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STONE RIDGE TRUST V
ONE VANDERBILT AVENUE
65TH FLOOR
NEW YORK
10017
855
609-3680
STONE RIDGE TRUST V
ONE VANDERBILT AVENUE
65TH FLOOR
NEW YORK
10017
As soon as practicable after the effective date of this Registration Statement.
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<div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The following table describes the fees and expenses you may pay if you buy and hold Shares of the Fund.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 1pt; line-height: 1pt; letter-spacing: 0px; top: 0px;display:inline;"></div>
<table cellpadding="0" cellspacing="0" style="text-align:start; empty-cells:show;width:468pt">
<tr style="height:34.35pt">
<td style="vertical-align:Bottom;width:436.17pt"><div style="line-height:13.0pt;text-align:left"><div style="margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">Annual Fund Operating Expenses</div></div></div><div style="margin-right:6pt;text-align:Left;white-space:nowrap"><div style="border-bottom: 0.5pt groove rgb(0, 0, 0); color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">(expenses you pay each year as a percentage of the value of your investment)</div></div></div></div></td>
<td style="vertical-align:Bottom;width:31.83pt"><div style="line-height:0.5pt;text-align:left"><div style="margin-left:6pt;text-align:Center;white-space:nowrap"><div style="border-bottom: 0.5pt groove rgb(0, 0, 0); color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;"> </div></div></div></div></td></tr>
<tr style="height:12.85pt">
<td style="vertical-align:Bottom;width:436.17pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Management Fees</div></div></div></td>
<td style="vertical-align:Bottom;width:31.83pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">1.50%</div></div></div></td></tr>
<tr style="height:12pt">
<td style="vertical-align:Bottom;width:436.17pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:6pt;text-align:Left;white-space:nowrap"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Interest Payments on Borrowed Funds</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 6.5pt; margin-left: 0pt; position: relative; top: -4.25pt; letter-spacing: 0px;display:inline;">(1)</div></div></div></div></td>
<td style="vertical-align:Bottom;width:31.83pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">3.20%</div></div></div></td></tr>
<tr style="height:12pt">
<td style="vertical-align:Bottom;width:436.17pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:6pt;text-align:Left;white-space:nowrap"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Distribution and/or Service Fees</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 6.5pt; margin-left: 0pt; position: relative; top: -4.25pt; letter-spacing: 0px;display:inline;">(2)</div></div></div></div></td>
<td style="vertical-align:Bottom;width:31.83pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">0.12%</div></div></div></td></tr>
<tr style="height:12pt">
<td style="vertical-align:Bottom;width:436.17pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Other Expenses</div></div></div></td>
<td style="vertical-align:Bottom;width:31.83pt"><div style="line-height:0.5pt;text-align:left"><div style="margin-left:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></td></tr>
<tr style="height:12pt">
<td style="vertical-align:Bottom;width:436.17pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Loan Servicing Fees</div></div></div></td>
<td style="vertical-align:Bottom;width:31.83pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">1.73%</div></div></div></td></tr>
<tr style="height:12pt">
<td style="vertical-align:Bottom;width:436.17pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Other Expenses</div></div></div></td>
<td style="vertical-align:Bottom;width:31.83pt"><div style="line-height:0.5pt;text-align:left"><div style="margin-left:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></td></tr>
<tr style="height:12pt">
<td style="vertical-align:Bottom;width:436.17pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Recoupment</div></div></div></td>
<td style="vertical-align:Bottom;width:31.83pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">0.00%</div></div></div></td></tr>
<tr style="height:12.85pt">
<td style="vertical-align:Bottom;width:436.17pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">All Other Expenses</div></div></div></td>
<td style="vertical-align:Bottom;width:31.83pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:18.85%;margin-right:0%;padding-bottom:1pt"><div style="text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">0.88%</div></div></div></div></td></tr>
<tr style="height:19.7pt">
<td style="vertical-align:Bottom;width:436.17pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:6pt;margin-top:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Total Other Expenses</div></div></div></td>
<td style="vertical-align:Bottom;width:31.83pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:18.85%;margin-right:0%;padding-bottom:1pt"><div style="text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">2.61%</div></div></div></div></td></tr>
<tr style="height:12.85pt">
<td style="vertical-align:Bottom;width:436.17pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Total Annual Fund Operating Expenses</div></div></div></td>
<td style="vertical-align:Bottom;width:31.83pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">7.43%</div></div></div></td></tr>
<tr style="height:18.85pt">
<td style="vertical-align:Bottom;width:436.17pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:6pt;margin-top:6pt;text-align:Left;white-space:nowrap"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">(Fee Waiver and/or Expense Reimbursement)</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 6.5pt; margin-left: 0pt; position: relative; top: -4.25pt; letter-spacing: 0px;display:inline;">(3)</div></div></div></div></td>
<td style="vertical-align:Bottom;width:31.83pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:18.85%;margin-right:0%;padding-bottom:1pt"><div style="text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">0.00%</div></div></div></div></td></tr>
<tr style="height:14.55pt">
<td style="vertical-align:Bottom;width:436.17pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Total Annual Fund Operating Expenses After (Fee Waiver/Expense Reimbursement)</div></div></div></td>
<td style="vertical-align:Bottom;width:31.83pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:3pt double #000000;margin-left:18.85%;margin-right:0%;padding-bottom:1pt"><div style="text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">7.43%</div></div></div></div></td></tr></table><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 5pt; position: relative; top: -3.25pt; letter-spacing: 0px;display:inline;">(1)</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Reflects interest expenses paid on borrowings and the Fund’s use of leverage in the form of reverse repurchase agreements. “Interest </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Payments on Borrowed Funds” are based on actual amounts incurred during the Fund’s prior fiscal year and are annualized.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; line-height: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="clear: both; position: relative; max-height: 0px;"> </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 5pt; position: relative; top: -3.25pt; letter-spacing: 0px;display:inline;">(2)</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Distribution and/or Services Fees include a 0.05% fee paid pursuant to a distribution and servicing plan adopted by the Fund, a 0.05% fee </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">paid pursuant to a services agreement between the Fund and the Adviser and 0.02% of intermediary fees borne by the Fund. See </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">“Intermediary and Servicing Arrangements.”</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; line-height: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="clear: both; position: relative; max-height: 0px;"> </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 5pt; position: relative; top: -3.25pt; letter-spacing: 0px;display:inline;">(3)</div><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund is responsible for its operating expenses, including its organization expenses, which are expensed as incurred and are subject to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">the expense limitation agreement described below. Notwithstanding the foregoing, from April </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">17</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">2026</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;"> through June 30, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">2027</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">, the Adviser </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">has contractually agreed to waive its management fee and/or pay or otherwise bear operating and other expenses of the Fund (including </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">offering expenses, but excluding brokerage and transactional expenses; borrowing and other investment-related costs and fees including </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">interest payments on borrowed funds, loan servicing fees, loan collection and administration fees and expenses, interest and commitment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">fees; short dividend expense; acquired fund fees and expenses; taxes; litigation and indemnification expenses; judgments; and extraordinary </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">expenses not incurred in the ordinary course of the Fund’s business (collectively, the “Excluded Expenses”)) solely to the extent necessary to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">limit the Total Annual Fund Operating Expenses, other than Excluded Expenses, to 2.30% of the average daily net assets of the Fund. The </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">Adviser shall be entitled to recoup in later periods expenses that the Adviser has paid or otherwise borne (whether through reduction of its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">management fee or otherwise) to the extent that the expenses for the Fund (including offering expenses, but excluding Excluded Expenses) </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">after such recoupment do not exceed the lower of (i) the annual expense limitation rate in effect at the time of the actual </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">waiver/reimbursement and (ii) the annual expense limitation rate in effect at the time of the recoupment; provided, that the Adviser shall not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">be permitted to recoup any such fees or expenses beyond three years from the end of the month in which such fee was reduced or such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">expense was reimbursed. The expense limitation agreement may only be modified by a majority vote of the trustees who are not “interested </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 8pt; letter-spacing: 0px; top: 0px;display:inline;">persons” of the Fund (as defined by 1940 Act) and the consent of the Adviser.</div></div><div style="clear: both; position: relative; max-height: 0px;"> </div>
expenses you pay each year as a percentage of the value of your investment
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0.0261
0.0743
0
0.0743
<div style="line-height:12.0pt;margin-top:10.00pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Example.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The following Example is intended to help you understand the various costs and expenses that you, as a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">holder of Shares, would bear directly or indirectly. The Example assumes that you invest $1,000 in Shares of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund for the time periods indicated. Because there are no costs to you associated with repurchases of your Shares, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">your costs would be the same whether you hold your Shares or tender your Shares for repurchase at the end of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">time periods indicated. The Example also assumes that your investment has a 5% return each year, that all </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">dividends and distributions are reinvested at NAV, and that the Fund’s operating expenses (as described above) </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">remain the sameand takes into account the effect of the fee waiver and/or expense reimbursement (if any) during </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the first year. The Example should not be considered a representation of the Fund’s future expenses. Although your </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">actual costs may be higher or lower, based on these assumptions your costs would be:</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 1pt; line-height: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:1.0pt;margin-top:6.00pt;text-align:left"><div style="margin-top:6pt"> </div></div>
<table cellpadding="0" cellspacing="0" style="text-align:start; empty-cells:show;margin-left:116.44pt;width:235.13pt">
<tr style="height:22.35pt">
<td style="padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:45.62pt"><div style="line-height:13.0pt;text-align:left"><div style="margin-left:-2pt;margin-right:16pt;text-align:Center;white-space:nowrap"><div style="border-bottom: 0.5pt groove rgb(0, 0, 0); color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">1 Year</div></div></div></div></td>
<td style="padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:67.5pt"><div style="line-height:13.0pt;text-align:left"><div style="margin-left:16pt;margin-right:16pt;text-align:Center;white-space:nowrap"><div style="border-bottom: 0.5pt groove rgb(0, 0, 0); color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">3 Years</div></div></div></div></td>
<td style="padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:67.5pt"><div style="line-height:13.0pt;text-align:left"><div style="margin-left:16pt;margin-right:16pt;text-align:Center;white-space:nowrap"><div style="border-bottom: 0.5pt groove rgb(0, 0, 0); color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">5 Years</div></div></div></div></td>
<td style="padding-bottom:0.85pt;padding-top:0.85pt;vertical-align:Bottom;width:54.5pt"><div style="line-height:13.0pt;text-align:left"><div style="margin-left:16pt;text-align:Center;white-space:nowrap"><div style="border-bottom: 0.5pt groove rgb(0, 0, 0); color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">10 Years</div></div></div></div></td></tr>
<tr style="height:12.35pt">
<td style="padding-top:0.85pt;vertical-align:Top;white-space:nowrap;width:45.62pt"><div style="line-height:12pt;margin-left:-2pt;margin-right:16pt;text-align:right;width:27.62pt"><div style="display:flex;margin:auto;width:17.0pt"><div style="display:flex;white-space:nowrap;width:17.0pt"><div style="display:flex;white-space:nowrap;width:17.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; width: auto; letter-spacing: 0px; top: 0px;display:inline;">$</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; width: 17pt; letter-spacing: 0px; top: 0px;display:inline;">73</div></div></div></div></div></td>
<td style="padding-top:0.85pt;vertical-align:Top;white-space:nowrap;width:67.5pt"><div style="line-height:12pt;margin-left:18pt;margin-right:18pt;text-align:right;width:31.5pt"><div style="display:flex;margin:auto;width:22.0pt"><div style="display:flex;white-space:nowrap;width:22.0pt"><div style="display:flex;white-space:nowrap;width:22.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; width: auto; letter-spacing: 0px; top: 0px;display:inline;">$</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; width: 22pt; letter-spacing: 0px; top: 0px;display:inline;">215</div></div></div></div></div></td>
<td style="padding-top:0.85pt;vertical-align:Top;white-space:nowrap;width:67.5pt"><div style="line-height:12pt;margin-left:18pt;margin-right:18pt;text-align:right;width:31.5pt"><div style="display:flex;margin:auto;width:22.0pt"><div style="display:flex;white-space:nowrap;width:22.0pt"><div style="display:flex;white-space:nowrap;width:22.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; width: auto; letter-spacing: 0px; top: 0px;display:inline;">$</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; width: 22pt; letter-spacing: 0px; top: 0px;display:inline;">350</div></div></div></div></div></td>
<td style="padding-top:0.85pt;vertical-align:Top;white-space:nowrap;width:54.5pt"><div style="line-height:12pt;margin-left:18pt;text-align:right;width:36.5pt"><div style="display:flex;margin:auto;width:22.0pt"><div style="display:flex;white-space:nowrap;width:22.0pt"><div style="display:flex;white-space:nowrap;width:22.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; width: auto; letter-spacing: 0px; top: 0px;display:inline;">$</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; width: 22pt; letter-spacing: 0px; top: 0px;display:inline;">659</div></div></div></div></div></td></tr></table>
73
215
350
659
480000000
750000000
675000000
880000000
645000000
650047000
1130000000
1390000000
1170000000
720000000
3960
3332
3807
3474
4580
4525
3675
3635
3707
3781
<div style="line-height:12.0pt;margin-top:10pt;text-align:center"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">INVESTMENT OBJECTIVE, STRATEGIES, POLICIES AND RISKS</div></div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">When used in this prospectus, the term “invest” includes both direct investing and indirect investing and the term </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">“investments” includes both direct investments and indirect investments. For example, the Fund invests indirectly </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">by investing in derivatives or through its wholly-owned and controlled subsidiaries (each, a “Subsidiary”). The </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Fund may be exposed to the different types of investments described below through its investments in its </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Subsidiaries. The allocation of the Fund’s portfolio in a Subsidiary will vary over time and might not always </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">include all of the different types of investments described herein.</div></div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Investment Objective</div></div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investment objective is to achieve total return and current income. There can be no assurance that the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund will achieve its investment objective.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Principal Investment Policies</div></div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Stone Ridge believes that investing should involve a long-term view and a systematic focus on sources of expected </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">return, not on security selection or market timing. In managing the Fund, the Adviser focuses primarily on one </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">source of expected returns: the “credit risk premium” in certain loans and other investments described below. The </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">“credit risk premium” is positive if interest and other payments paid in connection with a pool of such investments </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(including amounts paid to the Fund in connection with the sale of such investments), minus the principal losses </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">actually experienced across that pool, exceed the risk-free rate, on average and over time. The “risk-free rate” is the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rate of return that can be earned on high-quality, short-term government debt securities. There can be no assurance </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that the credit risk premium will be positive for the Fund’s investments at any time or on average and over time. For </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">example, a consumer or small business borrower typically pays a premium (interest) to a lender in exchange for use </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of the lender’s capital (the amount of the borrowing) for a pre-determined amount of time. On average and over </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">time, if payments of interest and repayments of principal on such borrowings are greater than losses incurred from </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">defaults, the excess positive return above the risk-free rate represents the credit risk premium. By investing in these </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loans and other investments, the Fund is accepting the risk that some borrowers will not repay their loans, in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exchange for the expected returns associated with the receipt of interest payments and repayment of principal by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">those that do. The Fund seeks to benefit over the long term from the difference between the amount of interest and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">principal received and losses experienced.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Adviser does not purchase or sell investments for the Fund’s portfolio based on an analysis of specific </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrowers’ abilities to repay their loans or other criteria specific to individual investments. Instead, the Adviser </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">seeks to identify alternative lending platforms that originate or source pools of loans and other securities on an </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">ongoing basis that can be purchased by the Fund and serve as part of a portfolio that provides the Fund with broad </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposure to the risk and return characteristics (and potential credit risk premium) of loans from a variety of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">geographic regions and representing a variety of different borrower types for a variety of purposes, including:</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:left;width:423.00pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">individual consumers consolidating existing debt or funding large purchases;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">small or medium-sized businesses funding working capital such as property, plant, equipment, expansion, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">receivables or inventory;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:left;width:423.00pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">students financing education or refinancing existing student loans; and</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:left;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">individuals or businesses financing investments in real estate.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund pursues its investment objective primarily by buying and selling alternative lending-related securities, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">directly or through its wholly-owned and controlled subsidiaries (each, a “Subsidiary”) formed by the Fund. The </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund and its Subsidiaries intend to obtain financing to make investments and/or to fund Share repurchases through </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">traditional financing facilities, through reverse repurchase agreements or other similar derivatives transactions or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">through a mix of the foregoing.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">As described in more detail below, an “<div style="display:inline;">alternative </div>lending platform” is a lending marketplace or lender or other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">intermediary that is not a traditional lender. The Adviser, as part of its portfolio construction process, performs </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">diligence on the platforms from which the Fund purchases alternative lending-related securities in order to evaluate </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">both the process by which each platform extends or sources loans and provides related services and the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">characteristics of the overall portfolio of loans made available through that platform. The Adviser’s diligence </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">process includes on-site in-person meetings, supplemented by telephonic meetings, with the senior management and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">with the credit underwriting, operations, technology, legal and compliance teams of the platform; evaluation of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform’s credit underwriting policies, procedures and models; evaluation of the platform’s collections, operations, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">technology, legal and compliance personnel, infrastructure, and procedures; and analysis of a “loan tape” that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">includes loan underwriting data and actual payment experience for all individual loans made or sourced by the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform since inception that are comparable to the loans proposed to be purchased by the Fund. The Fund generally </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">purchases a portfolio of loans from a particular platform that meet certain criteria (such as maturities and durations, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrower and loan types, borrower credit quality and geographic locations of borrower) and that provide broad </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposure to the loan originations or sourcing of that particular platform. When investing in whole loans, the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">invests solely in loans originated by platforms that provide the Fund with a written commitment to deliver or cause </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to be delivered individual loan-level data on an ongoing basis throughout the life of each individual loan that is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">updated periodically as often as the NAV is calculated to reflect new information regarding the borrower or loan, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and the Fund does not invest in loans sold on platforms for which the Fund cannot evaluate to its satisfaction the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">completeness and accuracy of the individual loan data relevant to the existence and valuation of the loans purchased </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that is provided by the platform and used by the Fund in accounting for loans. Although the Fund conducts </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">diligence on the platforms, the Fund generally does not have the ability to independently verify the information </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">provided by the platforms, other than payment information regarding loans and other alternative lending-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities owned by the Fund, which the Fund observes directly as payments are received. The Fund generally does </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">not have access to personally identifiable information about the individual borrowers (e.g., names or similar </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">identifying information) prior to purchasing loans or other alternative lending-related securities, although the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">custodian has this information for whole loans owned by the Fund (and the Fund and the Adviser have established </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">procedures with the Fund’s custodian designed to prevent the inadvertent communication of personally identifiable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrower information by the Fund’s custodian to the Fund or the Adviser). The Fund monitors the characteristics of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the alternative lending-related securities purchased from particular platforms on an ongoing basis. In this way, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Adviser seeks to construct a portfolio that provides broad, representative investment exposure across the alternative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lending asset class.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition to originating or sourcing loans, some alternative lending platforms also sponsor special purpose </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">entities, sometimes referred to as securitization vehicles, for the purpose of acquiring loans originated or sourced by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such platform and issuing securities the payments on which are funded by payments received on such securitization </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">vehicles’ underlying investments. The Fund seeks to sell certain of the whole loans it acquires by pooling them and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">selling them to such securitization vehicles, whether sponsored by the platforms themselves or by third parties, in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">cases where the Fund determines that such sales are on terms favorable to the Fund. The Fund expects that many or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">most alternative lending platforms will eventually begin to sponsor such securitization vehicles, and the volume and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">frequency of the Fund’s sales of pools of loans to securitization vehicles may increase as a more active and reliable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secondary market develops over time.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Alternative lending-related securities typically provide the Fund with exposure to loans originated or sourced by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">alternative lending platforms. The Fund invests primarily in whole loans, but also may invest, to a lesser extent, in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other types of alternative lending-related securities, which include:</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div><div style="clear:both;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shares, certificates, notes or other securities representing the right to receive principal and interest </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payments due on fractions of whole loans or pools of whole loans (including “member-dependent </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">payment notes” issued by some public U.S. platforms, which we refer to as “fractional loans” herein);</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">direct participations in whole loans originated by alternative lending platforms (which we refer to as “loan </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">participations”), which are typically issued by the originator, a bank or other financial institution;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities issued by special purpose entities that hold either of the foregoing types of alternative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">lending-related securities (“asset-backed securities”), including pass through certificates and securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issued by special purpose entities that hold mortgages (“mortgage-backed securities”);</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">equity or debt securities (publicly or privately offered), including warrants, of alternative lending </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">platforms or companies that own or operate alternative lending platforms; and</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">derivative instruments (which may include options, swaps or other derivatives) that provide exposure to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any of the investments the Fund may make directly.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Under normal circumstances, the Fund will invest at least 80% of its net assets, plus the amount of any borrowings </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">for investment purposes, directly or indirectly in alternative lending-related securities. As a matter of fundamental </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">policy, the Fund concentrates its investments in the alternative lending industry and has adopted a policy to invest, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">directly or indirectly, at least 25% of its total assets in the alternative lending industry. The notional value of any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">derivatives and other synthetic instruments that provide investment exposure to, or exposure to one or more of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">market risk factors associated with, the investment focus that the Fund’s name suggests will count towards </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compliance with the Fund’s 80% test.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund has adopted the following investment restrictions as fundamental policies that can only be changed with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the approval of the holders of a majority of the Fund’s outstanding voting securities (the “Fundamental Investment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Restrictions”):</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:left;width:423.00pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may not invest in loans that are of subprime quality at the time of investment.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may not purchase loans or other alternative lending-related securities from platforms whose </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">business consists primarily of originating loans of subprime quality.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may not purchase loans or other alternative lending-related securities originated in emerging </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">markets.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund may not purchase loans or other alternative lending-related securities from platforms whose </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial statements are not audited by a nationally recognized accounting firm.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In accordance with the Fund’s Fundamental Investment Restrictions, the Adviser will determine whether loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">offered to the Fund are of subprime quality at the time of investment pursuant to guidelines approved by the Board </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">from time to time. These guidelines currently provide that in order to be eligible for purchase by the Fund, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Adviser must determine that loans have a likelihood of repayment that is greater than that of “subprime” consumer </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loans. “Subprime” does not have a specific legal or market definition, but is understood in the credit marketplace to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">signify that a loan has a material likelihood that it will not be repaid. The Adviser will make the determination that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loans purchased by the Fund are not of subprime quality based on the Adviser’s due diligence of the credit </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">underwriting policies of the originating or sourcing platform, which look to a number of borrower-specific factors </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to determine a borrower’s ability to repay a particular loan, including employment status, income, assets, education </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and credit bureau data where available. Credit bureau data is only one factor considered in determining the credit </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">quality of a borrower and a loan. However, when credit score data is available from a platform with respect to a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrower, the Adviser’s guidelines do not allow the Adviser to cause the Fund to purchase any consumer loan to an </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">individual who does not have at least one credit score that is, either at the time of origination or the time of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchase, equal to or above a specified minimum.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Alternative lending, which is sometimes referred to as fintech lending, online lending or marketplace lending, is a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">method of financing in which an alternative lending platform facilitates the borrowing and lending of money. In so </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">doing, a platform may either rely on its own deposit capital or may utilize third-party sources of capital, including </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investors like the Fund, to fund loans. It is considered an alternative to more traditional loan financing done through </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a traditional bank.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">There are several different models of alternative lending but, very generally, a platform typically matches </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">consumers, small or medium-sized businesses or other types of borrowers with investors that are interested in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">gaining investment exposure to the loans made to such borrowers. Prospective borrowers are usually required to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">provide or give access to certain financial information to the platform, such as the intended purpose of the loan, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">income, employment information, credit score, debt-to-income ratio, credit history (including defaults and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">delinquencies) and home ownership status, and, in the case of small business loans, business financial statements </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and personal credit information regarding any guarantor, some of which information is made available to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">prospective lenders. Often, platforms charge fees to borrowers to cover these screening and administrative costs. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Based on this and other relevant supplemental information, the platform usually assigns its own credit rating to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrower and sets the interest rate for the requested borrowing. Some platforms follow the peer-to-peer model, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">posting the borrowing requests online and investors may choose among the loans, based on the interest rates the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loans are expected to yield less any servicing or origination fees charged by the platform or others involved in the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending arrangement, the background data provided on the borrowers and the credit rating assigned by the platform. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Other platforms sell loans directly to large institutional investors, like the Fund. In some cases, a platform partners </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">with a bank to originate a loan to a borrower, after which the bank sells the loan to the platform or directly to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investor; alternatively, some platforms may originate loans themselves.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Other alternative lending platforms are non-traditional intermediaries. Unlike marketplace lenders, non-traditional </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">intermediaries do not themselves (either alone or working with a bank) originate loans. Instead, they intermediate </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">sales of loans originated by more traditional lenders to buyers that utilize alternative sources of capital (i.e., capital </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other than bank deposits).</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">When investing in loans originated or sourced using any of these models of alternative lending, some investors, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">including the Fund, may not review the particular characteristics of the loans in which they invest at the time of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment, but rather negotiate in advance with platforms the general criteria of the investments, as described </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">above. As a result, the Fund is dependent on the platforms’ ability to collect, verify and provide information to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund about each loan and borrower.