The fund normally invests at least 80% of its net assets (including any borrowings for investment purposes) in the equity securities of real estate companies throughout the world, including the U.S. The fund’s definition of real estate companies is broad and includes any company that derives at least 50% of its revenues or profits from, or commits at least 50% of assets to, real estate activities. Under normal conditions, the fund invests in at least five countries and at least 40% of its net assets are invested in real estate companies outside the U.S. (at least 30% of its net assets are invested in real estate companies outside the U.S. if foreign

market conditions are not favorable). For purposes of selecting investments, the fund’s investments in the real estate industry may include (but are not limited to) the following:

·Real estate investment trusts (REITs);

·real estate operating companies;

·brokers, developers, and builders of residential, commercial, and industrial properties;

·property management firms;

·finance, mortgage, and mortgage servicing firms;

·construction supply and equipment manufacturing companies; and

·firms dependent on real estate holdings for revenues and profits, including lodging, leisure, timber, mining, and agriculture companies.

A significant portion of the fund’s U.S. investments is expected to be in REITs. REITs pool money to invest in properties (equity REITs) or mortgages (mortgage REITs). The fund’s investments in REITs are generally made in equity REITs.

The fund will not own real estate directly and will have no restrictions on the size of companies selected for investment. Up to 20% of the fund’s total assets may be invested in companies that either derive a substantial portion of revenues or profits from servicing real estate firms, or that are unrelated to the real estate business.

Stock selection is based on fundamental, bottom-up analysis that generally seeks to identify high-quality companies with both good appreciation prospects and income-producing potential. Factors considered by the portfolio manager in selecting real estate companies include one or more of the following: relative valuation; free cash flow; undervalued assets; quality and experience of management; type of real estate owned; and the nature of a company’s real estate activities.