Morningstar® Investment Profile™   Investment
Option Disclosure
  Prospectus Document   Format
for Print
Vanguard Windsor™ II Admiral™  VWNAX
Please click on the Investment Option Disclosure link above for more information.
Release date as of 2021-12-31. Data on page is subject to change.
Snapshot Ratings & Risk Portfolio Nuts & Bolts
  Morningstar Report
Overall Morningstar
Rating™
What is this?
As of 2021-12-31
Out of 1143
Large Value Funds
Morningstar®
Style Box™
What is this?
As of 2021-06-30
Total Fund Assets ($ Mil)
61,313.63
View Historical Morningstar Star Ratings and Definitions
  Investment Objective & Strategy  
The investment seeks to provide long-term capital appreciation and income.
The fund invests mainly in large- and mid-capitalization companies whose stocks are considered by an advisor to be undervalued. Undervalued stocks are generally those that are out of favor with investors and that the advisor believes are trading at prices that are below average in relation to measures such as earnings and book value. These stocks often have above-average dividend yields. It uses multiple investment advisors.
  Morningstar Category: Large Value
Large-value portfolios invest primarily in big U.S. companies that are less expensive or growing more slowly than other large-cap stocks. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap. Value is defined based on low valuations (low price ratios and high dividend yields) and slow growth (low growth rates for earnings, sales, book value, and cash flow). 
  Portfolio Profile
Asset Allocation
% of Net Assets
Bullet U.S. Stocks U.S. Stocks 89.4
Bullet Non-U.S. Stocks Non-U.S. Stocks 10.5
Bullet Bonds Bonds 0.0
Bullet Cash Cash 0.1
Bullet Other Other 0.0
Asset Allocation Rescaled Graph
Data through 2021-06-30
Morningstar Equity Sectors
% of Stocks
Cyclical 32.42
Basic Materials 1.50
Consumer Cyclical 8.79
Financial Services 20.42
Real Estate 1.71
Sensitive 43.12
Communication Services 8.31
Energy 5.10
Industrials 8.74
Technology 20.97
Defensive 24.47
Consumer Defensive 6.29
Healthcare 17.58
Utilities 0.60
Data through 2021-06-30
Holding Status
Total Number of Stock Holdings 177
Total Number of Bond Holdings 0
% of Net Assets in Top 10 Holdings 23.09
Turnover % (as of 2021-10-31) 20.00
30 Day SEC Yield % 1.08
Top Holdings
Sector P/E % of Net
Assets
Microsoft Corp 37.62 5.32
Alphabet Inc Class A 27.92 3.10
Medtronic PLC 29.81 2.56
Apple Inc 31.65 1.90
Bank of America Corp 13.32 1.87
Johnson & Johnson 25.57 1.76
Wells Fargo & Co 11.40 1.75
Honeywell International Inc 26.84 1.66
Citigroup Inc 5.72 1.65
Danaher Corp 42.34 1.52
Data through 2021-06-30
  Principal Risks   
Loss of Money, Not FDIC Insured, Market/Market Volatility, Equity Securities, Management
Show Risk Definitions
  Other Information
Inception Date: 2001-05-14
Portfolio Manager(s)
Scott McBride   (2019-01-07)
Scott McBride serves as CEO and portfolio manager on the Large Cap Fundamental Value, Large Cap Diversified Value, Global Value and Focused Global Value portfolios. He covers technology companies and is a member of the consumer, technology, healthcare and financial sector teams. Prior to joining the firm in 2001, Mr. McBride was an associate consultant with Deloitte Consulting and worked as an investment marketing analyst with Fidelity Investments. Mr. McBride, a CFA charterholder, received his BA in Economics from Georgetown University and MBA from Columbia University.
Ronald Temple   (2018-07-20)
Ronald Temple is a Managing Director and Co-Head of Multi-Asset and Head of US Equity. In this role, Ron is responsible for overseeing the firm's multi-asset and US equity strategies as well as several global equity strategies. He is also a Portfolio Manager/Analyst on various US and global equity teams. He joined Lazard in 2001 with ten years of global experience including fixed-income derivative trading, risk management, corporate finance and corporate strategy. Ron has an MPP from Harvard University and graduated magna cum laude with a BA in Economics & Public Policy from Duke University.
Gregory D. Padilla   (2019-12-16)
Gregory Padilla is a member of the Aristotle Capital research team and a veteran of the investment industry. Prior to joining Aristotle Capital, Greg was a Managing Director and Portfolio Manager at Vinik Asset Management, LP and Tradewinds Global Investors, LLC. While at Tradewinds, Greg was a key member of the All-Cap Equity strategy, the Global All-Cap strategy and Global Natural Resource strategy. During his tenure, these three strategies received Lipper awards for top ranking in their respective categories.
Howard Gleicher   (2019-12-16)
Howard Gleicher is CEO and Chief Investment Officer of Aristotle Capital. Having begun in the investment industry in 1985, Howard heads the firm and leads the investment effort. Prior to founding Aristotle Capital, Howard was co-founder, CEO and Chief Investment Officer at Metropolitan West Capital Management, LLC. Howard’s prior investment-related experience includes serving as Principal, Portfolio Manager and Investment Policy Committee member at Palley-Needelman Asset Management, Inc., and Equity Portfolio Manager at Pacific Investment Management Company (PIMCO).
George H. Davis   (2003-12-11)
George Davis serves as Executive Chairman and portfolio manager on the Large Cap Fundamental Value and Large Cap Diversified Value portfolios. He is a member of the capital goods and financials sector teams. Prior to joining the firm in 1988, Mr. Davis was an assistant to the senior partner of RCM Capital Management. He began his career in equity research with internships at Cramer, Rosenthal & McGlynn and Fidelity Management & Research. Mr. Davis received his BA in Economics and History and MBA from Stanford University.
Lewis A. Sanders   (2010-01-13)
Lewis A. Sanders, Chief Executive Officer and Co-Chief Investment Officer of Sanders Capital, LLC. He has worked in investment management since 1968; has managed investment portfolios since 1981; has been with Sanders since 2009; and has co-managed a portion of the Fund since 2010. Education: B.S., Columbia University
John P. Mahedy   (2010-01-13)
Mahedy was named Co-CIO -- US Value equities in 2003. He continues to serve as director of research -- US Value Equities, a position he has held since 2001. Previously, he was a senior research analyst in Bernsteins institutional research and brokerage unit, covering the domestic and international energy industry from 1995 to 2001. He has been with Sanders since 2009; and has co-managed a portion of the Fund since 2010. Mahedy holds the Chartered Financial Analyst designation. Education: B.S. and M.B.A., New York University.
Andrew D. Lacey   (2007-01-08)
Andrew Lacey is a Managing Director and a Portfolio Manager/Analyst on various US equity strategies as well as Global Equity Select. He began working in the investment field upon joining the firm in 1995 as a Research Analyst covering the technology sector. Andrew has an MBA from Columbia University and a BA (Hons) from the College of Social Studies, Wesleyan University. Prior to joining Lazard, Andrew was a teacher at the Pingry School and Buckingham Browne & Nichols for five years. He continues to be involved in education as a board member for KIPP New Jersey and Link Education Partners.
Investment Advisor(s)
Lazard Asset Management LLC
Hotchkis and Wiley Capital Mgmt LLC
Sanders Capital, LLC
Aristotle Capital Management, LLC
Issuer
Vanguard
Show Data Definitions

© Copyright 2022 Morningstar, Inc.
All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or any losses arising from any use of information. Past performance is no guarantee of future performance.
Past performance is no guarantee of future results.
Returns will vary and shares may be worth more or less than their original cost when sold.
 Standard Insurance
Morningstar® Investment Profile™   Investment
Option Disclosure
  Prospectus Document   Format
for Print
Vanguard Windsor™ II Admiral™  VWNAX
Please click on the Investment Option Disclosure link above for more information.
Release date as of 2021-12-31. Data on page is subject to change.
