strategy

The Fund's returns are driven by interest income, a bottom-up security selection process, and a deep credit orientation, whereby Cutwater analysts take a "lender's perspective." Under normal circumstances, the Fund will invest at least 80 percent of its total assets in debt securities. These securities are primarily a diversified selection of high-quality corporate bonds and other types of fixed income assets, including U.S. government obligations, mortgage and asset-backed securities, collateralized mortgage obligations and others rated Baa, BBB or the equivalent by any nationally recognized statistical rating organization.

To add efficiency to the portfolio, the Fund may invest up to 25 percent of its assets in high yield securities rated Ba or lower by Moody's and BB or lower by S&P. The Fund may, but has no plans to, borrow funds to purchase securities.

The proportions held in the various fixed income securities will be revised in light of Cutwater's appraisal of the economy, the relative yields of securities in their market sectors, the investment prospects for issuers and other factors. In selecting securities, the advisor considers many factors, including yield-to-maturity, quality, liquidity, call risk, current yield and capital appreciation potential.