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text-align: left;"><span style="color: #000000; font-family: times new roman; font-size: 10pt;">The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund.</span><span style="color: #000000; font-family: times new roman; font-size: 1pt; line-height: 1pt;"> </span></div><table cellpadding="0" cellspacing="0" style="empty-cells: show; width: 480pt;"> <tr style="height: 9.5pt;"> <td style="background-color: #ffffff; padding-bottom: 2.5pt; padding-top: 2.5pt; vertical-align: Bottom; width: 456.43pt;"> <div style="line-height: 9pt; text-align: left;"> <div style="margin-right: 4.5pt; text-align: left; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 9pt; font-weight: bold; margin-left: 0.0pt;">Shareholder Transaction Expenses</span></div> </div> </td> <td style="background-color: #ffffff; padding-bottom: 2.5pt; padding-top: 2.5pt; vertical-align: Bottom; width: 23.57pt;"> <div style="line-height: 0.5pt; text-align: left;"> <div style="margin-left: 4.5pt; text-align: left; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold; margin-left: 0.0pt;"> </span></div> </div> </td> </tr> <tr style="height: 11.25pt;"> <td style="background-color: azure; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 2.5pt; vertical-align: Bottom; width: 456.43pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-right: 4.5pt; text-align: left; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; margin-left: 0.0pt;">Maximum Repurchase Fee</span><span style="color: #000000; font-family: arial narrow; font-size: 5pt; margin-left: 0.0pt; position: relative; top: -3.25pt;">1</span> <div style="clear: right;"> </div> </div> </div> </td> <td style="background-color: azure; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 2.5pt; vertical-align: Bottom; width: 23.57pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 4.5pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">2.00%</span></div> </div> </td> </tr> <tr style="height: 12.25pt;"> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 456.43pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-right: 4.5pt; text-align: left; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; margin-left: 0.0pt;">Sales Load</span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 23.57pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 4.5pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">None</span></div> </div> </td> </tr> </table><div> <div style="clear: both; margin-top: 3.0pt; position: relative; width: 100%;"> <div style="float: left; line-height: 11.0pt; text-align: left; width: 7.15pt;"><span style="color: #000000; font-family: arial narrow; font-size: 9pt;">1.</span></div> <div style="float: left; line-height: 11.0pt; margin-left: 7.85pt; text-align: left; width: 460.00pt;"><span style="color: #000000; font-family: arial narrow; font-size: 9pt;">The Fund does not currently charge a repurchase fee. However, the Fund may in the future charge a repurchase fee of up to 2.00%, which the Fund would retain to help offset non-de minimis estimated costs related to the repurchase.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> 0.0200 0 <table cellpadding="0" cellspacing="0" style="empty-cells: show; width: 480pt;"> <tr style="height: 37.25pt;"> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.75pt; padding-top: 1.75pt; vertical-align: Bottom; width: 403.56pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-right: 6pt; text-align: left; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold; margin-left: 0.0pt;">Annual Fund Operating Expenses</span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.75pt; padding-top: 1.75pt; vertical-align: Bottom; width: 76.44pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 4pt; margin-right: -2pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">As a Percentage</span></div><div style="margin-left: 4pt; margin-right: -2pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">of Net Assets</span></div><div style="margin-left: 4pt; margin-right: -2pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">Attributable to</span></div><div style="margin-left: 4pt; margin-right: -2pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">the Common Shares</span></div> </div> </td> </tr> <tr style="height: 13.5pt;"> <td style="background-color: azure; border-bottom: 0.5pt solid #000000; padding-bottom: 1.75pt; padding-top: 1.75pt; vertical-align: Bottom; width: 403.56pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-right: 6pt; text-align: left; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; margin-left: 0.0pt;">Management Fee</span></div> </div> </td> <td style="background-color: azure; border-bottom: 0.5pt solid #000000; padding-bottom: 1.75pt; padding-top: 1.75pt; vertical-align: Bottom; white-space: nowrap; width: 76.44pt;"> <div style="line-height: 10.0pt; margin-left: 6pt; text-align: right; width: 70.44pt;"> <div style="display: flex; margin-left: auto; width: 70.44pt;"> <div style="display: flex; white-space: nowrap; width: 70.44pt;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">1.75%</span></div> </div> </div> </td> </tr> <tr style="height: 13.5pt;"> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.75pt; padding-top: 1.75pt; vertical-align: Bottom; width: 403.56pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-right: 6pt; text-align: left; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; margin-left: 0.0pt;">Other Expenses</span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.75pt; padding-top: 1.75pt; vertical-align: Bottom; white-space: nowrap; width: 76.44pt;"> <div style="line-height: 10.0pt; margin-left: 6pt; text-align: right; width: 70.44pt;"> <div style="display: flex; margin-left: auto; width: 70.44pt;"> <div style="display: flex; white-space: nowrap; width: 70.44pt;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">0.18%</span></div> </div> </div> </td> </tr> <tr style="height: 13.5pt;"> <td style="background-color: azure; border-bottom: 0.5pt solid #000000; padding-bottom: 1.75pt; padding-top: 1.75pt; vertical-align: Bottom; width: 403.56pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-right: 6pt; text-align: left; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; margin-left: 0.0pt;">Acquired Fund Fees and Expenses</span></div> </div> </td> <td style="background-color: azure; border-bottom: 0.5pt solid #000000; padding-bottom: 1.75pt; padding-top: 1.75pt; vertical-align: Bottom; white-space: nowrap; width: 76.44pt;"> <div style="line-height: 10.0pt; margin-left: 6pt; text-align: right; width: 70.44pt;"> <div style="display: flex; margin-left: auto; width: 70.44pt;"> <div style="display: flex; white-space: nowrap; width: 70.44pt;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">0.01%</span></div> </div> </div> </td> </tr> <tr style="height: 13.5pt;"> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.75pt; padding-top: 1.75pt; vertical-align: Bottom; width: 403.56pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-right: 6pt; text-align: left; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; margin-left: 0.0pt;">Fee Waiver/Expense Reimbursement</span><span style="color: #000000; font-family: arial narrow; font-size: 5pt; margin-left: 0.0pt; position: relative; top: -3.25pt;">2</span> <div style="clear: right;"> </div> </div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.75pt; padding-top: 1.75pt; vertical-align: Bottom; white-space: nowrap; width: 76.44pt;"> <div style="line-height: 10.0pt; margin-left: 6pt; text-align: right; width: 70.44pt;"> <div style="display: flex; margin-left: auto; width: 70.44pt;"> <div style="display: flex; white-space: nowrap; width: 70.44pt;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">0.00%</span></div> </div> </div> </td> </tr> <tr style="height: 13.75pt;"> <td style="background-color: azure; border-bottom: 0.5pt solid #000000; padding-bottom: 1.75pt; padding-top: 1.75pt; vertical-align: Bottom; width: 403.56pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-right: 6pt; text-align: left; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; margin-left: 0.0pt;">Total Annual Fund Operating Expenses</span></div> </div> </td> <td style="background-color: azure; border-bottom: 0.5pt solid #000000; padding-bottom: 1.75pt; padding-top: 1.75pt; vertical-align: Bottom; white-space: nowrap; width: 76.44pt;"> <div style="line-height: 10.0pt; margin-left: 6pt; text-align: right; width: 70.44pt;"> <div style="display: flex; margin-left: auto; width: 70.44pt;"> <div style="display: flex; white-space: nowrap; width: 70.44pt;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">1.94%</span></div> </div> </div> </td> </tr> </table><div> <div style="clear: both; margin-top: 3.0pt; position: relative; width: 100%;"> <div style="float: left; line-height: 11.0pt; text-align: left; width: 7.15pt;"><span style="color: #000000; font-family: arial narrow; font-size: 9pt;">2.</span></div> <div style="float: left; line-height: 11.0pt; margin-left: 7.85pt; text-align: left; width: 460.00pt;"><span style="color: #000000; font-family: arial narrow; font-size: 9pt;">The Adviser has contractually agreed to waive its management fee and/or reimburse expenses so that the total annual fund operating expenses (excluding certain items such as acquired fund fees and expenses, interest, taxes, brokerage commissions, capitalized expenses, and other extraordinary expenses) do not exceed 1.93% through at least April 1, 2028. The Adviser is permitted to recoup advisory fees waived and expenses reimbursed for up to three years after the date of the waiver or reimbursement, subject to the lesser of any operating expense limits in effect at the time of (a) the original waiver or expense reimbursement; or (b) the recoupment, after giving effect to the recoupment amount. This agreement may only be terminated by the Fund's Board of Trustees (the “Board”).</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">As a Percentage</span><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">of Net Assets</span><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">Attributable to</span><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">the Common Shares</span> 0.0175 0.0018 0.0001 0.0000 0.0194 <div style="margin-top: 9pt;"><span style="color: #000000; font-family: arial; font-size: 9pt; font-weight: bold;">Example</span></div><div style="line-height: 12.0pt; text-align: left;"><span style="color: #000000; font-family: times new roman; font-size: 10pt;">The following examples illustrate the expenses that you would pay on an investment in the Fund’s shares, assuming </span><span style="color: #000000; font-family: times new roman; font-size: 10pt;">(1) the Fund’s total annual operating expenses attributable to Common shares remain the same and (2) a 5% annual return*:</span><span style="color: #000000; font-family: times new roman; font-size: 1pt; line-height: 1pt;"> </span></div><table cellpadding="0" cellspacing="0" style="empty-cells: show; width: 480pt;"> <tr style="height: 18.75pt;"> <td style="background-color: #ffffff; padding-bottom: 3.75pt; padding-top: 3.75pt; vertical-align: Bottom; width: 140.66pt;"> <div style="line-height: 0.5pt; text-align: left;"> <div style="margin-right: 6pt; text-align: center; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;"> </span></div> </div> </td> <td colspan="4" style="background-color: #ffffff; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 172.68pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="border-bottom: 0.5pt solid #000000; margin-left: 3.47%; margin-right: 6.95%; padding-bottom: 1pt;"> <div style="text-align: center; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">Without a repurchase</span></div> <div style="text-align: center; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">at the end of the period</span></div> </div> </div> </td> <td colspan="4" style="background-color: #ffffff; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 166.68pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="border-bottom: 0.5pt solid #000000; margin-left: 7.20%; margin-right: 0%; padding-bottom: 1pt;"> <div style="text-align: center; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">With a repurchase</span></div> <div style="text-align: center; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">at the end of the period</span><span style="color: #000000; font-family: arial narrow; font-size: 5pt; font-weight: bold; position: relative; top: -3.25pt;">1</span> <div style="clear: right;"> </div> </div> </div> </div> </td> </tr> <tr style="height: 12.5pt;"> <td style="background-color: azure; padding-bottom: 3.75pt; padding-top: 3.75pt; vertical-align: Bottom; width: 140.66pt;"> <div style="line-height: 0.5pt; text-align: left;"> <div style="margin-right: 6pt; text-align: center; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;"> </span></div> </div> </td> <td colspan="8" style="background-color: azure; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 3.75pt; vertical-align: Bottom; width: 339.36pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; text-align: center; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">Number of years you own your shares</span></div> </div> </td> </tr> <tr style="height: 12.5pt;"> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 3.75pt; vertical-align: Bottom; width: 140.66pt;"> <div style="line-height: 0.5pt; text-align: left;"> <div style="margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;"> </span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 3.75pt; vertical-align: Bottom; width: 39.55pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">1</span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 3.75pt; vertical-align: Bottom; width: 39.55pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">3</span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 3.75pt; vertical-align: Bottom; width: 43.79pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">5</span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 3.75pt; vertical-align: Bottom; width: 49.79pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; margin-right: 12pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">10</span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 3.75pt; vertical-align: Bottom; width: 45.55pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 12pt; margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">1</span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 3.75pt; vertical-align: Bottom; width: 39.55pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">3</span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 3.75pt; vertical-align: Bottom; width: 43.79pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">5</span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 3.75pt; vertical-align: Bottom; width: 37.79pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; font-weight: bold;">10</span></div> </div> </td> </tr> <tr style="height: 21.5pt;"> <td style="background-color: azure; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 140.66pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-right: 6pt; text-align: left; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; margin-left: 0.0pt;">Total expenses incurred</span><span style="color: #000000; font-family: arial narrow; font-size: 8pt; line-height: 9pt; margin-left: 0.0pt;"> </span></div> <div style="margin-right: 6pt; text-align: left; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; margin-left: 0.0pt;">on a $1,000 investment</span></div> </div> </td> <td style="background-color: azure; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 39.55pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">$20</span></div> </div> </td> <td style="background-color: azure; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 39.55pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">$61</span></div> </div> </td> <td style="background-color: azure; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 43.79pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">$105</span></div> </div> </td> <td style="background-color: azure; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 49.79pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; margin-right: 12pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">$226</span></div> </div> </td> <td style="background-color: azure; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 45.55pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 12pt; margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">$41</span></div> </div> </td> <td style="background-color: azure; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 39.55pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">$83</span></div> </div> </td> <td style="background-color: azure; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 43.79pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">$128</span></div> </div> </td> <td style="background-color: azure; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 37.79pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">$254</span></div> </div> </td> </tr> <tr style="height: 21.25pt;"> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 140.66pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-right: 6pt; text-align: left; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; margin-left: 0.0pt;">Total expenses incurred</span></div> <div style="margin-right: 6pt; text-align: left; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt; margin-left: 0.0pt;">on a $1,000,000 investment</span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 39.55pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">$19,697</span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 39.55pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">$60,917</span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 43.79pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">$104,699</span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 49.79pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; margin-right: 12pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">$226,427</span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 45.55pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 12pt; margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">$40,606</span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 39.55pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">$83,125</span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 43.79pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; margin-right: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">$128,287</span></div> </div> </td> <td style="background-color: #ffffff; border-bottom: 0.5pt solid #000000; padding-bottom: 1.25pt; padding-top: 1.25pt; vertical-align: Bottom; width: 37.79pt;"> <div style="line-height: 10.0pt; text-align: left;"> <div style="margin-left: 6pt; text-align: right; white-space: nowrap;"><span style="color: #000000; font-family: arial narrow; font-size: 8pt;">$253,852</span></div> </div> </td> </tr> </table> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: times new roman; font-size: 10pt;">The foregoing fee table and examples are intended to assist investors in understanding the costs and expenses that an </span><span style="color: #000000; font-family: times new roman; font-size: 10pt;">investor in the Fund will bear directly or indirectly.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9pt; font-weight: bold;">* The Examples should not be considered representations of future expenses. Actual expenses may be </span><span style="color: #000000; font-family: arial; font-size: 9pt; font-weight: bold;">greater or lesser than those assumed for purposes of the Examples.</span><span style="color: #000000; font-family: times new roman; font-size: 10pt;"> The Examples assume that the other </span><span style="color: #000000; font-family: times new roman; font-size: 10pt;">expenses set forth in the fee table are accurate and that all dividends and distributions are reinvested at net asset value. </span><span style="color: #000000; font-family: times new roman; font-size: 10pt;">Moreover, the Fund’s actual rate of return may be greater or less than the hypothetical 5% return shown in the example.</span><span style="color: #000000; font-family: times new roman; font-size: 10pt; line-height: 12pt;"> </span></div><div> <div style="clear: both; margin-top: 3.0pt; position: relative; width: 100%;"> <div style="float: left; line-height: 11.0pt; text-align: left; width: 7.15pt;"><span style="color: #000000; font-family: arial narrow; font-size: 9pt;">1.</span></div> <div style="float: left; line-height: 11.0pt; margin-left: 7.85pt; text-align: left; width: 460.00pt;"><span style="color: #000000; font-family: arial narrow; font-size: 9pt;">The Fund does not currently charge a repurchase fee. However, the Fund may in the future charge a repurchase fee of up to 2.00%, which the Fund would retain to help offset non-de minimis estimated costs related to the repurchase.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> 20 61 105 226 41 83 128 254 19697 60917 104699 226427 40606 83125 128287 253852 <div style="margin-top: 6pt;"><span style="color: #000000; font-family: times new roman; font-size: 10pt;">The foregoing fee table and examples are intended to assist investors in understanding the costs and expenses that an </span><span style="color: #000000; font-family: times new roman; font-size: 10pt;">investor in the Fund will bear directly or indirectly.</span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">INVESTMENT OBJECTIVE</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund’s investment objective is total return. There can be no assurance that the Fund will achieve its investment objective.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund’s investment objective may be changed without shareholder approval. The Fund will provide 30 days’ written </span><span style="color:#000000;font-family:times new roman;font-size:10pt">notice prior to implementing any change to its investment objective.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">PRINCIPAL INVESTMENT STRATEGIES</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund invests primarily in insurance-linked securities (</span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">ILS</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">). ILS include event-linked bonds (also known as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">insurance-linked bonds or catastrophe bonds), quota share instruments (also known as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">reinsurance sidecars</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">), collateralized </span><span style="color:#000000;font-family:times new roman;font-size:10pt">reinsurance investments, industry loss warranties, event-linked swaps, securities of companies in the insurance or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">reinsurance industries, and other insurance- and reinsurance-related securities.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Because ILS are typically rated below investment grade or unrated, a substantial portion of the Fund’s assets ordinarily </span><span style="color:#000000;font-family:times new roman;font-size:10pt">will consist of below investment grade (high yield) debt securities. Investment in securities of below investment grade </span><span style="color:#000000;font-family:times new roman;font-size:10pt">quality, commonly referred to as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">junk bonds,</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> involves substantial risk of loss. Securities in which the Fund may invest </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may also be subordinated or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">junior</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> to more senior securities of the issuer.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">In selecting ILS for investment, Victory Capital uses quantitative and qualitative analysis. Victory Capital utilizes quantitative </span><span style="color:#000000;font-family:times new roman;font-size:10pt">analysis in an effort to model portfolio risk and attribution. This modeling process is supported by use of a risk analytic </span><span style="color:#000000;font-family:times new roman;font-size:10pt">system that is used by the insurance industry. The risk analytic system contains a database of historical and hypothetical </span><span style="color:#000000;font-family:times new roman;font-size:10pt">catastrophic events and property structures that assists Victory Capital in its efforts to model peril exposures at both the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">security and portfolio level. Among the factors considered in this process are expected loss and the probabilities of loss </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and maximum loss. Victory Capital’s qualitative analysis may consider various factors, such as trigger term (measurement </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of loss event specific to an instrument) or other terms of an instrument, sponsor quality, deal structure, alignment of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">interest between the Fund and the sponsoring insurance company, and model accuracy. Victory Capital’s analysis guides </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Victory Capital in determining the desired allocation of reinsurance-related securities by issuer, peril and geographic </span><span style="color:#000000;font-family:times new roman;font-size:10pt">exposure. The Fund seeks to participate broadly in the spectrum of natural catastrophe risks within the global reinsurance </span><span style="color:#000000;font-family:times new roman;font-size:10pt">market, while seeking to reduce exposure to reinsurers where there is not an alignment of interest. However, there are </span><span style="color:#000000;font-family:times new roman;font-size:10pt">no limits on the Fund’s potential investment in a particular issue, peril or geographic exposure. Victory Capital may rely </span><span style="color:#000000;font-family:times new roman;font-size:10pt">on information and analysis obtained from brokers, dealers and ratings organizations, among other sources.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">In selecting investments other than ILS, Victory Capital also considers both broad economic and issuer specific factors. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Victory Capital selects individual securities based upon the terms of the securities, liquidity and rating, sector and exposure </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to particular issuers and sectors. Victory Capital also employs fundamental research to assess an issuer’s credit quality, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">taking into account financial condition and profitability, future capital needs, potential for change in rating, industry </span><span style="color:#000000;font-family:times new roman;font-size:10pt">outlook, the competitive environment and management ability. In making these portfolio decisions, Victory Capital </span><span style="color:#000000;font-family:times new roman;font-size:10pt">relies on the knowledge, experience and judgment of its staff and the staff of its affiliates who have access to a wide </span><span style="color:#000000;font-family:times new roman;font-size:10pt">variety of research.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Victory Capital may sell a portfolio security when it believes the security no longer will contribute to meeting the Fund’s </span><span style="color:#000000;font-family:times new roman;font-size:10pt">investment objective. Victory Capital makes that determination based on the same criteria it uses to select portfolio securities.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Portfolio investments</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Normally, the Fund invests at least 80% of its net assets (plus the amount of borrowings, if any, for investment purposes) </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in insurance-linked securities (</span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">ILS</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">). Derivative instruments that provide exposure to such ILS or have similar economic </span><span style="color:#000000;font-family:times new roman;font-size:10pt">characteristics may be used to satisfy the Fund’s 80% policy. ILS include event-linked bonds (also known as insurance-linked </span><span style="color:#000000;font-family:times new roman;font-size:10pt">bonds or catastrophe bonds), structured reinsurance investments such as quota share instruments (a form of proportional </span><span style="color:#000000;font-family:times new roman;font-size:10pt">reinsurance in which an investor participates in the premiums and losses of a reinsurer’s portfolio of catastrophe-oriented </span><span style="color:#000000;font-family:times new roman;font-size:10pt">policies, sometimes referred to as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">reinsurance sidecars</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">) and collateralized reinsurance investments, industry loss </span><span style="color:#000000;font-family:times new roman;font-size:10pt">warranties, event-linked swaps, securities of companies in the insurance or reinsurance industries, and other insurance- </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and reinsurance-related securities.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Reinsurance-related securities are typically below investment grade, or unrated, and may be referred to as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">junk bonds.</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund has no limit as to the maturity of the securities in which it invests. Event-linked bonds typically have maturities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">between three and five years, while quota shares, collateralized reinsurance investments and industry loss warranties </span><span style="color:#000000;font-family:times new roman;font-size:10pt">typically have maturities that generally do not exceed two years. Maturity is a measure of the time remaining until final </span><span style="color:#000000;font-family:times new roman;font-size:10pt">payment on the security is due.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund will provide written notice to shareholders at least 60 days prior to any change to the requirement that it </span><span style="color:#000000;font-family:times new roman;font-size:10pt">invest at least 80% of its assets in ILS.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">In addition to ILS, the Fund may invest in in a broad range of issuers and segments of the debt securities market. Debt </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities may include instruments and obligations of U.S. and non-U.S. corporate and other non-governmental entities, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">those of U.S. and non-U.S. governmental entities (including government agencies and instrumentalities), floating rate </span><span style="color:#000000;font-family:times new roman;font-size:10pt">loans and other floating rate securities, subordinated debt securities, certificates of deposit, money market securities, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">funds that invest primarily in debt securities, and cash, cash equivalents and other short term holdings.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund’s investments may have fixed or variable principal payments and all types of interest rate and dividend payment </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and reset terms, including fixed rate, adjustable rate, floating rate, contingent, deferred, payment in kind and auction </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rate features.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may invest in ILS issued by non-U.S. issuers.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may, but is not required to, use derivatives, such as currency forward contracts and bond and interest rate </span><span style="color:#000000;font-family:times new roman;font-size:10pt">futures. The Fund may use derivatives for a variety of purposes, including: in an attempt to hedge against adverse changes </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in the market price of securities, interest rates or currency exchange rates; as a substitute for purchasing or selling </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities; to seek event-linked exposure; to attempt to increase the Fund’s return as a non-hedging strategy that may be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">considered speculative; and to manage portfolio characteristics. The Fund may choose not to make use of derivatives for </span><span style="color:#000000;font-family:times new roman;font-size:10pt">a variety of reasons, and any use may be limited by applicable law and regulations. The Fund also may hold cash or other </span><span style="color:#000000;font-family:times new roman;font-size:10pt">short-term investments.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">To the extent consistent with the repurchase liquidity requirement of an interval fund, the Fund may invest without </span><span style="color:#000000;font-family:times new roman;font-size:10pt">limit in illiquid securities.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may consider various non-financial ratings or factors, where applicable, through quantitative models or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">qualitative assessment. The significance these considerations have on security selection varies widely, as the analysis is </span><span style="color:#000000;font-family:times new roman;font-size:10pt">inherently subjective. Further, the consideration of such factors may not apply to certain instruments and the consideration </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of such factors is only a part of the investment process.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund’s investment strategies and policies may be changed from time to time without shareholder approval, unless </span><span style="color:#000000;font-family:times new roman;font-size:10pt">specifically stated otherwise in this prospectus or in the statement of additional information.</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Insurance-linked securities</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:9pt;font-style:italic;font-weight:bold">Event-linked bonds</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may invest in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">event-linked</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> bonds, which sometimes are referred to as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">insurance-linked</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">catastrophe</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt;line-height:12pt"> </span><span style="color:#000000;font-family:times new roman;font-size:10pt">bonds. Event-linked bonds are floating rate debt obligations for which the return of principal and the payment of interest </span><span style="color:#000000;font-family:times new roman;font-size:10pt">are contingent on the non-occurrence of a pre-defined </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">trigger</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> event, such as a hurricane or an earthquake of a specific </span><span style="color:#000000;font-family:times new roman;font-size:10pt">magnitude. The trigger event’s magnitude may be based on losses to a company or industry, industry indexes or readings </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of scientific instruments, or may be based on specified actual losses. If a trigger event, as defined within the terms of an </span><span style="color:#000000;font-family:times new roman;font-size:10pt">event-linked bond occurs, the Fund may lose a portion or all of its accrued interest and/or principal invested in such </span><span style="color:#000000;font-family:times new roman;font-size:10pt">event-linked bond. The Fund is entitled to receive principal and interest payments so long as no trigger event occurs of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the description and magnitude specified by the instrument.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Event-linked bonds may be issued by government agencies, insurance companies, reinsurers, special purpose corporations </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or other U.S. or non-U.S. entities. Event-linked bonds are typically rated below investment grade or may be unrated. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">The rating for an event-linked bond primarily reflects the rating agency’s calculated probability that a pre-defined trigger </span><span style="color:#000000;font-family:times new roman;font-size:10pt">event will occur, which will cause a loss of principal. This rating may also assess the credit risk of the bond’s collateral </span><span style="color:#000000;font-family:times new roman;font-size:10pt">pool, if any, and the reliability of the model used to calculate the probability of a trigger event.</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund’s investments in event-linked bonds may have trigger events related to a broad range of insurance risks, which </span><span style="color:#000000;font-family:times new roman;font-size:10pt">can be broken down into three major categories: natural risks, weather risks and non-natural events. Investments in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">event-linked bonds with trigger events related to natural risks will represent the largest portion of the Fund’s event-linked </span><span style="color:#000000;font-family:times new roman;font-size:10pt">bond investments. The events covered are natural catastrophes, such as hurricanes, other windstorms, earthquakes and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">fires. Investments in event-linked bonds linked to weather risks provide insurance to companies, or insurers of companies, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">whose sales depend on the weather and provide a hedge on the impact of weather-related risks. For example, a weather </span><span style="color:#000000;font-family:times new roman;font-size:10pt">event-linked bond could provide coverage based on the average temperature in a region over a given period. Investments </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in event-linked bonds linked to non-natural risks could cover a much broader array of insurable risks, such as aerospace </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and shipping catastrophes.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may invest in other types of event-linked bonds where the trigger event may be based on company-wide losses </span><span style="color:#000000;font-family:times new roman;font-size:10pt">(</span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">indemnity triggers</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">), index-based losses (</span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">index triggers</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">) or a combination of triggers (</span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">hybrid triggers</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">).</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Indemnity triggers.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Indemnity triggers are based on losses of the insurance company or other entity issuing the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">event-linked bond. The trigger event would be considered to have occurred if a company’s losses on catastrophic insurance </span><span style="color:#000000;font-family:times new roman;font-size:10pt">claims exceeded a certain aggregate amount of insured claims. If the company’s losses were less than the pre-determined </span><span style="color:#000000;font-family:times new roman;font-size:10pt">aggregate amount, then the trigger event would not be considered to have occurred and the Fund would be entitled to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">recover its principal plus accrued but unpaid interest. Indemnity triggers require investors and rating agencies to understand </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the risks of the insurance and reinsurance policies underwritten by the company, which may be difficult to obtain and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">ascertain, particularly in the case of complex commercial insurance and reinsurance policies. In addition, event-linked </span><span style="color:#000000;font-family:times new roman;font-size:10pt">bond investors are dependent upon the company’s ability to settle catastrophe claims in a manner that would not be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">disadvantageous to investors’ interests.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Index triggers.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Index triggers follow one of three broad approaches: parametric, industry-loss and modeled-loss, or a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">combination thereof, which is discussed below as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">hybrid triggers.</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Index triggers are based on pre-defined formulas, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">which eliminate the risks relating to a company’s insurance claims-handling practices and potential information barriers. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">However, index triggers are generally riskier than indemnity triggers, since investors in event-linked bonds that have </span><span style="color:#000000;font-family:times new roman;font-size:10pt">index triggers are dependent upon the accuracy of the models and reporting services used to calculate the formulas.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">- Parametric.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Parametric index triggers are based upon the occurrence of a catastrophic event with certain defined </span><span style="color:#000000;font-family:times new roman;font-size:10pt">physical parameters (e.g., wind speed and location of a hurricane or magnitude and location of an earthquake).</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">- Industry-loss.