The Tax-Managed US Targeted Value Portfolio (formerly the US Tax-Managed Small Cap Value Portfolio) is a no-load mutual fund designed to capture the returns and diversification benefits of a broad cross-section of US small and mid cap value companies, on a market-cap weighted basis. The Portfolio invests in securities of US companies smaller than the 500th largest company in the market universe based upon market capitalization. The market universe is comprised of companies listed on the New York Stock Exchange, American Stock Exchange, and NASDAQ National Market System. After identifying the size breakpoint, a value screen is applied to the universe. Securities are considered value stocks primarily because a company's shares have a high book value in relation to their market value (BtM). This BtM sort excludes firms with negative or zero book values. In assessing value, additional factors such as price to cash flow or price to earning ratios may be considered, as well as economic conditions and developments in the issuer's industry. The criteria for assessing value are subject to change from time to time. The Portfolio seeks to delay and minimize the realization of net capital gains, particularly short-term capital gains, in order to minimize the taxable distributions to investors.

For a full description, please consult the Portfolio's prospectus.