1290 Essex Small Cap Growth Fund Class R (ESCKX)

Overview

The fund described is a specialized investment vehicle that focuses on allocating its assets primarily towards the equity securities of small- and micro-capitalization companies. It adheres to a strict investment mandate, where at least 80% of its net assets, along with any borrowings intended for investment purposes, are invested in the equity securities that fall within the small-cap and micro-cap segments of the market. The fund uses the Russell 2000® Growth Index as a benchmark for defining the upper market capitalization limit of the companies in which it invests. Specifically, a "small-capitalization" company, as per the fund's criteria, is one whose market capitalization does not exceed the market capitalization of the largest company included within the Russell 2000® Growth Index at the time of purchase.

Products and Services

• Equity Securities of Small- and Micro-Capitalization Companies - These are shares of ownership in companies with relatively small market capitalization sizes. For this investment fund, small-cap companies are defined by their market capitalization's relation to the largest company in the Russell 2000® Growth Index. Investing in these companies can offer growth potential beyond that of larger, more established firms, but it also comes with higher volatility and risk.
• Borrowings for Investment Purposes - As part of its strategy, the fund may leverage additional funds through borrowing to amplify its investment capabilities. This approach can potentially enhance returns but also increases the fund's risk profile. Borrowing for investment purposes involves taking on debt to invest in the equity securities mentioned, aiming to earn a return that exceeds the cost of the borrowed funds.