We participate solidly in rising stock and bond markets and protect the bulk of those gains in declining markets. We use the time-tested research of Dr. Martin Zweig, retreating to the safety of cash equivalents as risk rises, and gradually increasing the fund s exposure as risk declines. The Zweig approach does not ensure that the fund will meet its investment objectives, and it may affect its ability to benefit fully from rising markets. We believe, however, that this flexible strategy can help investors achieve their financial goals. This fund uses an active bond duration model for investing the bond portion of the portfolio.
Duration measures a fund s sensitivity to changes in interest rates.
The longer a bond s duration, the more it will fluctuate in price as interest rates change. When risk levels wane, we lengthen our duration by moving further out into longer term bonds. Below are various scenarios and explanations of how the distribution plan works. However, that does not mean that the fund will always pay the same distribution amount per quarter or per year. Likewise, if the net asset value decreases, the distribution would be a lower rate per share.