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Industry loss index triggers are based upon the estimated loss for the insurance industry as a whole </span><span style="color:#000000;font-family:times new roman;font-size:10pt">from a particular catastrophe. Estimates are derived from a reporting service, such as Property Claim Services.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">- Modeled-loss.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Modeled-loss index triggers are based upon a catastrophe-modeling firm’s database estimate of an </span><span style="color:#000000;font-family:times new roman;font-size:10pt">industry loss, or a company’s losses compared to a modeling firm’s industry estimate of losses.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Hybrid triggers.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Hybrid triggers involve more than one trigger type in a single transaction or tranche of an event-linked </span><span style="color:#000000;font-family:times new roman;font-size:10pt">bond. For example, a hybrid trigger could involve the occurrence of both a U.S. hurricane and a Japanese earthquake </span><span style="color:#000000;font-family:times new roman;font-size:10pt">with a different kind of index trigger for each. Another example of a hybrid trigger involves different trigger types </span><span style="color:#000000;font-family:times new roman;font-size:10pt">occurring in a particular sequence. For example, after the occurrence of a qualifying U.S. earthquake, a modeled-loss </span><span style="color:#000000;font-family:times new roman;font-size:10pt">index is used to establish a company’s overall market share, and then applied to the industry loss index associated with </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the qualifying event to determine any principal reduction. Hybrid triggers may be more complicated and difficult to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">understand for investors, and involve the applicable risks associated with the types of triggers described above.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:9pt;font-style:italic;font-weight:bold">Structured reinsurance investments</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">ILS include special purpose vehicles (</span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">SPVs</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">) or similar instruments structured to comprise a portion of a reinsurer’s </span><span style="color:#000000;font-family:times new roman;font-size:10pt">catastrophe-oriented business, known as quota share instruments (sometimes referred to as reinsurance sidecars), or to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">provide reinsurance relating to specific risks to insurance or reinsurance companies through a collateralized instrument, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">known as collateralized reinsurance. Quota share instruments and other structured reinsurance investments generally </span><span style="color:#000000;font-family:times new roman;font-size:10pt">will be considered illiquid securities by the Fund. The Fund may invest substantially in illiquid securities.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Structured reinsurance investments developed along with event-linked bonds as a mechanism to facilitate risk-transfer </span><span style="color:#000000;font-family:times new roman;font-size:10pt">from insurance markets to capital markets investors. These instruments are typically more customizable but less liquid </span><span style="color:#000000;font-family:times new roman;font-size:10pt">investments than event-linked bonds. Like event-linked bonds, an investor in structured reinsurance investments </span><span style="color:#000000;font-family:times new roman;font-size:10pt">participates in the premiums and losses associated with underlying reinsurance contracts. Where the instruments are </span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">based on the performance of underlying reinsurance contracts, the Fund has limited transparency into the underlying </span><span style="color:#000000;font-family:times new roman;font-size:10pt">insurance policies and therefore must rely upon the risk assessment and sound underwriting practices of the insurer </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and/or reinsurer. The instruments typically mature in one year.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund invests indirectly in reinsurance contracts, by holding notes or preferred shares issued by a SPV or similar </span><span style="color:#000000;font-family:times new roman;font-size:10pt">instrument whose performance is tied to an underlying reinsurance transaction, including quota share instruments. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Quota share instruments are a form of proportional reinsurance in which an investor participates in the premiums and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">losses of a reinsurer’s portfolio of catastrophe-oriented policies, according to a pre-defined percentage. For example, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">under a 10% quota share agreement, the SPV would be entitled to 10% of all premiums associated with a defined portfolio </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and be responsible for 10% of all related claims. The Fund, as a holder of a quota share issued by an SPV would be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">entitled to its pro rata share of premiums received by the SPV and would be responsible for its pro rata share of the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">claims, up to the total amount invested.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Collateralized reinsurance investments, are privately structured securities or derivatives utilized to gain exposure to the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">reinsurance market. Collateralized reinsurance entails an SPV entering into a reinsurance arrangement that is then </span><span style="color:#000000;font-family:times new roman;font-size:10pt">collateralized by invested capital and premiums related to the insurance coverage. The collateral is designed to cover in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">full the potential claims that could arise from the underlying reinsurance contract.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Structured reinsurance investments may include industry loss warranties (</span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">ILWs</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">). ILWs are insurance-linked securities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">used to finance peak, non-recurrent insurance risks, such as hurricanes, tropical storms and earthquakes. ILWs feature </span><span style="color:#000000;font-family:times new roman;font-size:10pt">an industry loss index trigger, and, in some cases, a dual trigger design that includes a protection buyer indemnity trigger. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">A traditional ILW takes the form of a bilateral reinsurance contract, but there are also index products that take the form </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of derivatives, collateralized structures or exchange traded instruments. The common feature among these forms is that </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the payout trigger is based on an industry loss index or a parametric index. County-weighted industry loss warranties </span><span style="color:#000000;font-family:times new roman;font-size:10pt">are variations of ILWs that provide reinsurance protection at a county level rather than state-wide or industry-wide losses.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The reinsurance market is highly cyclical, with coverage being written at the beginning of the year and midyear for </span><span style="color:#000000;font-family:times new roman;font-size:10pt">coverage for the following 12 months. The pricing of reinsurance is also highly cyclical as premiums for reinsurance </span><span style="color:#000000;font-family:times new roman;font-size:10pt">coverage are driven, in large part, by insurers’ recent loss experience.</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Liquidity and Restricted Securities</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">A significant percentage of the ILS in which the Fund invests are legally restricted as to resale pursuant to Section 4(2) of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the Securities Act of 1933, as amended (the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">1933 Act</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">), and securities eligible for resale pursuant to Rule 144A thereunder. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Certain Section 4(2) and Rule 144A securities may be determined to be liquid securities and most or all of the event-linked </span><span style="color:#000000;font-family:times new roman;font-size:10pt">bonds in which the Fund invests will be considered liquid securities. Even if determined to be liquid, holdings of Rule </span><span style="color:#000000;font-family:times new roman;font-size:10pt">144A securities may increase the level of Fund illiquidity if eligible buyers become uninterested in purchasing them. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Other ILS, including quota share instruments, generally will be considered illiquid securities by the Fund. The Fund may </span><span style="color:#000000;font-family:times new roman;font-size:10pt">invest substantially in illiquid securities.</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Credit management</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may invest in securities and other obligations of any credit quality, including those that are rated below </span><span style="color:#000000;font-family:times new roman;font-size:10pt">investment grade (debt securities rated below investment grade are commonly referred to as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">junk bonds</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">) or are unrated </span><span style="color:#000000;font-family:times new roman;font-size:10pt">but determined by the Adviser to be of equivalent credit quality, and those that are in default or in bankruptcy. Because </span><span style="color:#000000;font-family:times new roman;font-size:10pt">ILS typically are rated below investment grade or are unrated, a substantial portion of the Fund’s assets ordinarily will </span><span style="color:#000000;font-family:times new roman;font-size:10pt">consist of below investment grade securities. An investor can still lose significant amounts when investing in investment </span><span style="color:#000000;font-family:times new roman;font-size:10pt">grade securities. The Fund does not have a policy of maintaining a specific average credit quality of its portfolio. The </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Adviser monitors the credit quality and price of the securities and other instruments held by the Fund.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Although the Adviser considers ratings when making investment decisions, it performs its own credit and investment </span><span style="color:#000000;font-family:times new roman;font-size:10pt">analysis and does not rely primarily on ratings assigned by rating services. In evaluating the attractiveness of a particular </span><span style="color:#000000;font-family:times new roman;font-size:10pt">obligation, whether rated or unrated, the Adviser generally gives equal weight to the obligation’s yield and the issuer’s </span><span style="color:#000000;font-family:times new roman;font-size:10pt">creditworthiness and will normally take into consideration, among other things, the issuer’s financial resources and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">operating history, its sensitivity to economic conditions and trends, the availability of its management, its debt maturity </span><span style="color:#000000;font-family:times new roman;font-size:10pt">schedules and borrowing requirements, and relative values based on anticipated cash flow, interest and asset coverage </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and earnings prospects.</span></div><div style="line-height:11.0pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Below investment grade securities</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may invest in debt securities rated below investment grade or, if unrated, of equivalent quality as determined </span><span style="color:#000000;font-family:times new roman;font-size:10pt">by the Adviser. Because ILS typically are rated below investment grade or are unrated, a substantial portion of the Fund’s </span><span style="color:#000000;font-family:times new roman;font-size:10pt">assets ordinarily will consist of below investment grade securities. A debt security is below investment grade if it is rated </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Ba/BB or lower or the equivalent rating by at least one nationally recognized statistical rating organization or determined </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to be of equivalent credit quality by the Adviser. Debt securities rated below investment grade are commonly referred to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">junk bonds</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> and are considered speculative. Below investment grade debt securities involve greater risk of loss, are </span><span style="color:#000000;font-family:times new roman;font-size:10pt">subject to greater price volatility and are less liquid, especially during periods of economic uncertainty or change, than </span><span style="color:#000000;font-family:times new roman;font-size:10pt">higher quality debt securities. Below investment grade securities also may be more difficult to value. With respect to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">event-linked bonds, the rating reflects the probability that a pre-defined trigger event will occur, rather than the bond’s </span><span style="color:#000000;font-family:times new roman;font-size:10pt">credit rating. The rating also assesses the model used to calculate the probability of the trigger event.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">If a security receives different ratings from nationally recognized statistical rating organizations, the Fund will use the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rating chosen by the portfolio manager as most representative of the security’s credit quality. The ratings of nationally </span><span style="color:#000000;font-family:times new roman;font-size:10pt">recognized statistical rating organizations represent their opinions as to the quality of the securities that they undertake </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to rate and may not accurately describe the risks of the securities. A rating organization may have a conflict of interest </span><span style="color:#000000;font-family:times new roman;font-size:10pt">with respect to a security for which it assigns a quality rating. In addition, there may be a delay between a change in the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">credit quality of a security or other asset and a change in the quality rating assigned to the security or other asset by a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rating organization. If a rating organization changes the quality rating assigned to one or more of the Fund’s portfolio </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities, the Adviser will consider if any action is appropriate in light of the Fund’s investment objective and policies. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">An investor can still lose significant amounts when investing in investment grade securities.</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Floating rate investments</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Floating rate investments are securities and other instruments with interest rates that adjust or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">float</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> periodically based </span><span style="color:#000000;font-family:times new roman;font-size:10pt">on a specified interest rate or other reference and include floating rate loans, repurchase agreements, money market </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities and shares of money market and short-term bond funds. For purposes of the Fund’s investment policies, the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund considers as floating rate instruments adjustable rate securities, fixed rate securities with durations of less than or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">equal to one year, funds that invest primarily in floating rate instruments, and fixed rate securities with respect to which </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the Fund has entered into derivative instruments to effectively convert the fixed rate interest payments into floating rate </span><span style="color:#000000;font-family:times new roman;font-size:10pt">interest payments.</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Floating rate loans</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Floating rate loans are provided by banks and other financial institutions to large corporate customers. These loans are </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rated below investment grade, but typically are secured with specific collateral and have a senior position in the capital </span><span style="color:#000000;font-family:times new roman;font-size:10pt">structure of the borrower. These loans typically have rates of interest that are reset periodically by reference to a base </span><span style="color:#000000;font-family:times new roman;font-size:10pt">lending rate, such as the London Interbank Offered Rate (LIBOR) or Secured Overnight Financing Rate (SOFR), plus </span><span style="color:#000000;font-family:times new roman;font-size:10pt">a premium.</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Second lien loans and other subordinated debt obligations</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may invest in loans and other debt securities that have the same characteristics as senior floating rate loans </span><span style="color:#000000;font-family:times new roman;font-size:10pt">except that such loans are second in lien property rather than first. Such </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">second lien</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> loans and securities, like senior </span><span style="color:#000000;font-family:times new roman;font-size:10pt">floating rate loans, typically have adjustable or floating rate interest payments. The risks associated with </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">second lien</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt;line-height:12pt"> </span><span style="color:#000000;font-family:times new roman;font-size:10pt">loans are higher than the risk of loans with first priority over the collateral. In the event of default on a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">second lien</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt;line-height:12pt"> </span><span style="color:#000000;font-family:times new roman;font-size:10pt">loan, the first priority lien holder has first claim to the underlying collateral of the loan. It is possible that no collateral </span><span style="color:#000000;font-family:times new roman;font-size:10pt">value would remain for the second priority lien holder and therefore result in a loss of investment to the Fund.</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">U.S. government securities</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may invest in U.S. government securities. U.S. government securities are obligations of, or guaranteed by, the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">U.S. government, its agencies or government-sponsored entities. U.S. government securities include obligations: directly </span><span style="color:#000000;font-family:times new roman;font-size:10pt">issued by or supported by the full faith and credit of the U.S. government, like Treasury bills, notes and bonds and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Government National Mortgage Association (GNMA) certificates; supported by the right of the issuer to borrow from </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the U.S. Treasury, like those of the Federal Home Loan Banks (FHLBs); supported by the discretionary authority of the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">U.S. government to purchase the agency’s securities, like those of the Federal National Mortgage Association (FNMA); </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or supported only by the credit of the issuer itself, like the Tennessee Valley Authority. U.S. government securities include </span><span style="color:#000000;font-family:times new roman;font-size:10pt">issues by non-governmental entities (like financial institutions) that carry direct guarantees from U.S. government </span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">agencies. U.S. government securities include zero coupon securities that make payments of interest and principal only </span><span style="color:#000000;font-family:times new roman;font-size:10pt">upon maturity and which therefore tend to be subject to greater volatility than interest-bearing securities with </span><span style="color:#000000;font-family:times new roman;font-size:10pt">comparable maturities.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Although the U.S. government guarantees principal and interest payments on securities issued by the U.S. government </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and some of its agencies, such as securities issued by GNMA, this guarantee does not apply to losses resulting from </span><span style="color:#000000;font-family:times new roman;font-size:10pt">declines in the market value of these securities. Some of the U.S. government securities that the Fund may hold are not </span><span style="color:#000000;font-family:times new roman;font-size:10pt">guaranteed or backed by the full faith and credit of the U.S. government, such as those issued by FNMA and the Federal </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Home Loan Mortgage Corporation (FHLMC).</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Non-U.S. investments</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may invest without limit in securities of non-U.S. issuers, including securities of emerging market issuers. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Non-U.S. issuers are issuers that are organized and have their principal offices outside of the United States. Non-U.S. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities may be issued by non-U.S. governments, banks or corporations, or private issuers, and certain supranational </span><span style="color:#000000;font-family:times new roman;font-size:10pt">organizations, such as the World Bank and the European Union. The Fund considers emerging market issuers to include </span><span style="color:#000000;font-family:times new roman;font-size:10pt">issuers organized under the laws of an emerging market country, issuers with a principal office in an emerging market </span><span style="color:#000000;font-family:times new roman;font-size:10pt">country, issuers that derive at least 50% of their gross revenues or profits from goods or services produced in emerging </span><span style="color:#000000;font-family:times new roman;font-size:10pt">markets or sales made in emerging market countries, or issuers that have at least 50% of their assets in emerging market </span><span style="color:#000000;font-family:times new roman;font-size:10pt">countries. Emerging markets will generally include, but not be limited to, countries included in the Morgan Stanley </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Capital International (MSCI) Emerging + Frontier Markets Index.</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Derivatives</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may purchase and sell derivative instruments such as exchange-listed and over-the-counter put and call </span><span style="color:#000000;font-family:times new roman;font-size:10pt">options on securities, financial futures, equity, fixed income and interest rate indices, and other financial instruments, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">purchase and sell financial futures contracts and options thereon, enter into various interest rate transactions such as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">swaps, caps, floors or collars and enter into various currency transactions such as currency forward contracts, currency </span><span style="color:#000000;font-family:times new roman;font-size:10pt">futures contracts, currency swaps or options on currency or currency futures or credit transactions and credit default </span><span style="color:#000000;font-family:times new roman;font-size:10pt">swaps. The Fund also may purchase derivative instruments that combine features of these instruments. The Fund may </span><span style="color:#000000;font-family:times new roman;font-size:10pt">use derivatives for a variety of purposes, including: in an attempt to hedge against adverse changes in the market price of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities, interest rates or currency exchange rates; as a substitute for purchasing or selling securities; to seek event-linked </span><span style="color:#000000;font-family:times new roman;font-size:10pt">exposure; to attempt to increase the Fund’s return as a non-hedging strategy that may be considered speculative; to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">manage portfolio characteristics, and as a cash flow management technique. The Fund may choose not to make use of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">derivatives for a variety of reasons, and any use may be limited by applicable law and regulations. The Fund also may </span><span style="color:#000000;font-family:times new roman;font-size:10pt">hold cash or other short-term investments.</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Structured securities</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may invest in structured securities. The value of the principal and/or interest on such securities is determined </span><span style="color:#000000;font-family:times new roman;font-size:10pt">by reference to changes in the value of specific currencies, interest rates, commodities, indices or other financial indicators </span><span style="color:#000000;font-family:times new roman;font-size:10pt">(</span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">Reference</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">) or the relative change in two or more References. The interest rate or the principal amount payable upon </span><span style="color:#000000;font-family:times new roman;font-size:10pt">maturity or redemption may be increased or decreased depending upon changes in the Reference. The terms of the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">structured securities may provide in certain circumstances that no principal is due at maturity and, therefore, may result </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in a loss of the Fund’s investment. Changes in the interest rate or principal payable at maturity may be a multiple of the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">changes in the value of the Reference. Consequently, structured securities may entail a greater degree of market risk </span><span style="color:#000000;font-family:times new roman;font-size:10pt">than other types of fixed income securities.</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Credit-linked notes</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may invest in credit-linked notes (</span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">CLNs</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">). A CLN is a derivative instrument. It is a synthetic obligation </span><span style="color:#000000;font-family:times new roman;font-size:10pt">between two or more parties where the payment of principal and/or interest is based on the performance of some </span><span style="color:#000000;font-family:times new roman;font-size:10pt">obligation (a reference obligation). In addition to credit risk of the reference obligations and interest rate risk, the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">buyer/seller of the CLN is subject to counterparty risk.</span></div><div style="line-height:11.0pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Credit default swaps</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may enter into credit default swaps, which are a type of derivative transaction. In a credit default swap, the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">credit default protection buyer makes periodic payments, known as premiums, to the credit default protection seller. In </span><span style="color:#000000;font-family:times new roman;font-size:10pt">return, the credit default protection seller will make a payment to the credit default protection buyer upon the occurrence </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of a specified credit event. A credit default swap can refer to a single issuer or asset, a basket of issuers or assets, or an </span><span style="color:#000000;font-family:times new roman;font-size:10pt">index of assets, each known as the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">reference obligation.</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">A credit default swap is designed as a means to purchase (or sell) a hedge against the risk of default on the reference </span><span style="color:#000000;font-family:times new roman;font-size:10pt">obligation. If a credit event occurs, the seller generally must pay the buyer the par value (i.e., full notional value) of the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">swap in exchange for an equal face amount of deliverable obligations of the reference obligation, or the seller may be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">required to deliver the related net cash amount, if the swap is cash settled.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may be either the buyer or seller in a credit default swap. If the Fund is a buyer and no credit event occurs, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the Fund may recover nothing if the swap is held through its termination date. However, if a credit event occurs, the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund generally may elect to receive the full notional value of the swap in exchange for an equal face amount of the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">reference obligation, the value of which may have significantly decreased. As a seller, the Fund generally would receive </span><span style="color:#000000;font-family:times new roman;font-size:10pt">an upfront payment or a fixed rate of income throughout the term of the swap provided that there is no credit event. As </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">would be subject to investment exposure on the notional amount of the swap.</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Event-linked swaps</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may obtain event-linked exposure by investing in event-linked swaps, which are similar to credit default </span><span style="color:#000000;font-family:times new roman;font-size:10pt">swaps but typically are contingent, or formulaically related to defined trigger events. Trigger events include hurricanes, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">earthquakes and weather-related phenomena, including statistics relating to such events. If a trigger event occurs, the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund may lose the swap’s notional amount. As derivative instruments, event-linked swaps are subject to risks in addition </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to the risks of investing in event-linked bonds, including counterparty risk and leverage risk.</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Inverse floating rate obligations</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may invest in inverse floating rate obligations (a type of derivative instrument). The interest rate on inverse </span><span style="color:#000000;font-family:times new roman;font-size:10pt">floating rate obligations will generally decrease as short-term interest rates increase, and increase as short-term rates </span><span style="color:#000000;font-family:times new roman;font-size:10pt">decrease. Due to their leveraged structure, the sensitivity of the market value of an inverse floating rate obligation to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">changes in interest rates is generally greater than a comparable long-term bond issued by the same issuer and with </span><span style="color:#000000;font-family:times new roman;font-size:10pt">similar credit quality, redemption and maturity provisions. Inverse floating rate obligations may be volatile and involve </span><span style="color:#000000;font-family:times new roman;font-size:10pt">leverage risk.</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Other investment companies</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may invest in the securities of other investment companies, including exchange-traded funds and money </span><span style="color:#000000;font-family:times new roman;font-size:10pt">market funds, to the extent that such investments are consistent with the Fund’s investment objective and policies and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">permissible under the 1940 Act. The Fund may also invest without limit in money market funds. The Fund, as a holder </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of the securities of other investment companies, will bear its pro rata portion of the other investment companies’ expenses, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">including advisory fees. These expenses will be in addition to the direct expenses incurred by the Fund.</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Exchange-traded Funds</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Subject to the Fund’s limitations on investment in other investment companies, the Fund may invest in exchange-traded </span><span style="color:#000000;font-family:times new roman;font-size:10pt">funds (</span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">ETFs</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">). ETFs are funds whose shares are traded on an exchange. ETFs may be based on underlying equity or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">fixed income securities. ETFs do not sell individual shares directly to investors and only issue their shares in large blocks </span><span style="color:#000000;font-family:times new roman;font-size:10pt">known as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">creation units</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">authorized participants</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> (</span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">APs). The AP purchasing a creation unit may sell the individual </span><span style="color:#000000;font-family:times new roman;font-size:10pt">shares on a secondary market to individual investors. Therefore, the liquidity of ETFs depends on the adequacy of the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">secondary market. There can be no assurance that an ETF’s investment objective will be achieved. ETFs based on an </span><span style="color:#000000;font-family:times new roman;font-size:10pt">index may not replicate and maintain exactly the composition and relative weightings of securities in the index. ETFs </span><span style="color:#000000;font-family:times new roman;font-size:10pt">are subject to the risks of investing in the underlying securities. The Fund, as a holder of the securities of the ETF, will </span><span style="color:#000000;font-family:times new roman;font-size:10pt">bear its pro rata portion of the ETF’s expenses, including advisory fees. These expenses are in addition to the direct </span><span style="color:#000000;font-family:times new roman;font-size:10pt">expenses of the Fund’s own operations.</span></div><div style="line-height:11.0pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Money market instruments</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may invest in money market instruments or a money market fund that invests in money market instruments. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Money market instruments include short-term U.S. government securities, U.S. dollar-denominated, high quality commercial </span><span style="color:#000000;font-family:times new roman;font-size:10pt">paper (unsecured promissory notes issued by corporations to finance their short-term credit needs), certificates of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">deposit, bankers’ acceptances and repurchase agreements relating to any of the foregoing.</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Reverse repurchase agreements and borrowing</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may enter into reverse repurchase agreements pursuant to which the Fund transfers securities to a counterparty </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in return for cash, and the Fund agrees to repurchase the securities at a later date and for a higher price. Reverse repurchase </span><span style="color:#000000;font-family:times new roman;font-size:10pt">agreements are treated as borrowings by the Fund, are a form of leverage and may make the value of an investment in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the Fund more volatile and increase the risks of investing in the Fund. The Fund also may borrow money from banks or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">other lenders, including to finance repurchase requests. The Fund may borrow up to 33</span><span style="color:#000000;font-family:times new roman;font-size:6pt;position:relative;top:-2.66pt"> 1</span><span style="color:#000000;font-family:times new roman;font-size:10pt">∕</span><span style="color:#000000;font-family:times new roman;font-size:6pt">3</span><span style="color:#000000;font-family:times new roman;font-size:10pt">% of its total assets. Entering </span><span style="color:#000000;font-family:times new roman;font-size:10pt">into reverse repurchase agreements and other borrowing transactions may cause the Fund to liquidate positions when it </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may not be advantageous to do so in order to satisfy its obligations.</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Repurchase agreements</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may enter into repurchase agreements with broker-dealers, member banks of the Federal Reserve System and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">other financial institutions. Repurchase agreements are arrangements under which the Fund purchases securities and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the seller agrees to repurchase the securities within a specific time and at a specific price. The repurchase price is generally </span><span style="color:#000000;font-family:times new roman;font-size:10pt">higher than the Fund’s purchase price, with the difference being income to the Fund. A repurchase agreement may be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">considered a loan by the Fund collateralized by securities. The Adviser reviews and monitors the creditworthiness of any </span><span style="color:#000000;font-family:times new roman;font-size:10pt">institution which enters into a repurchase agreement with the Fund. All repurchase agreements entered into by the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund shall be fully collateralized with U.S. Treasury and/or agency obligations at all times during the period of the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">agreement in that the value of the collateral shall be at least equal to an amount of the loan, including interest thereon. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Collateral is held by the Fund’s custodian in a segregated safekeeping account for the benefit of the Fund. Repurchase </span><span style="color:#000000;font-family:times new roman;font-size:10pt">agreements afford the Fund an opportunity to earn income on temporarily available cash. In the event of commencement </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of bankruptcy or insolvency proceedings with respect to the seller of the security before repurchase of the security under </span><span style="color:#000000;font-family:times new roman;font-size:10pt">a repurchase agreement, the Fund may encounter delay and incur costs before being able to sell the security. Such a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">delay may involve loss of interest or a decline in price of the security. If the court characterizes the transaction as a loan </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and the Fund has not perfected a security interest in the collateral, the Fund may be required to return the collateral to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the seller’s estate and be treated as an unsecured creditor of the seller. As an unsecured creditor, the Fund would be at </span><span style="color:#000000;font-family:times new roman;font-size:10pt">risk of losing some or all of the principal and interest involved in the transaction.</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Cash management and temporary investments</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Normally, the Fund invests substantially all of its assets to meet its investment objective. The Fund may invest the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">remainder of its assets in money market funds, securities with remaining maturities of less than one year or cash equivalents, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">including overnight repurchase agreements, or may hold cash. For temporary defensive purposes, including during </span><span style="color:#000000;font-family:times new roman;font-size:10pt">periods of unusual cash flows, the Fund may depart from its principal investment strategies and invest part or all of its </span><span style="color:#000000;font-family:times new roman;font-size:10pt">assets in these securities or may hold cash. The Fund may adopt a defensive strategy when the Adviser believes securities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in which the Fund normally invests have special or unusual risks or are less attractive due to adverse market, economic, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">political or other conditions. During such periods, it may be more difficult for the Fund to achieve its investment objective.