Fund Description

The fund normally invests 60% of assets in an equity sleeve and, on a look-through basis, 40% in a fixed-income sleeve and cash equivalents; the investment adviser may adjust the exact percentages from time to time. Equity holdings mainly are common and preferred stocks, emphasizing dividend payers and companies with high or improving return on invested capital versus cost of capital, industry mean, or their own history; it may invest across market caps and may allocate up to 25% of the equity sleeve to non-U.S. stocks. Fixed-income exposure is primarily via affiliated and other ETFs holding corporate debt, U.S. government obligations, agency MBS, ABS, TBA commitments, and bank loans across maturities and credit qualities; up to 35% of the fixed-income sleeve may be high-yield. Managers use a bottom-up approach, may have higher turnover, and follow a disciplined sell process.