Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in fixed income securities of U.S. issuers. This investment policy can be changed by the Fund upon 60 days’ prior written notice to shareholders.

The Fund primarily invests in investment-grade fixed income securities with an average portfolio duration that is within 10% of the Fund’s benchmark, the Bloomberg US Credit Index. Duration is a measure of the expected life of a fixed income security that is used to determine the sensitivity of a security’s price to changes in interest rates. The Adviser considers investment grade fixed income securities to be those rated

as BBB or Baa or above by Moody’s Investors Services Inc. (“Moody’s”), S&P Global Ratings (“S&P”), or Fitch, Inc. (“Fitch”).

For purposes of the Fund’s 80% policy, fixed income securities include securities issued or guaranteed by the U.S. Government and its agencies or instrumentalities, municipal bonds, corporate bonds, supra-national issuers, asset-backed securities and mortgage-backed securities. The Fund may also invest in derivative instruments, such as futures and swaps, to assist in managing duration and yield curve exposure relative to the Fund’s benchmark index. Although the Fund invests primarily in investment-grade securities, the Fund may hold securities that are rated below investment grade (“high yield” or “junk bonds”). From time to time, the Fund may focus its investments in a particular sector, such as the industrials or financials sector.

The Adviser’s process for constructing the Fund’s portfolio combines top-down thematic considerations and bottom-up security selection, leveraging the Adviser’s in-house credit analysts, strategists and economists to screen the Fund’s investment universe and emphasize investment themes and securities that the Adviser believes have the most value and reflect the management team’s highest conviction. The Adviser performs in depth fundamental analysis in the security selection process and emphasizes the following areas of focus in the research process: developing proprietary earnings models, forecasting free cash flow, analyzing asset valuations, and meeting with management. Ultimately, the Adviser seeks to: i) identify strong and stable management teams; (ii) align with shareholder, bondholder and management interests; (iii) ensure there are minimal risks that could cause significant changes in valuation; and (iv) identify structural features that provide downside protection in periods of lower liquidity.

The Adviser may sell a security when there is a change in (i) the relative valuation of a security; (ii) the Adviser’s assessment of a particular sector, and/or (iii) the Adviser’s analysis of the credit or risk/return of a security.