</span></div><div style="margin-top:9pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Short-term trading</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund usually does not trade for short-term profits. The Fund will sell an investment, however, even if it has only </span><span style="color:#000000;font-family:times new roman;font-size:10pt">been held for a short time, if it no longer meets the Fund's investment criteria. If the Fund does a lot of trading, it may </span><span style="color:#000000;font-family:times new roman;font-size:10pt">incur additional operating expenses, which would reduce performance, and could cause shareowners to incur a higher </span><span style="color:#000000;font-family:times new roman;font-size:10pt">level of taxable income or capital gains.</span></div> <div> <span style="color:#000000;font-family:arial;font-size:14pt;font-weight:bold;line-height:16pt">Risk Factors</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt;font-style:italic">Risk is inherent in all investing. Investing in any investment company security involves risk, including the risk that you </span><span style="color:#000000;font-family:times new roman;font-size:10pt;font-style:italic">may receive little or no return on your investment. Therefore, before purchasing shares, you should consider carefully the </span><span style="color:#000000;font-family:times new roman;font-size:10pt;font-style:italic">following risks that you assume when you invest in the Fund.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">General.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The Fund is a non-diversified, closed-end management investment company designed primarily as a long-term </span><span style="color:#000000;font-family:times new roman;font-size:10pt">investment and not as a trading tool. The Fund is not a complete investment program and should be considered only as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">an addition to an investor’s existing portfolio of investments. Because the Fund invests predominantly in ILS of U.S. and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">non-U.S. issuers, floating rate loans, and high yield debt securities, an investment in the Fund’s shares is speculative in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">that it involves a high degree of risk. Due to uncertainty inherent in all investments, there can be no assurance that the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund will achieve its investment objective. ILS in which the Fund invests may only have limited liquidity, or may be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">illiquid. In addition, even though the Fund will make periodic offers to repurchase a portion of its outstanding shares to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">provide some liquidity to shareholders, shareholders should consider the Fund to be an illiquid investment.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risks of investing in insurance-linked securities.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The Fund could lose a portion or all of the principal it has invested </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in an ILS, and the right to additional interest and/or dividend payments with respect to the security, upon the occurrence </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of one or more trigger events, as defined within the terms of the ILS. Trigger events may include natural or other perils </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of a specific size or magnitude that occur in a designated geographic region during a specified time period, and/or that </span><span style="color:#000000;font-family:times new roman;font-size:10pt">involve losses or other metrics that exceed a specific amount. Natural perils include disasters such as hurricanes, earthquakes, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">windstorms, fires, floods and other weather-related occurrences, as well as mortality or longevity events. Non-natural </span><span style="color:#000000;font-family:times new roman;font-size:10pt">perils include disasters resulting from human-related activity such as commercial and industrial accidents or business </span><span style="color:#000000;font-family:times new roman;font-size:10pt">interruptions. Major natural disasters (such as in the cases of Super Typhoon Goni in the Philippines in 2020, monsoon </span><span style="color:#000000;font-family:times new roman;font-size:10pt">flooding in China in 2020, Hurricane Irma in Florida and the Caribbean in 2017, Super Storm Sandy in 2012, Hurricane </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Ian in Florida in 2022, Palisades and Eaton fires in 2025 and Central Texas floods in 2025) or commercial and industrial </span><span style="color:#000000;font-family:times new roman;font-size:10pt">accidents (such as aviation disasters and oil spills) can result in significant losses, and investors in ILS with exposure to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">such natural or other disasters may also experience substantial losses. If the likelihood and severity of natural and other </span><span style="color:#000000;font-family:times new roman;font-size:10pt">large disasters increase, the risk of significant losses to reinsurers may increase. Typically, one significant triggering </span><span style="color:#000000;font-family:times new roman;font-size:10pt">event (even in a major metropolitan area) will not result in financial failure to a reinsurer. However, a series of major </span><span style="color:#000000;font-family:times new roman;font-size:10pt">triggering events could cause the failure of a reinsurer. Similarly, to the extent the Fund invests in ILS for which a triggering </span><span style="color:#000000;font-family:times new roman;font-size:10pt">event occurs, losses associated with such event will result in losses to the Fund and a series of major triggering events </span><span style="color:#000000;font-family:times new roman;font-size:10pt">affecting a large portion of the ILS held by the Fund will result in substantial losses to the Fund. The Fund may also </span><span style="color:#000000;font-family:times new roman;font-size:10pt">invest in ILS that are subject to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">indemnity triggers.</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> An indemnity trigger is a trigger based on the actual losses of the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">ceding sponsor (i.e., the party seeking reinsurance). ILS subject to indemnity triggers are often regarded as being subject </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to potential moral hazard, since such ILS are triggered by actual losses of the ceding sponsor and the ceding sponsor </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may have an incentive to take actions and/or risks that would have an adverse effect on the Fund. For example, a ceding </span><span style="color:#000000;font-family:times new roman;font-size:10pt">sponsor might inflate its total claims paid above the ILS trigger level in order to share its losses with investors in the ILS. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Thus, bonds with indemnity triggers may be subject to moral hazard, because the trigger depends on the ceding sponsor </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to properly identify and calculate losses that do and do not apply in determining whether the trigger amount has been </span><span style="color:#000000;font-family:times new roman;font-size:10pt">reached. In short, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">moral hazard</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> refers to this potential for the sponsor to influence bond performance, as payouts are </span><span style="color:#000000;font-family:times new roman;font-size:10pt">based on the individual policy claims against the sponsor and the way the sponsor settles those claims. There is no way </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to accurately predict whether a trigger event will occur and, accordingly, ILS carry significant risks. In addition to the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">specified trigger events, ILS may expose the Fund to other risks, including but not limited to issuer (credit) default, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">adverse regulatory or jurisdictional interpretations and adverse tax consequences. ILS are also subject to the risk that </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the model used to calculate the probability of a trigger event was not accurate and underestimated the likelihood of a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">trigger event. ILS may provide for extensions of maturity in order to process and audit loss claims in those cases when a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">trigger event has, or possibly has, occurred. Certain ILS may have limited liquidity, or may be illiquid. Upon the occurrence </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or possible occurrence of a trigger event, and until the completion of the processing and auditing of applicable loss </span><span style="color:#000000;font-family:times new roman;font-size:10pt">claims, the Fund’s investment in an ILS may be priced using fair value methods. Lack of a liquid market may impose the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">risk of higher transaction costs and the possibility that the Fund may be forced to liquidate positions when it would not </span><span style="color:#000000;font-family:times new roman;font-size:10pt">be advantageous to do so.</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risks of investing in structured reinsurance investments.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The Fund invests in ILS that are special purpose vehicles </span><span style="color:#000000;font-family:times new roman;font-size:10pt">(</span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">SPVs</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">) or similar instruments structured to comprise a portion of a reinsurer’s catastrophe-oriented business, known </span><span style="color:#000000;font-family:times new roman;font-size:10pt">as quota share instruments (sometimes referred to as reinsurance sidecars), or to provide reinsurance relating to specific </span><span style="color:#000000;font-family:times new roman;font-size:10pt">risks to insurance or reinsurance companies through a collateralized instrument, known as collateralized reinsurance. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Quota shares instruments and other structured reinsurance investments generally will be considered illiquid securities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">by the Fund.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Structured reinsurance investments are typically more customizable but less liquid investments than event-linked bonds. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Like event-linked bonds, an investor in structured reinsurance investments participates in the premiums and losses </span><span style="color:#000000;font-family:times new roman;font-size:10pt">associated with underlying reinsurance contracts.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Structured reinsurance investments are subject to the same risks as event-linked bonds and other ILS. In addition, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">because quota share instruments represent an interest in a basket of underlying reinsurance contracts, the Fund has </span><span style="color:#000000;font-family:times new roman;font-size:10pt">limited transparency into the individual underlying contracts and therefore must rely upon the risk assessment and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">sound underwriting practices of the insurer and/or reinsurer. Accordingly, it may be more difficult for the Adviser to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">fully evaluate the underlying risk profile of the Fund’s investment in quota share instruments and therefore place the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund’s assets at greater risk of loss than if the Adviser had more complete information. Structured reinsurance investments </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may be difficult to value.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Since ILS issuers typically are structured so as to be bankruptcy remote SPVs or similar structures, it is unlikely that the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund could lose its investment if the applicable trigger event never occurs. However, there can be no assurance that ILS </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in which the Fund may invest in the future will be structured in a similar manner or that a court would uphold the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">intended bankruptcy remote characterization of the structure. If ILS issued in the future is structured in a different </span><span style="color:#000000;font-family:times new roman;font-size:10pt">manner, it may be possible that the Fund would lose its entire investment in an event-linked bond even though the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">applicable trigger event never occurs.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">ILS market and reinvestment risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The size of the ILS market may change over time, which may limit the availability </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of ILS for investment by the Fund. The original issuance of ILS in general, including ILS with desired instrument or risk </span><span style="color:#000000;font-family:times new roman;font-size:10pt">characteristics, may fluctuate depending on the capital and capacity needs of reinsurers as well as the demand for ILS by </span><span style="color:#000000;font-family:times new roman;font-size:10pt">institutional investors. The availability of ILS in the secondary market also may be limited by supply and demand dynamics </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and prevailing economic conditions. To the extent ILS held by the Fund mature, or the Fund must sell securities in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">connection with share repurchases, the Fund may be required to hold more cash or short-term investments than it </span><span style="color:#000000;font-family:times new roman;font-size:10pt">normally would until attractive ILS becomes available. Holding excess cash and/or reinvestment in securities that are </span><span style="color:#000000;font-family:times new roman;font-size:10pt">lower yielding or less desirable than securities sold may negatively affect performance.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">There are relatively few market participants that market reinsurance arrangements, create SPVs and similar structures, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and otherwise facilitate the participation in the reinsurance industry by funds and other capital market investors. Withdrawal </span><span style="color:#000000;font-family:times new roman;font-size:10pt">from the industry by key market participants may affect negatively the liquidity of the ILS market or the operation or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">value of ILS structures that rely on these market participants.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Market risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The market prices of securities or other assets held by the Fund may go up or down, sometimes rapidly or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">unpredictably, due to general market conditions, such as real or perceived adverse economic, political, or regulatory </span><span style="color:#000000;font-family:times new roman;font-size:10pt">conditions, political instability, recessions, inflation, changes in interest or currency rates, lack of liquidity in the bond </span><span style="color:#000000;font-family:times new roman;font-size:10pt">markets, the spread of infectious illness or other public health issues, weather or climate events, armed conflict, market </span><span style="color:#000000;font-family:times new roman;font-size:10pt">disruptions caused by tariffs, trade disputes, sanctions or other government actions, or other factors or adverse investor </span><span style="color:#000000;font-family:times new roman;font-size:10pt">sentiment. If the market prices of the Fund's securities and assets fall, the value of your investment will go down. A </span><span style="color:#000000;font-family:times new roman;font-size:10pt">change in financial condition or other event affecting a single issuer or market may adversely impact securities markets </span><span style="color:#000000;font-family:times new roman;font-size:10pt">as a whole.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Changes in market conditions may not have the same impact on all types of securities. The value of securities may also </span><span style="color:#000000;font-family:times new roman;font-size:10pt">fall due to specific conditions that affect a particular sector of the securities market or a particular issuer. In the past </span><span style="color:#000000;font-family:times new roman;font-size:10pt">decade, financial markets throughout the world have experienced increased volatility, depressed valuations, decreased </span><span style="color:#000000;font-family:times new roman;font-size:10pt">liquidity and heightened uncertainty. Governmental and non-governmental issuers have defaulted on, or been forced to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">restructure, their debts. These conditions may continue, recur, worsen or spread. Events that have contributed to these </span><span style="color:#000000;font-family:times new roman;font-size:10pt">market conditions include, but are not limited to, major cybersecurity events; geopolitical events (including wars, terror </span><span style="color:#000000;font-family:times new roman;font-size:10pt">attacks and economic sanctions); measures to address budget deficits; downgrading of sovereign debt; changes in oil and </span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">commodity prices; dramatic changes in currency exchange rates; global pandemics; and public sentiment. The long-term </span><span style="color:#000000;font-family:times new roman;font-size:10pt">impact of the COVID-19 pandemic and its subsequent variants on economies, markets, industries and individual issuers, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">is not known. Some sectors of the economy and individual issuers have experienced or may experience particularly large </span><span style="color:#000000;font-family:times new roman;font-size:10pt">losses. Periods of extreme volatility in the financial markets, reduced liquidity of many instruments, increased government </span><span style="color:#000000;font-family:times new roman;font-size:10pt">debt, inflation, and disruptions to supply chains, consumer demand and employee availability, may continue for some time.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Raising the ceiling on U.S. government debt has become increasingly politicized. Any failure to increase the total amount </span><span style="color:#000000;font-family:times new roman;font-size:10pt">that the U.S. government is authorized to borrow could lead to a default on U.S. government obligations, with unpredictable </span><span style="color:#000000;font-family:times new roman;font-size:10pt">consequences for economies and markets in the United States and elsewhere. Inflation and interest rates may increase. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">These circumstances could adversely affect the value and liquidity of the Fund's investments and negatively impact the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund's performance. In addition, inflation, rising interest rates, global supply chain disruptions and other market events </span><span style="color:#000000;font-family:times new roman;font-size:10pt">could adversely affect the companies or issuers in which the Fund invests. Following the commencement of the conflict </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in Ukraine, Russian securities lost all, or nearly all, their market value. Other securities or markets could be similarly </span><span style="color:#000000;font-family:times new roman;font-size:10pt">affected by past or future political, geopolitical or other events or conditions.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Governments and central banks, including the U.S. Federal Reserve, have taken extraordinary and unprecedented actions </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to support local and global economies and the financial markets. These actions have resulted in significant expansion of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">public debt, including in the United States. The consequences of high public debt, including its future impact on the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">economy and securities markets, may not be known for some time. U.S. Federal Reserve or other U.S. or non-U.S. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">governmental or central bank actions, including increases or decreases in interest rates, or contrary actions by different </span><span style="color:#000000;font-family:times new roman;font-size:10pt">governments, could negatively affect financial markets generally, increase market volatility and reduce the value and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">liquidity of securities in which the Fund invests. Policy and legislative changes in the United States and in other countries </span><span style="color:#000000;font-family:times new roman;font-size:10pt">are affecting many aspects of financial regulation, and these and other events affecting global markets, such as the United </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Kingdom’s exit from the European Union (commonly known as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">Brexit</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">), potential trade imbalances with China or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">other countries, or sanctions or other government actions against Russia, other nations or individuals or companies (or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">their countermeasures), may contribute to decreased liquidity and increased volatility in the financial markets. The </span><span style="color:#000000;font-family:times new roman;font-size:10pt">impact of these changes on the markets, and the implications for market participants, may not be fully known for </span><span style="color:#000000;font-family:times new roman;font-size:10pt">some time.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The United States and other countries are periodically involved in disputes over trade and other matters, which may </span><span style="color:#000000;font-family:times new roman;font-size:10pt">result in tariffs (or the threat of tariffs), investment restrictions and adverse impacts on affected companies and securities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">potentially leading to significant losses for the Fund. For example, the United States has imposed tariffs and other trade </span><span style="color:#000000;font-family:times new roman;font-size:10pt">barriers on exports from other countries, has restricted sales of certain categories of goods to other countries, and has </span><span style="color:#000000;font-family:times new roman;font-size:10pt">established barriers to investments in other countries. Trade disputes may adversely affect the economies of the United </span><span style="color:#000000;font-family:times new roman;font-size:10pt">States and its trading partners, as well as companies directly or indirectly affected and financial markets generally. The </span><span style="color:#000000;font-family:times new roman;font-size:10pt">U.S. government has prohibited U.S. persons, such as the Fund, from investing in Chinese companies designated as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">related to the Chinese military. These and possible future restrictions could limit the Fund's opportunities for investment </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and require the sale of securities at a loss or make them illiquid. Moreover, China's long-running conflict over Taiwan's </span><span style="color:#000000;font-family:times new roman;font-size:10pt">sovereignty, border disputes with many neighbors and historically strained relations with other Asian countries could </span><span style="color:#000000;font-family:times new roman;font-size:10pt">result in military conflict. If the political climate between the United States and China does not improve or continues to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">deteriorate, if China enters into military conflict with Taiwan, the Philippines or another neighbor, or if other geopolitical </span><span style="color:#000000;font-family:times new roman;font-size:10pt">conflicts develop or get worse, economies, markets and individual securities may be severely affected both regionally </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and globally, and the value of the Fund's assets may go down.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Economies and financial markets throughout the world are increasingly interconnected. Economic, financial or political </span><span style="color:#000000;font-family:times new roman;font-size:10pt">events, trading and tariff arrangements, armed conflicts such as between Russia and Ukraine or in the Middle East, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">terrorism, natural disasters, infectious illness or public health issues, cybersecurity events, supply chain disruptions, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">sanctions against Russia, other nations or individuals or companies and possible countermeasures, and other circumstances </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in one country or region, could have profound impacts on other countries or regions and on global economies or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">markets. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the countries or regions directly affected, the value and liquidity of the Fund’s investments may be negatively affected. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may experience a substantial or complete loss on any security or derivative position.</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">High yield or </span><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">“</span><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">junk</span><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">”</span><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold"> bond risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Debt securities that are below investment grade, called </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">junk bonds,</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> are speculative, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">have a higher risk of default or are already in default, tend to be less liquid and are more difficult to value than higher </span><span style="color:#000000;font-family:times new roman;font-size:10pt">grade securities and may involve major risk of exposure to adverse conditions and negative sentiments. These securities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">have a higher risk of issuer default because, among other reasons, issuers of junk bonds often have more debt in relation </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to total capitalization than issuers of investment grade securities. Junk bonds tend to be volatile and more susceptible to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">adverse events and negative sentiments. These risks are more pronounced for securities that are already in default. The </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund may not receive interest payments on defaulted securities and may incur costs to protect its investment. In addition, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">defaulted securities involve the substantial risk that principal will not be repaid. Changes in economic conditions or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">developments regarding the individual issuer are more likely to cause price volatility and weaken the capacity of such </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities to make principal and interest payments than is the case for higher grade debt securities. The value of lower-quality </span><span style="color:#000000;font-family:times new roman;font-size:10pt">debt securities often changes in response to company, political, or economic developments and can decline significantly </span><span style="color:#000000;font-family:times new roman;font-size:10pt">over short as well as long periods of time or during periods of general or regional economic difficulty. Junk bonds may </span><span style="color:#000000;font-family:times new roman;font-size:10pt">also be less liquid than higher-rated securities, which means that the Fund may have difficulty selling them at times, and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">it may have to apply a greater degree of judgment in establishing a price for purposes of valuing Fund shares. Junk bonds </span><span style="color:#000000;font-family:times new roman;font-size:10pt">generally are issued by less creditworthy issuers. Issuers of junk bonds may have a larger amount of outstanding debt </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities relative to their assets than issuers of investment grade bonds. In the event of an issuer’s bankruptcy, claims of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">other creditors may have priority over the claims of junk bond holders, leaving few or no assets available to repay junk </span><span style="color:#000000;font-family:times new roman;font-size:10pt">bond holders. The Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new </span><span style="color:#000000;font-family:times new roman;font-size:10pt">terms with a defaulting issuer. Junk bonds frequently have redemption features that permit an issuer to repurchase the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">security from the Fund before it matures. If the issuer redeems junk bonds, the Fund may have to invest the proceeds in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">bonds with lower yields and may lose income.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Interest rate risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The market prices of the Fund’s fixed income securities may fluctuate significantly when interest </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rates change. When interest rates rise, the value of fixed income securities and therefore the value of your investment in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the Fund, generally falls. For example, if interest rates increase by 1%, the value of a Fund’s portfolio with a portfolio </span><span style="color:#000000;font-family:times new roman;font-size:10pt">duration of ten years would be expected to decrease by 10%, all other things being equal.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">A general rise in interest rates could adversely affect the price and liquidity of fixed income securities. A change in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">interest rates will not have the same impact on all fixed income securities. Generally, the longer the maturity or duration </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of a fixed income security, the greater the impact of a rise in interest rates on the security’s value. The maturity of a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">security may be significantly longer than its effective duration. A security’s maturity and other features may be more </span><span style="color:#000000;font-family:times new roman;font-size:10pt">relevant than its effective duration in determining the security’s sensitivity to other factors affecting the issuer or markets </span><span style="color:#000000;font-family:times new roman;font-size:10pt">generally, such as changes in credit quality or in the yield premium that the market may establish for certain types of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities (sometimes called </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">credit spread</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">). In general, the longer its maturity the more a security may be susceptible </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to these factors. When the credit spread for a fixed income security goes up or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">widens,</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> the value of the security will </span><span style="color:#000000;font-family:times new roman;font-size:10pt">generally go down. Calculations of duration and maturity may be based on estimates and may not reliably predict a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">security’s price sensitivity to changes in interest rates. Moreover, securities can change in value in response to other </span><span style="color:#000000;font-family:times new roman;font-size:10pt">factors, such as credit risk. In addition, different interest rate measures (such as short- and long-term interest rates and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">U.S. and foreign interest rates), or interest rates on different types of securities or securities of different issuers, may not </span><span style="color:#000000;font-family:times new roman;font-size:10pt">necessarily change in the same amount or in the same direction. When interest rates go down, the income received by </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the Fund, and the Fund’s yield, may decline. Also, when interest rates decline, investments made by the Fund may pay a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">lower interest rate, which would reduce the income received and distributed by the Fund.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Certain fixed income securities pay interest at variable or floating rates. Variable rate securities tend to reset at specified </span><span style="color:#000000;font-family:times new roman;font-size:10pt">intervals, while floating rate securities may reset whenever there is a change in a specified index rate. In most cases, these </span><span style="color:#000000;font-family:times new roman;font-size:10pt">reset provisions reduce the impact of changes in market interest rates on the value of the security. However, some </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities do not track the underlying index directly, but reset based on formulas that may produce a leveraging effect; </span><span style="color:#000000;font-family:times new roman;font-size:10pt">others may also provide for interest payments that vary inversely with market rates. The market prices of these securities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may fluctuate significantly when interest rates change. Yield generated by the Fund may decline due to a decrease in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">market interest rates.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The values of securities with floating interest rates generally are less sensitive to interest rate changes but may decline in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">value if their interest rates do not rise as much, or as quickly, as prevailing interest rates. In addition, rising interest rates </span><span style="color:#000000;font-family:times new roman;font-size:10pt">can also lead to increased default rates, as issuers of floating rate securities find themselves faced with higher payments. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Further, in the case of some instruments, if the underlying reference interest rate does not move by at least a prescribed </span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">increment, no adjustment will occur in the floating rate instrument’s interest rate. This means that, when prevailing </span><span style="color:#000000;font-family:times new roman;font-size:10pt">interest rates increase, a corresponding increase in the instrument’s interest rate may not result and the instrument may </span><span style="color:#000000;font-family:times new roman;font-size:10pt">decline in value. Similarly, certain floating rate obligations have an interest rate floor feature, which prevents the interest </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rate payable by the security from dropping below a specified level as compared to a reference interest rate. Such a floor </span><span style="color:#000000;font-family:times new roman;font-size:10pt">protects the Fund from losses resulting from a decrease in the reference interest rate below the specified level. However, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">if the reference interest rate is below the floor, there will be a lag between a rise in the reference interest rate and a rise in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the interest rate payable by the obligation, and the Fund may not benefit from increasing interest rates for a significant </span><span style="color:#000000;font-family:times new roman;font-size:10pt">amount of time. Unlike fixed rate securities, floating rate securities generally will not increase in value if interest rates </span><span style="color:#000000;font-family:times new roman;font-size:10pt">decline. Changes in interest rates also will affect the amount of interest income the Fund earns on its floating rate </span><span style="color:#000000;font-family:times new roman;font-size:10pt">investments. Unlike fixed rate securities, when prevailing interest rates decrease, the interest rate payable on floating </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rate investments will decrease.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The interest rates of some floating rate obligations adjust only periodically. Between the times that interest rates on </span><span style="color:#000000;font-family:times new roman;font-size:10pt">floating rate obligations adjust, the interest rate on those obligations may not correlate to prevailing rates, which will </span><span style="color:#000000;font-family:times new roman;font-size:10pt">affect the value of the loans and may cause the net asset values of the Fund’s shares to fluctuate.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Credit Risk</span><span style="color:#000000;font-family:times new roman;font-size:10pt">. If an obligor (such as the issuer itself or a party offering credit enhancement) for a security held by the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund fails to pay, otherwise defaults, is perceived to be less creditworthy, becomes insolvent or files for bankruptcy, a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">security’s credit rating is downgraded or the credit quality or value of an underlying asset declines, the value of your </span><span style="color:#000000;font-family:times new roman;font-size:10pt">investment could decline. The values of lower-quality debt securities tend to be particularly sensitive to these changes. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Changes in actual or perceived creditworthiness may occur quickly. The values of securities also may decline for a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">number of other reasons that relate directly to the issuer, such as management performance, financial leverage and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">reduced demand for the issuer’s goods and services, as well as the historical and prospective earnings of the issuer and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the value of its assets. If the Fund enters into financial contracts (such as certain derivatives, repurchase agreements, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">reverse repurchase agreements, and when-issued, delayed delivery and forward commitment transactions), the Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">will be subject to the credit risk presented by the counterparty. In addition, the Fund may incur expenses and suffer </span><span style="color:#000000;font-family:times new roman;font-size:10pt">delays in an effort to protect the Fund’s interests or to enforce its rights. The Fund evaluates the credit quality of issuers </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and counterparties prior to investing in securities. Credit risk is broadly gauged by the credit ratings of the securities in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">which the Fund invests. However, ratings are only the opinions of the companies issuing them and are not guarantees </span><span style="color:#000000;font-family:times new roman;font-size:10pt">as to quality. Securities rated in the lowest category of investment grade (Baa/BBB) may possess certain </span><span style="color:#000000;font-family:times new roman;font-size:10pt">speculative characteristics.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Prepayment or call risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Many fixed income securities give the issuer the option to prepay or call the security prior to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">its maturity date. Issuers often exercise this right when interest rates fall. Accordingly, if the Fund holds a fixed income </span><span style="color:#000000;font-family:times new roman;font-size:10pt">security that can be prepaid or called prior to its maturity date, it will not benefit fully from the increase in value that </span><span style="color:#000000;font-family:times new roman;font-size:10pt">other fixed income securities generally experience when interest rates fall. Upon prepayment of the security, the Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">also would be forced to reinvest the proceeds at then current yields, which would be lower than the yield of the security </span><span style="color:#000000;font-family:times new roman;font-size:10pt">that was prepaid or called. In addition, if the Fund purchases a fixed income security at a premium (at a price that exceeds </span><span style="color:#000000;font-family:times new roman;font-size:10pt">its stated par or principal value), the Fund may lose the amount of the premium paid in the event of prepayment.