The fund normally invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities. In addition, the fund invests at least 65% of its total assets in non-U.S. stocks, with an emphasis on large-cap stocks that have a strong track record of paying dividends or that are believed to be undervalued. The fund seeks to diversify broadly, primarily among the world’s developed countries. Investments in stocks of companies in emerging markets will be modest and focused on more mature developing countries. The fund relies on MSCI Inc., a third-party provider of benchmark indexes and data services, or another unaffiliated data provider to determine the country assigned to a security. Any derivatives that provide exposure to the investment focus suggested by the fund’s name, or to one or more market risk factors associated with the investment focus suggested by the fund’s name, are counted (as applicable) toward compliance with the fund’s 80% investment policy.

The fund takes a value-oriented approach to investing by seeking to invest in companies whose stock prices are low in relation to the value of their assets or future prospects. Country and sector allocations are driven primarily by security selection and secondarily by an assessment of top-down, fundamental prospects. The fund relies on a global research team to identify companies that appear to be undervalued by various measures and may be temporarily out of favor but have good prospects for capital appreciation or dividend growth.

In selecting investments, the adviser generally favors companies with one or more of the following characteristics:

·low valuation on various earnings, book value, sales, and cash flow metrics, in absolute terms and/or relative to the company’s peers or its own historical norm;

·low valuation relative to a company’s growth potential;

·companies that may benefit from restructuring activity or other turnaround opportunities;

·a sound balance sheet and other positive financial characteristics; and

·above-average dividend yield and/or the potential to grow dividends.

The fund typically has significant investments in developed European countries.

At times, the fund may have a significant portion of its assets invested in the same economic sector, such as the financial sector.