -- 0.00% 1.50% -- -- -- --
$250,000-$499,999 2.50% -- 0.00% 1.00% -- -- -- --
$500,000-$999,999 2.00% -- 0.00% 1.00% -- -- -- --
$1M-$4M 0.00% -- -- -- -- -- -- --
$4M-$50M 0.00% -- -- -- -- -- -- --
$50M+ 0.00% -- -- -- -- -- -- --

CDSC

  Class A (sales for $1,000,000+) Class B Class C Class M Class R Class R5 Class R6 Class Y
0 to 9 mts. 1.00% 5.00% 1.00% -- -- -- -- --
9 to 12 mts. 1.00% 5.00% 1.00% -- -- -- -- --
2 yrs. 0.00% 4.00% 0.00% -- -- -- -- --
3 yrs. 0.00% 3.00% 0.00% -- -- -- -- --
4 yrs. 0.00% 3.00% 0.00% -- -- -- -- --
5 yrs. 0.00% 2.00% 0.00% -- -- -- -- --
6 yrs. 0.00% 1.00% 0.00% -- -- -- -- --
7+ yrs. 0.00% 0.00% 0.00% -- -- -- -- --

The Russell 2000 Value Index is an unmanaged index of those companies in the small-cap Russell 2000 Index chosen for their value orientation. You cannot invest directly in an index.

Consider these risks before investing: Investments in small and/or midsize companies increase the risk of greater price fluctuations. Value stocks may fail to rebound, and the market may not favor value-style investing. Stock prices may fall or fail to rise over extended periods of time for a variety of reasons, including general financial market conditions, changing market perceptions, changes in government intervention in the financial markets, and factors related to a specific issuer, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. These risks are generally greater for small and midsize companies. From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors, which would make the fund more vulnerable to adverse developments affecting those industries or sectors. You can lose money by investing in the fund.