In seeking to meet its objective, the Fund utilizes highly disciplined institutional management strategies designed to produce relatively consistent returns and stable principal values. These strategies emphasize in-depth proprietary analysis of the securities and their issuing companies, diversification across different types of securities, companies and market sectors, as well as unique hedging strategies designed to reduce volatility. This is designed to help stabilize the Fund's share value because gains and losses on the short sale and the convertible tend to offset each other, whichever way the underlying common stock price moves. If the stock appreciates, the Fund may lose money on the short sale, but should profit from the convertible's appreciation. If the stock's price falls, the Fund loses money as the convertible depreciates, but may realize a gain on the short sale of the stock.
Past performance is no guarantee of future results.
Had the sales charge been included, the Fund's return would have been lower. The Fund also offers Class B and C shares, performance of which may vary. Different types of bonds have varying levels of risk. Unlike convertible bonds, U. S. Treasury bills are backed by the full faith and credit of the U. S. government and offer a guarantee as to the timely repayment of principal and interest. Indexes are unmanaged and are not adjusted for sales charges.