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ClearBridge Appreciation Portfolios

As of 09/30/2025

Year to Date Returns (Net)

11.80%

 
 

Year to Date Returns (Pure Gross)

14.27%

 

See additional performance disclosures in the performance section.

Overview

ClearBridge Investments logo
  • Investment Overview
  • Investment Process
  • Meet Your Manager

Investment Overview

ClearBridge Appreciation Portfolios were designed for investors seeking long-term capital appreciation through investments primarily in a core portfolio of high-quality, large-capitalization companies. By investing in a diversified portfolio of growth and value stocks, the managers believe that they are able to position the portfolios to take advantage of changes in economic and market cycles.

Investment Philosophy

Long-term appreciation of capital

We believe that:

  • The managers seek to provide consistent and competitive risk-adjusted returns through a market cycle by balancing upside participation in good markets, while trying to limit downside risk during difficult markets. 
  • The managers invest in both growth and value stocks, consisting primarily of large-cap, blue chip companies that tend to have dominant market positions and have met environmental, social and governance criteria in the portfolio construction process.

Generally, companies in the portfolio fall into one of the following categories: 

  • Companies that have assets or earning power that are undervalued or unrecognized by the market, or companies whose stock price has been driven down by cyclical factors. 
  • Companies with superior demonstrated and expected growth characteristics and whose stocks are available at reasonable prices due to temporary market-specific or stock-specific reasons. 
  • Companies the managers believe are well positioned to sustain or increase growth at a faster rate than market expectations. 

The managers use a disciplined valuation process that attempts to measure upside potential and downside exposure.

Portfolio Positioning

Low-volatility, core holding:

  • Balance upside participation in good markets, while trying to limit downside risk during difficult markets 
  • Core equities: manager has the flexibility to take advantage of both growth and value oriented markets
  • Typically focused on dominant “blue chips”
  • Demonstrates both growth and value characteristics
  • Great growth companies at reasonable prices

The managers may sometimes hold significant cash reserves as a portion of the portfolio while waiting for buying opportunities.

Diversification does not guarantee a profit or protect against a loss. There is no guarantee that the Portfolio's objectives will be met.

Key differentiators

Clear investment philosophy and objective: 

  • Seeks long-term appreciation of capital

Disciplined approach to security selection:

  • Look for high-margin, lower-leverage companies.
  • Focus on balance sheet strength and free cash flow measures.
  • Use multiple valuation measures to ensure not overpaying for future growth.
  • Occasionally incorporate top-down themes to drive areas for security selection.

Performance risk:

  • De-risk business model at security level.
  • Aware of active bets at sector and security levels, leveraging ClearBridge Investments risk management team.

Investment Process

Investment Process

Step 1 - Define the Investment Universe

  • Emphasize domestic large-capitalization stocks, but also consider mid- and small-capitalization companies and ADRs of non-U.S. companies opportunistically.

Step 2 - Evaluate Stocks using Proprietary Discipline

  • Screen for high-quality companies with dominant market positions, proven management teams and/or superior balance sheets across all market sectors. 

Step 3 - Select Securities and Construct Portfolio

  • Conduct fundamental research to identify companies with attractive growth characteristics relative to their valuation levels, with a range of 50-80 stocks. 

Step 4 - Review Holdings Continuously

  • Re-examine a current holding when valuation is realized, fundamentals deteriorate, insiders are selling and/or cyclical shifts alter industry’s attractiveness.
  • The managers may sometimes hold significant cash reserves as a portion of the portfolio while waiting for buying opportunities or to provide a hedge against possible stock market declines. 

The investment process may change over time. The characteristics set forth above are intended as a general illustration of some of the criteria the strategy team considers in selecting securities for client portfolios. There is no guarantee investment objectives will be achieved.

Meet Your Manager

ClearBridge Investments

ClearBridge Investments is a well-established global investment manager focusing on proprietary research and fundamental investing. With over 60 years of experience building portfolios for clients seeking income solutions, high active share or low-volatility, long-tenured portfolio managers provide strong leadership in a centralized investment structure.

Portfolio Managers

Michael Kagan

New York, United States

Managed Portfolio Since 2003

Stephen Rigo, CFA®

New York, United States

Managed Portfolio Since 2016

Performance

  • Average Annual Total Returns
  • Calendar Year Returns
  • Cumulative Total Returns
  • Risk/Return Profile
  • Risk Measures

Average Annual Total Returns

Average Annual Total Returns

As of 09/30/2025

Chart

Bar chart with 3 data series.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from 7.28 to 24.94.
End of interactive chart.