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risk of illiquid investments.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Certain securities or derivatives held by the Fund may be or become impossible or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">difficult to purchase or dispose of at a fair price at the times when the Fund believes it is desirable to do so. The market </span><span style="color:#000000;font-family:times new roman;font-size:10pt">price of illiquid securities generally is more volatile than that of more liquid securities, which may adversely affect the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">price that the Fund pays for or recovers upon the sale of illiquid securities. Illiquid securities are also more difficult to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">value and the Adviser’s judgment may play a greater role in the valuation process. Investment of the Fund’s assets in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">illiquid securities may restrict the Fund’s ability to take advantage of market opportunities. The risks associated with </span><span style="color:#000000;font-family:times new roman;font-size:10pt">illiquid securities may be particularly acute in situations in which the Fund’s operations require cash and could result in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the Fund borrowing to meet its short-term needs or incurring losses on the sale of illiquid securities. Markets may become </span><span style="color:#000000;font-family:times new roman;font-size:10pt">illiquid when, for instance, there are few, if any, interested buyers and sellers or when dealers are unwilling to make a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">market for certain securities or when dealer market-making capacity is otherwise reduced. During times of market </span><span style="color:#000000;font-family:times new roman;font-size:10pt">turmoil, there have been, and may be, no buyers for securities in entire asset classes, including U.S. Treasury securities.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risks of investing in loans</span><span style="color:#000000;font-family:times new roman;font-size:10pt">. Floating rate loans and similar investments may be illiquid or less liquid than other </span><span style="color:#000000;font-family:times new roman;font-size:10pt">investments and difficult to value. Market quotations for these securities may be volatile and/or subject to large spreads </span><span style="color:#000000;font-family:times new roman;font-size:10pt">between bid and ask prices. No active trading market may exist for many floating rate loans, and many loans are subject </span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">to restrictions on resale. Any secondary market may be subject to irregular trading activity and extended trade settlement </span><span style="color:#000000;font-family:times new roman;font-size:10pt">periods. An economic downturn generally leads to a higher non-payment rate, and a loan may lose significant value </span><span style="color:#000000;font-family:times new roman;font-size:10pt">before a default occurs.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">When the Fund invests in a loan participation, the Fund does not have a direct claim against the borrower and must </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rely upon an intermediate participant to enforce any rights against the borrower. As a result, the Fund is subject to the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">risk that an intermediate participant between the Fund and the borrower will fail to meet its obligations to the Fund, in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">addition to the risk that the issuer of the loan will default on its obligations. Also the Fund may be regarded as the creditor </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of the agent lender (rather than the borrower), subjecting the Fund to the creditworthiness of the lender as well as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the borrower.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">There is less readily available, reliable information about most senior loans than is the case for many other types of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities. Although the features of senior loans, including being secured by collateral and having priority over other </span><span style="color:#000000;font-family:times new roman;font-size:10pt">obligations of the issuer, reduce some of the risks of investment in below investment grade securities, the loans are </span><span style="color:#000000;font-family:times new roman;font-size:10pt">subject to significant risks. Victory Capital believes, based on its experience, that senior floating rate loans generally </span><span style="color:#000000;font-family:times new roman;font-size:10pt">have more favorable loss recovery rates than most other types of below investment grade obligations. However, there </span><span style="color:#000000;font-family:times new roman;font-size:10pt">can be no assurance that the Fund's actual loss recovery experience will be consistent with Victory Capital's prior experience </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or that the senior loans in which the Fund invests will achieve any specific loss recovery rate.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Loans may take longer than seven days to settle, potentially leading to the sale proceeds of loans not being available to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">meet repurchase requests for a substantial period of time after the sale of the loans. To the extent that sale proceeds of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">loans are not available, the Fund may sell securities that have shorter settlement periods or may access other sources of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">liquidity to meet repurchase requests. During periods of distressed market conditions, the Fund may seek to obtain </span><span style="color:#000000;font-family:times new roman;font-size:10pt">expedited trade settlement, which will generally incur additional costs (although expedited trade settlement will not </span><span style="color:#000000;font-family:times new roman;font-size:10pt">always be available).</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The types of covenants included in loan agreements generally vary depending on market conditions, the creditworthiness </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of the issuer, the nature of the collateral securing the loan, and other factors. Loans may have restrictive covenants that </span><span style="color:#000000;font-family:times new roman;font-size:10pt">limit the ability of a borrower to further encumber its assets. If a borrower fails to comply with the covenants included in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">a loan agreement, the borrower may default in payment of the loan.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Some of the loans in which the Fund may invest may be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">covenant lite.</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Covenant lite loans contain fewer maintenance </span><span style="color:#000000;font-family:times new roman;font-size:10pt">covenants, or no maintenance covenants at all, than traditional loans and may not include terms that allow the lender to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">monitor the financial performance of the borrower and declare a default if certain criteria are breached. This may expose </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the Fund to greater credit risk associated with the borrower and reduce the Fund's ability to restructure a problematic </span><span style="color:#000000;font-family:times new roman;font-size:10pt">loan and mitigate potential loss. As a result the Fund's exposure to losses on such investments may be increased, especially </span><span style="color:#000000;font-family:times new roman;font-size:10pt">during a downturn in the credit cycle.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Second lien loans generally are subject to similar risks as those associated with senior loans. Because second lien loans </span><span style="color:#000000;font-family:times new roman;font-size:10pt">are subordinated or unsecured and thus lower in priority on payment to senior loans, they are subject to the additional </span><span style="color:#000000;font-family:times new roman;font-size:10pt">risk that the cash flow of the borrower and property securing the loan or debt, if any, may be insufficient to meet scheduled </span><span style="color:#000000;font-family:times new roman;font-size:10pt">payments after giving effect to the senior secured obligations of the borrower. This risk is generally higher for subordinated </span><span style="color:#000000;font-family:times new roman;font-size:10pt">unsecured loans or debt, which are not backed by a security interest in any specific collateral. Second lien loans generally </span><span style="color:#000000;font-family:times new roman;font-size:10pt">have greater price volatility than senior loans and may be less liquid.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Certain floating rate loans and other corporate debt securities involve refinancings, recapitalizations, mergers and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">acquisitions, and other financings for general corporate purposes. Other loans are incurred in restructuring or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">work-out</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt;line-height:12pt"> </span><span style="color:#000000;font-family:times new roman;font-size:10pt">scenarios, including debtor-in-possession facilities in bankruptcy. Loans in restructuring or similar scenarios may be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">especially vulnerable to the inherent uncertainties in restructuring processes. In addition, the highly leveraged capital </span><span style="color:#000000;font-family:times new roman;font-size:10pt">structure of the borrowers in any of these transactions, whether acquisition financing or restructuring, may make the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">loans especially vulnerable to adverse economic or market conditions and the risk of default.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Loans to entities located outside of the U.S. may have substantially different lender protections and covenants as compared </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to loans to U.S. entities and may involve greater risks. The Fund may have difficulties and incur expense enforcing its </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rights with respect to non-U.S. loans and such loans could be subject to bankruptcy laws that are materially different </span><span style="color:#000000;font-family:times new roman;font-size:10pt">than in the U.S.</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Loans may not be considered </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities,</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> and purchasers, such as the Fund, therefore may not be entitled to rely on the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">anti-fraud protections afforded by federal securities laws.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Collateral risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The value of collateral, if any, securing a floating rate loan can decline, and may be insufficient to meet </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the issuer’s obligations or may be difficult to liquidate. In addition, the Fund’s access to collateral may be limited by </span><span style="color:#000000;font-family:times new roman;font-size:10pt">bankruptcy or other insolvency laws. These laws may be less developed and more cumbersome with respect to the Fund’s </span><span style="color:#000000;font-family:times new roman;font-size:10pt">non-U.S. floating rate investments. Floating rate loans may not be fully collateralized or may be uncollateralized. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Uncollateralized loans involve a greater risk of loss. In the event of a default, the Fund may have difficulty collecting on </span><span style="color:#000000;font-family:times new roman;font-size:10pt">any collateral and would not have the ability to collect on any collateral for an uncollateralized loan. In addition, the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">lender’s security interest or their enforcement of their security interest under the loan agreement may be found by a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">court to be invalid or the collateral may be used to pay other outstanding obligations of the borrower. Further, the Fund’s </span><span style="color:#000000;font-family:times new roman;font-size:10pt">access to collateral, if any, may be limited by bankruptcy law. To the extent that a loan is collateralized by stock of the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">borrower or its affiliates, this stock may lose all or substantially all of its value in the event of bankruptcy of the borrower. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Loans that are obligations of a holding company are subject to the risk that, in a bankruptcy of a subsidiary operating </span><span style="color:#000000;font-family:times new roman;font-size:10pt">company, creditors of the subsidiary may recover from the subsidiary’s assets before the lenders to the holding company </span><span style="color:#000000;font-family:times new roman;font-size:10pt">would receive any amount on account of the holding company’s interest in the subsidiary.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risk of disadvantaged access to confidential information. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">The issuer of a floating rate loan may offer to provide </span><span style="color:#000000;font-family:times new roman;font-size:10pt">material, non-public information about the issuer to investors, such as the Fund. Normally, Victory Capital will seek to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">avoid receiving this type of information about the issuer of a loan either held by, or considered for investment by, the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund. Victory Capital’s decision not to receive the information may place it at a disadvantage, relative to other loan </span><span style="color:#000000;font-family:times new roman;font-size:10pt">investors, in assessing a loan or the loan’s issuer. For example, in instances where holders of floating rate loans are asked </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to grant amendments, waivers or consents, Victory Capital’s inability to assess the impact of these actions may adversely </span><span style="color:#000000;font-family:times new roman;font-size:10pt">affect the value of the portfolio. For this and other reasons, it is possible that Victory Capital’s decision not to receive </span><span style="color:#000000;font-family:times new roman;font-size:10pt">material, non-public information under normal circumstances could adversely affect the Fund’s investment performance.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risks of subordinated securities.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> A holder of securities that are subordinated or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">junior</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> to more senior securities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of an issuer is entitled to payment after holders of more senior securities of the issuer. Subordinated securities are more </span><span style="color:#000000;font-family:times new roman;font-size:10pt">likely to suffer a credit loss than non-subordinated securities of the same issuer, any loss incurred by the subordinated </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities is likely to be proportionately greater, and any recovery of interest or principal may take more time. If there is </span><span style="color:#000000;font-family:times new roman;font-size:10pt">a default, bankruptcy or liquidation of the issuer, most subordinated securities are paid only if sufficient assets remain </span><span style="color:#000000;font-family:times new roman;font-size:10pt">after payment of the issuer’s non-subordinated securities. As a result, even a perceived decline in creditworthiness of the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">issuer is likely to have a greater impact on subordinated securities than more senior securities.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">U.S. Treasury obligations risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The market value of direct obligations of the U.S. Treasury may vary due to changes </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in interest rates. In addition, changes to the financial condition or credit rating of the U.S. government may cause the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">value of the Fund’s investments in obligations issued by the U.S. Treasury to decline.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">U.S. government agency obligations risk. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund invests in obligations issued by agencies and instrumentalities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of the U.S. government. Government-sponsored entities such as FNMA, FHLMC and the FHLBs, although chartered or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">sponsored by Congress, are not funded by congressional appropriations and the debt and mortgage-backed securities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">issued by them are neither guaranteed nor issued by the U.S. government. The maximum potential liability of the issuers </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of some U.S. government obligations may greatly exceed their current resources, including any legal right to support </span><span style="color:#000000;font-family:times new roman;font-size:10pt">from the U.S. government. Such debt and mortgage-backed securities are subject to the risk of default on the payment </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of interest and/or principal, similar to debt of private issuers. Although the U.S. government has provided financial </span><span style="color:#000000;font-family:times new roman;font-size:10pt">support to FNMA and FHLMC in the past, there can be no assurance that it will support these or other government-sponsored </span><span style="color:#000000;font-family:times new roman;font-size:10pt">entities in the future.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risks of non-U.S. investments.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Investing in non-U.S. issuers, or in U.S. issuers that have significant exposure to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">foreign markets, may involve unique risks compared to investing in securities of U.S. issuers. These risks are more </span><span style="color:#000000;font-family:times new roman;font-size:10pt">pronounced for issuers in emerging markets or to the extent that the Fund invests significantly in one region or country. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">These risks may include:</span></div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Less information about non-U.S. issuers or markets may be available due to less rigorous disclosure or accounting </span><span style="color:#000000;font-family:times new roman;font-size:10pt">standards and auditing and financial recordkeeping requirements, or regulatory practices</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Many non-U.S. markets are smaller, less liquid and more volatile. In a changing market, the Adviser may not be able </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to sell the Fund's securities at times, in amounts and at prices it considers reasonable</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Adverse effect of currency exchange rates or controls on the value of the Fund's investments, or its ability to convert </span><span style="color:#000000;font-family:times new roman;font-size:10pt">non-U.S. currencies to U.S. dollars</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.0pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The economies of non-U.S. countries may grow at slower rates than expected or may experience a downturn or recession</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Economic, political, regulatory and social developments such as unfavorable or unsuccessful government actions, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">reduction of government or central bank support, terrorism, armed conflicts and other geopolitical events, and the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">impact of tariffs and other restrictions on trade or economic sanctions, nationalization or expropriation of assets, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">arbitrary application of laws and regulations, or lack of rule of law, may adversely affect the securities markets</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">There may be significant obstacles to obtaining information necessary for investigations into or litigation against </span><span style="color:#000000;font-family:times new roman;font-size:10pt">issuers located in or operating in certain foreign markets, particularly emerging market countries, and shareholders </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may have limited legal remedies. It may be difficult for the Fund to pursue claims or enforce judgments against a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">foreign bank, depository or issuer of a security, or any of their agents, in the courts of a foreign country</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The value of the Fund’s foreign investments may also be affected by foreign tax laws, special U.S. tax considerations </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and restrictions on receiving the investment proceeds from a foreign country. Dividends and interest received by the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund and capital gains recognized by the Fund may give rise to withholding and other taxes imposed by foreign </span><span style="color:#000000;font-family:times new roman;font-size:10pt">countries and may decrease the Fund's return</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.0pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Some markets in which the Fund may invest are located in parts of the world that have historically been prone to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">natural disasters that could result in a significant adverse impact on the economies of those countries and investments </span><span style="color:#000000;font-family:times new roman;font-size:10pt">made in those countries</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">It is often more expensive for the Fund to buy, sell and hold securities in certain foreign markets than in the U.S.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">A governmental entity may delay, or refuse or be unable to pay, interest or principal on its sovereign debt due to cash </span><span style="color:#000000;font-family:times new roman;font-size:10pt">flow problems, insufficient foreign currency reserves, political considerations, the relative size of the governmental </span><span style="color:#000000;font-family:times new roman;font-size:10pt">entity’s debt position in relation to the economy or the failure to put in place economic reforms</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.0pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Investing in depositary receipts is subject to many of the same risks as investing directly in non-U.S. issuers. Depositary </span><span style="color:#000000;font-family:times new roman;font-size:10pt">receipts may involve higher expenses and may trade at a discount (or premium) to the underlying security. In addition, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">depositary receipts may not pass through voting and other shareholder rights, and may be less liquid than the underlying </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities listed on an exchange</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.0pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">A number of countries in the European Union (EU) have experienced, and may continue to experience, severe economic </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and financial difficulties. Additional EU member countries may also fall subject to such difficulties. A number of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">countries in Europe have suffered terror attacks, and additional attacks may occur in the future. In addition, the range </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and potential implications of possible political, regulatory, economic, and market outcomes of Brexit cannot be fully </span><span style="color:#000000;font-family:times new roman;font-size:10pt">known but could be significant, potentially resulting in increased volatility, illiquidity and potentially lower economic </span><span style="color:#000000;font-family:times new roman;font-size:10pt">growth in the affected markets, which will adversely affect the Fund’s investments, particularly in euro-denominated </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities and derivative contracts, securities of issuers located in the EU or with significant exposure to EU issuers </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or countries</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.0pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">China and other developing market countries are potentially subject to heightened degrees of economic, political and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">social instability. Markets in China and other Asian countries are relatively new and undeveloped. China’s economic </span><span style="color:#000000;font-family:times new roman;font-size:10pt">health is largely dependent upon exports, and may be dependent upon the economies of other Asian countries. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Investments in Chinese and other Asian issuers could be adversely affected by changes in government policies, or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">trade or political disputes with major trading partners, including the U.S. China’s growing trade surplus with the U.S. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">has given rise to trade disputes and the imposition of tariffs. The U.S. has also restricted the sale of certain goods to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">China. In addition, the U.S. government has imposed restrictions on U.S. investor participation in certain Chinese </span><span style="color:#000000;font-family:times new roman;font-size:10pt">investments. These matters could adversely affect China’s economy. China's central government exercises significant </span><span style="color:#000000;font-family:times new roman;font-size:10pt">control over China's economy and may intervene in the financial markets, such as by imposing trading restrictions, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and investments in Chinese issuers could be adversely affected by changes in government policies. The Chinese economy </span><span style="color:#000000;font-family:times new roman;font-size:10pt">could be adversely affected by supply chain disruptions. An economic slowdown in China could adversely affect </span><span style="color:#000000;font-family:times new roman;font-size:10pt">economies of other emerging market countries that trade with China, as well as companies operating in those countries. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Economies of Asian countries and Asian issuers could be adversely affected by regional security threats. In addition, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">China's long-running conflict over Taiwan's sovereignty, border disputes with many neighbors and historically strained </span><span style="color:#000000;font-family:times new roman;font-size:10pt">relations with other Asian countries could result in military conflict that could adversely impact the economies of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">China and other Asian countries, disrupt supply chains, and severely affect global economies and markets</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Public Company Accounting Oversight Board, which regulates auditors of U.S. public companies, may, from </span><span style="color:#000000;font-family:times new roman;font-size:10pt">time to time, be unable to inspect audit work papers in certain foreign or emerging market countries. Investors in </span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="line-height:12.0pt;margin-left:9pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">foreign countries often have limited rights and few practical remedies to pursue shareholder claims, including class </span><span style="color:#000000;font-family:times new roman;font-size:10pt">actions or fraud claims, and the ability of the Securities and Exchange Commission, the U.S. Department of Justice </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and other authorities to bring and enforce actions against foreign issuers or foreign persons is limited</span></div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">If one or more stockholders of a supranational entity such as the World Bank fail to make necessary additional capital </span><span style="color:#000000;font-family:times new roman;font-size:10pt">contributions, the entity may be unable to pay interest or repay principal on its debt securities</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Sanctions or other government actions against certain countries could negatively impact the Fund’s investments in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities that have exposure to those countries</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.0pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">In response to military action in Ukraine, commencing in 2022, the United States and other countries issued broad-ranging </span><span style="color:#000000;font-family:times new roman;font-size:10pt">economic sanctions against Russia and Belarus and certain companies and individuals. Russia has taken retaliatory </span><span style="color:#000000;font-family:times new roman;font-size:10pt">actions, including preventing repatriation of capital by U.S. and other investors. Since then, Russian securities lost all, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or nearly all, their market value, and many other issuers, securities and markets have been adversely affected. The </span><span style="color:#000000;font-family:times new roman;font-size:10pt">ongoing conflict has resulted in significant market disruptions, including in certain markets, industries and sectors, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">such as the oil and natural gas markets, and negatively affected global supply chains, food supplies, inflation and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">global growth. The U.S. and other countries may impose sanctions on other countries, companies and individuals in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">light of Russia’s military invasion. The extent and duration of the military action or future escalation of such hostilities, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the extent and impact of existing and future sanctions, market disruptions and volatility, and the result of any diplomatic </span><span style="color:#000000;font-family:times new roman;font-size:10pt">negotiations cannot be predicted. These and any related events could have a significant impact on the value and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">liquidity of certain Fund investments, on Fund performance and the value of an investment in the Fund</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Circumstances that impact one country could have profound impacts on other countries and on global economies </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or markets</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Additional risks of investing in emerging markets include:</span></div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.0pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The extent of economic development, political stability, market depth, infrastructure, capitalization and regulatory </span><span style="color:#000000;font-family:times new roman;font-size:10pt">oversight can be less than in more developed markets. Emerging market economies tend to be less diversified than </span><span style="color:#000000;font-family:times new roman;font-size:10pt">those of more developed countries. They typically have fewer medical and economic resources than more developed </span><span style="color:#000000;font-family:times new roman;font-size:10pt">countries and thus they may be less able to control or mitigate the effects of a pandemic</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.0pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Emerging market countries may experience rising interest rates, or, more significantly, rapid inflation or hyperinflation</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.0pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund could experience a loss from settlement and custody practices in some emerging markets. Less developed </span><span style="color:#000000;font-family:times new roman;font-size:10pt">markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by </span><span style="color:#000000;font-family:times new roman;font-size:10pt">local banks, agents and depositories. Settlement of trades in these markets can take longer than in other markets and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the Fund may not receive its proceeds from the sale of certain securities for an extended period (possibly several weeks </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or even longer)</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The possibility that a counterparty may not complete a currency or securities transaction</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Low trading volumes may result in a lack of liquidity and in extreme price volatility</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risks of investment in other funds.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Investing in other investment companies, including exchange-traded funds </span><span style="color:#000000;font-family:times new roman;font-size:10pt">(ETFs) and closed-end funds, subjects the Fund to the risks of investing in the underlying securities or assets held by </span><span style="color:#000000;font-family:times new roman;font-size:10pt">those funds. When investing in another fund, the Fund will bear a pro rata portion of the underlying fund’s expenses, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">including management fees, in addition to its own expenses. ETFs and closed-end funds are bought and sold based on </span><span style="color:#000000;font-family:times new roman;font-size:10pt">market prices and can trade at a premium or a discount to the ETF’s or closed-end fund’s net asset value. Such funds </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may trade at a discount for an extended period and may not ever realize their net asset value.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Derivatives risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Using futures, options and other derivatives exposes the Fund to special risks and costs and may </span><span style="color:#000000;font-family:times new roman;font-size:10pt">result in losses to the Fund, even when used for hedging purposes. Using derivatives can increase losses and reduce </span><span style="color:#000000;font-family:times new roman;font-size:10pt">opportunities for gain when market prices, interest rates or currencies, or the derivative instruments themselves, behave </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in a way not anticipated by the Fund, especially in abnormal market conditions. Using derivatives can have a leveraging </span><span style="color:#000000;font-family:times new roman;font-size:10pt">effect (which may increase investment losses) and increase the Fund’s volatility, which is the degree to which the Fund’s </span><span style="color:#000000;font-family:times new roman;font-size:10pt">share price may fluctuate within a short time period. Certain derivatives have the potential for unlimited loss, regardless </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of the size of the Fund’s initial investment. Derivatives are generally subject to the risks applicable to the assets, rates, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">indices or other indicators underlying the derivative. If changes in a derivative’s value do not correspond to changes in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the value of the Fund’s other investments or do not correlate well with the underlying assets, rate or index, the Fund may </span><span style="color:#000000;font-family:times new roman;font-size:10pt">not fully benefit from, or could lose money on, or could experience unusually high expenses as a result of, the derivative </span><span style="color:#000000;font-family:times new roman;font-size:10pt">position. The other parties to certain derivative transactions present the same types of credit risk as issuers of fixed </span><span style="color:#000000;font-family:times new roman;font-size:10pt">income securities. Derivatives also tend to involve greater liquidity risk and they may be difficult to value. The Fund </span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">may be unable to terminate or sell its derivative positions. In fact, many over-the-counter derivatives will not have </span><span style="color:#000000;font-family:times new roman;font-size:10pt">liquidity beyond the counterparty to the instrument. The Fund also may have to sell assets at inopportune times to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">satisfy its obligations. Use of derivatives or similar instruments may have different tax consequences for the Fund than </span><span style="color:#000000;font-family:times new roman;font-size:10pt">an investment in the underlying security, and those differences may affect the amount, timing and character of income </span><span style="color:#000000;font-family:times new roman;font-size:10pt">distributed to shareholders. The Fund’s use of derivatives may also increase the amount of taxes payable by shareholders. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Risks associated with the use of derivatives are magnified to the extent that an increased portion of the Fund’s assets are </span><span style="color:#000000;font-family:times new roman;font-size:10pt">committed to derivatives in general or are invested in just one or a few types of derivatives.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The U.S. government and foreign governments have adopted and implemented or are in the process of adopting and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">implementing regulations governing derivative markets, including mandatory clearing of certain derivatives, margin </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and reporting requirements. The ultimate impact of the regulations remains unclear. Additional regulation of derivatives </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may make derivatives more costly, may limit their availability or utility or otherwise adversely affect their performance, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or may disrupt markets. The Fund may be exposed to additional risks as a result of the additional regulations. The extent </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and impact of the regulations are not yet fully known and may not be for some time. In addition, the SEC has proposed </span><span style="color:#000000;font-family:times new roman;font-size:10pt">a new rule that would change the regulation of the use of derivatives by registered investment companies, such as the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund. If the proposed rule takes effect, it could limit the ability of the Fund to invest in derivatives.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">There are several risks associated with the use of futures contracts and futures options. A purchase or sale of a futures </span><span style="color:#000000;font-family:times new roman;font-size:10pt">contract may result in losses in excess of the amount invested in the futures contract. While the Fund may enter into </span><span style="color:#000000;font-family:times new roman;font-size:10pt">futures contracts and options on futures contracts for hedging purposes, the use of futures contracts and options on </span><span style="color:#000000;font-family:times new roman;font-size:10pt">futures contracts might result in a poorer overall performance for the Fund than if it had not engaged in any such </span><span style="color:#000000;font-family:times new roman;font-size:10pt">transactions. There may be an imperfect correlation between the Fund’s portfolio holdings and futures contracts or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">options on futures contracts entered into by the Fund, which may prevent the Fund from achieving the intended hedge </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or expose the Fund to risk of loss. The degree of imperfection of correlation depends on circumstances such as variations </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in market demand for futures, futures options and the related securities, including technical influences in futures and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">futures options trading, and differences between the securities markets and the securities underlying the standard contracts </span><span style="color:#000000;font-family:times new roman;font-size:10pt">available for trading. Further, the Fund’s use of futures contracts and options on futures contracts to reduce risk involves </span><span style="color:#000000;font-family:times new roman;font-size:10pt">costs and will be subject to the Adviser’s ability to predict correctly changes in interest rate relationships or other factors.