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 $12.98
0.00% | $0.00
$18.61
12/04/17
$12.73
04/02/18
Historical fund price

Fund facts as of 09/30/18

Total net assets
$338.67M
Turnover (fiscal year end)
469%
Dividend frequency
Annually
Number of holdings
233
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 09/30/18

  • Annual performance as of 09/30/18

Annualized Total return (%) as of 09/30/18

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 7.56% 13.27% 8.98% 9.73%
After sales charge 1.38% 11.06% 7.69% 9.08%
Russell 2000 Value Index 9.33% 16.12% 9.91% 9.52%

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, and 4.00% and 3.25% for income funds (2.25% and 0.75% for Putnam Short Duration Bond Fund and 1.00% and 0.75% for Putnam Floating Rate Income Fund, Putnam Fixed Income Absolute Return Fund, and Putnam Short-Term Municipal Income 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, Putnam Short Duration Bond Fund, Putnam Fixed Income Absolute Return Fund, and Putnam Short-Term Municipal Income Fund, which is 1% in the first year, declining to 0.5% in the second 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, 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). 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. For a portion of the period, some funds had expenses 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 09/30/18 -1.33 % -7.00 %
YTD as of 10/22/18 -4.14 % -9.65 %

Risk-adjusted performance as of 09/30/18

Alpha (3 yrs.) -1.31
Sharpe ratio (3 yrs.) 1.00
Treynor ratio (3 yrs.) 13.90
Information ratio (3 yrs.) -0.83

Volatility as of 09/30/18

Standard deviation (3 yrs.) 12.45%
Beta 0.90
R-squared 0.94

Capture ratio as of 09/30/18

Up-market (3 yrs.) 81.88
Down-market (3 yrs.) 80.97

Lipper rankings as of 09/30/18

Time period Rank/Funds in category Percentile ranking
1 yr. 164/288 57%
3 yrs. 148/252 59%
5 yrs. 96/221 44%
10 yrs. 82/155 53%
Lipper category: Small-Cap Value Funds

Morningstar Ratings as of 09/30/18

Time period Funds in category Morningstar Rating
Overall 362
3 yrs. 362
5 yrs. 317
10 yrs. 226
Morningstar category: Small Value

Distributions

Record/Ex dividend date 12/06/17
Payable date 12/08/17
Income $0.081
Extra income --
Short-term cap. gain $1.202
Long-term cap. gain $3.882

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 09/30/18

Vermilion Energy 2.56%
Big Lots 1.61%
Herc Holdings 1.31%
Colfax Corp 1.30%
Valvoline 1.28%
Cedar Fair Lp 1.25%
Axalta Coating Systems 1.22%
Tech Data Corp 1.18%
Cypress Semiconductor Corp 1.17%
Clean Harbors 1.12%
Top 10 holdings, percent of portfolio 14.00%