Quarter End   As of 09/30/2025
ClearBridge Appreciation Portfolios - Net (%)
1 Year  
13.13
3 Years  
17.22
5 Years  
10.71
7 Years  
8.66
10 Years  
9.54
15 Years  
9.49
20 Years  
7.28
Since Inception   02/28/2003
7.82
Quarter End   As of 09/30/2025
ClearBridge Appreciation Portfolios - Pure Gross (%)
1 Year  
16.49
3 Years  
20.69
5 Years  
14.01
7 Years  
11.90
10 Years  
12.81
15 Years  
12.75
20 Years  
10.48
Since Inception   02/28/2003
11.04
Quarter End   As of 09/30/2025
S&P 500 Index (%)
1 Year  
17.60
3 Years  
24.94
5 Years  
16.47
7 Years  
14.45
10 Years  
15.30
15 Years  
14.64
20 Years  
10.97
Since Inception   02/28/2003
11.74

The strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Past performance is not a guarantee of future results. An investment in this strategy can lose value.  

Performance data represents past performance, which does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares. Periods less than one year are not annualized. Performance results are for the composite which includes all actual, fully discretionary accounts with substantially similar investment policies and objectives managed to the composite's investment strategy. Composite returns are stated in U.S. dollars and assume reinvestment of any dividends, interest income, capital gains, or other earnings. The composite may include account(s) that are gross of fees and pure gross of fees. “Pure” gross-of-fee returns do not reflect the deduction of any expenses, including transaction costs. A traditional (or "true") gross-of-fee return reflects performance after the reduction of transaction costs but before the reduction of the investment advisory fee. The gross-of-fee return may include a blend of "true" gross-of-fee returns for non-wrap accounts and "pure” gross-of-fee returns for wrap accounts. Net-of-fee returns is reduced by a model “wrap fee” (3.0% is the maximum anticipated wrap fee for equity and balanced portfolios) which includes trading expenses as well as investment management, administrative and custodial fees. The model wrap fee used represents the highest anticipated wrap fee applicable to the strategy. Actual fees and account minimums may vary.  

For fee schedules, contact your financial professional, or if you enter into an agreement directly with Franklin Templeton Private Portfolio Group, LLC (“FTPPG”), refer to FTPPG’s Form ADV Part 2A disclosure document. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.   

To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) DIAL BEN/342-5236. ClearBridge Investments, LLC, Martin Currie, Royce Investment Partners, and Western Asset Management Company, LLC claim compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. 


Calendar Year Returns

Calendar Year Returns

As of 09/30/2025


Chart

Bar chart with 3 data series.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from -18.11 to 31.49.
End of interactive chart.

Quarter End   As of 09/30/2025
ClearBridge Appreciation Portfolios - Net (%)
YTD  
11.80
2024  
17.49
2023  
12.53
2022  
-14.11
2021  
18.23
2020  
7.13
2019  
23.16
2018  
-5.01
2017  
14.25
2016  
8.53
2015  
-2.94
Performance Inception Date  
02/28/2003
Quarter End   As of 09/30/2025
ClearBridge Appreciation Portfolios - Pure Gross (%)
YTD  
14.27
2024  
20.97
2023  
15.87
2022  
-11.50
2021  
21.73
2020  
10.33
2019  
26.79
2018  
-2.15
2017  
17.64
2016  
11.76
2015  
-0.02
Performance Inception Date  
02/28/2003
Quarter End   As of 09/30/2025
S&P 500 Index (%)
YTD  
14.83
2024  
25.02
2023  
26.29
2022  
-18.11
2021  
28.71
2020  
18.40
2019  
31.49
2018  
-4.38
2017  
21.83
2016  
11.96
2015  
1.38
Performance Inception Date  
—

The strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Past performance is not a guarantee of future results. An investment in this strategy can lose value.  