Snapshot Ratings & Risk Portfolio Nuts & Bolts
  Morningstar Ratings
Morningstar
Return
Morningstar
Risk
Morningstar
Rating
Number of
Funds
3-Year High Average 1143
5-Year High Average 1036
10-Year High Average 755
Overall High Average 1143
Morningstar Category: Large Value | Number of Funds in Category: 1143
Data through 2021-12-31
Ratings reflect risk-adjusted performance and are derived from a weighted average of the performance figures associated with its three, five and ten-year (if applicable) time periods.
  Volatility Measurements
Standard Deviation 19.24
Mean 24.06
Sharpe Ratio 1.18
Trailing 3-Yr as of 2021-12-31
  Modern Portfolio Theory Statistics
Best Fit Index
Russell 1000 Value TR USD
R-Squared 98
Beta 0.99
Alpha 5.61
Trailing 3-Yr as of 2021-12-31
  Principal Risks   
Loss of Money, Not FDIC Insured, Market/Market Volatility, Equity Securities, Management
Show Risk Definitions
Show Data Definitions

© Copyright 2022 Morningstar, Inc.
All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or any losses arising from any use of information. Past performance is no guarantee of future performance.
Past performance is no guarantee of future results.
Returns will vary and shares may be worth more or less than their original cost when sold.
 Standard Insurance
Morningstar® Investment Profile™   Investment
Option Disclosure
  Prospectus Document   Format
for Print
Vanguard Windsor™ II Admiral™  VWNAX
Please click on the Investment Option Disclosure link above for more information.
Release date as of 2021-12-31. Data on page is subject to change.
Snapshot Ratings & Risk Portfolio Nuts & Bolts
  Style Box Details for Stock Holdings
Size
Average Mkt Cap $Mil 130,963
   
Market Capitalization % of Portfolio
Giant 41.51
Large 41.35
Medium 16.31
Small 0.82
Micro 0.00
   
Investment Valuation Stock
Portfolio
Forward P/E 17.9
Price/Book 2.7
Price/Sales 2.3
Price/Cash Flow 13.5
Dividend Yield 1.6
Long-Term Earnings 14.4
Historical Earnings 1.0
Sales Growth 1.2
Cash-Flow Growth 5.9
Book-Value Growth 3.1
As of 2021-06-30
Data as of 2021-06-30
  Asset Allocation
% of Net Assets
Bullet U.S. Stocks U.S. Stocks 89.4
Bullet Non-U.S. Stocks Non-U.S. Stocks 10.5
Bullet Bonds Bonds 0.0
Bullet Cash Cash 0.1
Bullet Other Other 0.0
Asset Allocation Rescaled Graph
Data through 2021-06-30
  Morningstar Equity Sectors
% of Stocks
Cyclical 32.42
Basic Materials 1.50
Consumer Cyclical 8.79
Financial Services 20.42
Real Estate 1.71
Sensitive 43.12
Communication Services 8.31
Energy 5.10
Industrials 8.74
Technology 20.97
Defensive 24.47
Consumer Defensive 6.29
Healthcare 17.58
Utilities 0.60
Data through 2021-06-30
  Top 25 Holdings
Total Number of Stock Holdings 177
Total Number of Bond Holdings 0
% of Net Assets in Top 10 Holdings 23.09
Turnover % (as of 2021-10-31) 20.00
30 Day SEC Yield % 1.08
Top 25 Holdings
Sector P/E % of Net
Assets
Microsoft Corp 37.62 5.32
Alphabet Inc Class A 27.92 3.10
Medtronic PLC 29.81 2.56
Apple Inc 31.65 1.90
Bank of America Corp 13.32 1.87
Johnson & Johnson 25.57 1.76
Wells Fargo & Co 11.40 1.75
Honeywell International Inc 26.84 1.66
Citigroup Inc 5.72 1.65
Danaher Corp 42.34 1.52
JPMorgan Chase & Co 10.02 1.46
Anthem Inc 20.77 1.38
Taiwan Semiconductor Manufacturing Co Ltd ADR --- 1.37
UnitedHealth Group Inc 31.15 1.36
Procter & Gamble Co 29.85 1.35
Alphabet Inc Class C 27.89 1.32
Intercontinental Exchange Inc 25.23 1.29
Adobe Inc 56.59 1.18
Coca-Cola Co 29.17 1.14
American International Group Inc 8.93 1.13
Visa Inc Class A 38.49 1.12
Samsung Electronics Co Ltd --- 1.10
Lennar Corp 8.14 1.09
Facebook Inc Class A 24.06 1.08
American Express Co 17.08 1.06
Data through 2021-06-30
Show Data Definitions

© Copyright 2022 Morningstar, Inc.
