Risks Consideration

There is no assurance that a mutual fund will achieve its investment objective.

Funds are subject to

market risk, which is the possibility that the market values of securities owned by the fund will decline and that the value of fund shares may therefore be less than what you paid for them.

Accordingly, you can lose money investing in any mutual fund.

Convertible risk: Some funds are subject to certain additional risks, including those associated with: Convertible securities.

In addition to the risks associated with common stocks, investments in convertible securities are subject to the risks associated with fixed income securities, namely credit, price and interest-rate risks.

Interest rates risk. In a declining interest-rate environment, the portfolio may generate less income.

Call risk. Additionally, more bonds may be called by the issuer, which may decrease the overall income potential of the portfolio. In a rising interest-rate environment, bond prices fall.

Small- and mid-cap stocks. While the fund primarily invests in larger-company stocks, it may invest in the stocks of small- and mid-cap companies.

Stocks of small and medium-sized companies entail special risks, such as limited product lines, markets, and financial resources, and greater market volatility than securities of larger, more-established companies.

Credit quality. Many funds invest only in investment grade-quality debt securities. However, investments in securities rated below investment grade (commonly known as “junk bonds”) present greater risk of loss to principal and interest than investments in higher-quality securities.

Foreign markets. Some funds may invest in foreign markets; should they do so, the portfolio may be subject to additional currency, political, and economic risks.

Derivative instruments. Investments in derivatives could magnify volatility.