Performance data represents past performance, which does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares. Periods less than one year are not annualized. Performance results are for the composite which includes all actual, fully discretionary accounts with substantially similar investment policies and objectives managed to the composite's investment strategy. Composite returns are stated in U.S. dollars and assume reinvestment of any dividends, interest income, capital gains, or other earnings. The composite may include account(s) that are gross of fees and pure gross of fees. “Pure” gross-of-fee returns do not reflect the deduction of any expenses, including transaction costs. A traditional (or "true") gross-of-fee return reflects performance after the reduction of transaction costs but before the reduction of the investment advisory fee. The gross-of-fee return may include a blend of "true" gross-of-fee returns for non-wrap accounts and "pure” gross-of-fee returns for wrap accounts. Net-of-fee returns is reduced by a model “wrap fee” (3.0% is the maximum anticipated wrap fee for equity and balanced portfolios) which includes trading expenses as well as investment management, administrative and custodial fees. The model wrap fee used represents the highest anticipated wrap fee applicable to the strategy. Actual fees and account minimums may vary.  

For fee schedules, contact your financial professional, or if you enter into an agreement directly with Franklin Templeton Private Portfolio Group, LLC (“FTPPG”), refer to FTPPG’s Form ADV Part 2A disclosure document. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.   

To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) DIAL BEN/342-5236. ClearBridge Investments, LLC, Martin Currie, Royce Investment Partners, and Western Asset Management Company, LLC claim compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. 


Cumulative Total Returns

Cumulative Total Returns

As of 09/30/2025


The hypothetical growth scenario of $100k does not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares. Had they been reflected hypothetical values would be lower.

Chart

Line chart with 3 lines.
The chart has 1 X axis displaying Time. Data ranges from 2003-02-01 00:00:00 to 2025-09-01 00:00:00.
The chart has 1 Y axis displaying values. Data ranges from 97168.27 to 1225607.53.
End of interactive chart.

Quarter End   As of 09/30/2025
ClearBridge Appreciation Portfolios - Net (%)
YTD  
11.80
1 Year  
13.13
3 Years  
61.07
5 Years  
66.33
10 Years  
148.82
15 Years  
289.76
Since Inception   02/28/2003
448.02
Quarter End   As of 09/30/2025
ClearBridge Appreciation Portfolios - Pure Gross (%)
YTD  
14.27
1 Year  
16.49
3 Years  
75.81
5 Years  
92.60
10 Years  
233.72
15 Years  
505.39
Since Inception   02/28/2003
964.34
Quarter End   As of 09/30/2025
S&P 500 Index (%)
YTD  
14.83
1 Year  
17.60
3 Years  
95.01
5 Years  
114.30
10 Years  
315.30
15 Years  
676.70
Since Inception   02/28/2003
1,125.61

Historical Cumulative Total Returns

Date Selected   As of 09/30/2025
ClearBridge Appreciation Portfolios - Net (%)
YTD  
11.80
1 Year  
13.13
3 Years  
61.07
5 Years  
66.33
10 Years  
148.82
15 Years  
289.76
Since Inception   02/28/2003
448.02
Date Selected   As of 09/30/2025
ClearBridge Appreciation Portfolios - Pure Gross (%)
YTD  
14.27
1 Year  
16.49
3 Years  
75.81
5 Years  
92.60
10 Years  
233.72
15 Years  
505.39
Since Inception   02/28/2003
964.34
Date Selected   As of 09/30/2025
S&P 500 Index (%)
YTD  
14.83
1 Year  
17.60
3 Years  
95.01
5 Years  
114.30
10 Years  
315.30
15 Years  
676.70
Since Inception   02/28/2003
1,125.61

The strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Past performance is not a guarantee of future results. An investment in this strategy can lose value.  

Performance data represents past performance, which does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares. Periods less than one year are not annualized. Performance results are for the composite which includes all actual, fully discretionary accounts with substantially similar investment policies and objectives managed to the composite's investment strategy. Composite returns are stated in U.S. dollars and assume reinvestment of any dividends, interest income, capital gains, or other earnings. The composite may include account(s) that are gross of fees and pure gross of fees. “Pure” gross-of-fee returns do not reflect the deduction of any expenses, including transaction costs. A traditional (or "true") gross-of-fee return reflects performance after the reduction of transaction costs but before the reduction of the investment advisory fee. The gross-of-fee return may include a blend of "true" gross-of-fee returns for non-wrap accounts and "pure” gross-of-fee returns for wrap accounts. Net-of-fee returns is reduced by a model “wrap fee” (3.0% is the maximum anticipated wrap fee for equity and balanced portfolios) which includes trading expenses as well as investment management, administrative and custodial fees. The model wrap fee used represents the highest anticipated wrap fee applicable to the strategy. Actual fees and account minimums may vary.  