All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or any losses arising from any use of information. Past performance is no guarantee of future performance.
Past performance is no guarantee of future results.
Returns will vary and shares may be worth more or less than their original cost when sold.
 Standard Insurance
Morningstar® Investment Profile™   Investment
Option Disclosure
  Prospectus Document   Format
for Print
Vanguard Windsor™ II Admiral™  VWNAX
Please click on the Investment Option Disclosure link above for more information.
Release date as of 2021-12-31. Data on page is subject to change.
Snapshot Ratings & Risk Portfolio Nuts & Bolts
  Fees and Expenses Taken from prospectus dated 2021-02-26  
Maximum Sales Fees
Maximum Sales Charge ---
Maximum Fees
Administrative ---
Management 0.25%
12b-1 ---
Actual Fees
12b-1 ---
Management 0.25%
Expense Ratio 0.26%
(taken from annual report dated 2021-10-31)
Total Annual Operating Expense 0.26%
Waiver Data
Type Date %
--- --- --- ---
  Management
Inception Date: 2001-05-14
Mngr Name Scott McBride
Mngr Start Date 2019-01-07
Biography
Scott McBride serves as CEO and portfolio manager on the Large Cap Fundamental Value, Large Cap Diversified Value, Global Value and Focused Global Value portfolios. He covers technology companies and is a member of the consumer, technology, healthcare and financial sector teams. Prior to joining the firm in 2001, Mr. McBride was an associate consultant with Deloitte Consulting and worked as an investment marketing analyst with Fidelity Investments. Mr. McBride, a CFA charterholder, received his BA in Economics from Georgetown University and MBA from Columbia University.
Mngr Name Ronald Temple
Mngr Start Date 2018-07-20
Biography
Ronald Temple is a Managing Director and Co-Head of Multi-Asset and Head of US Equity. In this role, Ron is responsible for overseeing the firm's multi-asset and US equity strategies as well as several global equity strategies. He is also a Portfolio Manager/Analyst on various US and global equity teams. He joined Lazard in 2001 with ten years of global experience including fixed-income derivative trading, risk management, corporate finance and corporate strategy. Ron has an MPP from Harvard University and graduated magna cum laude with a BA in Economics & Public Policy from Duke University.
Mngr Name Gregory D. Padilla
Mngr Start Date 2019-12-16
Biography
Gregory Padilla is a member of the Aristotle Capital research team and a veteran of the investment industry. Prior to joining Aristotle Capital, Greg was a Managing Director and Portfolio Manager at Vinik Asset Management, LP and Tradewinds Global Investors, LLC. While at Tradewinds, Greg was a key member of the All-Cap Equity strategy, the Global All-Cap strategy and Global Natural Resource strategy. During his tenure, these three strategies received Lipper awards for top ranking in their respective categories.
Mngr Name Howard Gleicher
Mngr Start Date 2019-12-16
Biography
Howard Gleicher is CEO and Chief Investment Officer of Aristotle Capital. Having begun in the investment industry in 1985, Howard heads the firm and leads the investment effort. Prior to founding Aristotle Capital, Howard was co-founder, CEO and Chief Investment Officer at Metropolitan West Capital Management, LLC. Howard’s prior investment-related experience includes serving as Principal, Portfolio Manager and Investment Policy Committee member at Palley-Needelman Asset Management, Inc., and Equity Portfolio Manager at Pacific Investment Management Company (PIMCO).
