Fund Description

Under normal circumstances, the fund invests at least 80% of net assets in convertible securities and in derivatives and other instruments with similar economic characteristics. It may invest across market capitalizations and credit qualities, including significant holdings in smaller companies, and may invest up to 20% in common stocks, non-convertible preferred stocks, and non-convertible fixed income securities, including below-investment-grade debt within that limit, as well as U.S. government securities. It may invest in illiquid or thinly traded and Rule 144A securities, and up to 20% in foreign securities, including emerging markets, non-U.S. dollar issues, and depositary receipts. Management uses bottom-up fundamental analysis and evaluates each holding's fixed income features and appreciation potential; under normal market conditions, the portfolio managers utilize this strategy to seek to capture approximately 60% to 80% of the upside performance of the underlying equities with 50% or less of the downside exposure. It may use currency contracts, options, futures, warrants, and other derivatives, and may temporarily shift to high-quality fixed income, cash, or cash equivalents in adverse conditions.