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Under an interest rate swap agreement, the payment obligations, if any, of the Fund and the counterparty are netted </span><span style="color:#000000;font-family:times new roman;font-size:10pt">against each other, resulting in a net payment due either from the Fund or the counterparty. Depending on whether the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund would be entitled to receive payments from the counterparty on a swap or cap, which in turn would depend on the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">general state of short-term interest rates at that point in time, a default by a counterparty could negatively impact the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund’s overall performance. In addition, at the time an interest rate swap or cap transaction reaches its scheduled </span><span style="color:#000000;font-family:times new roman;font-size:10pt">termination date, there is a risk that the Fund would not be able to obtain a replacement transaction or that the terms of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the replacement would not be as favorable as on the expiring transaction. If this occurs, it could have a negative impact </span><span style="color:#000000;font-family:times new roman;font-size:10pt">on the Fund’s performance.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The use of interest rate swaps and caps is a highly specialized activity that involves investment techniques and risks </span><span style="color:#000000;font-family:times new roman;font-size:10pt">different from those associated with ordinary portfolio security transactions. Depending on the state of interest rates in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">general, the Fund’s use of interest rate swaps or caps could enhance or harm the Fund’s overall performance. To the extent there </span><span style="color:#000000;font-family:times new roman;font-size:10pt">is a decline in interest rates, the value of the interest rate swap or cap could decline, and could result in a decline in the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund’s net asset value. In addition, if short-term interest rates are lower than the Fund’s fixed rate of payment on the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">interest rate swap, the swap will reduce the Fund’s net earnings. If, on the other hand, short-term interest rates are </span><span style="color:#000000;font-family:times new roman;font-size:10pt">higher than the fixed rate of payment on the interest rate swap, the swap will enhance the Fund’s net earnings. Buying </span><span style="color:#000000;font-family:times new roman;font-size:10pt">interest rate caps could enhance the Fund’s performance by providing a maximum leverage expense. Buying interest </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rate caps could also decrease the Fund’s net earnings in the event that the premium paid by the Fund to the counterparty </span><span style="color:#000000;font-family:times new roman;font-size:10pt">exceeds the additional amount the Fund would have been required to pay had it not entered into the cap agreement.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Interest rate swaps and caps do not involve the delivery of securities or other underlying assets or principal. Accordingly, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the risk of loss with respect to interest rate swaps is limited to the net amount of interest payments that the Fund is </span><span style="color:#000000;font-family:times new roman;font-size:10pt">contractually obligated to make and any termination payments potentially owed by the Fund. If the counterparty defaults, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the Fund would not be able to use the anticipated net receipts under the swap or cap to offset interest payments on </span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">borrowings. Depending on whether the Fund would be entitled to receive payments from the counterparty on the swap </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or cap, which in turn would depend on the general state of short-term interest rates at that point in time, such a default </span><span style="color:#000000;font-family:times new roman;font-size:10pt">could negatively impact the Fund’s performance.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund will be required to maintain its positions with a clearing organization through one or more clearing brokers. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">The clearing organization will require the Fund to post margin and the broker may require the Fund to post additional </span><span style="color:#000000;font-family:times new roman;font-size:10pt">margin to secure the Fund’s obligations. The amount of margin required may change from time to time. In addition, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">cleared transactions may be more expensive to maintain than over-the-counter transactions and may require the Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to deposit larger amounts of margin. The Fund may not be able to recover margin amounts if the broker has financial </span><span style="color:#000000;font-family:times new roman;font-size:10pt">difficulties. Also, the broker may require the Fund to terminate a derivatives position under certain circumstances. This </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may cause the Fund to lose money. The Fund’s ability to use certain derivative instruments currently is limited by </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Commodity Futures Trading Commission rules.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Credit default swap risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Credit default swap contracts, a type of derivative instrument, involve heightened risks and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may result in losses to the Fund. Credit default swaps may in some cases be illiquid and difficult to value, and they </span><span style="color:#000000;font-family:times new roman;font-size:10pt">increase credit risk since the Fund has exposure to both the issuer of the referenced obligation and the counterparty to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the credit default swap. If the Fund buys a credit default swap, it will be subject to the risk that the credit default swap </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may expire worthless, as the credit default swap would only generate income in the event of a default on the underlying </span><span style="color:#000000;font-family:times new roman;font-size:10pt">debt security or other specified event. As a buyer, the Fund would also be subject to credit risk relating to the seller’s </span><span style="color:#000000;font-family:times new roman;font-size:10pt">payment of its obligations in the event of a default (or similar event). If the Fund sells a credit default swap, it will be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">exposed to the credit risk of the issuer of the obligation to which the credit default swap relates. As a seller, the Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">would also be subject to leverage risk, because it would be liable for the full notional amount of the swap in the event of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">default (or similar event). Swaps may be difficult to unwind or terminate. Certain index-based credit default swaps are </span><span style="color:#000000;font-family:times new roman;font-size:10pt">structured in tranches, whereby junior tranches assume greater default risk than senior tranches. The absence of a central </span><span style="color:#000000;font-family:times new roman;font-size:10pt">exchange or market for swap transactions may lead, in some instances, to difficulties in trading and valuation, especially </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in the event of market disruptions. Relatively recent legislation requires certain swaps to be executed through a centralized </span><span style="color:#000000;font-family:times new roman;font-size:10pt">exchange or regulated facility and be cleared through a regulated clearinghouse. Although this clearing mechanism is </span><span style="color:#000000;font-family:times new roman;font-size:10pt">generally expected to reduce counterparty credit risk, it may disrupt or limit the swap market and may not result in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">swaps being easier to trade or value. As swaps become more standardized, the Fund may not be able to enter into swaps </span><span style="color:#000000;font-family:times new roman;font-size:10pt">that meet its investment needs. The Fund also may not be able to find a clearinghouse willing to accept the swaps for </span><span style="color:#000000;font-family:times new roman;font-size:10pt">clearing. In a cleared swap, a central clearing organization will be the counterparty to the transaction. The Fund will </span><span style="color:#000000;font-family:times new roman;font-size:10pt">assume the risk that the clearinghouse may be unable to perform its obligations.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Forward foreign currency transactions risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> To the extent that the Fund enters into forward foreign currency </span><span style="color:#000000;font-family:times new roman;font-size:10pt">transactions, it may not fully benefit from or may lose money on the transactions if changes in currency rates do not </span><span style="color:#000000;font-family:times new roman;font-size:10pt">occur as anticipated or do not correspond accurately to changes in the value of the Fund's holdings, or if the counterparty </span><span style="color:#000000;font-family:times new roman;font-size:10pt">defaults. Such transactions may also prevent the Fund from realizing profits on favorable movements in exchange rates. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Risk of counterparty default is greater for counterparties located in emerging markets. The Fund's ability to use forward </span><span style="color:#000000;font-family:times new roman;font-size:10pt">foreign currency transactions successfully depends on a number of factors, including the forward foreign currency </span><span style="color:#000000;font-family:times new roman;font-size:10pt">transactions being available at prices that are not too costly, the availability of liquid markets, and Victory Capital’s </span><span style="color:#000000;font-family:times new roman;font-size:10pt">judgment regarding the direction of changes in currency exchange rates.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risks of investing in inverse floating rate obligations.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The interest rate on inverse floating rate obligations will </span><span style="color:#000000;font-family:times new roman;font-size:10pt">generally decrease as short-term interest rates increase, and increase as short-term rates decrease. Due to their leveraged </span><span style="color:#000000;font-family:times new roman;font-size:10pt">structure, the sensitivity of the market value of an inverse floating rate obligation to changes in interest rates is generally </span><span style="color:#000000;font-family:times new roman;font-size:10pt">greater than a comparable long-term bond issued by the same issuer and with similar credit quality, redemption and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">maturity provisions. Inverse floating rate obligations may be volatile and involve leverage risk.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Leveraging risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The value of your investment may be more volatile and other risks tend to be compounded if the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund borrows or uses derivatives or other investments that have embedded leverage. Leverage generally magnifies the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">effect of any increase or decrease in the value of the Fund's underlying assets and creates a risk of loss of value on a larger </span><span style="color:#000000;font-family:times new roman;font-size:10pt">pool of assets than the Fund would otherwise have, potentially resulting in the loss of all assets. Engaging in such </span><span style="color:#000000;font-family:times new roman;font-size:10pt">transactions may cause the Fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations. </span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">New derivatives regulations require the Fund, to the extent it uses derivatives to a material extent, to, among other </span><span style="color:#000000;font-family:times new roman;font-size:10pt">things, comply with certain overall limits on leverage. These regulations may limit the ability of the Fund to pursue its </span><span style="color:#000000;font-family:times new roman;font-size:10pt">investment strategies and may not be effective to mitigate the Fund's risk of loss from derivatives.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Mortgage dollar roll transactions risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The benefits to the Fund from mortgage dollar roll transactions depend </span><span style="color:#000000;font-family:times new roman;font-size:10pt">upon the Adviser’s ability to forecast mortgage prepayment patterns on different mortgage pools. The Fund may lose </span><span style="color:#000000;font-family:times new roman;font-size:10pt">money if, during the period between the time it agrees to the forward purchase of the mortgage securities and the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">settlement date, these securities decline in value due to market conditions or prepayments on the underlying mortgages.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risks of zero coupon bonds, payment in kind, deferred and contingent payment securities.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Zero coupon </span><span style="color:#000000;font-family:times new roman;font-size:10pt">bonds (which do not pay interest until maturity) and payment in kind securities (which pay interest in the form of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">additional securities) may be more speculative and may fluctuate more in value than securities which pay income </span><span style="color:#000000;font-family:times new roman;font-size:10pt">periodically and in cash. Payment in kind securities are usually less volatile than zero coupon bonds, but more volatile </span><span style="color:#000000;font-family:times new roman;font-size:10pt">than cash pay securities. These securities are more likely to respond to changes in interest rates than interest-bearing </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities having similar maturities and credit quality. The higher interest rates of payment in kind securities reflect the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">payment deferral and increased credit risk associated with these instruments, and payment in kind instruments generally </span><span style="color:#000000;font-family:times new roman;font-size:10pt">represent a significantly higher credit risk than coupon bonds. These securities are more sensitive to the credit quality </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of the underlying issuer. Payment in kind securities may be difficult to value because their continuing accruals require </span><span style="color:#000000;font-family:times new roman;font-size:10pt">continuing judgments about the collectability of the deferred payments and the value of any associated collateral. Deferred </span><span style="color:#000000;font-family:times new roman;font-size:10pt">interest securities are obligations that generally provide for a period of delay before the regular payment of interest </span><span style="color:#000000;font-family:times new roman;font-size:10pt">begins and are issued at a significant discount from face value. The interest rate on contingent payment securities is </span><span style="color:#000000;font-family:times new roman;font-size:10pt">determined by the outcome of an event, such as the performance of a financial index. If the financial index does not </span><span style="color:#000000;font-family:times new roman;font-size:10pt">increase by a prescribed amount, the Fund may receive no interest.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Unlike bonds that pay interest throughout the period to maturity, the Fund generally will realize no cash until maturity </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and, if the issuer defaults, the Fund may obtain no return at all on its investment. In addition, although the Fund receives </span><span style="color:#000000;font-family:times new roman;font-size:10pt">no periodic cash payments on such securities, the Fund is deemed for tax purposes to receive income from such securities, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">which applicable tax rules require the Fund to distribute to shareholders. Such distributions may be taxable when </span><span style="color:#000000;font-family:times new roman;font-size:10pt">distributed to shareholders and, in addition, could reduce the Fund’s reserve position and require the Fund to sell </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities and incur a gain or loss at a time it may not otherwise want in order to provide the cash necessary for </span><span style="color:#000000;font-family:times new roman;font-size:10pt">these distributions.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Tax and regulated investment company qualification risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> As described in more detail in the SAI, in order for </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the Fund to qualify for the favorable tax treatment generally available to regulated investment companies, at least 90% </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of the Fund’s gross income each taxable year must consist of qualifying income, the Fund must meet certain asset </span><span style="color:#000000;font-family:times new roman;font-size:10pt">diversification tests at the end of each fiscal quarter, and the Fund must meet certain distribution requirements for each </span><span style="color:#000000;font-family:times new roman;font-size:10pt">taxable year.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The tax treatment of certain ILS is not entirely clear. Certain of the Fund’s investments (including, potentially, certain </span><span style="color:#000000;font-family:times new roman;font-size:10pt">ILS) may generate income that is not qualifying income. The Fund might generate more non-qualifying income than </span><span style="color:#000000;font-family:times new roman;font-size:10pt">anticipated, might not be able to generate qualifying income in a particular taxable year at levels sufficient to meet the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">qualifying income test, or might not be able to determine the percentage of qualifying income it has derived for a taxable </span><span style="color:#000000;font-family:times new roman;font-size:10pt">year until after year-end. The Fund may determine not to make an investment that it otherwise would have made, or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may dispose of an investment it otherwise would have retained (potentially resulting in the recognition of taxable gain </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or loss, and potentially under disadvantageous circumstances), in an effort to meet the qualifying income test.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Certain investments made by the Fund (including certain ILS) may be treated as equity in passive foreign investment </span><span style="color:#000000;font-family:times new roman;font-size:10pt">companies (</span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">PFICs</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">) for federal income tax purposes. In general, a PFIC is a foreign corporation (i) that receives at least </span><span style="color:#000000;font-family:times new roman;font-size:10pt">75% of its annual gross income from passive sources (such as interest, dividends, certain rents and royalties, or capital </span><span style="color:#000000;font-family:times new roman;font-size:10pt">gains) or (ii) where at least 50% of its assets (computed based on average fair market value) either produce or are held </span><span style="color:#000000;font-family:times new roman;font-size:10pt">for the production of passive income. If the Fund acquires any equity interest in a PFIC and does not make a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">qualified </span><span style="color:#000000;font-family:times new roman;font-size:10pt">electing fund</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> (</span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">QEF</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">) election or mark-to-market election with respect to the equity interest in the PFIC, the Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">generally would, be subject to U.S. federal income tax and additional interest charges on </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">excess distributions</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> received </span><span style="color:#000000;font-family:times new roman;font-size:10pt">from the PFIC or on gain from the sale of stock in the PFIC, and the Fund cannot avoid such tax and interest charges by </span><span style="color:#000000;font-family:times new roman;font-size:10pt">timely distributing the excess distributions and gain to its shareholders. The Fund would not be able to pass through to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">its shareholders any credit or deduction for such a tax paid by the Fund. A QEF election or a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">mark to market</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> election </span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">may be available with respect to a PFIC that would ameliorate the adverse tax consequences under the default rule </span><span style="color:#000000;font-family:times new roman;font-size:10pt">described above, but such an election could require the Fund to recognize taxable income or gain (which would be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">subject to the distribution requirements applicable to regulated investment companies, as described above) without the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">concurrent receipt of cash (i.e., </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">phantom income</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">). In order to satisfy the distribution requirements to qualify as a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">regulated investment company and avoid being subject to U.S. federal income and excise tax, the Fund may be required </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to liquidate portfolio securities that it might otherwise have continued to hold (potentially resulting in the recognition of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">taxable gain or loss, and potentially under disadvantageous circumstances), or the Fund may be required to borrow </span><span style="color:#000000;font-family:times new roman;font-size:10pt">cash. In order for the Fund to make a qualified electing fund election with respect to a PFIC, the PFIC would have to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">agree to provide certain tax information to the Fund on an annual basis, which it might not agree to do. If the Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">makes a mark-to-market election with respect to a PFIC, any mark-to-market gain or loss (to the extent permitted) will </span><span style="color:#000000;font-family:times new roman;font-size:10pt">be considered ordinary. The Fund may limit and/or manage its holdings in PFICs to limit its tax liability or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">phantom </span><span style="color:#000000;font-family:times new roman;font-size:10pt">income</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> from the recognition of taxable income or gain without the current receipt of cash or maximize its after-tax </span><span style="color:#000000;font-family:times new roman;font-size:10pt">return from these investments.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">If a sufficient portion of the equity interests for federal income tax purposes in a foreign issuer (including certain ILS </span><span style="color:#000000;font-family:times new roman;font-size:10pt">issuers) is held or deemed held by the Fund, independently or together with certain other U.S. persons, that issuer may </span><span style="color:#000000;font-family:times new roman;font-size:10pt">be treated as a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">controlled foreign corporation</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> (a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">CFC</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">) with respect to the Fund, in which case the Fund would be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">required to take into account each year, as ordinary income, its share of certain portions of that issuer’s </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">subpart F </span><span style="color:#000000;font-family:times new roman;font-size:10pt">income</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">tested income</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">, whether or not such amounts are distributed. Generally, if an entity is both a CFC and a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">PFIC with respect to the Fund, the rules applicable to CFCs override those applicable to PFICs with respect to the Fund. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">In order to satisfy the distribution requirements to qualify as a regulated investment company and avoid being subject to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">U.S. federal income and excise tax, the Fund may be required to liquidate portfolio securities that it might otherwise </span><span style="color:#000000;font-family:times new roman;font-size:10pt">have continued to hold (potentially resulting in the recognition of taxable gain or loss, and potentially under disadvantageous </span><span style="color:#000000;font-family:times new roman;font-size:10pt">circumstances), or the Fund may be required to borrow cash. In addition, some Fund gains on the disposition of interests </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in a CFC may be treated as ordinary income. The Fund may limit and/or manage its holdings in issuers that could be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">treated as CFCs in order to limit its tax liability or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">phantom income</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> from the recognition of income without the current </span><span style="color:#000000;font-family:times new roman;font-size:10pt">receipt of cash or maximize its after-tax return from these investments.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">If the Fund were to fail to qualify for treatment as a regulated investment company, it would generally be taxed in the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">same manner as an ordinary corporation, and distributions to its shareholders generally would not be deductible by the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund in computing its taxable income. Under certain circumstances, the Fund may be able to cure a failure to meet the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">qualifying income test or the diversification test if such failure was due to reasonable cause and not willful neglect, but in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">order to do so the Fund may incur a significant penalty tax that would reduce (and potentially could eliminate) the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund’s returns.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Valuation risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Many factors may influence the price at which the Fund could sell any particular portfolio investment. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">The sales price may well differ - higher or lower - from the Fund’s valuation of the investment, and such differences </span><span style="color:#000000;font-family:times new roman;font-size:10pt">could be significant, particularly for illiquid securities and securities that trade in thin markets and/or markets that </span><span style="color:#000000;font-family:times new roman;font-size:10pt">experience extreme volatility. These differences may increase significantly and affect Fund investments more broadly </span><span style="color:#000000;font-family:times new roman;font-size:10pt">during periods of market volatility. Nearly all of the Fund's investments are valued using fair value methodologies. Investors </span><span style="color:#000000;font-family:times new roman;font-size:10pt">who purchase or submit repurchase requests for Fund shares may receive fewer or more shares, or lower or higher </span><span style="color:#000000;font-family:times new roman;font-size:10pt">repurchase requests proceeds, than they would have received if the securities had not been fair-valued or if a different </span><span style="color:#000000;font-family:times new roman;font-size:10pt">valuation methodology had been used. The value of foreign securities, certain fixed income securities and currencies, as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">applicable, may be materially affected by events after the close of the markets on which they are traded, but before the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund determines its net asset value. The ability to value the Fund’s investments may also be impacted by technological </span><span style="color:#000000;font-family:times new roman;font-size:10pt">issues and/or errors by pricing services or other third party service providers.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Concentration risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> A Fund that invests a significant percentage of its assets in a single industry may be particularly </span><span style="color:#000000;font-family:times new roman;font-size:10pt">susceptible to adverse economic, regulatory or other events affecting that industry and may be more risky than a Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">that does not concentrate in an industry.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Industries in the financial segment, such as insurance companies, may be sensitive to changes in interest rates, credit </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rating downgrades, decreased liquidity in credit markets, and general economic activity and are generally subject to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">extensive government regulation.</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Non-diversification risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The Fund is not diversified, which means that it can invest a higher percentage of its assets </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in the securities of any one or more issuers than a diversified fund. Being non-diversified may magnify the Fund’s losses </span><span style="color:#000000;font-family:times new roman;font-size:10pt">from adverse events affecting a particular issuer.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Cybersecurity risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Cybersecurity failures by and breaches of the Fund’s Adviser, transfer agent, distributor, custodian, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">fund accounting agent or other service providers may disrupt Fund operations, interfere with the Fund’s ability to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">calculate its NAV, prevent Fund shareholders from purchasing shares, submitting repurchase requests, or receiving </span><span style="color:#000000;font-family:times new roman;font-size:10pt">distributions or receiving timely information regarding the Fund or their investment in the Fund, cause loss of or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">unauthorized access to private shareholder information, and result in financial losses to the Fund and its shareholders, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">regulatory fines, penalties, reputational damage, or additional compliance costs. Substantial costs may be incurred in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">order to prevent any cyber incidents in the future. The Fund and its shareholders could be negatively impacted as a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">result. New ways to carry out cyber attacks continue to develop. Therefore, there is a chance that some risks have not </span><span style="color:#000000;font-family:times new roman;font-size:10pt">been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">plan for or respond to a cyber attack.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Expense risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Your actual costs of investing in the Fund may be higher than the expenses shown in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">Annual Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">operating expenses</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> for a variety of reasons. For example, expense ratios may be higher than those shown if overall net </span><span style="color:#000000;font-family:times new roman;font-size:10pt">assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets </span><span style="color:#000000;font-family:times new roman;font-size:10pt">are volatile.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Portfolio selection risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The Adviser's judgment about the quality, relative yield, relative value or market trends </span><span style="color:#000000;font-family:times new roman;font-size:10pt">affecting a particular sector or region, market segment, security, industry or about interest rates or other market factors </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may prove to be incorrect or may not produce the desired results, or there may be imperfections, errors or limitations in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the models, tools and information used by the Adviser.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Repurchase offers risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The Fund is an </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">interval fund</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> and, in order to provide some liquidity to shareholders, will </span><span style="color:#000000;font-family:times new roman;font-size:10pt">make periodic offers to repurchase between 5% and 25% of its outstanding shares at NAV, pursuant to Rule 23c-3 under </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the 1940 Act. The Fund believes that these repurchase offers are generally beneficial to the Fund’s shareholders, and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">repurchases generally will be funded from available cash or sales of portfolio securities. However, repurchase offers and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the need to fund repurchase obligations may affect the ability of the Fund to be fully invested or force the Fund to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">maintain a higher percentage of its assets in liquid investments, which may harm the Fund’s investment performance. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Moreover, reduction in the size of the Fund through repurchases may result in untimely sales of portfolio securities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">(with associated imputed transaction costs, which may be significant), and may limit the ability of the Fund to participate </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in new investment opportunities or to achieve its investment objective. The Fund does not anticipate </span><span style="color:#000000;font-family:times new roman;font-size:10pt">employing investment leverage, but if it were to do so in the future, repurchases of shares may compound the adverse </span><span style="color:#000000;font-family:times new roman;font-size:10pt">effects of leverage in a declining market. In addition, if the Fund borrows money to finance repurchases, interest on that </span><span style="color:#000000;font-family:times new roman;font-size:10pt">borrowing will negatively affect shareholders who do not request that their shares be repurchased by increasing Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">expenses and reducing any net investment income. If a repurchase offer is oversubscribed and the Fund determines not </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to repurchase additional shares beyond the repurchase offer amount, or if shareholder repurchase requests are in an </span><span style="color:#000000;font-family:times new roman;font-size:10pt">amount of shares greater than that which the Fund is entitled to repurchase, the Fund will repurchase shares on a pro </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rata basis, and shareholders will have to wait until the next repurchase offer to make another repurchase request. As a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">result, shareholders may be unable to liquidate all or a given percentage of their investment in the Fund at NAV during </span><span style="color:#000000;font-family:times new roman;font-size:10pt">a particular repurchase offer. Some shareholders, in anticipation of proration, may submit more shares for repurchase </span><span style="color:#000000;font-family:times new roman;font-size:10pt">than they wish to have repurchased in a particular quarter, thereby increasing the likelihood that proration will occur. A </span><span style="color:#000000;font-family:times new roman;font-size:10pt">shareholder may be subject to market and other risks, and the NAV of shares submitted for repurchase in a repurchase </span><span style="color:#000000;font-family:times new roman;font-size:10pt">offer may decline to the extent there is any delay between the repurchase request deadline and the date on which the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">NAV for such shares is determined. In addition, the repurchase of shares by the Fund may be a taxable event to shareholders.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Anti-takeover provisions.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The Fund’s Agreement and Declaration of Trust and by-laws include provisions that could </span><span style="color:#000000;font-family:times new roman;font-size:10pt">limit the ability of other entities or persons to acquire control of the Fund or convert the Fund to open-end status.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">To learn more about the Fund's investments and risks, you should obtain and read the statement of additional information. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Please note that there are many other factors that could adversely affect your investment and that could prevent the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund from achieving its goals.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">General.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The Fund is a non-diversified, closed-end management investment company designed primarily as a long-term </span><span style="color:#000000;font-family:times new roman;font-size:10pt">investment and not as a trading tool. The Fund is not a complete investment program and should be considered only as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">an addition to an investor’s existing portfolio of investments. Because the Fund invests predominantly in ILS of U.S. and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">non-U.S. issuers, floating rate loans, and high yield debt securities, an investment in the Fund’s shares is speculative in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">that it involves a high degree of risk. Due to uncertainty inherent in all investments, there can be no assurance that the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund will achieve its investment objective. ILS in which the Fund invests may only have limited liquidity, or may be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">illiquid. In addition, even though the Fund will make periodic offers to repurchase a portion of its outstanding shares to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">provide some liquidity to shareholders, shareholders should consider the Fund to be an illiquid investment.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risks of investing in insurance-linked securities.