strategy

Under normal circumstances, the Fund will invest at least 80% of its total assets in debt securities. The Fund invests primarily in a diversified portfolio of high-quality corporate bonds and other fixed income securities, including U.S. government obligations, mortgage and asset-backed securities, collateralized mortgage obligations and others rated Baa or BBB by Moody's Investor Service, Standard & Poor's Ratings Group or equivalently rated by any other nationally recognized statistical rating organization (NRSRO). The Fund may invest up to 25% of its assets in below investment grade securities rated Ba or lower by Moody's and BB or lower by S&P or equivalently rated by any NRSRO. The Fund may, but has no current 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 the various 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.