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GW&K's investment process starts with a top-down diversification decision, seeking to diversify the Fund on three levels:
- Market capitalization (small, medium and large)
- Style (value and growth)
- Economic sector
Bottom-up stock selection begins with an initial universe comprising both growth and value stocks with market capitalizations greater than $250 million. GW&K seeks stocks of companies with improving profit margins and returns on equity in excess of industry averages. They are particularly interested in companies with strong products or business niches and low leverage.
While GW&K may rely upon computer screening for industry information, earnings estimates, growth rates, profitability statistics and other characteristics, their greater focus is on fundamental research. This includes talking directly to companies, receiving input from brokers, attending industry conferences and reading periodicals. GW&K invests for the long-term and, therefore, seeks to keep turnover low.
Disclosure
Investors should carefully consider the fund's investment objectives, risks, charges, and expenses before investing. For this and other information, please call 800.835.3879 or download a free prospectus. Read it carefully before investing or sending money.
The performance shown represents past performance and is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. From time to time the advisor has waived fees or reimbursed expenses, which may have resulted in higher returns. The listed returns and yields on the Fund are net of expenses and the returns and yields on the indices exclude expenses. Current performance of the Fund may be lower or higher than the performance quoted.
The Fund may use derivative instruments for hedging purposes or as part of its investment strategy. There is a risk that a derivative intended as a hedge may not perform as expected. The main risk with derivatives is that some types can amplify a gain or loss, potentially earning or losing substantially more money than the actual cost of the derivative or that the counterparty may fail to honor its contract terms, causing a loss for the Fund. Use of these instruments may also involve certain costs and risks such as liquidity risk, interest rate risk, market risk, credit risk, management risk and the risk that a fund could not close out a position when it would be most advantageous to do so.
The Fund invests in growth stocks, which may be more sensitive to market movements because their prices tend to reflect future investor expectations rather than just current profits. Growth stocks may underperform value stocks during given periods.
The Fund invests in large-capitalization companies that may underperform other stock funds (such as funds that focus on small and medium capitalization companies) when stocks of large-capitalization companies are out of favor.
The Fund is subject to risks associated with investments in mid-capitalization companies such as erratic earnings patterns, competitive conditions, limited earnings history, and a reliance on one or a limited number of products.
The Fund is subject to risks associated with investments in small capitalization companies, such as erratic earnings patterns, competitive conditions, limited earnings history, and a reliance on one or a limited number of products.
The Fund invests in value stocks, which may perform differently from the market as a whole and may be undervalued by the market for a long period of time. Value stocks may underperform growth stocks during given periods.
The use of leverage in a Fund's strategy can magnify relatively small market movements into relatively larger losses for the Fund.
Unlike the Fund, the Index is unmanaged, is not available for investment and does not incur expenses. Please see Index Definitions for all our funds' benchmarks.
The Russell 3000® Index is a trademark of Russell Investments. Russell® is a trademark of Russell Investments. An investment cannot be made directly into an Index.
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