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The Fund could lose a portion or all of the principal it has invested </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in an ILS, and the right to additional interest and/or dividend payments with respect to the security, upon the occurrence </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of one or more trigger events, as defined within the terms of the ILS. Trigger events may include natural or other perils </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of a specific size or magnitude that occur in a designated geographic region during a specified time period, and/or that </span><span style="color:#000000;font-family:times new roman;font-size:10pt">involve losses or other metrics that exceed a specific amount. Natural perils include disasters such as hurricanes, earthquakes, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">windstorms, fires, floods and other weather-related occurrences, as well as mortality or longevity events. Non-natural </span><span style="color:#000000;font-family:times new roman;font-size:10pt">perils include disasters resulting from human-related activity such as commercial and industrial accidents or business </span><span style="color:#000000;font-family:times new roman;font-size:10pt">interruptions. Major natural disasters (such as in the cases of Super Typhoon Goni in the Philippines in 2020, monsoon </span><span style="color:#000000;font-family:times new roman;font-size:10pt">flooding in China in 2020, Hurricane Irma in Florida and the Caribbean in 2017, Super Storm Sandy in 2012, Hurricane </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Ian in Florida in 2022, Palisades and Eaton fires in 2025 and Central Texas floods in 2025) or commercial and industrial </span><span style="color:#000000;font-family:times new roman;font-size:10pt">accidents (such as aviation disasters and oil spills) can result in significant losses, and investors in ILS with exposure to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">such natural or other disasters may also experience substantial losses. If the likelihood and severity of natural and other </span><span style="color:#000000;font-family:times new roman;font-size:10pt">large disasters increase, the risk of significant losses to reinsurers may increase. Typically, one significant triggering </span><span style="color:#000000;font-family:times new roman;font-size:10pt">event (even in a major metropolitan area) will not result in financial failure to a reinsurer. However, a series of major </span><span style="color:#000000;font-family:times new roman;font-size:10pt">triggering events could cause the failure of a reinsurer. Similarly, to the extent the Fund invests in ILS for which a triggering </span><span style="color:#000000;font-family:times new roman;font-size:10pt">event occurs, losses associated with such event will result in losses to the Fund and a series of major triggering events </span><span style="color:#000000;font-family:times new roman;font-size:10pt">affecting a large portion of the ILS held by the Fund will result in substantial losses to the Fund. The Fund may also </span><span style="color:#000000;font-family:times new roman;font-size:10pt">invest in ILS that are subject to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">indemnity triggers.</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> An indemnity trigger is a trigger based on the actual losses of the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">ceding sponsor (i.e., the party seeking reinsurance). ILS subject to indemnity triggers are often regarded as being subject </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to potential moral hazard, since such ILS are triggered by actual losses of the ceding sponsor and the ceding sponsor </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may have an incentive to take actions and/or risks that would have an adverse effect on the Fund. For example, a ceding </span><span style="color:#000000;font-family:times new roman;font-size:10pt">sponsor might inflate its total claims paid above the ILS trigger level in order to share its losses with investors in the ILS. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Thus, bonds with indemnity triggers may be subject to moral hazard, because the trigger depends on the ceding sponsor </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to properly identify and calculate losses that do and do not apply in determining whether the trigger amount has been </span><span style="color:#000000;font-family:times new roman;font-size:10pt">reached. In short, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">moral hazard</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> refers to this potential for the sponsor to influence bond performance, as payouts are </span><span style="color:#000000;font-family:times new roman;font-size:10pt">based on the individual policy claims against the sponsor and the way the sponsor settles those claims. There is no way </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to accurately predict whether a trigger event will occur and, accordingly, ILS carry significant risks. In addition to the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">specified trigger events, ILS may expose the Fund to other risks, including but not limited to issuer (credit) default, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">adverse regulatory or jurisdictional interpretations and adverse tax consequences. ILS are also subject to the risk that </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the model used to calculate the probability of a trigger event was not accurate and underestimated the likelihood of a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">trigger event. ILS may provide for extensions of maturity in order to process and audit loss claims in those cases when a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">trigger event has, or possibly has, occurred. Certain ILS may have limited liquidity, or may be illiquid. Upon the occurrence </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or possible occurrence of a trigger event, and until the completion of the processing and auditing of applicable loss </span><span style="color:#000000;font-family:times new roman;font-size:10pt">claims, the Fund’s investment in an ILS may be priced using fair value methods. Lack of a liquid market may impose the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">risk of higher transaction costs and the possibility that the Fund may be forced to liquidate positions when it would not </span><span style="color:#000000;font-family:times new roman;font-size:10pt">be advantageous to do so.</span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risks of investing in structured reinsurance investments.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The Fund invests in ILS that are special purpose vehicles </span><span style="color:#000000;font-family:times new roman;font-size:10pt">(</span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">SPVs</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">) or similar instruments structured to comprise a portion of a reinsurer’s catastrophe-oriented business, known </span><span style="color:#000000;font-family:times new roman;font-size:10pt">as quota share instruments (sometimes referred to as reinsurance sidecars), or to provide reinsurance relating to specific </span><span style="color:#000000;font-family:times new roman;font-size:10pt">risks to insurance or reinsurance companies through a collateralized instrument, known as collateralized reinsurance. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Quota shares instruments and other structured reinsurance investments generally will be considered illiquid securities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">by the Fund.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Structured reinsurance investments are typically more customizable but less liquid investments than event-linked bonds. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Like event-linked bonds, an investor in structured reinsurance investments participates in the premiums and losses </span><span style="color:#000000;font-family:times new roman;font-size:10pt">associated with underlying reinsurance contracts.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Structured reinsurance investments are subject to the same risks as event-linked bonds and other ILS. In addition, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">because quota share instruments represent an interest in a basket of underlying reinsurance contracts, the Fund has </span><span style="color:#000000;font-family:times new roman;font-size:10pt">limited transparency into the individual underlying contracts and therefore must rely upon the risk assessment and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">sound underwriting practices of the insurer and/or reinsurer. Accordingly, it may be more difficult for the Adviser to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">fully evaluate the underlying risk profile of the Fund’s investment in quota share instruments and therefore place the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund’s assets at greater risk of loss than if the Adviser had more complete information. Structured reinsurance investments </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may be difficult to value.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Since ILS issuers typically are structured so as to be bankruptcy remote SPVs or similar structures, it is unlikely that the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund could lose its investment if the applicable trigger event never occurs. However, there can be no assurance that ILS </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in which the Fund may invest in the future will be structured in a similar manner or that a court would uphold the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">intended bankruptcy remote characterization of the structure. If ILS issued in the future is structured in a different </span><span style="color:#000000;font-family:times new roman;font-size:10pt">manner, it may be possible that the Fund would lose its entire investment in an event-linked bond even though the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">applicable trigger event never occurs.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">ILS market and reinvestment risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The size of the ILS market may change over time, which may limit the availability </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of ILS for investment by the Fund. The original issuance of ILS in general, including ILS with desired instrument or risk </span><span style="color:#000000;font-family:times new roman;font-size:10pt">characteristics, may fluctuate depending on the capital and capacity needs of reinsurers as well as the demand for ILS by </span><span style="color:#000000;font-family:times new roman;font-size:10pt">institutional investors. The availability of ILS in the secondary market also may be limited by supply and demand dynamics </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and prevailing economic conditions. To the extent ILS held by the Fund mature, or the Fund must sell securities in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">connection with share repurchases, the Fund may be required to hold more cash or short-term investments than it </span><span style="color:#000000;font-family:times new roman;font-size:10pt">normally would until attractive ILS becomes available. Holding excess cash and/or reinvestment in securities that are </span><span style="color:#000000;font-family:times new roman;font-size:10pt">lower yielding or less desirable than securities sold may negatively affect performance.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">There are relatively few market participants that market reinsurance arrangements, create SPVs and similar structures, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and otherwise facilitate the participation in the reinsurance industry by funds and other capital market investors. Withdrawal </span><span style="color:#000000;font-family:times new roman;font-size:10pt">from the industry by key market participants may affect negatively the liquidity of the ILS market or the operation or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">value of ILS structures that rely on these market participants.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Market risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The market prices of securities or other assets held by the Fund may go up or down, sometimes rapidly or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">unpredictably, due to general market conditions, such as real or perceived adverse economic, political, or regulatory </span><span style="color:#000000;font-family:times new roman;font-size:10pt">conditions, political instability, recessions, inflation, changes in interest or currency rates, lack of liquidity in the bond </span><span style="color:#000000;font-family:times new roman;font-size:10pt">markets, the spread of infectious illness or other public health issues, weather or climate events, armed conflict, market </span><span style="color:#000000;font-family:times new roman;font-size:10pt">disruptions caused by tariffs, trade disputes, sanctions or other government actions, or other factors or adverse investor </span><span style="color:#000000;font-family:times new roman;font-size:10pt">sentiment. If the market prices of the Fund's securities and assets fall, the value of your investment will go down. A </span><span style="color:#000000;font-family:times new roman;font-size:10pt">change in financial condition or other event affecting a single issuer or market may adversely impact securities markets </span><span style="color:#000000;font-family:times new roman;font-size:10pt">as a whole.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Changes in market conditions may not have the same impact on all types of securities. The value of securities may also </span><span style="color:#000000;font-family:times new roman;font-size:10pt">fall due to specific conditions that affect a particular sector of the securities market or a particular issuer. In the past </span><span style="color:#000000;font-family:times new roman;font-size:10pt">decade, financial markets throughout the world have experienced increased volatility, depressed valuations, decreased </span><span style="color:#000000;font-family:times new roman;font-size:10pt">liquidity and heightened uncertainty. Governmental and non-governmental issuers have defaulted on, or been forced to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">restructure, their debts. These conditions may continue, recur, worsen or spread. Events that have contributed to these </span><span style="color:#000000;font-family:times new roman;font-size:10pt">market conditions include, but are not limited to, major cybersecurity events; geopolitical events (including wars, terror </span><span style="color:#000000;font-family:times new roman;font-size:10pt">attacks and economic sanctions); measures to address budget deficits; downgrading of sovereign debt; changes in oil and </span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">commodity prices; dramatic changes in currency exchange rates; global pandemics; and public sentiment. The long-term </span><span style="color:#000000;font-family:times new roman;font-size:10pt">impact of the COVID-19 pandemic and its subsequent variants on economies, markets, industries and individual issuers, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">is not known. Some sectors of the economy and individual issuers have experienced or may experience particularly large </span><span style="color:#000000;font-family:times new roman;font-size:10pt">losses. Periods of extreme volatility in the financial markets, reduced liquidity of many instruments, increased government </span><span style="color:#000000;font-family:times new roman;font-size:10pt">debt, inflation, and disruptions to supply chains, consumer demand and employee availability, may continue for some time.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Raising the ceiling on U.S. government debt has become increasingly politicized. Any failure to increase the total amount </span><span style="color:#000000;font-family:times new roman;font-size:10pt">that the U.S. government is authorized to borrow could lead to a default on U.S. government obligations, with unpredictable </span><span style="color:#000000;font-family:times new roman;font-size:10pt">consequences for economies and markets in the United States and elsewhere. Inflation and interest rates may increase. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">These circumstances could adversely affect the value and liquidity of the Fund's investments and negatively impact the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund's performance. In addition, inflation, rising interest rates, global supply chain disruptions and other market events </span><span style="color:#000000;font-family:times new roman;font-size:10pt">could adversely affect the companies or issuers in which the Fund invests. Following the commencement of the conflict </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in Ukraine, Russian securities lost all, or nearly all, their market value. Other securities or markets could be similarly </span><span style="color:#000000;font-family:times new roman;font-size:10pt">affected by past or future political, geopolitical or other events or conditions.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Governments and central banks, including the U.S. Federal Reserve, have taken extraordinary and unprecedented actions </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to support local and global economies and the financial markets. These actions have resulted in significant expansion of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">public debt, including in the United States. The consequences of high public debt, including its future impact on the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">economy and securities markets, may not be known for some time. U.S. Federal Reserve or other U.S. or non-U.S. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">governmental or central bank actions, including increases or decreases in interest rates, or contrary actions by different </span><span style="color:#000000;font-family:times new roman;font-size:10pt">governments, could negatively affect financial markets generally, increase market volatility and reduce the value and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">liquidity of securities in which the Fund invests. Policy and legislative changes in the United States and in other countries </span><span style="color:#000000;font-family:times new roman;font-size:10pt">are affecting many aspects of financial regulation, and these and other events affecting global markets, such as the United </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Kingdom’s exit from the European Union (commonly known as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">Brexit</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">), potential trade imbalances with China or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">other countries, or sanctions or other government actions against Russia, other nations or individuals or companies (or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">their countermeasures), may contribute to decreased liquidity and increased volatility in the financial markets. The </span><span style="color:#000000;font-family:times new roman;font-size:10pt">impact of these changes on the markets, and the implications for market participants, may not be fully known for </span><span style="color:#000000;font-family:times new roman;font-size:10pt">some time.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The United States and other countries are periodically involved in disputes over trade and other matters, which may </span><span style="color:#000000;font-family:times new roman;font-size:10pt">result in tariffs (or the threat of tariffs), investment restrictions and adverse impacts on affected companies and securities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">potentially leading to significant losses for the Fund. For example, the United States has imposed tariffs and other trade </span><span style="color:#000000;font-family:times new roman;font-size:10pt">barriers on exports from other countries, has restricted sales of certain categories of goods to other countries, and has </span><span style="color:#000000;font-family:times new roman;font-size:10pt">established barriers to investments in other countries. Trade disputes may adversely affect the economies of the United </span><span style="color:#000000;font-family:times new roman;font-size:10pt">States and its trading partners, as well as companies directly or indirectly affected and financial markets generally. The </span><span style="color:#000000;font-family:times new roman;font-size:10pt">U.S. government has prohibited U.S. persons, such as the Fund, from investing in Chinese companies designated as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">related to the Chinese military. These and possible future restrictions could limit the Fund's opportunities for investment </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and require the sale of securities at a loss or make them illiquid. Moreover, China's long-running conflict over Taiwan's </span><span style="color:#000000;font-family:times new roman;font-size:10pt">sovereignty, border disputes with many neighbors and historically strained relations with other Asian countries could </span><span style="color:#000000;font-family:times new roman;font-size:10pt">result in military conflict. If the political climate between the United States and China does not improve or continues to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">deteriorate, if China enters into military conflict with Taiwan, the Philippines or another neighbor, or if other geopolitical </span><span style="color:#000000;font-family:times new roman;font-size:10pt">conflicts develop or get worse, economies, markets and individual securities may be severely affected both regionally </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and globally, and the value of the Fund's assets may go down.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Economies and financial markets throughout the world are increasingly interconnected. Economic, financial or political </span><span style="color:#000000;font-family:times new roman;font-size:10pt">events, trading and tariff arrangements, armed conflicts such as between Russia and Ukraine or in the Middle East, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">terrorism, natural disasters, infectious illness or public health issues, cybersecurity events, supply chain disruptions, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">sanctions against Russia, other nations or individuals or companies and possible countermeasures, and other circumstances </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in one country or region, could have profound impacts on other countries or regions and on global economies or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">markets. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the countries or regions directly affected, the value and liquidity of the Fund’s investments may be negatively affected. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund may experience a substantial or complete loss on any security or derivative position.</span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">High yield or </span><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">“</span><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">junk</span><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">”</span><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold"> bond risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Debt securities that are below investment grade, called </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">junk bonds,</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> are speculative, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">have a higher risk of default or are already in default, tend to be less liquid and are more difficult to value than higher </span><span style="color:#000000;font-family:times new roman;font-size:10pt">grade securities and may involve major risk of exposure to adverse conditions and negative sentiments. These securities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">have a higher risk of issuer default because, among other reasons, issuers of junk bonds often have more debt in relation </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to total capitalization than issuers of investment grade securities. Junk bonds tend to be volatile and more susceptible to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">adverse events and negative sentiments. These risks are more pronounced for securities that are already in default. The </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund may not receive interest payments on defaulted securities and may incur costs to protect its investment. In addition, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">defaulted securities involve the substantial risk that principal will not be repaid. Changes in economic conditions or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">developments regarding the individual issuer are more likely to cause price volatility and weaken the capacity of such </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities to make principal and interest payments than is the case for higher grade debt securities. The value of lower-quality </span><span style="color:#000000;font-family:times new roman;font-size:10pt">debt securities often changes in response to company, political, or economic developments and can decline significantly </span><span style="color:#000000;font-family:times new roman;font-size:10pt">over short as well as long periods of time or during periods of general or regional economic difficulty. Junk bonds may </span><span style="color:#000000;font-family:times new roman;font-size:10pt">also be less liquid than higher-rated securities, which means that the Fund may have difficulty selling them at times, and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">it may have to apply a greater degree of judgment in establishing a price for purposes of valuing Fund shares. Junk bonds </span><span style="color:#000000;font-family:times new roman;font-size:10pt">generally are issued by less creditworthy issuers. Issuers of junk bonds may have a larger amount of outstanding debt </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities relative to their assets than issuers of investment grade bonds. In the event of an issuer’s bankruptcy, claims of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">other creditors may have priority over the claims of junk bond holders, leaving few or no assets available to repay junk </span><span style="color:#000000;font-family:times new roman;font-size:10pt">bond holders. The Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new </span><span style="color:#000000;font-family:times new roman;font-size:10pt">terms with a defaulting issuer. Junk bonds frequently have redemption features that permit an issuer to repurchase the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">security from the Fund before it matures. If the issuer redeems junk bonds, the Fund may have to invest the proceeds in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">bonds with lower yields and may lose income.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Interest rate risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The market prices of the Fund’s fixed income securities may fluctuate significantly when interest </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rates change. When interest rates rise, the value of fixed income securities and therefore the value of your investment in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the Fund, generally falls. For example, if interest rates increase by 1%, the value of a Fund’s portfolio with a portfolio </span><span style="color:#000000;font-family:times new roman;font-size:10pt">duration of ten years would be expected to decrease by 10%, all other things being equal.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">A general rise in interest rates could adversely affect the price and liquidity of fixed income securities. A change in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">interest rates will not have the same impact on all fixed income securities. Generally, the longer the maturity or duration </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of a fixed income security, the greater the impact of a rise in interest rates on the security’s value. The maturity of a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">security may be significantly longer than its effective duration. A security’s maturity and other features may be more </span><span style="color:#000000;font-family:times new roman;font-size:10pt">relevant than its effective duration in determining the security’s sensitivity to other factors affecting the issuer or markets </span><span style="color:#000000;font-family:times new roman;font-size:10pt">generally, such as changes in credit quality or in the yield premium that the market may establish for certain types of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities (sometimes called </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">credit spread</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">). In general, the longer its maturity the more a security may be susceptible </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to these factors. When the credit spread for a fixed income security goes up or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">widens,</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> the value of the security will </span><span style="color:#000000;font-family:times new roman;font-size:10pt">generally go down. Calculations of duration and maturity may be based on estimates and may not reliably predict a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">security’s price sensitivity to changes in interest rates. Moreover, securities can change in value in response to other </span><span style="color:#000000;font-family:times new roman;font-size:10pt">factors, such as credit risk. In addition, different interest rate measures (such as short- and long-term interest rates and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">U.S. and foreign interest rates), or interest rates on different types of securities or securities of different issuers, may not </span><span style="color:#000000;font-family:times new roman;font-size:10pt">necessarily change in the same amount or in the same direction. When interest rates go down, the income received by </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the Fund, and the Fund’s yield, may decline. Also, when interest rates decline, investments made by the Fund may pay a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">lower interest rate, which would reduce the income received and distributed by the Fund.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Certain fixed income securities pay interest at variable or floating rates. Variable rate securities tend to reset at specified </span><span style="color:#000000;font-family:times new roman;font-size:10pt">intervals, while floating rate securities may reset whenever there is a change in a specified index rate. In most cases, these </span><span style="color:#000000;font-family:times new roman;font-size:10pt">reset provisions reduce the impact of changes in market interest rates on the value of the security. However, some </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities do not track the underlying index directly, but reset based on formulas that may produce a leveraging effect; </span><span style="color:#000000;font-family:times new roman;font-size:10pt">others may also provide for interest payments that vary inversely with market rates. The market prices of these securities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may fluctuate significantly when interest rates change. Yield generated by the Fund may decline due to a decrease in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">market interest rates.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The values of securities with floating interest rates generally are less sensitive to interest rate changes but may decline in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">value if their interest rates do not rise as much, or as quickly, as prevailing interest rates. In addition, rising interest rates </span><span style="color:#000000;font-family:times new roman;font-size:10pt">can also lead to increased default rates, as issuers of floating rate securities find themselves faced with higher payments. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Further, in the case of some instruments, if the underlying reference interest rate does not move by at least a prescribed </span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">increment, no adjustment will occur in the floating rate instrument’s interest rate. This means that, when prevailing </span><span style="color:#000000;font-family:times new roman;font-size:10pt">interest rates increase, a corresponding increase in the instrument’s interest rate may not result and the instrument may </span><span style="color:#000000;font-family:times new roman;font-size:10pt">decline in value. Similarly, certain floating rate obligations have an interest rate floor feature, which prevents the interest </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rate payable by the security from dropping below a specified level as compared to a reference interest rate. Such a floor </span><span style="color:#000000;font-family:times new roman;font-size:10pt">protects the Fund from losses resulting from a decrease in the reference interest rate below the specified level. However, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">if the reference interest rate is below the floor, there will be a lag between a rise in the reference interest rate and a rise in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the interest rate payable by the obligation, and the Fund may not benefit from increasing interest rates for a significant </span><span style="color:#000000;font-family:times new roman;font-size:10pt">amount of time. Unlike fixed rate securities, floating rate securities generally will not increase in value if interest rates </span><span style="color:#000000;font-family:times new roman;font-size:10pt">decline. Changes in interest rates also will affect the amount of interest income the Fund earns on its floating rate </span><span style="color:#000000;font-family:times new roman;font-size:10pt">investments. Unlike fixed rate securities, when prevailing interest rates decrease, the interest rate payable on floating </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rate investments will decrease.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The interest rates of some floating rate obligations adjust only periodically. Between the times that interest rates on </span><span style="color:#000000;font-family:times new roman;font-size:10pt">floating rate obligations adjust, the interest rate on those obligations may not correlate to prevailing rates, which will </span><span style="color:#000000;font-family:times new roman;font-size:10pt">affect the value of the loans and may cause the net asset values of the Fund’s shares to fluctuate.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Credit Risk</span><span style="color:#000000;font-family:times new roman;font-size:10pt">. If an obligor (such as the issuer itself or a party offering credit enhancement) for a security held by the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund fails to pay, otherwise defaults, is perceived to be less creditworthy, becomes insolvent or files for bankruptcy, a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">security’s credit rating is downgraded or the credit quality or value of an underlying asset declines, the value of your </span><span style="color:#000000;font-family:times new roman;font-size:10pt">investment could decline. The values of lower-quality debt securities tend to be particularly sensitive to these changes. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Changes in actual or perceived creditworthiness may occur quickly. The values of securities also may decline for a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">number of other reasons that relate directly to the issuer, such as management performance, financial leverage and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">reduced demand for the issuer’s goods and services, as well as the historical and prospective earnings of the issuer and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the value of its assets. If the Fund enters into financial contracts (such as certain derivatives, repurchase agreements, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">reverse repurchase agreements, and when-issued, delayed delivery and forward commitment transactions), the Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">will be subject to the credit risk presented by the counterparty. In addition, the Fund may incur expenses and suffer </span><span style="color:#000000;font-family:times new roman;font-size:10pt">delays in an effort to protect the Fund’s interests or to enforce its rights. The Fund evaluates the credit quality of issuers </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and counterparties prior to investing in securities. Credit risk is broadly gauged by the credit ratings of the securities in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">which the Fund invests. However, ratings are only the opinions of the companies issuing them and are not guarantees </span><span style="color:#000000;font-family:times new roman;font-size:10pt">as to quality. Securities rated in the lowest category of investment grade (Baa/BBB) may possess certain </span><span style="color:#000000;font-family:times new roman;font-size:10pt">speculative characteristics.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Prepayment or call risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Many fixed income securities give the issuer the option to prepay or call the security prior to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">its maturity date. Issuers often exercise this right when interest rates fall. Accordingly, if the Fund holds a fixed income </span><span style="color:#000000;font-family:times new roman;font-size:10pt">security that can be prepaid or called prior to its maturity date, it will not benefit fully from the increase in value that </span><span style="color:#000000;font-family:times new roman;font-size:10pt">other fixed income securities generally experience when interest rates fall. Upon prepayment of the security, the Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">also would be forced to reinvest the proceeds at then current yields, which would be lower than the yield of the security </span><span style="color:#000000;font-family:times new roman;font-size:10pt">that was prepaid or called. In addition, if the Fund purchases a fixed income security at a premium (at a price that exceeds </span><span style="color:#000000;font-family:times new roman;font-size:10pt">its stated par or principal value), the Fund may lose the amount of the premium paid in the event of prepayment.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risk of illiquid investments.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Certain securities or derivatives held by the Fund may be or become impossible or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">difficult to purchase or dispose of at a fair price at the times when the Fund believes it is desirable to do so. The market </span><span style="color:#000000;font-family:times new roman;font-size:10pt">price of illiquid securities generally is more volatile than that of more liquid securities, which may adversely affect the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">price that the Fund pays for or recovers upon the sale of illiquid securities. Illiquid securities are also more difficult to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">value and the Adviser’s judgment may play a greater role in the valuation process. Investment of the Fund’s assets in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">illiquid securities may restrict the Fund’s ability to take advantage of market opportunities. The risks associated with </span><span style="color:#000000;font-family:times new roman;font-size:10pt">illiquid securities may be particularly acute in situations in which the Fund’s operations require cash and could result in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the Fund borrowing to meet its short-term needs or incurring losses on the sale of illiquid securities. Markets may become </span><span style="color:#000000;font-family:times new roman;font-size:10pt">illiquid when, for instance, there are few, if any, interested buyers and sellers or when dealers are unwilling to make a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">market for certain securities or when dealer market-making capacity is otherwise reduced. During times of market </span><span style="color:#000000;font-family:times new roman;font-size:10pt">turmoil, there have been, and may be, no buyers for securities in entire asset classes, including U.S. Treasury securities.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risks of investing in loans</span><span style="color:#000000;font-family:times new roman;font-size:10pt">. Floating rate loans and similar investments may be illiquid or less liquid than other </span><span style="color:#000000;font-family:times new roman;font-size:10pt">investments and difficult to value. Market quotations for these securities may be volatile and/or subject to large spreads </span><span style="color:#000000;font-family:times new roman;font-size:10pt">between bid and ask prices. No active trading market may exist for many floating rate loans, and many loans are subject </span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">to restrictions on resale. Any secondary market may be subject to irregular trading activity and extended trade settlement </span><span style="color:#000000;font-family:times new roman;font-size:10pt">periods. An economic downturn generally leads to a higher non-payment rate, and a loan may lose significant value </span><span style="color:#000000;font-family:times new roman;font-size:10pt">before a default occurs.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">When the Fund invests in a loan participation, the Fund does not have a direct claim against the borrower and must </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rely upon an intermediate participant to enforce any rights against the borrower. As a result, the Fund is subject to the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">risk that an intermediate participant between the Fund and the borrower will fail to meet its obligations to the Fund, in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">addition to the risk that the issuer of the loan will default on its obligations. Also the Fund may be regarded as the creditor </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of the agent lender (rather than the borrower), subjecting the Fund to the creditworthiness of the lender as well as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the borrower.