Fund Description

The fund, under normal circumstances, invests at least 80% of its net assets, plus any borrowing for investment purposes, in preferred securities and capital securities. Preferred securities include preferred stock, junior subordinated debt, and trust preferred securities; capital securities include Tier 2 subordinated debt, contingent convertible securities (CoCos), and certain preferred securities issued to satisfy regulatory capital requirements or obtain rating agency credit. It may invest up to 55% in below-investment-grade preferred securities and bonds, and also holds other debt obligations, including U.S. Treasury and U.S. government-related securities, and foreign securities. It is not managed to a particular maturity or duration, concentrates in financial services industries, and may use futures and options for hedging and income generation.