About Principal Risks
There is no guarantee that the Funds will achieve their investment goals. Equity securities tend to go up or down in value, sometimes rapidly and unpredictably, in response to many factors, including a company’s historical and prospective earnings, the value of its assets, general economic conditions, interest rates, investor perceptions, and market liquidity. Large-capitalization companies tend to have more stable prices than small- or mid-capitalization companies, but are still subject to equity securities risk and their prices may not rise as much as the prices of companies with smaller market capitalizations. Small- and mid-capitalization companies may be more susceptible to liquidity risk and price volatility risk and more vulnerable to economic, market, and industry changes than larger, more established companies. Value companies are those a portfolio manager believes are undervalued and perceived as trading for less than their intrinsic values.