For fee schedules, contact your financial professional, or if you enter into an agreement directly with Franklin Templeton Private Portfolio Group, LLC (“FTPPG”), refer to FTPPG’s Form ADV Part 2A disclosure document. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.   

To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) DIAL BEN/342-5236. ClearBridge Investments, LLC, Martin Currie, Royce Investment Partners, and Western Asset Management Company, LLC claim compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. 


Risk/Return Profile

Risk/Return Profile (%)

Based on a 10 year period ending Sep-30-2025

Chart

Scatter chart with 3 data series.
The chart has 1 X axis displaying Risk (Annualized Standard Deviation) (%). Data ranges from 13.63 to 15.31.
The chart has 1 Y axis displaying Annualized Return (%). Data ranges from 9.54 to 15.3.
End of interactive chart.
Pure Gross
Net
S&P 500 Index

The strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Past performance is not a guarantee of future results. An investment in this strategy can lose value.  

Performance data represents past performance, which does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares. Periods less than one year are not annualized. Performance results are for the composite which includes all actual, fully discretionary accounts with substantially similar investment policies and objectives managed to the composite's investment strategy. Composite returns are stated in U.S. dollars and assume reinvestment of any dividends, interest income, capital gains, or other earnings. The composite may include account(s) that are gross of fees and pure gross of fees. “Pure” gross-of-fee returns do not reflect the deduction of any expenses, including transaction costs. A traditional (or "true") gross-of-fee return reflects performance after the reduction of transaction costs but before the reduction of the investment advisory fee. The gross-of-fee return may include a blend of "true" gross-of-fee returns for non-wrap accounts and "pure” gross-of-fee returns for wrap accounts. Net-of-fee returns is reduced by a model “wrap fee” (3.0% is the maximum anticipated wrap fee for equity and balanced portfolios) which includes trading expenses as well as investment management, administrative and custodial fees. The model wrap fee used represents the highest anticipated wrap fee applicable to the strategy. Actual fees and account minimums may vary.  

For fee schedules, contact your financial professional, or if you enter into an agreement directly with Franklin Templeton Private Portfolio Group, LLC (“FTPPG”), refer to FTPPG’s Form ADV Part 2A disclosure document. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.   

To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) DIAL BEN/342-5236. ClearBridge Investments, LLC, Martin Currie, Royce Investment Partners, and Western Asset Management Company, LLC claim compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. 


Risk Measures

Risk Measures

 As of 09/30/2025
Measured against: S&P 500 Index
Statistics 1 Year 3 Years 5 Years 10 Years
Alpha (Net of Fees) -3.06 -3.93-3.59 -3.57
Beta (Net) 0.93 0.860.87 0.87
R-Squared (Net) 0.98 0.920.94 0.95
Historical Tracking Error (Net) 3.74 3.943.93 3.74
Historical Tracking Error (Pure Gross) 3.74 3.943.93 3.74
Information Ratio (Pure Gross) -0.67 -1.08-0.63 -0.67
Information Ratio (Net) -2.16 -1.96-1.47 -1.54
Standard Deviation (%) 1 Year 3 Years 5 Years 10 Years
Standard Deviation (Net) 13.63 11.9514.23 13.63
Sharpe Ratio (%) 1 Year 3 Years 5 Years 10 Years
Sharpe Ratio (Net) 0.72 0.990.57 0.58
Sharpe Ratio (Pure Gross) 0.97 1.240.78 0.80

The strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Past performance is not a guarantee of future results. An investment in this strategy can lose value.  

Performance data represents past performance, which does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares. Periods less than one year are not annualized. Performance results are for the composite which includes all actual, fully discretionary accounts with substantially similar investment policies and objectives managed to the composite's investment strategy. Composite returns are stated in U.S. dollars and assume reinvestment of any dividends, interest income, capital gains, or other earnings. The composite may include account(s) that are gross of fees and pure gross of fees. “Pure” gross-of-fee returns do not reflect the deduction of any expenses, including transaction costs. A traditional (or "true") gross-of-fee return reflects performance after the reduction of transaction costs but before the reduction of the investment advisory fee. The gross-of-fee return may include a blend of "true" gross-of-fee returns for non-wrap accounts and "pure” gross-of-fee returns for wrap accounts. Net-of-fee returns is reduced by a model “wrap fee” (3.0% is the maximum anticipated wrap fee for equity and balanced portfolios) which includes trading expenses as well as investment management, administrative and custodial fees. The model wrap fee used represents the highest anticipated wrap fee applicable to the strategy. Actual fees and account minimums may vary.  