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Platforms may set minimum eligibility standards for borrowers to participate in alternative lending arrangements </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and may limit the maximum permitted borrowings. Depending on the purpose and nature of the loan, its term may, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">for example, be as short as six months or shorter, or as long as thirty years or longer. Set forth below is additional </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information about some of the Fund’s alternative lending-related investments.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Whole Loans.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund primarily buys and sells whole loans. When the Fund invests in whole loans, it </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">typically purchases all rights, title and interest in the loans pursuant to a loan purchase agreement directly from </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the platform or its affiliate. The platform or a third-party servicer typically continues to service the loans, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">collecting payments and distributing them to investors, less any servicing fees assessed against the Fund, and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the servicing entity typically will make all decisions regarding any modification, forbearance or other form of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">relief that may be provided to a borrower experiencing financial hardship and acceleration or enforcement of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the loans following any default by a borrower. Where a platform or its affiliate acts as the loan servicer, there </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">is typically a backup servicer in place in case that platform or affiliate ceases or fails to perform these servicing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">functions. The Fund, as an investor in a whole loan, would be entitled to receive payment only from the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrower and/or any guarantor, and would not be able to recover any deficiency from the platform, except </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">under very narrow circumstances, which may include fraud by the borrower in some cases. The whole loans in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which the Fund may invest may be secured or unsecured.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Loan Participations.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund invests in participation interests in whole loans, which are typically originated </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">by an alternative lending platform, sometimes in partnership with a bank or other financial institution. When </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund invests in participation interests, the Fund typically purchases a fractional or full economic interest in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the underlying whole loans and the originator retains the legal title to such loans. As with the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments in whole loans, the alternative lending platform or a third-party servicer typically continues to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">service the loans, collecting payments and distributing them to investors in the loan participations, less any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">servicing fees assessed against the Fund, and the servicing entity typically will make all decisions regarding </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">any modification, forbearance or other form of relief that may be provided to a borrower experiencing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">financial hardship and acceleration or enforcement of the loans following any default by a borrower. The </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">servicing entity may distribute payments of principal and interest from the borrower directly to the Fund as a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">holder of participation interests. Alternatively, the Fund may receive payments of principal and interest as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">passed through by the bank or other financial institution originating the whole loans and issuing the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">participation interests. The participation interests in which the Fund invests may be in whole loans that are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">secured or unsecured.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Pass-Through Certificates.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund invests in pass-through certificates, which are a form of asset-backed </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">security that is backed by a pool of whole loans originated or sourced by one or more alternative lending </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms and that represents the right of the holder to receive specified distributions in respect of such whole </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loans; specifically, holders are entitled to receive payments on account of principal and interest payments made </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">by borrowers on the underlying loans, as well as proceeds from the sale or liquidation of any loan underlying </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the pass-through certificate, net of fees, expenses and other amounts payable to the issuer, trustee, originating </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform(s) or other third parties as required. Unlike many other asset-backed securities, pass-through </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">certificates are generally not issued with multiple tranches; instead, all holders of a particular certificate share a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">pro rata interest in the underlying pool of whole loans and distributions with respect thereto.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Other Asset-Backed Securities. </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund invests in, and sells certain of its alternative lending-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments to, securitization vehicles formed by alternative lending platforms or third parties for the purpose </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of acquiring alternative lending-related investments and issuing securities the payments on which are funded </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">by payments received on such entities’ underlying investments. Such asset-backed securities, including </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed securities, may be issued in different tranches of debt and residual equity interests with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">different rights and preferences. The Fund may hold any tranche of such asset-backed securities. The volume </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and frequency of the Fund’s sales of pools of loans to securitization vehicles may increase as a more active and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reliable secondary market develops over time.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Shares, Certificates, Notes or Other Securities.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may also invest in shares, certificates, notes or other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities representing the right to receive principal and interest payments due on fractions of whole loans or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">pools of whole loans. The platform or a separate special purpose entity organized by or on behalf of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform may hold the whole loans underlying such securities on its books and issue to the Fund, as an </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investor, a share, certificate, note or other security, the payments on which track and depend upon the borrower </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">payments on the underlying loans. As with whole loans, the platforms or third-party servicers typically </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">continue to service the underlying loans on which the performance of such securities is based. Such securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may be linked to any of the types of whole loans in which the Fund may invest directly. Such securities may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">also track fractions of a whole loan. These securities may be sold through publicly registered offerings or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">through unregistered private offerings.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Equity Securities.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may invest in public or private equity securities issued by alternative lending </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms or companies that own or operate alternative lending platforms, including common stock, preferred </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">stock, convertible stock and/or warrants. For example, the Fund may invest in securities issued by a platform, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">which may provide the platform with the capital it requires to support its business. Equity investments may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">afford the Fund voting rights as well as the opportunity to receive dividends and/or capital appreciation, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">although warrants, which are options to purchase equity securities at specific prices valid for a specific period </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of time, typically have no voting rights, receive no dividends and have no rights with respect to the securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of the issuer unless and until they are exercised for the underlying equity securities. The Fund may also invest </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in equity securities of both non-U.S. and U.S. small and mid-cap companies. These equity investments may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">take any of the following forms:</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Stock. Holders of common stock generally have voting rights in the issuer and are entitled to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">receive common stock dividends when, as and if declared by the corporation’s board of directors. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common stock normally occupies the most subordinated position in an issuer’s capital structure</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Preferred Stocks. Preferred stock, unlike common stock, has a stated dividend rate payable from the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">corporation’s earnings. Preferred stock dividends may be cumulative or non-cumulative, participating, or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">auction rate. “Cumulative” dividend provisions require all or a portion of prior unpaid dividends to be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">paid. Preferred stock may be “participating” stock, which means that it may be entitled to a dividend </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exceeding the stated dividend in certain cases. Preferred stock may have mandatory sinking fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">provisions, as well as provisions allowing calls or redemption prior to maturity, which also can have a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">negative impact on prices when interest rates decline.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Rights and Warrants. Warrants are options to purchase equity securities at specific prices valid for a </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-left:40pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">specific period of time. Their values do not necessarily move parallel to the values of the underlying </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities. Rights are similar to warrants, but normally have a short duration and are distributed directly </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">by the issuer to its shareholders. Rights and warrants have no voting rights, receive no dividends and have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">no rights with respect to the assets of the issuer.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Convertible Securities. Convertible securities are debt securities or preferred stock that may be converted </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in whole or in part into common stock or other equity securities. Their prices do not necessarily move </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">parallel to the prices of the underlying securities. Convertible securities generally have no voting rights. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The value of a convertible security is a function of its “bond value,” which is the value of the debt or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">preferred stock component of the security, and its “conversion value,” which is the value of the right to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">convert the securities into common stock or other equity securities. The bond value will likely increase </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when interest rates fall and decrease when interest rates rise, and the conversion value will likely increase </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">when the value of the underlying equity security increases and decrease when the value of the underlying </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">equity security decreases. If the bond value is relatively high compared to the conversion value, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">security will behave more like a debt security, and if the conversion value is relatively high compared to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the bond value, the security will behave more like an equity security.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Other factors can affect a particular equity security’s price, such as poor earnings reports by the issuer, loss of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">major customers, major litigation against the issuer, or changes in government regulations affecting the issuer </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or its industry.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Debt Securities.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may invest in debt securities issued by alternative lending platforms or companies </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that own or operate alternative lending platforms. The Fund may have exposure to the debt securities of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">U.S. or non-U.S. issuers. These debt securities may have fixed or floating interest rates; may or may not be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">collateralized; and may be below investment grade or unrated but judged by the Adviser to be of comparable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">quality (debt securities that are below investment grade are commonly called “junk bonds”). The Fund has no </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">limits as to the maturity of debt securities in which it invests. Such investments may be within any maturity </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">range (short, medium or long) depending on the Adviser’s evaluation of investment opportunities available </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">within the debt securities market. Similarly, the Fund has no limits as to the market capitalization range of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">issuers.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund may also pursue its investment objective by investing in equity or debt securities issued by REITs or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">pooled investment vehicles that invest in REITs. REITs are pooled real estate investment vehicles that own, and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">typically operate, certain qualified real estate and real estate-related assets. If a REIT meets certain requirements, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">including distributing to shareholders substantially all of its taxable income (other than net capital gains), then it is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">not generally taxed on the income distributed to shareholders. REITs and pooled investment vehicles that invest in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">REITs may be subject to management fees and other expenses, and so the Fund will bear its proportionate share of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the costs of the REITs’ and/or vehicles’ operations if it invests in REITs or vehicles subject to such fees and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">expenses. REITs can be listed and traded on national securities exchanges or can be traded privately between </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">individual owners. An exchange-traded REIT is generally more liquid than a REIT that is not traded on a securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exchange. The Fund may invest in both exchange-traded and privately-traded REITs.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund generally invests in equity REITs, which invest in and own real estate directly, and generally invest a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">majority of their assets in income-producing properties to generate cash flow from rental income and gradual asset </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">appreciation. The income-producing properties in which equity REITs may invest include land, office, retail, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">industrial, hotel and apartment buildings, single or multifamily homes, self-storage, specialty and diversified and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">healthcare facilities. Equity REITs can realize capital gains (or losses) by selling properties that have appreciated </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(or depreciated) in value. Equity REITs may also invest in non-income-producing properties or real estate-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assets.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">An equity investment in a REIT may afford the Fund voting rights as well as the opportunity to receive dividends </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and/or capital appreciation. The Fund may invest in warrants issued by REITs, which are options to purchase equity </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities at specific prices valid for a specific period of time; such investments typically have no voting rights, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">receive no dividends and have no rights with respect to the securities of the issuer unless and until they are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exercised for the underlying equity securities. Debt securities of REITs may have fixed or floating interest rates; </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may or may not be collateralized; and may be below investment grade or unrated but judged by the Adviser to be of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">comparable quality. The Fund has no limits as to the maturity of debt securities in which it invests. Such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments may be within any maturity range (short, medium or long) depending on the Adviser’s evaluation of </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment opportunities available within the debt securities market. Similarly, the Fund has no limits as to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market capitalization range of the issuers.