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">There is less readily available, reliable information about most senior loans than is the case for many other types of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities. Although the features of senior loans, including being secured by collateral and having priority over other </span><span style="color:#000000;font-family:times new roman;font-size:10pt">obligations of the issuer, reduce some of the risks of investment in below investment grade securities, the loans are </span><span style="color:#000000;font-family:times new roman;font-size:10pt">subject to significant risks. Victory Capital believes, based on its experience, that senior floating rate loans generally </span><span style="color:#000000;font-family:times new roman;font-size:10pt">have more favorable loss recovery rates than most other types of below investment grade obligations. However, there </span><span style="color:#000000;font-family:times new roman;font-size:10pt">can be no assurance that the Fund's actual loss recovery experience will be consistent with Victory Capital's prior experience </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or that the senior loans in which the Fund invests will achieve any specific loss recovery rate.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Loans may take longer than seven days to settle, potentially leading to the sale proceeds of loans not being available to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">meet repurchase requests for a substantial period of time after the sale of the loans. To the extent that sale proceeds of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">loans are not available, the Fund may sell securities that have shorter settlement periods or may access other sources of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">liquidity to meet repurchase requests. During periods of distressed market conditions, the Fund may seek to obtain </span><span style="color:#000000;font-family:times new roman;font-size:10pt">expedited trade settlement, which will generally incur additional costs (although expedited trade settlement will not </span><span style="color:#000000;font-family:times new roman;font-size:10pt">always be available).</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The types of covenants included in loan agreements generally vary depending on market conditions, the creditworthiness </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of the issuer, the nature of the collateral securing the loan, and other factors. Loans may have restrictive covenants that </span><span style="color:#000000;font-family:times new roman;font-size:10pt">limit the ability of a borrower to further encumber its assets. If a borrower fails to comply with the covenants included in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">a loan agreement, the borrower may default in payment of the loan.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Some of the loans in which the Fund may invest may be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">covenant lite.</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Covenant lite loans contain fewer maintenance </span><span style="color:#000000;font-family:times new roman;font-size:10pt">covenants, or no maintenance covenants at all, than traditional loans and may not include terms that allow the lender to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">monitor the financial performance of the borrower and declare a default if certain criteria are breached. This may expose </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the Fund to greater credit risk associated with the borrower and reduce the Fund's ability to restructure a problematic </span><span style="color:#000000;font-family:times new roman;font-size:10pt">loan and mitigate potential loss. As a result the Fund's exposure to losses on such investments may be increased, especially </span><span style="color:#000000;font-family:times new roman;font-size:10pt">during a downturn in the credit cycle.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Second lien loans generally are subject to similar risks as those associated with senior loans. Because second lien loans </span><span style="color:#000000;font-family:times new roman;font-size:10pt">are subordinated or unsecured and thus lower in priority on payment to senior loans, they are subject to the additional </span><span style="color:#000000;font-family:times new roman;font-size:10pt">risk that the cash flow of the borrower and property securing the loan or debt, if any, may be insufficient to meet scheduled </span><span style="color:#000000;font-family:times new roman;font-size:10pt">payments after giving effect to the senior secured obligations of the borrower. This risk is generally higher for subordinated </span><span style="color:#000000;font-family:times new roman;font-size:10pt">unsecured loans or debt, which are not backed by a security interest in any specific collateral. Second lien loans generally </span><span style="color:#000000;font-family:times new roman;font-size:10pt">have greater price volatility than senior loans and may be less liquid.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Certain floating rate loans and other corporate debt securities involve refinancings, recapitalizations, mergers and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">acquisitions, and other financings for general corporate purposes. Other loans are incurred in restructuring or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">work-out</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt;line-height:12pt"> </span><span style="color:#000000;font-family:times new roman;font-size:10pt">scenarios, including debtor-in-possession facilities in bankruptcy. Loans in restructuring or similar scenarios may be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">especially vulnerable to the inherent uncertainties in restructuring processes. In addition, the highly leveraged capital </span><span style="color:#000000;font-family:times new roman;font-size:10pt">structure of the borrowers in any of these transactions, whether acquisition financing or restructuring, may make the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">loans especially vulnerable to adverse economic or market conditions and the risk of default.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Loans to entities located outside of the U.S. may have substantially different lender protections and covenants as compared </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to loans to U.S. entities and may involve greater risks. The Fund may have difficulties and incur expense enforcing its </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rights with respect to non-U.S. loans and such loans could be subject to bankruptcy laws that are materially different </span><span style="color:#000000;font-family:times new roman;font-size:10pt">than in the U.S.</span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Loans may not be considered </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities,</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> and purchasers, such as the Fund, therefore may not be entitled to rely on the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">anti-fraud protections afforded by federal securities laws.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Collateral risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The value of collateral, if any, securing a floating rate loan can decline, and may be insufficient to meet </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the issuer’s obligations or may be difficult to liquidate. In addition, the Fund’s access to collateral may be limited by </span><span style="color:#000000;font-family:times new roman;font-size:10pt">bankruptcy or other insolvency laws. These laws may be less developed and more cumbersome with respect to the Fund’s </span><span style="color:#000000;font-family:times new roman;font-size:10pt">non-U.S. floating rate investments. Floating rate loans may not be fully collateralized or may be uncollateralized. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Uncollateralized loans involve a greater risk of loss. In the event of a default, the Fund may have difficulty collecting on </span><span style="color:#000000;font-family:times new roman;font-size:10pt">any collateral and would not have the ability to collect on any collateral for an uncollateralized loan. In addition, the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">lender’s security interest or their enforcement of their security interest under the loan agreement may be found by a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">court to be invalid or the collateral may be used to pay other outstanding obligations of the borrower. Further, the Fund’s </span><span style="color:#000000;font-family:times new roman;font-size:10pt">access to collateral, if any, may be limited by bankruptcy law. To the extent that a loan is collateralized by stock of the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">borrower or its affiliates, this stock may lose all or substantially all of its value in the event of bankruptcy of the borrower. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Loans that are obligations of a holding company are subject to the risk that, in a bankruptcy of a subsidiary operating </span><span style="color:#000000;font-family:times new roman;font-size:10pt">company, creditors of the subsidiary may recover from the subsidiary’s assets before the lenders to the holding company </span><span style="color:#000000;font-family:times new roman;font-size:10pt">would receive any amount on account of the holding company’s interest in the subsidiary.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risk of disadvantaged access to confidential information. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">The issuer of a floating rate loan may offer to provide </span><span style="color:#000000;font-family:times new roman;font-size:10pt">material, non-public information about the issuer to investors, such as the Fund. Normally, Victory Capital will seek to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">avoid receiving this type of information about the issuer of a loan either held by, or considered for investment by, the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund. Victory Capital’s decision not to receive the information may place it at a disadvantage, relative to other loan </span><span style="color:#000000;font-family:times new roman;font-size:10pt">investors, in assessing a loan or the loan’s issuer. For example, in instances where holders of floating rate loans are asked </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to grant amendments, waivers or consents, Victory Capital’s inability to assess the impact of these actions may adversely </span><span style="color:#000000;font-family:times new roman;font-size:10pt">affect the value of the portfolio. For this and other reasons, it is possible that Victory Capital’s decision not to receive </span><span style="color:#000000;font-family:times new roman;font-size:10pt">material, non-public information under normal circumstances could adversely affect the Fund’s investment performance.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risks of subordinated securities.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> A holder of securities that are subordinated or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">junior</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> to more senior securities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of an issuer is entitled to payment after holders of more senior securities of the issuer. Subordinated securities are more </span><span style="color:#000000;font-family:times new roman;font-size:10pt">likely to suffer a credit loss than non-subordinated securities of the same issuer, any loss incurred by the subordinated </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities is likely to be proportionately greater, and any recovery of interest or principal may take more time. If there is </span><span style="color:#000000;font-family:times new roman;font-size:10pt">a default, bankruptcy or liquidation of the issuer, most subordinated securities are paid only if sufficient assets remain </span><span style="color:#000000;font-family:times new roman;font-size:10pt">after payment of the issuer’s non-subordinated securities. As a result, even a perceived decline in creditworthiness of the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">issuer is likely to have a greater impact on subordinated securities than more senior securities.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">U.S. Treasury obligations risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The market value of direct obligations of the U.S. Treasury may vary due to changes </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in interest rates. In addition, changes to the financial condition or credit rating of the U.S. government may cause the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">value of the Fund’s investments in obligations issued by the U.S. Treasury to decline.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">U.S. government agency obligations risk. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund invests in obligations issued by agencies and instrumentalities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of the U.S. government. Government-sponsored entities such as FNMA, FHLMC and the FHLBs, although chartered or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">sponsored by Congress, are not funded by congressional appropriations and the debt and mortgage-backed securities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">issued by them are neither guaranteed nor issued by the U.S. government. The maximum potential liability of the issuers </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of some U.S. government obligations may greatly exceed their current resources, including any legal right to support </span><span style="color:#000000;font-family:times new roman;font-size:10pt">from the U.S. government. Such debt and mortgage-backed securities are subject to the risk of default on the payment </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of interest and/or principal, similar to debt of private issuers. Although the U.S. government has provided financial </span><span style="color:#000000;font-family:times new roman;font-size:10pt">support to FNMA and FHLMC in the past, there can be no assurance that it will support these or other government-sponsored </span><span style="color:#000000;font-family:times new roman;font-size:10pt">entities in the future.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risks of non-U.S. investments.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Investing in non-U.S. issuers, or in U.S. issuers that have significant exposure to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">foreign markets, may involve unique risks compared to investing in securities of U.S. issuers. These risks are more </span><span style="color:#000000;font-family:times new roman;font-size:10pt">pronounced for issuers in emerging markets or to the extent that the Fund invests significantly in one region or country. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">These risks may include:</span></div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Less information about non-U.S. issuers or markets may be available due to less rigorous disclosure or accounting </span><span style="color:#000000;font-family:times new roman;font-size:10pt">standards and auditing and financial recordkeeping requirements, or regulatory practices</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Many non-U.S. markets are smaller, less liquid and more volatile. In a changing market, the Adviser may not be able </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to sell the Fund's securities at times, in amounts and at prices it considers reasonable</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Adverse effect of currency exchange rates or controls on the value of the Fund's investments, or its ability to convert </span><span style="color:#000000;font-family:times new roman;font-size:10pt">non-U.S. currencies to U.S. dollars</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.0pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The economies of non-U.S. countries may grow at slower rates than expected or may experience a downturn or recession</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Economic, political, regulatory and social developments such as unfavorable or unsuccessful government actions, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">reduction of government or central bank support, terrorism, armed conflicts and other geopolitical events, and the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">impact of tariffs and other restrictions on trade or economic sanctions, nationalization or expropriation of assets, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">arbitrary application of laws and regulations, or lack of rule of law, may adversely affect the securities markets</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">There may be significant obstacles to obtaining information necessary for investigations into or litigation against </span><span style="color:#000000;font-family:times new roman;font-size:10pt">issuers located in or operating in certain foreign markets, particularly emerging market countries, and shareholders </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may have limited legal remedies. It may be difficult for the Fund to pursue claims or enforce judgments against a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">foreign bank, depository or issuer of a security, or any of their agents, in the courts of a foreign country</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The value of the Fund’s foreign investments may also be affected by foreign tax laws, special U.S. tax considerations </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and restrictions on receiving the investment proceeds from a foreign country. Dividends and interest received by the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund and capital gains recognized by the Fund may give rise to withholding and other taxes imposed by foreign </span><span style="color:#000000;font-family:times new roman;font-size:10pt">countries and may decrease the Fund's return</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.0pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Some markets in which the Fund may invest are located in parts of the world that have historically been prone to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">natural disasters that could result in a significant adverse impact on the economies of those countries and investments </span><span style="color:#000000;font-family:times new roman;font-size:10pt">made in those countries</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">It is often more expensive for the Fund to buy, sell and hold securities in certain foreign markets than in the U.S.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">A governmental entity may delay, or refuse or be unable to pay, interest or principal on its sovereign debt due to cash </span><span style="color:#000000;font-family:times new roman;font-size:10pt">flow problems, insufficient foreign currency reserves, political considerations, the relative size of the governmental </span><span style="color:#000000;font-family:times new roman;font-size:10pt">entity’s debt position in relation to the economy or the failure to put in place economic reforms</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.0pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Investing in depositary receipts is subject to many of the same risks as investing directly in non-U.S. issuers. Depositary </span><span style="color:#000000;font-family:times new roman;font-size:10pt">receipts may involve higher expenses and may trade at a discount (or premium) to the underlying security. In addition, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">depositary receipts may not pass through voting and other shareholder rights, and may be less liquid than the underlying </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities listed on an exchange</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.0pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">A number of countries in the European Union (EU) have experienced, and may continue to experience, severe economic </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and financial difficulties. Additional EU member countries may also fall subject to such difficulties. A number of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">countries in Europe have suffered terror attacks, and additional attacks may occur in the future. In addition, the range </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and potential implications of possible political, regulatory, economic, and market outcomes of Brexit cannot be fully </span><span style="color:#000000;font-family:times new roman;font-size:10pt">known but could be significant, potentially resulting in increased volatility, illiquidity and potentially lower economic </span><span style="color:#000000;font-family:times new roman;font-size:10pt">growth in the affected markets, which will adversely affect the Fund’s investments, particularly in euro-denominated </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities and derivative contracts, securities of issuers located in the EU or with significant exposure to EU issuers </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or countries</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.0pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">China and other developing market countries are potentially subject to heightened degrees of economic, political and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">social instability. Markets in China and other Asian countries are relatively new and undeveloped. China’s economic </span><span style="color:#000000;font-family:times new roman;font-size:10pt">health is largely dependent upon exports, and may be dependent upon the economies of other Asian countries. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Investments in Chinese and other Asian issuers could be adversely affected by changes in government policies, or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">trade or political disputes with major trading partners, including the U.S. China’s growing trade surplus with the U.S. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">has given rise to trade disputes and the imposition of tariffs. The U.S. has also restricted the sale of certain goods to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">China. In addition, the U.S. government has imposed restrictions on U.S. investor participation in certain Chinese </span><span style="color:#000000;font-family:times new roman;font-size:10pt">investments. These matters could adversely affect China’s economy. China's central government exercises significant </span><span style="color:#000000;font-family:times new roman;font-size:10pt">control over China's economy and may intervene in the financial markets, such as by imposing trading restrictions, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and investments in Chinese issuers could be adversely affected by changes in government policies. The Chinese economy </span><span style="color:#000000;font-family:times new roman;font-size:10pt">could be adversely affected by supply chain disruptions. An economic slowdown in China could adversely affect </span><span style="color:#000000;font-family:times new roman;font-size:10pt">economies of other emerging market countries that trade with China, as well as companies operating in those countries. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Economies of Asian countries and Asian issuers could be adversely affected by regional security threats. In addition, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">China's long-running conflict over Taiwan's sovereignty, border disputes with many neighbors and historically strained </span><span style="color:#000000;font-family:times new roman;font-size:10pt">relations with other Asian countries could result in military conflict that could adversely impact the economies of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">China and other Asian countries, disrupt supply chains, and severely affect global economies and markets</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Public Company Accounting Oversight Board, which regulates auditors of U.S. public companies, may, from </span><span style="color:#000000;font-family:times new roman;font-size:10pt">time to time, be unable to inspect audit work papers in certain foreign or emerging market countries. Investors in </span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="line-height:12.0pt;margin-left:9pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">foreign countries often have limited rights and few practical remedies to pursue shareholder claims, including class </span><span style="color:#000000;font-family:times new roman;font-size:10pt">actions or fraud claims, and the ability of the Securities and Exchange Commission, the U.S. Department of Justice </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and other authorities to bring and enforce actions against foreign issuers or foreign persons is limited</span></div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">If one or more stockholders of a supranational entity such as the World Bank fail to make necessary additional capital </span><span style="color:#000000;font-family:times new roman;font-size:10pt">contributions, the entity may be unable to pay interest or repay principal on its debt securities</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Sanctions or other government actions against certain countries could negatively impact the Fund’s investments in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities that have exposure to those countries</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.0pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">In response to military action in Ukraine, commencing in 2022, the United States and other countries issued broad-ranging </span><span style="color:#000000;font-family:times new roman;font-size:10pt">economic sanctions against Russia and Belarus and certain companies and individuals. Russia has taken retaliatory </span><span style="color:#000000;font-family:times new roman;font-size:10pt">actions, including preventing repatriation of capital by U.S. and other investors. Since then, Russian securities lost all, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or nearly all, their market value, and many other issuers, securities and markets have been adversely affected. The </span><span style="color:#000000;font-family:times new roman;font-size:10pt">ongoing conflict has resulted in significant market disruptions, including in certain markets, industries and sectors, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">such as the oil and natural gas markets, and negatively affected global supply chains, food supplies, inflation and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">global growth. The U.S. and other countries may impose sanctions on other countries, companies and individuals in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">light of Russia’s military invasion. The extent and duration of the military action or future escalation of such hostilities, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the extent and impact of existing and future sanctions, market disruptions and volatility, and the result of any diplomatic </span><span style="color:#000000;font-family:times new roman;font-size:10pt">negotiations cannot be predicted. These and any related events could have a significant impact on the value and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">liquidity of certain Fund investments, on Fund performance and the value of an investment in the Fund</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Circumstances that impact one country could have profound impacts on other countries and on global economies </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or markets</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Additional risks of investing in emerging markets include:</span></div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.0pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The extent of economic development, political stability, market depth, infrastructure, capitalization and regulatory </span><span style="color:#000000;font-family:times new roman;font-size:10pt">oversight can be less than in more developed markets. Emerging market economies tend to be less diversified than </span><span style="color:#000000;font-family:times new roman;font-size:10pt">those of more developed countries. They typically have fewer medical and economic resources than more developed </span><span style="color:#000000;font-family:times new roman;font-size:10pt">countries and thus they may be less able to control or mitigate the effects of a pandemic</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.0pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Emerging market countries may experience rising interest rates, or, more significantly, rapid inflation or hyperinflation</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.0pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund could experience a loss from settlement and custody practices in some emerging markets. Less developed </span><span style="color:#000000;font-family:times new roman;font-size:10pt">markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by </span><span style="color:#000000;font-family:times new roman;font-size:10pt">local banks, agents and depositories. Settlement of trades in these markets can take longer than in other markets and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the Fund may not receive its proceeds from the sale of certain securities for an extended period (possibly several weeks </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or even longer)</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The possibility that a counterparty may not complete a currency or securities transaction</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:12pt;text-align:left;width:3.9pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">•</span></div> <div style="float:left;line-height:12pt;margin-left:5.1pt;text-align:left;width:466.00pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Low trading volumes may result in a lack of liquidity and in extreme price volatility</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risks of investment in other funds.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Investing in other investment companies, including exchange-traded funds </span><span style="color:#000000;font-family:times new roman;font-size:10pt">(ETFs) and closed-end funds, subjects the Fund to the risks of investing in the underlying securities or assets held by </span><span style="color:#000000;font-family:times new roman;font-size:10pt">those funds. When investing in another fund, the Fund will bear a pro rata portion of the underlying fund’s expenses, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">including management fees, in addition to its own expenses. ETFs and closed-end funds are bought and sold based on </span><span style="color:#000000;font-family:times new roman;font-size:10pt">market prices and can trade at a premium or a discount to the ETF’s or closed-end fund’s net asset value. Such funds </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may trade at a discount for an extended period and may not ever realize their net asset value.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Derivatives risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Using futures, options and other derivatives exposes the Fund to special risks and costs and may </span><span style="color:#000000;font-family:times new roman;font-size:10pt">result in losses to the Fund, even when used for hedging purposes. Using derivatives can increase losses and reduce </span><span style="color:#000000;font-family:times new roman;font-size:10pt">opportunities for gain when market prices, interest rates or currencies, or the derivative instruments themselves, behave </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in a way not anticipated by the Fund, especially in abnormal market conditions. Using derivatives can have a leveraging </span><span style="color:#000000;font-family:times new roman;font-size:10pt">effect (which may increase investment losses) and increase the Fund’s volatility, which is the degree to which the Fund’s </span><span style="color:#000000;font-family:times new roman;font-size:10pt">share price may fluctuate within a short time period. Certain derivatives have the potential for unlimited loss, regardless </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of the size of the Fund’s initial investment. Derivatives are generally subject to the risks applicable to the assets, rates, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">indices or other indicators underlying the derivative. If changes in a derivative’s value do not correspond to changes in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the value of the Fund’s other investments or do not correlate well with the underlying assets, rate or index, the Fund may </span><span style="color:#000000;font-family:times new roman;font-size:10pt">not fully benefit from, or could lose money on, or could experience unusually high expenses as a result of, the derivative </span><span style="color:#000000;font-family:times new roman;font-size:10pt">position. The other parties to certain derivative transactions present the same types of credit risk as issuers of fixed </span><span style="color:#000000;font-family:times new roman;font-size:10pt">income securities. Derivatives also tend to involve greater liquidity risk and they may be difficult to value. The Fund </span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">may be unable to terminate or sell its derivative positions. In fact, many over-the-counter derivatives will not have </span><span style="color:#000000;font-family:times new roman;font-size:10pt">liquidity beyond the counterparty to the instrument. The Fund also may have to sell assets at inopportune times to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">satisfy its obligations. Use of derivatives or similar instruments may have different tax consequences for the Fund than </span><span style="color:#000000;font-family:times new roman;font-size:10pt">an investment in the underlying security, and those differences may affect the amount, timing and character of income </span><span style="color:#000000;font-family:times new roman;font-size:10pt">distributed to shareholders. The Fund’s use of derivatives may also increase the amount of taxes payable by shareholders. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Risks associated with the use of derivatives are magnified to the extent that an increased portion of the Fund’s assets are </span><span style="color:#000000;font-family:times new roman;font-size:10pt">committed to derivatives in general or are invested in just one or a few types of derivatives.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The U.S. government and foreign governments have adopted and implemented or are in the process of adopting and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">implementing regulations governing derivative markets, including mandatory clearing of certain derivatives, margin </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and reporting requirements. The ultimate impact of the regulations remains unclear. Additional regulation of derivatives </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may make derivatives more costly, may limit their availability or utility or otherwise adversely affect their performance, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or may disrupt markets. The Fund may be exposed to additional risks as a result of the additional regulations. The extent </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and impact of the regulations are not yet fully known and may not be for some time. In addition, the SEC has proposed </span><span style="color:#000000;font-family:times new roman;font-size:10pt">a new rule that would change the regulation of the use of derivatives by registered investment companies, such as the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund. If the proposed rule takes effect, it could limit the ability of the Fund to invest in derivatives.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">There are several risks associated with the use of futures contracts and futures options. A purchase or sale of a futures </span><span style="color:#000000;font-family:times new roman;font-size:10pt">contract may result in losses in excess of the amount invested in the futures contract. While the Fund may enter into </span><span style="color:#000000;font-family:times new roman;font-size:10pt">futures contracts and options on futures contracts for hedging purposes, the use of futures contracts and options on </span><span style="color:#000000;font-family:times new roman;font-size:10pt">futures contracts might result in a poorer overall performance for the Fund than if it had not engaged in any such </span><span style="color:#000000;font-family:times new roman;font-size:10pt">transactions. There may be an imperfect correlation between the Fund’s portfolio holdings and futures contracts or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">options on futures contracts entered into by the Fund, which may prevent the Fund from achieving the intended hedge </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or expose the Fund to risk of loss. The degree of imperfection of correlation depends on circumstances such as variations </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in market demand for futures, futures options and the related securities, including technical influences in futures and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">futures options trading, and differences between the securities markets and the securities underlying the standard contracts </span><span style="color:#000000;font-family:times new roman;font-size:10pt">available for trading. Further, the Fund’s use of futures contracts and options on futures contracts to reduce risk involves </span><span style="color:#000000;font-family:times new roman;font-size:10pt">costs and will be subject to the Adviser’s ability to predict correctly changes in interest rate relationships or other factors.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Under an interest rate swap agreement, the payment obligations, if any, of the Fund and the counterparty are netted </span><span style="color:#000000;font-family:times new roman;font-size:10pt">against each other, resulting in a net payment due either from the Fund or the counterparty. Depending on whether the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund would be entitled to receive payments from the counterparty on a swap or cap, which in turn would depend on the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">general state of short-term interest rates at that point in time, a default by a counterparty could negatively impact the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund’s overall performance. In addition, at the time an interest rate swap or cap transaction reaches its scheduled </span><span style="color:#000000;font-family:times new roman;font-size:10pt">termination date, there is a risk that the Fund would not be able to obtain a replacement transaction or that the terms of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the replacement would not be as favorable as on the expiring transaction. If this occurs, it could have a negative impact </span><span style="color:#000000;font-family:times new roman;font-size:10pt">on the Fund’s performance.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The use of interest rate swaps and caps is a highly specialized activity that involves investment techniques and risks </span><span style="color:#000000;font-family:times new roman;font-size:10pt">different from those associated with ordinary portfolio security transactions. Depending on the state of interest rates in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">general, the Fund’s use of interest rate swaps or caps could enhance or harm the Fund’s overall performance. To the extent there </span><span style="color:#000000;font-family:times new roman;font-size:10pt">is a decline in interest rates, the value of the interest rate swap or cap could decline, and could result in a decline in the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund’s net asset value. In addition, if short-term interest rates are lower than the Fund’s fixed rate of payment on the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">interest rate swap, the swap will reduce the Fund’s net earnings. If, on the other hand, short-term interest rates are </span><span style="color:#000000;font-family:times new roman;font-size:10pt">higher than the fixed rate of payment on the interest rate swap, the swap will enhance the Fund’s net earnings. Buying </span><span style="color:#000000;font-family:times new roman;font-size:10pt">interest rate caps could enhance the Fund’s performance by providing a maximum leverage expense. Buying interest </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rate caps could also decrease the Fund’s net earnings in the event that the premium paid by the Fund to the counterparty </span><span style="color:#000000;font-family:times new roman;font-size:10pt">exceeds the additional amount the Fund would have been required to pay had it not entered into the cap agreement.