Fund Description

The fund seeks to achieve its objective primarily through short positions on the S&P 500 Index or specific Index securities, backed by a portfolio of fixed income instruments, so net asset value may vary inversely with the Index on a daily basis, subject to limitations. It uses derivatives including options, futures, options on futures, and swaps, and may reduce Index short exposure. It may purchase call options on Index futures contracts or on other similar Index derivatives in an effort to limit the total potential decline in the fund's net asset value during a market in which prices of securities are rising or expected to rise. Fixed income is actively managed with flexible duration (normally -3 to +8), sectors, non-U.S. exposure, and credit quality, including up to 20% high yield (B or higher, with certain mortgage-related exceptions), up to 25% tied to emerging markets, and up to 10% in preferreds, with stated foreign currency exposure limits. Returns are not expected to replicate the inverse of the Index.