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Additional Information About the Fund’s Principal Investment Strategies</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund may gain exposure to loans that are unsecured, secured by a perfected security interest in an enterprise or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">specific assets of an enterprise or individual borrower or in real estate, and/or supported by a personal guarantee by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">individuals related to the borrower. The loans to which the Fund gains exposure may pay fixed or variable rates of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">interest, may have a variety of amortization schedules, and may include borrowings that do not require amortization </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">payments (i.e., are interest-only). The loans to which the Fund gains exposure may have a term ranging from less </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">than one year to thirty years or longer, and in some cases may not require any payments to be made to the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">until the end of the term. The terms of any loan to which the Fund gains exposure, including the interest rate, timing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of payments or the overall amount to be repaid, may be modified in the discretion of the loan servicer or by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">operation of federal, state or local law or regulation in order to provide relief to borrowers, particularly during </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">economic downturns or periods of market volatility, which could adversely affect Fund performance. The Fund may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">invest in loans at or shortly following origination or sourcing, or may purchase loans in the secondary market after </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">origination or sourcing. This universe of investments is subject to change under varying market conditions and as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">alternative lending-related instruments and markets evolve over time.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund may seek to hedge its exposure to foreign exchange or interest rate risks that arise as a result of its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments. The Fund may use forwards, futures, swaps or other exchange-traded or over-the-counter (“OTC”) </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">derivatives or may purchase or sell physical currency, bonds or other securities or instruments, including short sales </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">on assets the Fund does not own, which may require the Fund to pay a premium to borrow the assets sold short and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to pay the lender any dividends or interest received on the assets while borrowed. There can be no guarantee the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s hedging activities will effectively offset any adverse impact of foreign exchange or interest rates.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In implementing the Fund’s investment strategy, the Adviser has broad discretion to invest in alternative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending-related securities of different types and relating to a variety of borrower types and geographic regions </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(including regions inside and outside the U.S.), subject to the Fundamental Investment Restrictions, which prohibit </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund from investing in loans of subprime quality or loans originated in emerging markets. The Adviser seeks to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">invest in alternative lending-related securities through platforms that operate in (and that originate or source loans to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrowers located in) the U.S., Europe, Australia and New Zealand, and may in the future seek to gain exposure to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">other geographic regions, other than emerging markets. Within each region and borrower type, the Adviser has </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">broad discretion to make investments that provide the Fund with a variety of exposures, including to borrower </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">creditworthiness, lines of business and loan purpose. Subject to any restrictions under applicable law (including </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">diversification requirements under U.S. federal income tax law applicable to regulated investment companies), the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund is not restricted in its exposure to any particular borrower creditworthiness, line of business, loan purpose, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">term or form of security or guarantee or any other loan terms or characteristics, except as provided in the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fundamental Investment Restrictions. With the exception of certain asset diversification tests under the Code, there </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">is no stated limit on the percentage of assets the Fund can invest in a particular investment or the percentage of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">assets the Fund will allocate to any one investment type, borrower type, loan purpose, geographic region, borrower </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">creditworthiness, term or form of security or guarantee permitted by the Fundamental Investment Restrictions. The </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund may, at times, focus its investments in instruments meeting one or more of these criteria. Subject to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">limitations described above, the Fund may also invest in loans or other investments that are not originated or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">sourced by alternative lending platforms but that the Adviser believes have investment characteristics similar to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">alternative lending-related securities in which the Fund invests.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund makes investments through its Subsidiaries. Each Subsidiary may invest, for example, in whole loans or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in shares, certificates, notes or other securities representing the right to receive principal and interest payments due </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">on fractions of whole loans or pools of whole loans, or any other security or other instrument that the Fund may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">hold directly. References herein to the Fund include references to a Subsidiary in respect of the Fund’s investment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exposure.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in derivatives that provide exposure to any of the investments the Fund may make directly, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including the derivatives described below.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Swaps Generally.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> In a swap transaction, two parties generally agree to exchange the returns (or differentials in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rates of return) earned or realized on a particular predetermined reference instrument or instruments, which can </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">be adjusted for an interest rate factor. The gross returns to be exchanged or “swapped” between the parties are </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">generally calculated with respect to a “notional amount” (i.e., the return on or increase in value of a particular </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">dollar amount invested in a particular security or other asset or in a “basket” of securities). Other types of swap </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">agreements may calculate the obligations of the parties to the agreement on a “net basis.” Consequently, a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">party’s current obligations (or rights) under a swap agreement will generally be equal only to the net amount to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">be paid or received under the agreement based on the relative values of the positions held by each party to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agreement (the “net amount”).</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Total Return Swaps.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> In a total return swap, one party agrees to pay the other the total return of a defined </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">underlying asset, such as a security or basket of securities, or non-asset reference, such as a securities index, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">during the specified period in return for periodic payments based on a fixed or variable interest rate or the total </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">return from different underlying assets or references. Total return swaps could result in losses if the underlying </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">asset or reference does not perform as anticipated by the Adviser.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">All or substantially all of the securities in which the Fund invests are “restricted” securities, which means that they </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">are only eligible for purchase and sale by certain qualified institutional buyers, as defined in Rule 144A under the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">1933 Act, and/or subject to contractual restrictions on transfer. Thus, there is generally a limited secondary market </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">available for many of the securities in which the Fund invests. As described above, the Fund seeks to sell certain of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">its investments to securitization vehicles, and, to the extent a more active secondary market develops over time, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund expects to selectively purchase or sell certain investments in executing its investment strategy. Otherwise, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund generally holds its investments to maturity.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Borrowing and Leverage.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund and its Subsidiaries have obtained and expect in the future to obtain financing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to make investments and/or to fund Share repurchases. The Fund and its Subsidiaries intend to obtain leverage </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">through traditional financing facilities, through reverse repurchase agreements or other similar derivatives </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">transactions or through a mix of the foregoing. Such borrowings are typically secured by investments held by the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund or such Subsidiary. The Fund and its Subsidiaries also may obtain leverage through derivative instruments </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that afford the Fund economic leverage or other investments, such as asset-backed securities, that may have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">embedded leverage. The Fund is not limited in the form or manner in which it may incur leverage.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The 1940 Act requires a closed-end fund to maintain asset coverage of not less than 300% of the value of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">outstanding amount of senior securities representing indebtedness (as defined in the 1940 Act) at the time that it </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">issues senior securities. This means that the value of the Fund’s senior securities representing indebtedness may not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exceed one-third of the value of its total assets (including such senior securities), measured at the time the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">issues the senior securities. The 1940 Act also requires the Fund to provide for a prohibition on the declaration of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">cash distributions or repurchases of Shares unless any senior securities representing indebtedness have an asset </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">coverage of not less than 300% after giving effect to such distribution or repurchase. The Fund also may borrow </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">money from banks or other lenders for temporary purposes in an amount not to exceed 5% of the Fund’s assets. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Such temporary borrowings are not subject to the asset coverage requirements discussed above.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Additionally, Rule 18f-4 provides certain limits on a registered investment company’s use of derivatives and certain </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">related instruments to obtain leverage. As required by Rule 18f-4, the Fund’s derivatives exposure (including its use </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of reverse repurchase agreements, which the Fund has elected to treat as derivatives under Rule 18f-4) is limited </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">through a value-at-risk (“VaR”) test. Very generally, VaR is an estimate of an instrument’s or portfolio’s losses over </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">a given time horizon at a specified confidence level. Under Rule 18f-4, the Fund is required to limit the VaR of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund’s portfolio to less than 200% of the VaR of a “designated reference portfolio,” which is, in general, either an </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unleveraged index approved by the Fund’s derivatives risk manager or the Fund’s own portfolio of securities or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">other investments, excluding any derivatives transaction. This limitation is referred to in Rule 18f-4 as the “relative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">VaR test.” If the Fund’s derivatives risk manager reasonably determines that there is no designated reference </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">portfolio that would provide an appropriate reference portfolio for the purposes of Rule 18f-4, then instead of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">relative VaR test, the Fund will be required to limit the VaR of the Fund’s portfolio to less than 20% of the value of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s net assets, which is referred to as the “absolute VaR test.” The Fund expects that its use of reverse </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">repurchase agreements and other similar derivatives transactions to obtain leverage, under either the relative VaR </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">test or the absolute VaR test, will enable the Fund to obtain substantially more leverage than would be possible if </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund obtained leverage only through senior securities subject to the 300% asset coverage requirement.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Leverage can have the effect of magnifying the Fund’s exposure to changes in the value of its assets and may also </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">result in increased volatility in the Fund’s NAV. This means the Fund will have the potential for greater gains, as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">well as the potential for greater losses, than if the Fund owned its assets on an unleveraged basis. The value of an </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment in the Fund will be more volatile and other risks tend to be compounded to the extent that the Fund is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exposed to leverage.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Reverse Repurchase Agreements.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund obtains leverage through reverse repurchase agreements. The Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">enters into reverse repurchase agreements with banks and brokers, pursuant to which the Fund sells securities to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">banks or brokers and concurrently agrees to repurchase the same securities at a later date at a fixed price. During </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the reverse repurchase agreement period, the Fund continues to receive principal and interest payments on the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Reverse repurchase agreements involve the risks that the interest income earned on the investment of the proceeds </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">will be less than the interest expense and Fund expenses associated with the repurchase agreement, that the market </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">value of the securities sold by the Fund may decline below the price at which the Fund is obligated to repurchase </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such securities and that the securities may not be returned to the Fund. The Fund will also be subject to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">counterparty risk with respect to the purchaser of the securities.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> If the broker/dealer to whom the Fund sells </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities becomes insolvent, the Fund’s right may be restricted.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For example, if the buyer in a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">use of proceeds from the sale of its securities may be restricted while the other party or its trustee or receiver </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">determines whether to honor the Fund’s right to repurchase the securities. Furthermore, the Fund may be unable to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">recover the securities it sold in connection with a reverse repurchase agreement and as a result would realize a loss </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">equal to the difference between the value of the securities and the payment it received for them. This loss would be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">greater to the extent the buyer paid less than the value of the securities the Fund sold to it (e.g., a buyer may only be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">willing to pay $95 for a security with a market value of $100).</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Additionally, reverse repurchase agreements entail the same risks as OTC derivatives. These include the risk that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the counterparty to the reverse repurchase agreement may not be able to fulfill its obligations, that the parties may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disagree as to the meaning or application of contractual terms, or that the instrument may not perform as expected.</div></div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Changes to the Fund’s Investment Policies.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund’s investment objective and policies may be changed </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">without shareholder approval unless an objective or policy is identified in the prospectus or in the Statement of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Additional Information as “fundamental.” The Fund’s policy to invest, under normal circumstances, at least 80% of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">its net assets, plus the amount of any borrowings for investment purposes, in alternative lending-related securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may be changed by the Board upon at least 60 days prior written notice to shareholders.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Temporary Defensive Positions. </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">During unusual market conditions, the Fund may invest up to 100% of its assets </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in cash or cash equivalents temporarily, which may be inconsistent with its investment objective and other policies. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund might not use all of the strategies and techniques or invest in all of the types of securities described in this </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">prospectus or the Statement of Additional Information. While at times the Fund may use alternative investment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">strategies in an effort to limit its losses, it may choose not to do so.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Subsidiaries.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund executes its strategy by investing directly or through its Subsidiaries in alternative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending-related securities. The Fund does not currently intend to sell or transfer all or any portion of its ownership </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">interest in a Subsidiary. The Fund reserves the right to establish additional Subsidiaries through which the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may execute its strategy.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Portfolio Turnover.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund’s portfolio turnover rate for the fiscal year ended February 28, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">2026 was 52.62</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">%. A </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">high turnover rate (100% or more) generally involves greater expenses to the Fund.</div></div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">RISK CONSIDERATIONS</div></div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">You should carefully consider the Fund’s risks and investment objective, as an investment in the Fund may not </div></div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">be appropriate for all investors or clients and is not designed to be a complete investment program. An </div></div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">investment in the Fund involves a high degree of risk. It is possible that investing in the Fund may result in a </div></div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">loss of some or all of the amount invested. Before making an investment/allocation decision, you should (i) </div></div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">consider the suitability of this investment with respect to an investor’s or a client’s investment objectives and </div></div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">individual situation and (ii) consider factors such as an investor’s or a client’s net worth, income, age and risk </div></div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">tolerance. Investment should be avoided where an investor/client has a short-term investing horizon and/or </div></div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">cannot bear the loss of some or all of the investment.</div></div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund is subject to the principal risks described below, whether through the Fund’s direct investments, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments by its Subsidiaries or derivatives positions or other investments. As with any investment company, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">there is no guarantee that the Fund will achieve its investment objective. You could lose all or part of your </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment in the Fund, and the Fund could underperform other investments.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Default Risk. </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The value of the Fund’s investments in whole loans and other alternative lending-related securities, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such as shares, certificates, notes or other securities representing an interest in and the right to receive principal and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">interest payments due on whole loans or fractions of whole loans, is dependent on the borrowers’ continued and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">timely payments. The Fund receives payments on such investments only if the party servicing the loans receives the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrowers’ payments on the corresponding or underlying loans and passes such payments through to the Fund. If a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrower fails to make interest payments or repay principal when due on a loan in which the Fund has investment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposure, or if the value of such a loan decreases, the value of the Fund’s investments will be adversely affected. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There can be no assurance that payments due on underlying loans will be made.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">If a borrower is unable or fails to make payments on a loan for any reason, the Fund may be greatly limited in its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">ability to recover any outstanding principal or interest due, as (among other reasons) the Fund may not have direct </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">recourse against the borrower or may otherwise be limited in its ability to directly enforce its rights under the loan, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">whether through the borrower or the platform through which such loan was originated or sourced, the loan may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unsecured or under-collateralized and/or it may be impracticable to commence a legal proceeding against the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">defaulting borrower. If the Fund were unable to recover unpaid principal or interest due, this would cause the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund’s NAV to decrease. As described further under “—Risk of Unsecured Loans,” the Fund generally will not be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">able to offset losses on defaulting loans by looking to collateral or obligations of guarantors, insurers or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">governmental authorities, as many of the loans to which the Fund has exposure are obligations not secured by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">collateral or (except for certain loans to businesses) backed by any guarantee. In certain cases, after the loan has </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">matured, the servicing party may have no obligation to make late payments to investors in such loan and, to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">extent that the servicing party receives any funds from defaulting borrowers, the servicing party may retain those </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">funds to cover attorneys’ fees, collection fees or other costs incurred in pursuing collection, which will diminish or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">eliminate the amount that the servicing party would otherwise pass on to the investor.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Borrowings obtained through alternative lending platforms may not limit borrowers from incurring additional debt. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">If a borrower incurs additional debt obligations after obtaining a loan, the borrower’s creditworthiness may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">diminish, and any additional obligations could cause the borrower to experience financial distress, insolvency or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">bankruptcy, all of which would impair the borrower’s ability to repay the loan underlying the Fund’s investment. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Under certain circumstances, payments to the Fund may be reclaimed in a bankruptcy proceeding if any such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">payment or distribution is later determined to have been a fraudulent conveyance or a preferential payment, which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">will result in losses to the Fund. If the additional debt obligation of the borrower is secured by collateral and the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loan to which the Fund is exposed is unsecured, the borrower may be motivated to repay the secured loan before </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">meeting its obligations under the unsecured loan.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Furthermore, the ability of secured creditors to pursue remedies against the collateral of the borrower may impair </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the borrower’s ability to repay its unsecured loan, or it may impair the platform’s or servicer’s ability to collect on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the loan upon default. The loans in which the Fund invests generally do not include any cross-default provisions. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Cross-default provisions render a default on one outstanding debt obligation an automatic default on another debt </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">obligation of the borrower, which permits creditors to react more quickly to take steps to protect their interests. In </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">contrast, the loans in which the Fund invests typically will be placed in default or referred to collection only if there </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">are independent defaults on such loans, irrespective of whether the borrower has defaulted on a different debt </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">obligation. Not only will the Fund not benefit from such protective provisions, the Fund also generally will not be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">made aware of any additional debt incurred by a borrower or whether such debt is secured or unsecured.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Default rates on loans may be adversely affected by a number of factors outside the Fund’s control, such as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">economic downturns or general economic or political conditions, including prevailing interest rates, the rate of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unemployment, the level of consumer confidence, residential real estate values, the value of various currencies, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">energy or gasoline prices, changes in consumer spending, the number of bankruptcies, insolvencies, disruptions in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the credit markets, the borrower’s circumstances, the stigma of bankruptcy, decreases in the value of the underlying </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">collateral of any secured loans and other factors. For example, see “—Risks Relating to Collateral or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Guarantees.” In addition, the COVID-19 pandemic has impacted, and other infectious illness outbreaks may in the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">future impact, loan repayment and default rates. See “—Epidemic and Pandemic Risk.”</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The default history for alternative lending borrowing arrangements is limited. Future defaults may be higher than </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">historical defaults and the timing of defaults may vary significantly from historical observations. As described </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">further under “—Credit/Counterparty Risk,” the credit profile and interest rates available to certain borrowers who </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">seek credit through alternative lending platforms may result in a higher rate of default for alternative lending-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities as compared with the debt instruments associated with more traditional lending models, such as banks, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">although pursuant to the Fundamental Investment Restrictions, the Fund may not invest in loans that are of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">subprime quality at the time of investment. If the impact of defaults on loans to which the Fund has exposure </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exceeds the profits on non-defaulting loans, the Fund will be unable to achieve its investment objective.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investments in equity securities issued by alternative lending platforms themselves (or their affiliates) or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">REITs are also subject to the risk of loss. If a platform or other issuer defaults on its outstanding obligations, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund’s equity interest in such issuer may be diminished or extinguished and the Fund can expect to realize on any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such investments only to the extent that the issuer’s creditors are made whole and the issuer still has residual profits </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that would benefit equity holders.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Loan Modification Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> At any time, and particularly during economic downturns or periods of market volatility, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the terms of any loan to which the Fund gains exposure, including the interest rate, timing of payments or the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">overall amount to be repaid, may be modified in the discretion of the loan servicer or by operation of federal, state </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or local law or regulation in order to provide relief to borrowers experiencing financial hardship. Any such loan </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">modification or forbearance may result in less favorable terms for the Fund and could adversely affect Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">performance by, among other things, postponing the receipt of payments by the Fund or reducing the overall </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">amount to be repaid by the borrower. The servicing entity typically will make all decisions regarding any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">modification, forbearance or other form of relief that may be provided to a borrower, and the Fund will typically </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">have no ability to set the terms of any loan modification or forbearance or to influence the decision of the servicing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entity.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Risk of Unsecured Loans.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Many of the Fund’s alternative lending are associated with loans that are unsecured </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">obligations of borrowers. This means that they are not secured by any collateral, not insured by any third party, not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">backed by any governmental authority in any way and, except in the case of certain loans to businesses, not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">guaranteed by any third party. When a borrower defaults on an unsecured loan, the holder’s only recourse is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">generally to accelerate the loan and enter into litigation to recover the outstanding principal and interest. There is no </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">assurance that such litigation would result in full repayment of the loan and the costs of such measures may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">frequently exceed the outstanding unpaid amount of the borrowing. The Fund generally will need to rely on the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">efforts of the platforms, servicers or their designated collection agencies to collect on defaulted loans and there is no </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">guarantee that such parties will be successful in their efforts to collect on loans. The Fund typically does not know </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the identity of borrowers and contracts with the platforms or third-party loan servicers to service the loans and, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">therefore, does not expect to (and in many cases will have no way to) pursue borrowers that fail to repay principal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or interest. In addition, the Fund’s investments in shares, certificates, notes or other securities representing an </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">interest in a special purpose entity organized by an alternative lending platform and the right to receive principal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and interest payments due on whole loans or fractions of whole loans owned by such entity are typically unsecured </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">obligations of the issuer. As a result, the Fund generally may not look to the underlying loans to satisfy delinquent </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">payments on such interests, even though payments on such interests depend entirely on payments by underlying </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrowers on their loans.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Risks Relating to Collateral <div style="display:inline;">or </div>Guarantees.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Even if a loan to which the Fund is exposed is secured, there can be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">no assurance that the collateral will, if or when recovered and liquidated, generate sufficient (or any) funds to offset </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">any losses associated with a defaulting loan. In some cases, borrowers of secured loans may be required to provide </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">more collateral (or margin) when the value of the collateral falls below the loan’s margin requirements. In such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">cases, the platform or loan servicer will issue a margin call requiring the borrower to deposit additional cash or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">acceptable collateral. If the borrower fails to meet the margin call within the allotted time or, in the case of a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">secured loan that provides that the loan servicer may liquidate a portion of the collateral on deposit to cover the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">outstanding principal on the loan if the value of the collateral declines beyond a specified threshold, the platform or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loan servicer may close out all or a portion of the borrower’s loan by liquidating all or a portion of the collateral on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">deposit. If the platform or loan servicer is unable to liquidate the collateral (timely or at all) or is forced to liquidate </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the collateral at a disadvantageous time or price or if the value of the proceeds from the liquidation of the collateral </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">are less than the amounts owed under the secured loans, the value of the loan will be adversely affected. In </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">purchasing secured loans, the Fund is not limited to any particular form of collateral and platforms may accept </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">forms of collateral such as equity securities, shares of exchange-traded funds or bitcoin that may fluctuate </div></div></div> <div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">substantially in value due to market conditions, which could adversely affect the value of the collateral, and, in turn, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">result in losses to the Fund. In addition, loans purchased through platforms that accept a single type of collateral for </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">all loans could experience losses simultaneously. As described further under “ – Platform Risk,” the Fund is also </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">subject to the risk that a platform or loan servicer will fail to sufficiently value collateral, issue margin calls, close </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">out a loan by liquidating all or a portion of a borrower’s collateral or otherwise administer a loan’s margin </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirements timely or at all, in which case a loan to which the Fund has exposure may be adversely impacted.