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Interest rate swaps and caps do not involve the delivery of securities or other underlying assets or principal. Accordingly, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the risk of loss with respect to interest rate swaps is limited to the net amount of interest payments that the Fund is </span><span style="color:#000000;font-family:times new roman;font-size:10pt">contractually obligated to make and any termination payments potentially owed by the Fund. If the counterparty defaults, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the Fund would not be able to use the anticipated net receipts under the swap or cap to offset interest payments on </span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">borrowings. Depending on whether the Fund would be entitled to receive payments from the counterparty on the swap </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or cap, which in turn would depend on the general state of short-term interest rates at that point in time, such a default </span><span style="color:#000000;font-family:times new roman;font-size:10pt">could negatively impact the Fund’s performance.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The Fund will be required to maintain its positions with a clearing organization through one or more clearing brokers. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">The clearing organization will require the Fund to post margin and the broker may require the Fund to post additional </span><span style="color:#000000;font-family:times new roman;font-size:10pt">margin to secure the Fund’s obligations. The amount of margin required may change from time to time. In addition, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">cleared transactions may be more expensive to maintain than over-the-counter transactions and may require the Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to deposit larger amounts of margin. The Fund may not be able to recover margin amounts if the broker has financial </span><span style="color:#000000;font-family:times new roman;font-size:10pt">difficulties. Also, the broker may require the Fund to terminate a derivatives position under certain circumstances. This </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may cause the Fund to lose money. The Fund’s ability to use certain derivative instruments currently is limited by </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Commodity Futures Trading Commission rules.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Credit default swap risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Credit default swap contracts, a type of derivative instrument, involve heightened risks and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may result in losses to the Fund. Credit default swaps may in some cases be illiquid and difficult to value, and they </span><span style="color:#000000;font-family:times new roman;font-size:10pt">increase credit risk since the Fund has exposure to both the issuer of the referenced obligation and the counterparty to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the credit default swap. If the Fund buys a credit default swap, it will be subject to the risk that the credit default swap </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may expire worthless, as the credit default swap would only generate income in the event of a default on the underlying </span><span style="color:#000000;font-family:times new roman;font-size:10pt">debt security or other specified event. As a buyer, the Fund would also be subject to credit risk relating to the seller’s </span><span style="color:#000000;font-family:times new roman;font-size:10pt">payment of its obligations in the event of a default (or similar event). If the Fund sells a credit default swap, it will be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">exposed to the credit risk of the issuer of the obligation to which the credit default swap relates. As a seller, the Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">would also be subject to leverage risk, because it would be liable for the full notional amount of the swap in the event of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">default (or similar event). Swaps may be difficult to unwind or terminate. Certain index-based credit default swaps are </span><span style="color:#000000;font-family:times new roman;font-size:10pt">structured in tranches, whereby junior tranches assume greater default risk than senior tranches. The absence of a central </span><span style="color:#000000;font-family:times new roman;font-size:10pt">exchange or market for swap transactions may lead, in some instances, to difficulties in trading and valuation, especially </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in the event of market disruptions. Relatively recent legislation requires certain swaps to be executed through a centralized </span><span style="color:#000000;font-family:times new roman;font-size:10pt">exchange or regulated facility and be cleared through a regulated clearinghouse. Although this clearing mechanism is </span><span style="color:#000000;font-family:times new roman;font-size:10pt">generally expected to reduce counterparty credit risk, it may disrupt or limit the swap market and may not result in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">swaps being easier to trade or value. As swaps become more standardized, the Fund may not be able to enter into swaps </span><span style="color:#000000;font-family:times new roman;font-size:10pt">that meet its investment needs. The Fund also may not be able to find a clearinghouse willing to accept the swaps for </span><span style="color:#000000;font-family:times new roman;font-size:10pt">clearing. In a cleared swap, a central clearing organization will be the counterparty to the transaction. The Fund will </span><span style="color:#000000;font-family:times new roman;font-size:10pt">assume the risk that the clearinghouse may be unable to perform its obligations.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Forward foreign currency transactions risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> To the extent that the Fund enters into forward foreign currency </span><span style="color:#000000;font-family:times new roman;font-size:10pt">transactions, it may not fully benefit from or may lose money on the transactions if changes in currency rates do not </span><span style="color:#000000;font-family:times new roman;font-size:10pt">occur as anticipated or do not correspond accurately to changes in the value of the Fund's holdings, or if the counterparty </span><span style="color:#000000;font-family:times new roman;font-size:10pt">defaults. Such transactions may also prevent the Fund from realizing profits on favorable movements in exchange rates. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Risk of counterparty default is greater for counterparties located in emerging markets. The Fund's ability to use forward </span><span style="color:#000000;font-family:times new roman;font-size:10pt">foreign currency transactions successfully depends on a number of factors, including the forward foreign currency </span><span style="color:#000000;font-family:times new roman;font-size:10pt">transactions being available at prices that are not too costly, the availability of liquid markets, and Victory Capital’s </span><span style="color:#000000;font-family:times new roman;font-size:10pt">judgment regarding the direction of changes in currency exchange rates.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risks of investing in inverse floating rate obligations.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The interest rate on inverse floating rate obligations will </span><span style="color:#000000;font-family:times new roman;font-size:10pt">generally decrease as short-term interest rates increase, and increase as short-term rates decrease. Due to their leveraged </span><span style="color:#000000;font-family:times new roman;font-size:10pt">structure, the sensitivity of the market value of an inverse floating rate obligation to changes in interest rates is generally </span><span style="color:#000000;font-family:times new roman;font-size:10pt">greater than a comparable long-term bond issued by the same issuer and with similar credit quality, redemption and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">maturity provisions. Inverse floating rate obligations may be volatile and involve leverage risk.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Leveraging risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The value of your investment may be more volatile and other risks tend to be compounded if the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund borrows or uses derivatives or other investments that have embedded leverage. Leverage generally magnifies the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">effect of any increase or decrease in the value of the Fund's underlying assets and creates a risk of loss of value on a larger </span><span style="color:#000000;font-family:times new roman;font-size:10pt">pool of assets than the Fund would otherwise have, potentially resulting in the loss of all assets. Engaging in such </span><span style="color:#000000;font-family:times new roman;font-size:10pt">transactions may cause the Fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations. </span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">New derivatives regulations require the Fund, to the extent it uses derivatives to a material extent, to, among other </span><span style="color:#000000;font-family:times new roman;font-size:10pt">things, comply with certain overall limits on leverage. These regulations may limit the ability of the Fund to pursue its </span><span style="color:#000000;font-family:times new roman;font-size:10pt">investment strategies and may not be effective to mitigate the Fund's risk of loss from derivatives.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Mortgage dollar roll transactions risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The benefits to the Fund from mortgage dollar roll transactions depend </span><span style="color:#000000;font-family:times new roman;font-size:10pt">upon the Adviser’s ability to forecast mortgage prepayment patterns on different mortgage pools. The Fund may lose </span><span style="color:#000000;font-family:times new roman;font-size:10pt">money if, during the period between the time it agrees to the forward purchase of the mortgage securities and the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">settlement date, these securities decline in value due to market conditions or prepayments on the underlying mortgages.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Risks of zero coupon bonds, payment in kind, deferred and contingent payment securities.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Zero coupon </span><span style="color:#000000;font-family:times new roman;font-size:10pt">bonds (which do not pay interest until maturity) and payment in kind securities (which pay interest in the form of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">additional securities) may be more speculative and may fluctuate more in value than securities which pay income </span><span style="color:#000000;font-family:times new roman;font-size:10pt">periodically and in cash. Payment in kind securities are usually less volatile than zero coupon bonds, but more volatile </span><span style="color:#000000;font-family:times new roman;font-size:10pt">than cash pay securities. These securities are more likely to respond to changes in interest rates than interest-bearing </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities having similar maturities and credit quality. The higher interest rates of payment in kind securities reflect the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">payment deferral and increased credit risk associated with these instruments, and payment in kind instruments generally </span><span style="color:#000000;font-family:times new roman;font-size:10pt">represent a significantly higher credit risk than coupon bonds. These securities are more sensitive to the credit quality </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of the underlying issuer. Payment in kind securities may be difficult to value because their continuing accruals require </span><span style="color:#000000;font-family:times new roman;font-size:10pt">continuing judgments about the collectability of the deferred payments and the value of any associated collateral. Deferred </span><span style="color:#000000;font-family:times new roman;font-size:10pt">interest securities are obligations that generally provide for a period of delay before the regular payment of interest </span><span style="color:#000000;font-family:times new roman;font-size:10pt">begins and are issued at a significant discount from face value. The interest rate on contingent payment securities is </span><span style="color:#000000;font-family:times new roman;font-size:10pt">determined by the outcome of an event, such as the performance of a financial index. If the financial index does not </span><span style="color:#000000;font-family:times new roman;font-size:10pt">increase by a prescribed amount, the Fund may receive no interest.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Unlike bonds that pay interest throughout the period to maturity, the Fund generally will realize no cash until maturity </span><span style="color:#000000;font-family:times new roman;font-size:10pt">and, if the issuer defaults, the Fund may obtain no return at all on its investment. In addition, although the Fund receives </span><span style="color:#000000;font-family:times new roman;font-size:10pt">no periodic cash payments on such securities, the Fund is deemed for tax purposes to receive income from such securities, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">which applicable tax rules require the Fund to distribute to shareholders. Such distributions may be taxable when </span><span style="color:#000000;font-family:times new roman;font-size:10pt">distributed to shareholders and, in addition, could reduce the Fund’s reserve position and require the Fund to sell </span><span style="color:#000000;font-family:times new roman;font-size:10pt">securities and incur a gain or loss at a time it may not otherwise want in order to provide the cash necessary for </span><span style="color:#000000;font-family:times new roman;font-size:10pt">these distributions.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Tax and regulated investment company qualification risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> As described in more detail in the SAI, in order for </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the Fund to qualify for the favorable tax treatment generally available to regulated investment companies, at least 90% </span><span style="color:#000000;font-family:times new roman;font-size:10pt">of the Fund’s gross income each taxable year must consist of qualifying income, the Fund must meet certain asset </span><span style="color:#000000;font-family:times new roman;font-size:10pt">diversification tests at the end of each fiscal quarter, and the Fund must meet certain distribution requirements for each </span><span style="color:#000000;font-family:times new roman;font-size:10pt">taxable year.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">The tax treatment of certain ILS is not entirely clear. Certain of the Fund’s investments (including, potentially, certain </span><span style="color:#000000;font-family:times new roman;font-size:10pt">ILS) may generate income that is not qualifying income. The Fund might generate more non-qualifying income than </span><span style="color:#000000;font-family:times new roman;font-size:10pt">anticipated, might not be able to generate qualifying income in a particular taxable year at levels sufficient to meet the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">qualifying income test, or might not be able to determine the percentage of qualifying income it has derived for a taxable </span><span style="color:#000000;font-family:times new roman;font-size:10pt">year until after year-end. The Fund may determine not to make an investment that it otherwise would have made, or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may dispose of an investment it otherwise would have retained (potentially resulting in the recognition of taxable gain </span><span style="color:#000000;font-family:times new roman;font-size:10pt">or loss, and potentially under disadvantageous circumstances), in an effort to meet the qualifying income test.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Certain investments made by the Fund (including certain ILS) may be treated as equity in passive foreign investment </span><span style="color:#000000;font-family:times new roman;font-size:10pt">companies (</span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">PFICs</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">) for federal income tax purposes. In general, a PFIC is a foreign corporation (i) that receives at least </span><span style="color:#000000;font-family:times new roman;font-size:10pt">75% of its annual gross income from passive sources (such as interest, dividends, certain rents and royalties, or capital </span><span style="color:#000000;font-family:times new roman;font-size:10pt">gains) or (ii) where at least 50% of its assets (computed based on average fair market value) either produce or are held </span><span style="color:#000000;font-family:times new roman;font-size:10pt">for the production of passive income. If the Fund acquires any equity interest in a PFIC and does not make a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">qualified </span><span style="color:#000000;font-family:times new roman;font-size:10pt">electing fund</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> (</span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">QEF</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">) election or mark-to-market election with respect to the equity interest in the PFIC, the Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">generally would, be subject to U.S. federal income tax and additional interest charges on </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">excess distributions</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> received </span><span style="color:#000000;font-family:times new roman;font-size:10pt">from the PFIC or on gain from the sale of stock in the PFIC, and the Fund cannot avoid such tax and interest charges by </span><span style="color:#000000;font-family:times new roman;font-size:10pt">timely distributing the excess distributions and gain to its shareholders. The Fund would not be able to pass through to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">its shareholders any credit or deduction for such a tax paid by the Fund. A QEF election or a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">mark to market</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> election </span></div><div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:times new roman;font-size:10pt">may be available with respect to a PFIC that would ameliorate the adverse tax consequences under the default rule </span><span style="color:#000000;font-family:times new roman;font-size:10pt">described above, but such an election could require the Fund to recognize taxable income or gain (which would be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">subject to the distribution requirements applicable to regulated investment companies, as described above) without the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">concurrent receipt of cash (i.e., </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">phantom income</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">). In order to satisfy the distribution requirements to qualify as a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">regulated investment company and avoid being subject to U.S. federal income and excise tax, the Fund may be required </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to liquidate portfolio securities that it might otherwise have continued to hold (potentially resulting in the recognition of </span><span style="color:#000000;font-family:times new roman;font-size:10pt">taxable gain or loss, and potentially under disadvantageous circumstances), or the Fund may be required to borrow </span><span style="color:#000000;font-family:times new roman;font-size:10pt">cash. In order for the Fund to make a qualified electing fund election with respect to a PFIC, the PFIC would have to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">agree to provide certain tax information to the Fund on an annual basis, which it might not agree to do. If the Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">makes a mark-to-market election with respect to a PFIC, any mark-to-market gain or loss (to the extent permitted) will </span><span style="color:#000000;font-family:times new roman;font-size:10pt">be considered ordinary. The Fund may limit and/or manage its holdings in PFICs to limit its tax liability or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">phantom </span><span style="color:#000000;font-family:times new roman;font-size:10pt">income</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> from the recognition of taxable income or gain without the current receipt of cash or maximize its after-tax </span><span style="color:#000000;font-family:times new roman;font-size:10pt">return from these investments.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">If a sufficient portion of the equity interests for federal income tax purposes in a foreign issuer (including certain ILS </span><span style="color:#000000;font-family:times new roman;font-size:10pt">issuers) is held or deemed held by the Fund, independently or together with certain other U.S. persons, that issuer may </span><span style="color:#000000;font-family:times new roman;font-size:10pt">be treated as a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">controlled foreign corporation</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> (a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">CFC</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">) with respect to the Fund, in which case the Fund would be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">required to take into account each year, as ordinary income, its share of certain portions of that issuer’s </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">subpart F </span><span style="color:#000000;font-family:times new roman;font-size:10pt">income</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">tested income</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt">, whether or not such amounts are distributed. Generally, if an entity is both a CFC and a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">PFIC with respect to the Fund, the rules applicable to CFCs override those applicable to PFICs with respect to the Fund. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">In order to satisfy the distribution requirements to qualify as a regulated investment company and avoid being subject to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">U.S. federal income and excise tax, the Fund may be required to liquidate portfolio securities that it might otherwise </span><span style="color:#000000;font-family:times new roman;font-size:10pt">have continued to hold (potentially resulting in the recognition of taxable gain or loss, and potentially under disadvantageous </span><span style="color:#000000;font-family:times new roman;font-size:10pt">circumstances), or the Fund may be required to borrow cash. In addition, some Fund gains on the disposition of interests </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in a CFC may be treated as ordinary income. The Fund may limit and/or manage its holdings in issuers that could be </span><span style="color:#000000;font-family:times new roman;font-size:10pt">treated as CFCs in order to limit its tax liability or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">phantom income</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> from the recognition of income without the current </span><span style="color:#000000;font-family:times new roman;font-size:10pt">receipt of cash or maximize its after-tax return from these investments.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">If the Fund were to fail to qualify for treatment as a regulated investment company, it would generally be taxed in the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">same manner as an ordinary corporation, and distributions to its shareholders generally would not be deductible by the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund in computing its taxable income. Under certain circumstances, the Fund may be able to cure a failure to meet the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">qualifying income test or the diversification test if such failure was due to reasonable cause and not willful neglect, but in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">order to do so the Fund may incur a significant penalty tax that would reduce (and potentially could eliminate) the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund’s returns.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Valuation risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Many factors may influence the price at which the Fund could sell any particular portfolio investment. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">The sales price may well differ - higher or lower - from the Fund’s valuation of the investment, and such differences </span><span style="color:#000000;font-family:times new roman;font-size:10pt">could be significant, particularly for illiquid securities and securities that trade in thin markets and/or markets that </span><span style="color:#000000;font-family:times new roman;font-size:10pt">experience extreme volatility. These differences may increase significantly and affect Fund investments more broadly </span><span style="color:#000000;font-family:times new roman;font-size:10pt">during periods of market volatility. Nearly all of the Fund's investments are valued using fair value methodologies. Investors </span><span style="color:#000000;font-family:times new roman;font-size:10pt">who purchase or submit repurchase requests for Fund shares may receive fewer or more shares, or lower or higher </span><span style="color:#000000;font-family:times new roman;font-size:10pt">repurchase requests proceeds, than they would have received if the securities had not been fair-valued or if a different </span><span style="color:#000000;font-family:times new roman;font-size:10pt">valuation methodology had been used. The value of foreign securities, certain fixed income securities and currencies, as </span><span style="color:#000000;font-family:times new roman;font-size:10pt">applicable, may be materially affected by events after the close of the markets on which they are traded, but before the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund determines its net asset value. The ability to value the Fund’s investments may also be impacted by technological </span><span style="color:#000000;font-family:times new roman;font-size:10pt">issues and/or errors by pricing services or other third party service providers.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Concentration risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> A Fund that invests a significant percentage of its assets in a single industry may be particularly </span><span style="color:#000000;font-family:times new roman;font-size:10pt">susceptible to adverse economic, regulatory or other events affecting that industry and may be more risky than a Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">that does not concentrate in an industry.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">Industries in the financial segment, such as insurance companies, may be sensitive to changes in interest rates, credit </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rating downgrades, decreased liquidity in credit markets, and general economic activity and are generally subject to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">extensive government regulation.</span></div> <div style="line-height:12.0pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Non-diversification risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The Fund is not diversified, which means that it can invest a higher percentage of its assets </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in the securities of any one or more issuers than a diversified fund. Being non-diversified may magnify the Fund’s losses </span><span style="color:#000000;font-family:times new roman;font-size:10pt">from adverse events affecting a particular issuer.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Cybersecurity risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Cybersecurity failures by and breaches of the Fund’s Adviser, transfer agent, distributor, custodian, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">fund accounting agent or other service providers may disrupt Fund operations, interfere with the Fund’s ability to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">calculate its NAV, prevent Fund shareholders from purchasing shares, submitting repurchase requests, or receiving </span><span style="color:#000000;font-family:times new roman;font-size:10pt">distributions or receiving timely information regarding the Fund or their investment in the Fund, cause loss of or </span><span style="color:#000000;font-family:times new roman;font-size:10pt">unauthorized access to private shareholder information, and result in financial losses to the Fund and its shareholders, </span><span style="color:#000000;font-family:times new roman;font-size:10pt">regulatory fines, penalties, reputational damage, or additional compliance costs. Substantial costs may be incurred in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">order to prevent any cyber incidents in the future. The Fund and its shareholders could be negatively impacted as a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">result. New ways to carry out cyber attacks continue to develop. Therefore, there is a chance that some risks have not </span><span style="color:#000000;font-family:times new roman;font-size:10pt">been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">plan for or respond to a cyber attack.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Expense risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> Your actual costs of investing in the Fund may be higher than the expenses shown in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">Annual Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">operating expenses</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> for a variety of reasons. For example, expense ratios may be higher than those shown if overall net </span><span style="color:#000000;font-family:times new roman;font-size:10pt">assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets </span><span style="color:#000000;font-family:times new roman;font-size:10pt">are volatile.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Portfolio selection risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The Adviser's judgment about the quality, relative yield, relative value or market trends </span><span style="color:#000000;font-family:times new roman;font-size:10pt">affecting a particular sector or region, market segment, security, industry or about interest rates or other market factors </span><span style="color:#000000;font-family:times new roman;font-size:10pt">may prove to be incorrect or may not produce the desired results, or there may be imperfections, errors or limitations in </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the models, tools and information used by the Adviser.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Repurchase offers risk.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The Fund is an </span><span style="color:#000000;font-family:times new roman;font-size:10pt">“</span><span style="color:#000000;font-family:times new roman;font-size:10pt">interval fund</span><span style="color:#000000;font-family:times new roman;font-size:10pt">”</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> and, in order to provide some liquidity to shareholders, will </span><span style="color:#000000;font-family:times new roman;font-size:10pt">make periodic offers to repurchase between 5% and 25% of its outstanding shares at NAV, pursuant to Rule 23c-3 under </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the 1940 Act. The Fund believes that these repurchase offers are generally beneficial to the Fund’s shareholders, and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">repurchases generally will be funded from available cash or sales of portfolio securities. However, repurchase offers and </span><span style="color:#000000;font-family:times new roman;font-size:10pt">the need to fund repurchase obligations may affect the ability of the Fund to be fully invested or force the Fund to </span><span style="color:#000000;font-family:times new roman;font-size:10pt">maintain a higher percentage of its assets in liquid investments, which may harm the Fund’s investment performance. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Moreover, reduction in the size of the Fund through repurchases may result in untimely sales of portfolio securities </span><span style="color:#000000;font-family:times new roman;font-size:10pt">(with associated imputed transaction costs, which may be significant), and may limit the ability of the Fund to participate </span><span style="color:#000000;font-family:times new roman;font-size:10pt">in new investment opportunities or to achieve its investment objective. The Fund does not anticipate </span><span style="color:#000000;font-family:times new roman;font-size:10pt">employing investment leverage, but if it were to do so in the future, repurchases of shares may compound the adverse </span><span style="color:#000000;font-family:times new roman;font-size:10pt">effects of leverage in a declining market. In addition, if the Fund borrows money to finance repurchases, interest on that </span><span style="color:#000000;font-family:times new roman;font-size:10pt">borrowing will negatively affect shareholders who do not request that their shares be repurchased by increasing Fund </span><span style="color:#000000;font-family:times new roman;font-size:10pt">expenses and reducing any net investment income. If a repurchase offer is oversubscribed and the Fund determines not </span><span style="color:#000000;font-family:times new roman;font-size:10pt">to repurchase additional shares beyond the repurchase offer amount, or if shareholder repurchase requests are in an </span><span style="color:#000000;font-family:times new roman;font-size:10pt">amount of shares greater than that which the Fund is entitled to repurchase, the Fund will repurchase shares on a pro </span><span style="color:#000000;font-family:times new roman;font-size:10pt">rata basis, and shareholders will have to wait until the next repurchase offer to make another repurchase request. As a </span><span style="color:#000000;font-family:times new roman;font-size:10pt">result, shareholders may be unable to liquidate all or a given percentage of their investment in the Fund at NAV during </span><span style="color:#000000;font-family:times new roman;font-size:10pt">a particular repurchase offer. Some shareholders, in anticipation of proration, may submit more shares for repurchase </span><span style="color:#000000;font-family:times new roman;font-size:10pt">than they wish to have repurchased in a particular quarter, thereby increasing the likelihood that proration will occur. A </span><span style="color:#000000;font-family:times new roman;font-size:10pt">shareholder may be subject to market and other risks, and the NAV of shares submitted for repurchase in a repurchase </span><span style="color:#000000;font-family:times new roman;font-size:10pt">offer may decline to the extent there is any delay between the repurchase request deadline and the date on which the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">NAV for such shares is determined. In addition, the repurchase of shares by the Fund may be a taxable event to shareholders.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9pt;font-weight:bold">Anti-takeover provisions.</span><span style="color:#000000;font-family:times new roman;font-size:10pt"> The Fund’s Agreement and Declaration of Trust and by-laws include provisions that could </span><span style="color:#000000;font-family:times new roman;font-size:10pt">limit the ability of other entities or persons to acquire control of the Fund or convert the Fund to open-end status.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">To learn more about the Fund's investments and risks, you should obtain and read the statement of additional information. </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Please note that there are many other factors that could adversely affect your investment and that could prevent the </span><span style="color:#000000;font-family:times new roman;font-size:10pt">Fund from achieving its goals.</span></div> All shares have equal rights to the payment of dividends and other distributions and the distribution of assets upon liquidation. Common shareholders are entitled to one vote for each share held. <div style="margin-top:6pt;"><span style="color:#000000;font-family:times new roman;font-size:10pt">As of January 31, 2026, the following number of shares were outstanding:</span><span style="color:#000000;font-family:times new roman;font-size:10pt;line-height:12pt"> </span><span style="color:#000000;font-family:times new roman;font-size:1pt;line-height:1pt"> </span></div><table cellpadding="0" cellspacing="0" style="empty-cells:show;width:480pt"> <tr style="height:10.25pt"> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #000000;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:240pt;"> <div style="line-height:10.0pt;text-align:left;"> <div style="margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt">(1)</span></div> </div> </td> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #000000;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:96pt;"> <div style="line-height:10.0pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt">(2)</span></div> </div> </td> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #000000;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:75pt;"> <div style="line-height:10.0pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt">(3)</span></div> </div> </td> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #000000;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:69pt;"> <div style="line-height:10.0pt;text-align:left;"> <div style="margin-left:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt">(4)</span></div> </div> </td> </tr> <tr style="height:49.5pt"> <td style="background-color:azure;border-bottom:0.5pt solid #000000;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:240pt;"> <div style="line-height:10.0pt;text-align:left;"> <div style="margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt">Title of class</span></div> </div> </td> <td style="background-color:azure;border-bottom:0.5pt solid #000000;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:96pt;"> <div style="line-height:10.0pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt">Amount Authorized</span></div> </div> </td> <td style="background-color:azure;border-bottom:0.5pt solid #000000;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:75pt;"> <div style="line-height:10.0pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt">Amount Held by </span></div> <div style="margin-left:6pt;margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt">the Fund for its </span></div> <div style="margin-left:6pt;margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt">own Account</span></div> </div> </td> <td style="background-color:azure;border-bottom:0.5pt solid #000000;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Bottom;width:69pt;"> <div style="line-height:10.0pt;text-align:left;"> <div style="margin-left:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt">Amount of </span></div> <div style="margin-left:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt">Outstanding </span></div> <div style="margin-left:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt">Shares Exclusive </span></div> <div style="margin-left:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt">of Amount shown </span></div> <div style="margin-left:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;font-weight:bold;margin-left:0.0pt">under (3)</span></div> </div> </td> </tr> <tr style="height:13.75pt"> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #000000;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Top;width:240pt;"> <div style="line-height:10.0pt;text-align:left;"> <div style="margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;margin-left:0.0pt">Common Shares</span></div> </div> </td> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #000000;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Top;width:96pt;"> <div style="line-height:10.0pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;margin-left:0.0pt">Unlimited</span></div> </div> </td> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #000000;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Top;width:75pt;"> <div style="line-height:10.0pt;text-align:left;"> <div style="margin-left:6pt;margin-right:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;margin-left:0.0pt">0</span></div> </div> </td> <td style="background-color:#FFFFFF;border-bottom:0.5pt solid #000000;padding-bottom:1.75pt;padding-top:1.75pt;vertical-align:Top;width:69pt;"> <div style="line-height:10.0pt;text-align:left;"> <div style="margin-left:6pt;text-align:left;white-space:nowrap;"><span style="color:#000000;font-family:arial narrow;font-size:8pt;margin-left:0.0pt">77,373,626.286</span></div> </div> </td> </tr> </table> Common Shares 0 77373626.286 The Fund does not currently charge a repurchase fee. However, the Fund may in the future charge a repurchase fee of up to 2.00%, which the Fund would retain to help offset non-de minimis estimated costs related to the repurchase. The Adviser has contractually agreed to waive its management fee and/or reimburse expenses so that the total annual fund operating expenses (excluding certain items such as acquired fund fees and expenses, interest, taxes, brokerage commissions, capitalized expenses, and other extraordinary expenses) do not exceed 1.93% through at least April 1, 2028. The Adviser is permitted to recoup advisory fees waived and expenses reimbursed for up to three years after the date of the waiver or reimbursement, subject to the lesser of any operating expense limits in effect at the time of (a) the original waiver or expense reimbursement; or (b) the recoupment, after giving effect to the recoupment amount. This agreement may only be terminated by the Fund's Board of Trustees (the “Board”).