Mngr Name George H. Davis
Mngr Start Date 2003-12-11
Biography
George Davis serves as Executive Chairman and portfolio manager on the Large Cap Fundamental Value and Large Cap Diversified Value portfolios. He is a member of the capital goods and financials sector teams. Prior to joining the firm in 1988, Mr. Davis was an assistant to the senior partner of RCM Capital Management. He began his career in equity research with internships at Cramer, Rosenthal & McGlynn and Fidelity Management & Research. Mr. Davis received his BA in Economics and History and MBA from Stanford University.
Mngr Name Lewis A. Sanders
Mngr Start Date 2010-01-13
Biography
Lewis A. Sanders, Chief Executive Officer and Co-Chief Investment Officer of Sanders Capital, LLC. He has worked in investment management since 1968; has managed investment portfolios since 1981; has been with Sanders since 2009; and has co-managed a portion of the Fund since 2010. Education: B.S., Columbia University
Mngr Name John P. Mahedy
Mngr Start Date 2010-01-13
Biography
Mahedy was named Co-CIO -- US Value equities in 2003. He continues to serve as director of research -- US Value Equities, a position he has held since 2001. Previously, he was a senior research analyst in Bernsteins institutional research and brokerage unit, covering the domestic and international energy industry from 1995 to 2001. He has been with Sanders since 2009; and has co-managed a portion of the Fund since 2010. Mahedy holds the Chartered Financial Analyst designation. Education: B.S. and M.B.A., New York University.
Mngr Name Andrew D. Lacey
Mngr Start Date 2007-01-08
Biography
Andrew Lacey is a Managing Director and a Portfolio Manager/Analyst on various US equity strategies as well as Global Equity Select. He began working in the investment field upon joining the firm in 1995 as a Research Analyst covering the technology sector. Andrew has an MBA from Columbia University and a BA (Hons) from the College of Social Studies, Wesleyan University. Prior to joining Lazard, Andrew was a teacher at the Pingry School and Buckingham Browne & Nichols for five years. He continues to be involved in education as a board member for KIPP New Jersey and Link Education Partners.
Investment Advisor(s)
Lazard Asset Management LLC
Hotchkis and Wiley Capital Mgmt LLC
Sanders Capital, LLC
Aristotle Capital Management, LLC
Web Site
www.vanguard.com
Issuer
Vanguard
Show Data Definitions

© Copyright 2022 Morningstar, Inc.
All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or any losses arising from any use of information. Past performance is no guarantee of future performance.
Past performance is no guarantee of future results.
Returns will vary and shares may be worth more or less than their original cost when sold.


Morningstar Investment Profilessm: Investment Option Disclosure

A redemption fee may apply to short-term investments. Investments are subject to market risks and fluctuate in value. Past performance is no guarantee of future results.
Standard Insurance Company currently invests in this Fund through its separate account on behalf of retirement plan sponsors and participants. It reserves the right to cease investing contributions in the Fund. The Standard charges fees, which are described in the prospectus, in addition to those charged by the Fund.
Plan sponsors and participants should carefully consider the investment objectives, risks, charges and expenses of the investment options offered under the retirement plan before investing. The prospectuses for The Standard Group Variable Annuity Contract and its underlying investment options contain this and other important information. Prospectuses may be obtained by calling 877.805.1127. Please read the prospectus carefully before investing.
NOT A DEPOSIT – NOT FDIC INSURED – NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY – NOT GUARANTEED BY THE INSTITUTION – MAY GO DOWN IN VALUE
Morningstar Rating™
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
For private funds, the Morningstar Rating presented is hypothetical, because Morningstar does not independently analyze private funds. Rather, the rating is assigned as a means to compare these funds with the universe of mutual funds that Morningstar rates. The evaluation of this investment does not affect the retail mutual fund data published by Morningstar.
Morningstar Return
The Morningstar Return rates a fund's performance relative to other managed products in its Morningstar Category. It is an assessment of a product's excess return over a risk-free rate (the return of the 90-day Treasury Bill) in comparison with the products in its Morningstar category. In each Morningstar category, the top 10% of products earn a High Morningstar Return (High), the next 22.5% Above Average (+Avg), the middle 35% Average (Avg), the next 22.5% Below Average (-Avg), and the bottom 10% Low (Low). Morningstar Return is measured for up to three time periods (three, five, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the product. Products with less than three years of performance history are not rated.
Morningstar Risk
Morningstar Risk evaluates a fund's downside volatility relative to that of other products in its Morningstar Category. It is an assessment of the variations in monthly returns, with an emphasis on downside variations, in comparison with the products in its Morningstar category. In each Morningstar category, the 10% of products with the lowest measured risk are described as Low Risk (Low), the next 22.5% Below Average (-Avg), the middle 35% Average (Avg), the next 22.5% Above Average (+Avg), and the top 10% High (High). Morningstar Risk is measured for up to three time periods (three, five, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the product. Products with less than three years of performance history are not rated.
Risk Measures
R-squared reflects the percentage of a funds movements that are explained by movements in its benchmark index, showing the degree of correlation between the fund and the benchmark.
Beta is a measure of a funds sensitivity to market movements. A portfolio with a beta greater than 1 is more volatile than the market, and a portfolio with a beta less than 1 is less volatile than the market.
Alpha measures the difference between a funds actual returns and its expected performance, given its level of risk (as measured by beta).
Sharpe ratio uses standard deviation and excess return to determine reward per unit of risk.
Standard deviation is a statistical measure of the volatility of the funds returns.
Morningstar Style Box™
The Morningstar Style Box reveals a fund's investment strategy as of the date noted on this report.
For equity funds the vertical axis shows the market capitalization of the long stocks owned and the horizontal axis shows investment style (value, blend, or growth).
For fixed-income funds, the vertical axis shows the credit quality of the long bonds owned and the horizontal axis shows interest rate sensitivity as measured by a bond's effective duration.
For corporate and municipal bonds, Morningstar surveys credit rating information from fund companies on a periodic basis (e.g., quarterly). In compiling credit rating information, Morningstar instructs fund companies to only use ratings that have been assigned by a Nationally Recognized Statistical Rating Organization (NRSRO). If two NRSROs have rated a security, fund companies are to report the lowest rating to Morningstar. If a rating is unavailable or unpublished, then the security or issuer is categorized as Not Rated/Not Available. US Government Securities issued by the US Treasury or US Government Agencies are included in the US Government category. PLEASE NOTE: Morningstar, Inc. is not itself an NRSRO nor does it issue a credit rating on the fund. An NRSRO rating on a fixed-income security can change from time-to-time.
Investment Risk
Foreign Securities Funds/Emerging Markets Funds: Funds that invest in foreign securities involve special additional risks. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks.
Sector Funds: Funds that invest exclusively in one sector or industry involve additional risks. The lack of industry diversification subjects the investor to increased industry-specific risks.
Non-Diversified Funds: Funds that invest more of their assets in a single issuer involve additional risks, including share price fluctuations, because of the increased concentration of investments.
Small Cap Funds: Funds that invest in stocks of small companies involve additional risks. Smaller companies typically have a higher risk of failure, and are not as well established as larger blue-chip companies. Historically, smaller-company stocks have experienced a greater degree of market volatility than the overall market average.
Mid Cap Funds: Funds that invest in companies with market capitalizations below $10 billion involve additional risks. The securities of these companies may be more volatile and less liquid than the securities of larger companies.
High-Yield Bond Funds: Funds that invest in lower-rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility, and increased risk of default. The investor should also be aware that as interest rates rise, bond prices will fall.
Funds that invest in Derivatives: Funds that invest in derivatives are subject to a number of risks, such as liquidity risk, interest rate risk, market risk, credit risk, and management risk. A Fund investing in a derivative instrument could lose more than the principal amount invested, as stated in the Fund's prospectus.
Real Estate Funds: Real estate investment funds are subject to risks, such as market forces, that may affect the values of their underlying real estate assets.