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">It is possible that the same collateral could secure multiple loans, in which case the liquidation proceeds of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">collateral may be insufficient to cover the payments due on all the loans secured by that collateral. There can be no </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">guarantee that the collateral can be liquidated at the value the Fund believes the collateral is worth or at all, and any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">costs associated with such liquidation could reduce or eliminate the amount of funds otherwise available to offset </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the payments due under the loan. As described further under “—Default Risk” and “—Risk of Unsecured Loans,” </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund generally will need to rely on the efforts of the platforms, servicers or their designated collection agencies </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to collect on defaulted loans and there is no guarantee that such parties will be successful in their efforts to collect. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">To the extent that the loan obligations in which the Fund invests are guaranteed by a third party, there can be no </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">assurance that the guarantor will perform its payment obligations should the underlying borrower default on its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">payments. As described under “—Default Risk,” the Fund could suffer delays or limitations on its ability to realize </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the benefits of the collateral to the extent the borrower becomes bankrupt or insolvent. Moreover, the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">security interests may be unperfected for a variety of reasons, including the failure to make a required filing by the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">servicer and, as a result, the Fund may not have priority over other creditors as it expected.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Epidemic and Pandemic Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The impact of COVID-19, and other infectious illness outbreaks that may arise in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the future, could adversely affect the economies of many nations or the entire global economy, individual issuers </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and capital markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illnesses in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">emerging market countries may be greater due to generally less established healthcare systems. Public health crises </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">caused by the COVID-19 outbreak and other infectious illness outbreaks that may arise in the future may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exacerbate other pre-existing political, social and economic risks in certain countries or globally. Such impacts </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">present material uncertainty and risk with respect to the Fund’s investment performance and financial results. The </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">impact of COVID-19 or any future public health crisis may also heighten the other risks disclosed in this </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prospectus.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">For example, during the height of the COVID-19 pandemic, the share of loans in the Fund’s portfolio that were </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">placed in forbearance or otherwise modified increased substantially, which reduced, and may in the future reduce </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">again, the principal and interest payments received by the Fund each month. Loans placed in forbearance or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">otherwise modified may default at higher rates than they otherwise would have in the absence of the COVID-19 </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">pandemic, which could adversely affect the Fund’s performance and your investment in the Fund. In addition, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">alternative lending platforms to which the Fund has exposure substantially reduced the number of loans they </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">originated each month in response to the early waves of the COVID-19 crisis. If this decrease in originations </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">resumes, the Fund could face additional competition for access to platforms and alternative lending-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities, and could be prevented from deploying capital in a timely or efficient manner. As discussed further under </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">“Competition, Ramp-up and Exposure Risks” below, this could force the Fund to invest in cash, cash equivalents or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">other assets that may result in lower returns than may otherwise be available through investments in alternative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending-related securities. Furthermore, as discussed in more detail under “Platform Risk,” the Fund relies on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">alternative lending platforms to, among other things, originate or source alternative lending-related securities and to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">service loans to which the Fund has exposure. The disruption to the platforms’ businesses caused by the COVID-19 </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">pandemic or any future public health crisis could limit or eliminate the ability of the Fund to invest in loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">originated or sourced by one or more platforms or inhibit a platform’s ability to service loans to which the Fund has </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposure, which could have an adverse effect on the Fund and its performance. The impact of COVID-19 or any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">future public health crisis may also heighten the other risks disclosed in this prospectus.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Asset-Backed Securities Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund’s <div style="display:inline;">investments </div>in pass-through certificates, securitization vehicles or other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">special purpose entities that hold alternative lending-related securities (collectively, “asset-backed securities”) may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">involve risks that differ from or are greater than risks associated with other types of investments. For example, such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">asset-backed securities may be more sensitive to changes in prevailing interest rates than other securities. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The rate</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of prepayments on underlying assets will also affect the price and volatility of an asset-backed security,</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> may have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the effect of shortening </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or extending the effective duration of the security relative to what was anticipated at the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">time of purchase</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> and may lower </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> return. The asset-backed securities in which the Fund invests are also subject to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">risks associated with their structure</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">,</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> the nature of the underlying assets and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the servicing of those assets; </div></div></div></div> <div style="line-height:12.0pt;text-align:justify"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">for this reason, many of the other risks described herein are relevant to the asset-backed securities to which the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund has exposure. There is risk that the underlying debt securities will default and that recovery on repossessed </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">collateral might be unavailable or inadequate to support payments on the underlying investments. Payment of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">interest and repayment of principal on asset-backed securities, as well as the return associated with an equity </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment in an asset-backed security, is largely dependent upon the cash flows generated by the underlying loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or other assets backing the securities. For example, the ongoing COVID-19 pandemic has impacted, and other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">infectious illness outbreaks may in the future impact, loan repayment and default rates. See “Epidemic and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Pandemic Risk.” The risks and returns for investors like the Fund in asset-backed securities depend on the tranche </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in which the investor holds an interest. The debt tranche(s) are entitled to receive payment before the equity if the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">cash flow generated by the underlying assets is insufficient to allow the vehicle to make payments on all of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">tranches. The debt tranche(s), therefore, may receive higher credit ratings (if rated) and the equity tranche may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">considered more speculative. Many asset-backed securities in which the Fund invests may be difficult to value and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may be deemed illiquid. Asset-backed securities may have the effect of magnifying the Fund’s exposure to changes </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in the value of the underlying assets and may also result in increased volatility in the Fund’s NAV. This means the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund may have the potential for greater gains, as well as the potential for greater losses, than if the Fund owned the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">underlying asset directly. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For example, any mishandling of related documentation by a servicer may also affect the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rights of the security holder in and to the underlying collateral.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The value of an investment in the Fund may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">more volatile and other risks tend to be compounded if and to the extent that the Fund is exposed to asset-backed </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities. In the event that the market for asset-backed securities experiences high volatility and a lack of liquidity, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the value of many asset-backed securities may decline. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, when investing in asset-backed securities, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund will indirectly bear additional fees and expenses, such as trustee or administrator fees, that it would not bear if </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">it invested directly in the assets underlying the asset-backed <div style="display:inline;">securities</div>, which may cause the Fund’s performance to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be lower than if it had invested directly in such underlying assets.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Mortgage-Backed Securities Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund’s investments in securitization vehicles or other special purpose </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">entities that hold mortgages or mortgage-backed securities may involve risks that differ from or are greater than </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">risks associated with other types of investments. For example, such mortgage-backed securities may be more </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">sensitive to changes in prevailing interest rates than other securities. The rate of pre-payments on underlying </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mortgages will affect the price and volatility of a mortgage-backed security, and may have the effect of shortening </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or extending the effective duration of the security relative to what was anticipated at the time of purchase. For </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">example, the ongoing COVID-19 pandemic has impacted, and other infectious illness outbreaks may in the future </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">impact, the rate of loan modification, forbearance and other forms of relief that may extend the effective duration of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a mortgage-backed security. See “—Epidemic and Pandemic Risk.”</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Generally, rising interest rates tend to extend the duration of fixed rate mortgage-related assets, making them more </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">sensitive to changes in interest rates. As a result, in a period of rising interest rates, the Fund may exhibit additional </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">volatility since individual mortgage holders are less likely to exercise prepayment options, thereby putting </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">additional downward pressure on the value of these securities and potentially causing the Fund to lose money. This </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">is known as extension risk. Mortgage-backed securities can be highly sensitive to rising interest rates, such that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">even small movements can cause the Fund to lose value. Mortgage-backed securities, and in particular those not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">backed by a government guarantee, are subject to credit risk. When interest rates decline, borrowers may pay off </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">their mortgages sooner than expected. This can reduce the returns of the Fund because the Fund may have to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reinvest that money at the lower prevailing interest rates.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The mortgage-backed securities in which the Fund invests are also subject to risks associated with their structure </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and the nature of the underlying mortgages and the servicing of those mortgages; for this reason, many of the other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">risks described herein are relevant to the mortgage-backed securities to which the Fund has exposure. There is risk </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that the underlying debt securities will default. In the event of default, the holder of a mortgage-backed security </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may not have a security interest in the underlying collateral, and even if such a security interest exists, the recovery </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">on repossessed collateral might be unavailable or inadequate to support payments on the underlying investments. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">During periods of deteriorating economic conditions, such as recessions or periods of rising unemployment, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">delinquencies and losses generally increase, sometimes dramatically, with respect to securitizations involving </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mortgage loans. Payment of interest and repayment of principal on mortgage-backed securities, as well as the return </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">associated with an equity investment in a mortgage-backed security, is largely dependent upon the cash flows </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">generated by the underlying mortgages backing the securities. The risks and returns for investors like the Fund in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed securities depend on the tranche in which the investor holds an interest. The debt tranche(s) are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">entitled to receive payment before the equity if the cash flow generated by the underlying mortgages is insufficient </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to allow the vehicle to make payments on all of the tranches. The debt tranche(s), therefore, may receive higher </div></div></div> <div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">credit ratings (if rated) and the equity tranche may be considered more speculative. Many mortgage-backed </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities in which the Fund invests may be difficult to value and may be deemed illiquid. Mortgage-backed </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities may have the effect of magnifying the Fund’s exposure to changes in the value of the underlying </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mortgages and may also result in increased volatility in the Fund’s NAV. This means the Fund may have the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">potential for greater gains, as well as the potential for greater losses, than if the Fund owned the underlying </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mortgages directly. The value of an investment in the Fund may be more volatile and other risks tend to be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">compounded if and to the extent that the Fund is exposed to mortgage-backed securities. In the event that the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">market for mortgage-backed securities experiences high volatility and a lack of liquidity, the value of many </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed securities may decline. Any mishandling <div style="display:inline;">of </div>related documentation by a servicer may also affect </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the rights of the security holders in and to the underlying collateral.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Real Property Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may gain exposure to loans collateralized or secured by, or relating to, real property, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or it may invest in equity or debt securities issued by REITs. The value of an investment in REIT securities or of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">real property underlying a loan will be subject to the risks generally incident to the ownership of improved and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unimproved real estate. Factors affecting real estate values include the supply of real property in particular markets, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">overbuilding, changes in zoning laws, casualty or condemnation losses, delays in completion of construction, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">changes in operations costs and property taxes, levels of occupancy, adequacy of rent to cover operating expenses, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">possible environmental liabilities, regulatory limitations on rent, fluctuations in rental income, increased </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">competition, and other risks related to local and regional market conditions. The value of these investments also </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may be affected by changes in interest rates, macroeconomic developments, and social and economic trends. For </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">instance, during periods of declining interest rates, mortgagors may elect to prepay, which prepayment may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">diminish the yield on mortgage-backed securities.