Since
the Fund utilizes a multi-manager strategy with multiple sub-advisers,
it may be exposed to varying forms of risk. The Fund's net asset
value and investment return will fluctuate based upon changes
in the value of its portfolio securities. There is no assurance
that the Fund will achieve its investment objective, and an
investment in the Fund is not by itself a complete or balanced
investment program. For a complete description of the Fund's
principal investment risks please refer to the prospectus.
The Fund is non-diversified and may focus its investments in
the securities of a comparatively small number of issuers. Concentration
in securities of a limited number of issuers exposes a fund
to greater market risk and potential monetary losses than if
its assets were diversified among the securities of a greater
number of issuers.
The Fund may invest in small- and medium-sized companies, which
involves greater risk than investing in larger, more established
companies such as increased volatility of earnings and prospects,
higher failure rates, and limited markets, product lines or
financial resources. The Fund may invest in foreign or emerging
markets securities, which involves special risks, including
the volatility of currency exchange rates and, in some cases,
limited geographic focus, political and economic instability,
and relatively illiquid markets.
The Fund may invest in debt securities which are subject to
interest rate risk. An increase in interest rates typically
causes a fall in the value of the debt securities in which the
Fund may invest. The Fund may also invest in high yield, lower
rated (junk) bonds which involve a greater degree of risk and
price fluctuation than investment grade bonds in return for
higher yield potential. The Fund's distressed debt strategy may involve a substantial degree of risk, including investments in sub-prime mortgage securities.
The Fund may purchase securities of companies in initial public
offerings. Special risks associated with these securities may
include a limited number of shares available for trading, unseasoned
trading, lack of investor knowledge of the company and limited
operating history. The Fund may leverage transactions, which
includes selling securities short as well as borrowing for other
than temporary or emergency purposes. Leverage creates the risk
of magnified capital losses. The Fund may also invest in derivatives
which can be volatile and involve various types and degrees
of risks, depending upon the characteristics of a particular
derivative. The Fund may invest in options and futures which
are subject to special risks and may not fully protect the Fund
against declines in the value of its stocks. In addition, an
option writing strategy limits the upside profit potential normally
associated with stocks. Futures trading is very speculative,
largely due to the traditional volatility of futures prices. |
