The Fund seeks current income and, secondarily, capital appreciation through a portfolio of preferred securities issued by U.S. companies with market capitalizations of over $100 million.

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KEY FEATURES

Focus on Income — Offers the potential for attractive yields, while pursuing
compelling total return results

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Active Management — Security selection and weightings are based on a variety of quantitative, qualitative, and relative valuation factors

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Enhanced Exposure — Modest leverage (typically 20-30%) is utilized to enhance portfolio beta, and options strategies are used in an effort to enhance current income

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INVESTMENT PROCESS

1 Evaluate potential investments on a variety of key variables, including the competitive position of a company; the perceived ability of the company to earn a high return on capital; the historical and projected stability and reliability of the profits of the company; the anticipated ability of the company to generate cash in excess of its growth needs; and the access of the company to additional capital.

 

2 Generally underweight or eliminate callable preferred securities exhibiting a low or negative yield-to-call ratio.  Learn about strategy using preferred stocks.

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3 Apply leverage to potentially enhance portfolio exposure.

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4 Employ option overlay strategies primarily to seek to provide additional current income; opportunistic short positions may be employed to hedge interest rate risk.

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