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Some borrowers may intend to use resale proceeds to repay their loans. A decline in property values could result in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a loan that is greater than the property value, which could increase the likelihood of borrower default.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The payment schedules with respect to many real estate-related loans are based on projected revenues generated by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the property over the term of the loan. These projections are based on factors such as expected vacancy rates, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">expense rates and other projected income and expense figures relating to the property. The actual revenues </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">generated by a property could fall short of projections, due to factors such as lower-than-expected rental revenues, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or greater-than-expected vacancy rates or property management expenses. In such cases, a borrower may be unable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to repay a loan. To the extent the Fund has exposure to construction or rehabilitation/renovation loans, it may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">adversely impacted by, among other things, risks involving the timeliness of the project’s completion, the integrity </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of appraisal values, whether or not the completed property can be sold for the amount anticipated and the length of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the construction and/or sale process.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">A borrower’s ability to repay a loan relating to real property or the value of securities issued by a REIT that holds </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">real property might also be adversely affected if toxic environmental contamination were to be discovered to exist </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">on the property. Environmental contamination may give rise to a diminution in value of the underlying property or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may lead to liability for clean-up costs or other remedial actions. A platform or third-party servicer could be forced </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to take on potential additional liabilities and responsibilities in the event of foreclosure. A platform may choose not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to foreclose on a contaminated property as the potential liability could exceed the value of the real property or the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">principal balance of the related loan. The failure to perform the required remedial actions could, in some </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">jurisdictions, give rise to a lien on mortgaged property to ensure the reimbursement of remedial costs, which could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decrease the value of the property that serves as collateral.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The state of law is currently unclear as to whether and under what circumstances clean-up costs, or the obligation to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">take remedial actions, can be imposed on a secured lender (which may, under certain circumstances, include an </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">alternative lending platform or the Fund). If the Fund or a platform does become liable for cleanup costs, it may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">bring an action for contribution against the current owners or operators, the owners or operators at the time of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">on-site disposal activity or any other party who contributed to the environmental hazard, but these persons or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">entities may be bankrupt or otherwise judgment-proof. Furthermore, an action against the borrower may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affected by the limitations on recourse in the loan documents.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">REIT Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> In general, the <div style="display:inline;">value</div> of a REIT’s shares changes in light of factors affecting the real estate industry. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">See “—Real Property Risk” above. REITs are also subject to the risk of fluctuations in income from underlying </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">assets, poor performance by the REIT’s manager, the manager’s inability to manage cash flows generated by the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">REIT’s assets, adverse local or general economic conditions, possible lack of availability of financing, changes in </div></div></div> <div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">interest rates, self-liquidation, adverse economic conditions, adverse changes in the tax laws, and, with regard to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">certain REITs, the risk of failing to qualify for tax-free pass-through of income under the Code and/or to maintain </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exempt status under the 1940 Act. If a REIT were ineligible for the favorable tax treatment afforded to REITs under </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Code, it would be subject to U.S. federal income tax, thus reducing its value. REITs also depend upon </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">specialized management skills, may have limited financial resources and may have limited diversification because </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">they invest in a limited number of properties or mortgages, a narrow geographic area or a single type of property or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mortgage. Also, the organizational documents of a REIT may contain provisions that make changes in control of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">REIT difficult and time-consuming. Finally, the equity securities of private REITs are not traded on national </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities exchanges, and are therefore generally illiquid.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition, different types of REITs have different risk profiles. The value of securities issued by equity REITs, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">which own properties that are leased to tenants and derive income from the collection of rents, may be affected by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">changes in the value of the underlying real property, fluctuations in the demand for real estate, defaults by tenants, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and decreases in market rates for rent. The value of securities issued by mortgage REITs, which invest the majority </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of their assets in real estate mortgages and derive income from the collection of interest payments, may be affected </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">by the quality of credit extended, prepayments and defaults by borrowers, and changes in market interest rates, and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may be more susceptible to interest rate risk (see “—Interest Rate Risk” below) than equity REITs. Hybrid REITs </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">invest in a combination of real property and real property mortgages, and are subject to the risks associated with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">both equity REITs and mortgage REITs to varying degrees depending on the relative weights of their investment in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">each category.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">By investing in REITs indirectly through the Fund, an investor will bear not only his or her proportionate share of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the expenses of the Fund, but also, indirectly, similar expenses of REITs. In addition, REITs depend generally on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their ability to generate cash flow to make distributions to investors.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Credit/Counterparty Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The value of a debt security depends on the issuer’s credit quality or ability to pay </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">principal and interest when due. The securities in which the Fund may invest may have varying degrees of credit </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">risk and, subject to the Fundamental Investment Restrictions, which, among other things, prohibit the Fund from </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investing in loans of subprime quality, the Fund is not restricted by any borrower credit criteria or credit risk </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">limitation. The value of a debt security is likely to fall if an issuer or the guarantor of a security is unable or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unwilling (or perceived to be unable or unwilling) to make timely principal and/or interest payments or otherwise to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">honor its obligations or if the debt security’s rating is downgraded. The obligations of issuers are subject to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">bankruptcy, insolvency and other laws affecting the rights and remedies of creditors. The value of a debt security </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">can also decline in response to other changes in market, economic, industry, political and regulatory conditions that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">affect a particular type of debt security or issuer or debt securities generally, such as conditions in the alternative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending market or a decrease in the value of collateral, if any. The values of many debt securities may fall in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">response to a general increase in investor risk aversion or a decline in the confidence of investors generally in the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability of issuers to meet their obligations.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Unlike other debt instruments that are rated by nationally recognized statistical rating organizations, the alternative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending-related securities in which the Fund invests are typically unrated or rated only by the platform. Issuers may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">evaluate prospective borrowers by looking to a number of factors, including the borrower’s credit history and/or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">credit score as reported by one or more third-party credit reporting agencies. The Fund relies on the borrower’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">credit information, which is provided by the platforms. However, as described under “—Default Risk,” such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">information may be out of date, incomplete or inaccurate and may, therefore, not accurately reflect the borrower’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">actual creditworthiness. Although the Fund may not invest in loans of subprime quality, certain borrowers may have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">had credit difficulties in the past. Platforms may not have an obligation to update borrower information, and, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">therefore, the Fund may not be aware of any impairment in a borrower’s creditworthiness subsequent to the making </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of a particular loan.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Not all platforms from which the Fund purchases alternative lending-related securities check borrowers’ credit </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">scores; for those that do, although the Fund conducts diligence on the credit scoring methodology used by such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms, the Fund typically does not have access to all of the data that platforms utilize to assign credit scores to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">particular loans purchased by the Fund, and will not independently diligence or confirm the truthfulness of such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">information or otherwise evaluate the basis for the platform’s credit score of those loans. As a result, the Fund may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">make investments based on outdated, inaccurate or incomplete information. In addition, the platforms’ credit </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">decisions and scoring models are based on algorithms that could potentially contain programming or other errors or </div></div></div> <div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">prove to be ineffective or otherwise flawed. This could adversely affect pricing data and approval processes and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">could cause loans to be mispriced or <div style="display:inline;">misclassified</div>, which could ultimately have a negative impact on the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Platform Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> As discussed in more detail in “—Default Risk” and “—Risk of Unsecured Loans,” the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">receives payments on whole loans or securities representing the right to receive principal and interest payments due </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">on loans only if the platform servicing the loans receives the borrower’s payments on such loans and passes such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">payments through to the Fund. If a borrower is unable or fails to make payments on a loan for any reason, the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may be greatly limited in its ability to recover any outstanding payments due, as (among other reasons) the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may not have direct recourse against the borrower or may otherwise be limited in its ability to directly enforce its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rights under the loan, whether through the borrower or the platform through which such loan was originated or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">sourced, the loan may be unsecured or under-collateralized and/or it may be impracticable or undesirable to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commence a legal proceeding against the defaulting borrower.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund may have limited knowledge about the underlying loans and is dependent upon the platform for </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">information regarding such underlying loans. Although the Fund conducts diligence on the platforms, the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">generally does not have the ability to independently verify the information provided by the platforms, other than </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">payment information regarding loans and other alternative lending-related securities owned by the Fund, which the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund observes directly as payments are received. Some investors, including the Fund, may not review the particular </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">characteristics of the loans in which they invest at the time of investment, but rather negotiate in advance with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms the general criteria of the investments, as described above. As a result, the Fund is dependent on the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">platforms’ ability to collect, verify and provide information to the Fund about each loan and borrower.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund relies on the borrower’s credit information, which is provided by the platforms. However, as described </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">under “—Default Risk,” such information may be out of date, incomplete or inaccurate and may, therefore, not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">accurately reflect the borrower’s actual creditworthiness. Platforms may not have an obligation to update borrower </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">information, and, therefore, the Fund may not be aware of any impairment in a borrower’s creditworthiness </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">subsequent to the making of a particular loan. Although the Fund conducts diligence on the credit scoring </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">methodology used by platforms from which the Fund purchases alternative lending-related securities, the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">typically does not have access to all of the data that platforms utilize to assign credit scores to particular loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">purchased by the Fund, and does not independently diligence or confirm the truthfulness of such information or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">otherwise evaluate the basis for the platform’s credit score of those loans. As a result, the Fund may make </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments based on outdated, inaccurate or incomplete information. In addition, the platforms’ credit decisions </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and scoring models are based on algorithms that could potentially contain programming or other errors or prove to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">be ineffective or otherwise flawed. This could adversely affect loan pricing data and approval processes and could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">cause loans to be mispriced or misclassified, which could ultimately have a negative impact on the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In certain circumstances, the Fund may be dependent on a platform or loan servicer to value collateral, issue margin </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">calls, close out a loan by liquidating all or a portion of a borrower’s collateral or otherwise administer a loan’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">margin requirements. The Fund is subject to the risk that a platform or loan servicer will fail to sufficiently provide </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such services, in which case a loan to which the Fund has exposure may be adversely impacted. The Fund is also </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">subject to the risk that a platform or loan servicer incorrectly prices collateral, due to factors such as incomplete </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">data, market instability or human error, which may result in the platform or loan servicer being unable to administer </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">a loan’s margin requirements or in the Fund otherwise being undercollateralized. These risks may be heightened in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the case of certain forms of collateral, such as digital assets like bitcoin or equity securities issued by operating </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies or by exchange-traded funds.