Why does the Fund incorporate both strategies as part of its long-term approach?
A. We believe that each strategy can produce attractive returns over a full market cycle. As complementary strategies, convertible arbitrage and covered call writing together may provide the Fund with enhanced potential for a lower-risk profile, attractive returns and differing responses to volatility. Depending on market conditions, the Fund may emphasize one sub-strategy over the other. For example, convertible arbitrage may be particularly compelling during periods of high and increasing equity market volatility, while covered call writing strategies may be especially beneficial during periods of low and decreasing equity market volatility.