Full portfolio holdings as of 06/30/18

VERMILION ENERGY INC 2.02%
BELDEN INC 1.79%
SYNAPTICS INC 1.57%
ACADIA HEALTHCARE CO INC 1.55%
CLEAN HARBORS INC 1.48%
VALVOLINE INC 1.44%
BUILDERS FIRSTSOURCE INC 1.37%
AXALTA COATING SYSTEMS LTD 1.30%
GRUMA S.A.B.-B 1.21%
BOARDWALK PIPELINE PARTNERS 1.20%
DAVE & BUSTER'S ENTERTAINMEN 1.13%
BOOZ ALLEN HAMILTON HOLDINGS 1.09%
BADGER DAYLIGHTING LTD 1.07%
MAJOR DRILLING GROUP INTL 1.07%
KNOWLES CORP 1.04%
ASPEN INSURANCE HOLDINGS LTD 1.03%
HERSHA HOSPITALITY TRUST 1.03%
RLJ LODGING TRUST 0.97%
CASEYS GENERAL 0.96%
GRAY TELEVISION INC 0.94%
CYPRESS SEMICONDUCTOR CORP 0.91%
LINN ENERGY INC 0.91%
RED ROBIN GOURMET BURGERS 0.91%
KENNEDY-WILSON HOLDINGS INC 0.89%
OUTFRONT MEDIA INC 0.88%
US CONCRETE INC 0.87%
HANESBRANDS INC 0.83%
US XPRESS ENTERPRISES INC -A 0.83%
TEGNA INC 0.82%
FOREST CITY REALTY TRUST- A 0.81%
REV GROUP INC 0.79%
KBR INC 0.77%
REALOGY HOLDINGS CORP 0.77%
FERRO CORP 0.76%
WERNER ENTERPRISES INC 0.75%
SANDRIDGE ENERGY INC 0.73%
HUNTSMAN CORP 0.72%
CHICO S FAS INC 0.70%
LIONS GATE ENTERTAINMENT-A 0.70%
CHAPARRAL ENERGY INC-CLASS A 0.67%
ALTA MESA RESOURCES INC 0.65%
SPROUTS FARMERS MARKET INC 0.63%
BEMIS COMPANY 0.62%
GAMING AND LEISURE PROPERTIE 0.60%
BLOOMIN' BRANDS INC 0.58%
CAPITOL INVESTMENT CORP IV 0.58%
IBERIABANK CORP 0.58%
CECO ENVIRONMENTAL CORP 0.57%
HAIN CELESTIAL GROUP INC 0.57%
TIVO CORP 0.57%
AIR TRANSPORT SERVICES GROUP 0.56%
ARES CAPITAL CORP 0.56%
FRANCESCAS HOLDINGS CORP 0.55%
MICHAELS COS INC/THE 0.55%
STOLT-NIELSEN LTD 0.55%
CLARUS CORP 0.54%
DEUTZ AG 0.53%
TECH DATA CORP 0.53%
PATTERSON-UTI ENERGY INC 0.52%
TRIPLEPOINT VENTURE GROWTH B 0.52%
CAI INTERNATIONAL INC 0.50%
MANITEX INTERNATIONAL INC 0.50%
OLYMPIC STEEL INC 0.50%
VIPSHOP HOLDINGS LTD - ADR 0.50%
BROOKDALE SENIOR LIVING INC 0.49%
NN INC 0.49%
PACIFIC PREMIER BANCORP INC 0.49%
SHELF DRILLING LTD 0.49%
COOPER TIRE & RUBBER 0.47%
MIDSTATES PETROLEUM CO INC 0.47%
BIG LOTS INC 0.46%
GATES INDUSTRIAL CORP PLC 0.46%
NEWFIELD EXPLORATION CO 0.46%
CINEPLEX INC 0.45%
DONNELLEY FINANCIAL SOLUTION 0.45%
EXTREME NETWORKS INC 0.45%
JABIL INC 0.45%
GENESCO INC 0.44%
GRAFTECH INTERNATIONAL LTD 0.44%
NEOPHOTONICS CORP 0.44%
TRINIDAD DRILLING LTD 0.44%
AMERICAN EQUITY INVT LIFE HL 0.43%
FGL HOLDINGS 0.43%
QUILTER PLC 0.43%
DEL TACO RESTAURANTS INC 0.42%
LEGACYTEXAS FINANCIAL GROUP 0.42%
PERSPECTA INC 0.42%
SOLAR CAPITAL LTD 0.42%
AVAYA HOLDINGS CORP 0.40%
GEOSPACE TECHNOLOGIES CORP 0.40%
OMNOVA SOLUTIONS INC 0.40%
ATS AUTOMATION TOOLING SYS 0.39%
GOLUB CAPITAL BDC INC 0.39%
GRIFFON CORP 0.39%
JELD-WEN HOLDING INC 0.39%
SELECT MEDICAL HOLDINGS CORP 0.39%
EVOQUA WATER TECHNOLOGIES CO 0.38%
HOLLYSYS AUTOMATION TECHNOLO 0.38%
MACOM TECHNOLOGY SOLUTIONS H 0.38%
VENATOR MATERIALS PLC 0.38%
HORTONWORKS INC 0.37%
CAESARS ENTERTAINMENT CORP 0.36%
EL POLLO LOCO HOLDINGS INC 0.36%
SHELL MIDSTREAM PARTNERS LP 0.36%
SPORTSMAN'S WAREHOUSE HOLDIN 0.36%
HOME BANCSHARES INC 0.35%
PANHANDLE OIL AND GAS INC-A 0.35%
POTBELLY CORP 0.35%
BRIDGEPOINT EDUCATION INC 0.34%
GREAT LAKES DREDGE & DOCK CO 0.34%
MEREDITH CORP 0.34%
SEVEN GENERATIONS ENERGY - A 0.34%
TESSCO TECHNOLOGIES INC 0.34%
ENERGEN CORP 0.33%
INVESTORS BANCORP INC 0.32%
NOBLE MIDSTREAM PARTNERS LP 0.32%
TURNING POINT BRANDS INC 0.32%
BANCORP INC/THE 0.31%
DEL FRISCO'S RESTAURANT GROU 0.31%
LEGG MASON INC 0.31%
STEELCASE INC-CL A 0.31%
TRISTATE CAPITAL HLDGS INC 0.31%
TRONOX LTD-CL A 0.31%
BLUE HILLS BANCORP INC 0.30%
INDEPENDENT BANK GROUP INC 0.30%
INFRAREIT INC 0.30%
SCREEN HOLDINGS CO LTD 0.30%
SUNOCO LP 0.30%
VICTORY CAPITAL HOLDING - A 0.30%
ARTISAN PARTNERS ASSET MA -A 0.29%
FCB FINANCIAL HOLDINGS-CL A 0.29%
FLOWSERVE CORP 0.29%