For fee schedules, contact your financial professional, or if you enter into an agreement directly with Franklin Templeton Private Portfolio Group, LLC (“FTPPG”), refer to FTPPG’s Form ADV Part 2A disclosure document. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.   

To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) DIAL BEN/342-5236. ClearBridge Investments, LLC, Martin Currie, Royce Investment Partners, and Western Asset Management Company, LLC claim compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. 


Portfolio

Positions

As of 09/30/2025 Updated Quarterly
 PortfolioBenchmark
Number of Issuers 56503

Portfolio Statistics

As of 09/30/2025 Updated Quarterly
 PortfolioBenchmark
Estimated 3-5 Year EPS Growth 11.15%11.83%
Weighted Average Market Capitalization (USD) $1,347.36 Billion$1,321.55 Billion
Median Market Cap (USD) $581.03 Billion$403.16 Billion
Dividend Yield 11.08%1.15%
Price to Book 8.95x8.18x
Price to Earnings (12-Month Forward) 26.79x25.04x

Portfolio characteristics are based on a model portfolio, not an actual client account. The model portfolio is a hypothetical portfolio whereby the portfolio characteristics are based on simulated trading and account activity of a client account invested in this strategy. The model portfolio assumes no withdrawals, contributions or client-imposed restrictions. Portfolio characteristics of individual client accounts may differ from those of the model portfolio as a result of account size, client-imposed restrictions, the timing of client investments, market conditions, contributions, withdrawals and other factors.

Portfolio Allocations

  • Sector
  • Market Capitalization

Sector

Sector Allocation

As of 09/30/2025 % of Total Updated Quarterly

Chart

Bar chart with 2 data series.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from 0.81686 to 34.78341.
End of interactive chart.
Portfolio Benchmark
Information Technology 28.52% 34.78%
Financials 13.29% 13.54%
Communication Services 13.15% 10.14%
Industrials 11.72% 8.29%
Health Care 7.47% 8.86%
Consumer Discretionary 6.97% 10.54%
Consumer Staples 6.40% 4.91%
Materials 4.93% 1.77%
Energy 3.31% 2.89%
Utilities 1.32% 2.35%
Real Estate 0.82% 1.94%
Cash & Cash Equivalents 2.10% —

Portfolio characteristics are based on a model portfolio, not an actual client account. The model portfolio is a hypothetical portfolio whereby the portfolio characteristics are based on simulated trading and account activity of a client account invested in this strategy. The model portfolio assumes no withdrawals, contributions or client-imposed restrictions. Portfolio characteristics of individual client accounts may differ from those of the model portfolio as a result of account size, client-imposed restrictions, the timing of client investments, market conditions, contributions, withdrawals and other factors.

Market Capitalization

Market Capitalization Allocation

As of 09/30/2025 % of Equity Updated Quarterly

Chart

Bar chart with 4 bars.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from 5.92598 to 52.09454.
End of interactive chart.
Portfolio
10-50 Billion 5.93%
50-250 Billion 28.90%
250-500 Billion 13.08%
>500 Billion 52.09%

Portfolio characteristics are based on a model portfolio, not an actual client account. The model portfolio is a hypothetical portfolio whereby the portfolio characteristics are based on simulated trading and account activity of a client account invested in this strategy. The model portfolio assumes no withdrawals, contributions or client-imposed restrictions. Portfolio characteristics of individual client accounts may differ from those of the model portfolio as a result of account size, client-imposed restrictions, the timing of client investments, market conditions, contributions, withdrawals and other factors.

Portfolio Holdings

Top Equity Issuers

As of 09/30/2025 Updated Quarterly

Chart

Bar chart with 10 bars.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from 2.44546 to 9.04226.
End of interactive chart.
Portfolio
Microsoft Corp 9.04%
NVIDIA Corp 7.36%
Alphabet Inc 5.09%
Apple Inc 4.43%
Meta Platforms Inc 3.87%
Broadcom Inc 3.35%
Amazon.com Inc 2.98%
JPMorgan Chase & Co 2.89%
Bank of America Corp 2.62%
Walmart Inc 2.45%

Documents

Product Documents

PDF Format

Factsheet

Public
PDF Format

Product Commentary

Public
PDF Format

Disclosure

Public
PDF Format

Pitchbook

Public

Risks

What Are the Risks?

All investments involve risks, including possible loss of principal. Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks.