1 “Russell®” and other service marks and trademarks related to the Russell
indexes are trademarks of the London Stock Exchange Group companies.
Principal Risks:
Risk is inherent in all investing. Many factors and risks affect the fund's
performance, including those described below. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate
significantly day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as
other similar investments. The following is a summary description of principal risks (in alphabetical order after certain key risks) of investing in the fund. The relative significance of the key
risks below may change over time and you should review each risk factor carefully. An investment in the fund is not a bank deposit and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. You may lose money if you invest in this fund.
Market – The market prices of the fund’s securities or
other assets may go up or down, sometimes rapidly or unpredictably, due to factors such as
economic events, inflation, changes in interest rates, governmental actions or interventions, actions taken by the U.S. Federal Reserve or foreign central banks, market disruptions caused by tariffs, trade disputes,
labor strikes, supply chain disruptions or other factors, political developments, civil unrest, acts of terrorism, armed conflicts, economic sanctions, countermeasures in response to sanctions,
cybersecurity events, investor sentiment, the global and domestic effects of widespread or local health, weather or climate events, and other factors that may or may not be related to the issuer of the
security or other asset. If the market prices of the fund’s securities and assets fall, the value of your investment in the fund could go down.
Economies and financial markets throughout the world are increasingly interconnected. Events or circumstances in one or more countries or regions could be highly
disruptive to, and have profound impacts on, global economies or markets. As a result,
whether or not the fund invests in securities of issuers located in or with significant
exposure to the countries directly affected, the value and liquidity of the fund’s investments may go down.
The
long-term consequences to the U.S. economy of the continued expansion of U.S. government debt and deficits are not known. Also, raising the ceiling on U.S. government debt and periodic legislation to fund the government
have become increasingly politicized. Any failure to do either could lead to a default on
U.S. government obligations, with unpredictable consequences for the fund’s investments, and generally for economies and markets in the U.S. and elsewhere.
Equity Securities – Equity securities generally have greater
risk of loss than debt securities. Stock markets are volatile and the value of equity
securities may go up or down, sometimes rapidly and unpredictably. The market price of an equity security may fluctuate based on overall market conditions, such as real or perceived adverse economic or political
conditions or trends, tariffs and trade disruptions, wars, social unrest, inflation, substantial economic downturn or recession, changes in interest rates, or adverse investor sentiment. The market
price of an equity security also may fluctuate based on real or perceived factors affecting a
particular industry or industries or the company itself. If the market prices of the equity
securities owned by the fund fall, the value of
your investment in the fund will decline. The fund may lose its entire
investment in the equity securities of an issuer. A change in financial condition or other event affecting a single issuer may adversely impact securities markets as a whole.
Large Capitalization Companies – The fund’s investments
in larger, more established companies may underperform other segments of the market because
they may be less responsive to competitive challenges and opportunities and unable to attain high growth rates during periods of economic expansion.
Value Investing – The prices of securities the sub-adviser believes are undervalued may not appreciate as anticipated or
may go down. The value approach to investing involves the risk that stocks may remain
undervalued, undervaluation may become more severe, or perceived undervaluation may actually represent intrinsic value. Value stocks as a group may be out of favor and underperform the overall equity market for a long
period of time, for example, while the market favors “growth” stocks.
Focused Investing – To the extent the fund invests a
significant portion of its assets in a limited number of countries, regions, sectors,
industries or market segments, in a limited number of issuers, or in issuers in related businesses or that are subject to related operating risks, the fund will be more susceptible to negative events affecting those countries,
regions, sectors, industries, segments or issuers, and the value of its shares may be more volatile than if it invested more widely.
Management
– The value of your investment may go down if the investment manager’s or sub-adviser's judgments and decisions are incorrect or otherwise do not produce the desired results, or if the investment strategy does not
work as intended. You may also suffer losses if there are imperfections, errors or limitations in the quantitative, analytic or other tools, resources, information and data used, investment techniques
applied, or the analyses employed or relied on, by the investment
manager or sub-adviser, if such tools, resources, information or data are used incorrectly or otherwise do not work as intended, or if
the investment manager’s or sub-adviser's investment style is out of favor or otherwise fails to produce the desired results. Any of these things could cause the fund to lose value or its results to
lag relevant benchmarks or other funds with similar objectives.
Active Trading – The fund may engage in active trading of
its portfolio. Active trading will increase transaction costs and could detract from
performance. Active trading may be more pronounced during periods of market volatility and may generate greater amounts of short-term capital gains.
Currency
– The value of a fund’s investments in securities denominated in foreign currencies increases or decreases as the rates of exchange between those currencies and the U.S. dollar change. U.S. dollar-denominated
securities of foreign issuers may also be affected by currency risk. Currency exchange rates can be volatile and may fluctuate significantly over short periods of time. Currency conversion costs and
currency fluctuations could reduce or eliminate investment gains or add to investment losses. A fund may be unable or may choose not to hedge its foreign currency exposure or any hedge may not be
effective.
Cybersecurity – Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to
gain access to fund assets, fund or shareholder data (including private shareholder
information), or proprietary information, cause the fund or