PILGRIM'S PRIDE CORP 0.29%
TERRITORIAL BANCORP INC 0.29%
CERAGON NETWORKS LTD 0.28%
CHINA TRADITIONAL CHINESE ME 0.28%
EMCORE CORP 0.28%
NATURAL GAS SERVICES GROUP 0.28%
AECON GROUP INC 0.27%
CONVERGYS CORP 0.27%
DAKTRONICS INC 0.27%
DRIL-QUIP INC 0.27%
EQT MIDSTREAM PARTNERS LP 0.27%
EQUITY BANCSHARES INC - CL A 0.27%
GREENBRIER COMPANIES INC 0.27%
MCBC HOLDINGS INC 0.27%
MVC CAPITAL 0.27%
TRINITY INDUSTRIES INC 0.26%
DICKS SPORTING 0.25%
HOLLY ENERGY PARTNERS LP 0.25%
LILIS ENERGY INC 0.25%
NUANCE COMMUNICATIONS INC 0.24%
MANITOWOC COMPANY INC 0.22%
SPARTAN MOTORS INC 0.22%
BANK OF N.T. BUTTERFIELD&SON 0.21%
COMMERCIAL VEHICLE GROUP INC 0.21%
DATAWATCH CORP 0.21%
KEARNY FINANCIAL CORP/MD 0.21%
LUXFER HOLDINGS PLC 0.21%
ROOTS CORP 0.21%
BELMOND LTD-CLASS A 0.20%
DOMINION ENERGY MIDSTREAM PA 0.20%
GLATFELTER 0.20%
HEARTLAND EXPRESS INC 0.20%
MULLEN GROUP LTD 0.20%
VAREX IMAGING CORP 0.20%
HECLA MINING CO 0.19%
HUDSON'S BAY CO 0.19%
OSHKOSH CORP 0.19%
CONS TOMOKA LAND CO-FLORIDA 0.18%
CONTROLADORA VUELA CIA-ADR 0.18%
KIRKLANDS INC 0.18%
LORAL SPACE AND COMMUNICATIONS 0.18%
PERRY ELLIS INTERNATIONAL 0.18%
POWELL INDUSTRIES INC 0.17%
TIMKENSTEEL CORP 0.17%
WILLSCOT CORP 0.17%
DEAN FOODS CO 0.16%
ELECTRO SCIENTIFIC INDS INC 0.16%
LSI INDUSTRIES INC 0.16%
MONEYGRAM INTERNATIONAL INC 0.16%
SCHNEIDER NATIONAL INC-CL B 0.16%
TRICO BANCSHARES 0.16%
ADVANCED ENERGY INDUSTRIES 0.15%
ALLEGHENY TECHNOLOGIES INC 0.15%
BMC STOCK HOLDINGS INC 0.15%
QUANTA SERVICES INC 0.15%
AMPLIFY ENERGY CORP 0.14%
BRISTOW GROUP INC 0.14%
VOXX INTERNATIONAL CORP 0.14%
TITAN MACHINERY INC 0.13%
TRINITY PLACE HOLDINGS INC 0.13%
DYCOM INDUSTRIES INC 0.12%
HAYNES INTERNATIONAL INC 0.12%
RPC INC 0.12%
KNIGHT-SWIFT TRANSPORTATION 0.11%
SELECT ENERGY SERVICES INC-A 0.11%
ULTRA CLEAN HOLDINGS INC 0.11%
VECTRUS INC 0.11%
CRAFT BREW ALLIANCE INC 0.10%
CRESTWOOD EQUITY PARTNERS LP 0.10%
GOODYEAR TIRE & RUBBER CO 0.10%
MAGELLAN HEALTH INC 0.10%
PROPETRO HOLDING CORP 0.10%
SPIRIT AIRLINES INC 0.10%
USG CORP 0.10%
WESTERN ALLIANCE BANCORP 0.10%
AMERICAN OUTDOOR BRANDS CORP 0.09%
HUB GROUP INC-CL A 0.09%
STERLING CONSTRUCTION CO 0.09%
TEXTAINER GROUP HOLDINGS LTD 0.08%
TILLY'S INC-CLASS A SHRS 0.08%
TRITON INTERNATIONAL LTD/BER 0.08%
TSAKOS ENERGY NAVIGATION LTD 0.08%
AMPCO-PITTSBURGH CORP 0.07%
FINANCIAL INSTITUTIONS INC 0.07%
POUND STERLING CALL ACCOUNT 0.07%
BDC 20180720 C 45.00BANKAM 0.06%
OAKTREE CAPITAL GROUP LLC 0.06%
EXCO TECHNOLOGIES LTD 0.05%
MEDEQUITIES REALTY TRUST INC 0.05%
FREIGHTCAR AMERICA INC 0.04%
HONG KONG DOLLAR CALL ACCOUNT 0.04%
IWM 20180720 P 148.00BCBP 0.02%
PTEN 20180817 C 16.00BCBP 0.02%
BANCTEC INC-144A CONTINGENT VALUE RIGHTS 0.00%
BWP 20180720 P 11.00CITI 0.00%
EGN 20180720 C 70.00CITI 0.00%
EGN 20180720 C 72.50CITI 0.00%
FERROGLOBE REPRESENTATION & 0.00%
FL 20180720 P 50.00UBS 0.00%
HUBG 20180720 P 50.00UBS 0.00%
IBKC 20180720 P 80.00CITI 0.00%
KEG 20180720 P 15.00CITI 0.00%
LGF/A 20180720 C 25.00BCBP 0.00%
LITE 20180720 P 57.50UBS 0.00%
LITE 20180720 P 58.00UBS 0.00%
MTSI 20180720 C 25.00BCBP 0.00%
MTSI 20180720 C 25.00JPMCB 0.00%
NFX 20180720 P 30.00CITI 0.00%
PTEN 20180720 P 18.00BCBP 0.00%
PWR 20180720 P 34.00BCBP 0.00%
TMST 20180720 P 15.00UBS 0.00%
VREX 20180720 P 35.00BCBP 0.00%
WTTR 20180720 P 15.00UBS 0.00%
AEIS 20180720 P 60.00CITI -0.01%
BDC 20180720 C 60.00BANKAM -0.01%
BLMN 20180720 P 22.50UBS -0.01%
CY 20180720 P 16.00UBS -0.01%
IWM 20180720 P 144.00BCBP -0.01%
MTSI 20180720 P 22.50BCBP -0.01%
NFX 20180720 C 28.00UBS -0.01%
WTTR 20180720 P 15.00CITI -0.01%
CANADIAN DOLLAR ACCOUNT -0.02%
TROX 20180720 C 19.00CITI -0.02%
MEXICAN PESO CALL ACCOUNT -0.05%
JAPANESE YEN CALL ACCOUNT -0.16%

Prior top 10 holdings

Top 10 holdings as of 09/30/18
Vermilion Energy
Big Lots
Herc Holdings
Colfax Corp
Valvoline
Cedar Fair Lp
Axalta Coating Systems
Tech Data Corp
Cypress Semiconductor Corp
Clean Harbors
Holdings represent 14.00% of portfolio
Top 10 holdings as of 08/31/18
Vermilion Energy
Pagseguro Digital
Clean Harbors
Axalta Coating Systems
Valvoline
Rlj Lodging Trust
Tech Data Corp
Air Canada
Esterline Technologies Corp
Knowles Corp
Holdings represent 12.44% of portfolio
Top 10 holdings as of 07/31/18
Synaptics
Vermilion Energy
Valvoline
Clean Harbors
Dave Buster'S Entertainment
Outfront Media
Booz Allen Hamilton Holding Corp
Belden
Hersha Hospitality Trust
Acadia Healthcare
Holdings represent 14.40% of portfolio
Top 10 holdings as of 06/30/18
Vermilion Energy
Belden
Synaptics
Acadia Healthcare
Clean Harbors
Valvoline
Builders Firstsource
Axalta Coating Systems
Gruma Sab De Cv
Boardwalk Pipelines Llc
Holdings represent 15.28% of portfolio

Portfolio composition as of 09/30/18

Common stock 94.66%
Cash and net other assets 5.34%

Equity statistics as of 09/30/18

Median market cap $1.55B
Weighted average market cap $2.05B
Price to book 1.72
Price to earnings 15.22

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 09/30/18

Industrials 19.23%
Financials 13.90%
Consumer discretionary 13.34%
Information technology 12.95%
Energy 12.34%
Real estate 6.35%
Materials 5.60%
Cash and net other assets 5.34%
Consumer staples 3.99%
 
Other
6.96%
Communication services 3.51%
Health care 3.45%

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.