Passive Investment Risk—The Fund is not actively managed and the Advisor does
not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that is actively managed.
Portfolio Turnover Risk—Periodic rebalancing of the Fund's
holdings pursuant to its daily investment objective may lead to a greater number of portfolio transactions in the Fund than experienced by other mutual funds. Such frequent
and active trading may lead to significantly higher transaction costs because of increased broker commissions associated with such transactions.
Regulatory and Legal Risk—U.S. and non-U.S. governmental agencies and other
regulators regularly implement additional regulations and legislators pass new laws that affect the investments held by the Fund, the strategies used by the Fund or the level of regulation or taxation applying to the Fund (such as regulations related to investments in
derivatives and other transactions). These regulations and laws impact the investment strategies, performance, costs and operations of the Fund or taxation of shareholders.
Sector Risk—The Fund is subject to the Sector Risks described
below.
Consumer
Discretionary Sector Risk. The Fund’s investments are exposed to issuers conducting business in the
Consumer Discretionary Sector. The manufacturing segment of the Consumer Discretionary Sector includes automotive, household durable goods, leisure equipment and textiles and
apparel. The services segment includes hotels, restaurants and other leisure facilities, media production and services, and consumer retailing and services. The Fund is subject to the risk that the securities of such issuers will underperform the
market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased
competition affecting the Consumer Discretionary Sector. The performance of companies operating in the
Consumer Discretionary Sector has historically been closely tied to the performance of the overall economy,
and also is affected by economic growth, consumer confidence, attitudes and spending. Changes in
demographics and consumer tastes also can affect the demand for, and success of, consumer products and
services in the marketplace. Moreover, the Consumer Discretionary Sector encompasses those businesses
that tend to be the most sensitive to economic cycles.
Health Care Sector Risk. The Fund's investments are exposed to
issuers conducting business in the Health Care Sector. The Health Care Sector includes health care providers and services, companies that manufacture and distribute health care equipment and supplies, and health care technology companies. It also includes companies
involved in the research, development, production and marketing of pharmaceuticals and biotechnology products. The Fund is subject to the risk that the securities of such
issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the Health Care Sector. The prices of the securities of companies operating in the Health Care
Sector are closely tied to government regulation and approval of their products and services, which can have a significant effect on the price and availability of those products
and services.
Industrials
Sector Risk. The Fund's investments are exposed to issuers conducting business in the Industrials Sector.
The Industrials Sector includes manufacturers and distributors of capital goods such as aerospace and defense, building projects, electrical equipment and machinery, and
companies that offer construction and engineering services. It also includes providers of commercial and professional services including printing, environmental and facilities services, office services and supplies, security and alarm services, human resource and
employment services, and research and consulting services. It also includes companies that provide transportation services. The Fund is subject to the risk that the
securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the Industrials Sector. The prices of the securities of companies operating in the
Industrials Sector may fluctuate due to the level and volatility of commodity prices, the exchange value of the dollar, import controls, worldwide competition, liability for
environmental damage, depletion of resources, and mandated expenditures for safety and pollution control devices.
Information Technology Sector
Risk. The Fund's investments are exposed to issuers conducting business in the Information Technology
Sector. The Information Technology Sector includes companies that offer software and information technology services, manufacturers and distributors of technology hardware and
equipment such as communications equipment, cellular phones, computers and peripherals, electronic equipment and related instruments and semiconductors. The Fund is subject to the risk that the securities of such issuers will
underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or