Fund Description

The fund seeks to exceed the total return of the Russell 2000 Index by gaining long exposure to the index primarily through Russell 2000 derivatives in an amount approximately equal to net assets, while investing remaining assets in a diversified, actively managed portfolio of fixed income instruments. Fixed income management uses an absolute return approach designed to have flexibility with respect to duration, overall sector exposures, non-U.S. exposures and credit quality, as a function of the strategy's investment guidelines and lack of a fixed income index benchmark; duration normally ranges from (negative) 3 to positive 8 years. When derivatives appear overvalued, it may invest all assets in a basket of Russell 2000 stocks. It may invest, without limitation, in common stocks and derivative instruments, such as options, futures contracts or swap agreements, mortgage- or asset-backed securities, when-issued securities, and short sales. It may invest up to 20% in high yield and up to 25% in emerging markets-linked fixed income, and normally limits net foreign currency exposure to 35% of total assets, each non-U.S. currency to 10%, and aggregate U.S. dollar exposure from certain currency-linked transactions to 20%.