The fund seeks current income consistent with preservation of capital by investing in companies in the United States.

The sub-adviser’s investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.

Next, the research team invests significantly in fixed-income securities such as bonds, notes and debentures, as well as other investments that have similar economic characteristics (such as loans).

In selecting securities for the portfolio, the research team focuses on the stability and volatility of a country’s bond markets, the financial strength of the issuer, interest rates, valuations and estimations regarding general trends in interest rates.

Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.

The fund invests primarily in investment-grade fixed-income securities.

The fixed-income securities in which the fund may invest include corporate bond and other debt securities, variable and floating rate securities, U.S. government securities, collateralized loan obligations, mortgage-backed securities and other asset-backed securities.

The fund may also invest up to 15% of its net assets in bonds rated below investment grade or, if unrated, securities to be of comparable quality.

Additionally, the fund may invest in U.S. dollar-denominated foreign securities, including emerging market securities.

The fund may also invest in mortgage-related securities, as well as engage in active and frequent trading of securities.