Small-cap equities: Signs of life despite a lumbering economy

Equity markets have witnessed a strong run-up thus far in 2013, and small-caps are no exception. Christopher S. Beck takes you through his views on recent developments in the small-cap market, discussing positive indicators that include:

  • Healthy balance sheets
  • Dividend growth
  • Share buybacks

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Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Funds’ prospectuses and, if available, their summary prospectuses, which may be obtained by visiting our fund literature page or calling 877 693-3546. Investors should read the prospectus and, if available, the summary prospectus carefully before investing.

Past performance does not guarantee future results.        

Investing involves risk, including the possible loss of principal.

Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.

Value investing focuses on buying stocks that are trading at bargain prices based on fundamental analysis, then holding them until they become fully valued. Typically, value investors select securities with lower than average price-to-book or price-to-earnings ratios and/or high dividend yields.

Gross domestic product is a measure of all goods and services produced by a nation in a year.

There is no guarantee that dividend-paying stocks will continue to pay dividends.

Free cash flow is the concrete cash that a company generates in a given period.

The Russell 2000 Value Index measures the performance of the small-cap value segment of the U.S. equity universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

The Dow Jones Industrial Average is an often-quoted market indicator that comprises 30 widely held blue-chip stocks.

Index performance returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index. 

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