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition, the underlying loans, in some cases, may be affected by the success of the platforms through which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">they are facilitated. Therefore, disruptions in the businesses of such platforms may also negatively impact the value </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of the Fund’s investments. Disruption in the business of a platform (such as the disruption caused by the COVID-19 </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">pandemic or by the shut-down of certain regional banks in March 2023) could limit or eliminate the ability of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund to invest in loans originated or sourced by that platform. During the height of the COVID-19 crisis, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">alternative lending platforms to which the Fund is exposed substantially reduced the number of loans they </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">originated each month. If a decrease in originations (or a similar decrease caused by a future public health or other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">crisis) resumes, the Fund could face additional competition for access to platforms and alternative lending-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities, and could be prevented from deploying capital in a timely or efficient manner. This could force the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to invest more of its assets in one or more of its other investment strategies, which may result in decreased </div></div></div> <div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">diversification of the Fund’s investment returns and/or other lower returns than may otherwise be available through </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments in alternative lending-related securities. The Fund may also invest in public or private equity securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of alternative lending platforms or enter into other financial transactions, including derivative transactions, to gain </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposure to such investments. The performance of equity instruments issued by a platform or derivatives thereon </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">depends on the success of the platform’s business and operations. As described above, the Fund may also invest in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">shares, certificates, notes or other securities representing the right to receive principal and interest payments due on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fractions of whole loans or pools of whole loans.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Platforms are for-profit businesses that, as a general matter, generate revenue by collecting fees on funded loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">from borrowers and by assessing a loan servicing fee on investors, which may be a fixed annual amount or a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">percentage of the loan or amounts collected. This business could be disrupted in multiple ways; for example, a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform could file for bankruptcy or a platform might suffer reputational harm from negative publicity about the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform or alternative lending more generally and the loss of investor confidence in the event that a loan facilitated </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">through the platform is not repaid and the investor loses money on its investment. Many platforms and/or their </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">affiliates have incurred operating losses since their inception and may continue to incur net losses in the future, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particularly as their businesses grow and they incur additional operating expenses.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investments could be adversely impacted if a platform that services the Fund’s investments becomes </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unable or unwilling to fulfill its obligations to do so. In order to mitigate this risk, the Fund would seek to rely on a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">backup servicer provided through the platform or through an unaffiliated backup servicer. To the extent that it is not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">possible to collect on defaulted loans, or to the extent borrowers prepay loans, a platform that services loans may no </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">longer be able to collect a servicing fee, which would negatively impact its business operations. These or other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">similar negative events could adversely affect the platforms’ businesses and/or investor participation in a platform’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">marketplace and, in turn, the business of the platforms, which creates a risk of loss for the Fund’s investments in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities issued by a platform or derivatives thereon.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Platforms may have a higher risk profile than companies engaged in lines of business with a longer, more </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">established operating history and such investments should be viewed as longer-term investments. Alternative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending is relatively new and alternative lending platforms have relatively limited operating histories. They have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">met with and will continue to meet with challenges, including navigating evolving regulatory and competitive </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">environments; increasing the number of borrowers and investors utilizing their marketplace; increasing the volume </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of loans facilitated through their marketplace and transaction fees received for matching borrowers and investors </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">through their marketplace; entering into new markets and introducing new loan products; continuing to revise the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">marketplace’s proprietary credit decisions and scoring models; continuing to develop, maintain and scale their </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms; effectively maintaining and scaling financial and risk management controls and procedures; maintaining </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the security of the platform and the confidentiality of the information provided and utilized across the platform; and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">attracting, integrating and retaining an appropriate number of qualified employees. A platform may enter into </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">various business transactions, including mergers or acquisitions, that could require significant managerial attention, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">disrupt business and adversely affect its financial results. Platforms are subject to risk of litigation and any such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">litigation may be costly to defend and distracting to management. If platforms are not successful in addressing these </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">issues, the platforms’ businesses and their results of operations may be harmed, which may reduce the possible </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">available investments for the Fund or negatively impact the value of the Fund’s investments in platforms or in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">alternative lending-related securities more generally. Platforms that originate loans secured with non-traditional </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">forms of collateral (e.g., digital assets like bitcoin or equity securities issued by operating companies or by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exchange-traded funds) may have a higher risk profile than platforms that originate loans secured with traditional </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">forms of collateral.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Certain platforms may work with banks in order to originate loans to borrowers and may rely on such banks to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">satisfy certain legal and/or regulatory requirements. If an originating bank suspended, limited or ceased its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">operations, if the bank’s relationship with the platform were terminated for any reason or if the bank’s ability or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">willingness to continue to serve this function on the current or equivalent terms were in any way curtailed, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">impacted platform would need to negotiate and implement a substantially similar arrangement with another bank, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">satisfy any regulatory or licensing requirements with respect to the new bank or seek other solutions. There can be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">no assurances that the platform in this type of situation would not be forced to curtail or suspend its operations. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Platforms may have limited or no prior experience with transitioning loan originations to a new funding bank and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the process may result in delays in the issuance of loans, a platform’s inability to facilitate loans or other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unforeseeable consequences. If a platform is unable to enter in an alternative arrangement with a different funding </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">bank, the platform would need to obtain its own license in order to enable it to originate loans, as well as comply </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">with other laws, which would be costly and time-consuming. In the U.S., this would entail, at minimum, obtaining a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">license in each state in which the platform operates. Platforms operating in other jurisdictions would be subject to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the regulatory requirements of those jurisdictions, which may be burdensome and costly. If a platform is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unsuccessful in maintaining its relationships with the funding banks, its ability to provide loan products could be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">materially impaired and its operating results would suffer. The Fund relies on the continued success of the platforms </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that facilitate the loans in which the Fund invests. If such platforms were impaired in their ability to operate their </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending business, the Adviser may be required to seek alternative sources of investments, which could adversely </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect the Fund’s performance and/or prevent the Fund from pursuing its investment objective and strategies.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Platforms may rely on debt facilities and other forms of borrowing in order to finance many of the borrower loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">they facilitate. However, these financing sources may become unavailable after their current maturity dates or the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">terms may become less favorable to the borrowing platforms. As the volume of loans that a platform facilitates </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">increases, the platform may need to expand its borrowing capacity on its existing debt arrangements or may need to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">seek new sources of capital. The availability of such financing depends on multiple factors, some of which are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">outside of the platform’s control. Platforms may also default on or breach their existing debt agreements, which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">could diminish or eliminate their access to funding at all or on terms acceptable to the platforms. Such events could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cause the Fund to incur losses on its investments that are dependent upon the performance of the platforms.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">As discussed under “—Operational and Technology Risk,” platforms are subject to various risks relating to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extensive use of information technology.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">As discussed under “—Regulatory Risk,” platforms may also be forced to defend legal action taken by regulators or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">governmental bodies. Alternative lending is a new industry operating in an evolving legal environment. Platforms </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may be subject to risk of litigation alleging violations of law and/or regulations, including, for example, consumer </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">protection laws, whether in the U.S. or in non-U.S. jurisdictions. Platforms may be unsuccessful in defending </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">against such lawsuits or other actions and, in addition to the costs incurred in fighting any such actions, platforms </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may be required to pay money in connection with the judgments, settlements or fines or may be forced to modify </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the terms of its borrower loans, which could cause the platform to realize a loss or receive a lower return on a loan </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">than originally anticipated. Platforms may also be parties to litigation or other legal action in an attempt to protect </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or enforce their rights or those of affiliates, including intellectual property rights, and may incur similar costs in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">connection with any such efforts.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investments in the equity securities of alternative lending platforms, including common stock, preferred </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">stock, warrants or convertible stock, are subject to equity securities risk. Equity securities risk is the risk that the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">value of equity securities to which the Fund is exposed will fall due to general market or economic conditions; </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">overall market changes; local, regional or global political, social or economic instability; currency, interest rate and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">commodity price fluctuations; perceptions regarding the industries in which the issuers participate and the particular </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">circumstances and performance of the issuers. Market conditions may affect certain types of equity securities to a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">greater extent than other types; for example, equity securities of issuers in new or emerging industries may be more </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">susceptible to market conditions and may experience volatility in returns. Equities to which the Fund may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposed are structurally subordinated to bonds and other debt instruments in a company’s capital structure, in terms </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of priority to corporate income and, therefore, will be subject to greater risk than debt instruments of such issuers. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The prices of equities are also sensitive to rising interest rates, as the costs of capital rise and borrowing costs </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">increase. The equity securities of smaller, less seasoned companies, such as platforms or their affiliates, are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">generally subject to greater price fluctuations, limited liquidity, higher transaction costs and higher investment risk. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Smaller companies may have limited product lines, markets or financial resources, may be dependent on a limited </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">management group and may lack substantial capital reserves or an established performance record. There may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">generally less publicly available information about such companies than for larger, more established companies. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund invests in unlisted equity securities, which generally involve a higher degree of valuation and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">performance uncertainty and greater liquidity risk than investments in listed securities. Such issuers tend to be more </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">susceptible to the actions of competitors and market conditions, including general economic downturns; often </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">operate at a financial loss; are more likely to depend on small numbers of key management persons such that the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">departure of any such persons could have a material adverse impact on the business and prospects of the company; </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and generally have less predictable operating results. Investments that are unlisted at the time of acquisition may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">remain unlisted and may, therefore, be difficult to value and/or realize. Preferred securities may pay fixed or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">adjustable rates of return. Preferred securities are subject to issuer-specific and market risks applicable generally to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">equity securities. In addition, preferred securities generally pay a dividend and rank ahead of common stocks and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">behind debt securities in claims for dividends and for assets of the issuer in a liquidation or bankruptcy. For this </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">reason, the value of preferred securities will usually react more strongly than bonds and other debt to actual or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">perceived changes in the company’s financial condition or prospects. Preferred securities may also be sensitive to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">changes in interest rates. When interest rates rise, the fixed dividend on preferred securities may be less attractive, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">causing the price of preferred stocks to decline. Preferred securities of smaller companies may be more vulnerable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to adverse developments than preferred stock of larger companies. Warrants are options to purchase equity </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities at specific prices valid for a specific period of time. Their prices do not necessarily move parallel to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">prices of the underlying securities. Convertible securities are subject to the risks applicable generally to debt </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities, including credit risk. Convertible securities also react to changes in the value of the common stock into </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">which they convert, and are thus subject to market risk. Because the value of a convertible security can be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">influenced by both interest rates and the common stock’s market movements, a convertible security generally is not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">as sensitive to interest rates as a similar debt security, and generally will not vary in value in response to other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">factors to the same extent as the underlying common stock. In the event of a liquidation of the issuing company, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">holders of convertible securities typically would be paid before the company’s common shareholders <div style="display:inline;">but </div>after </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">holders of any senior debt obligations of the company.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Risk of Securities Issued by Platforms, Their Affiliates or Special Purpose Entities Sponsored by Platforms </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">or Their Affiliates.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund’s investments in shares, certificates, notes or other securities issued by a platform, its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">affiliates or a special purpose entity sponsored by a platform or its affiliates that represent the right to receive </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">principal and interest payments due on fractions of whole loans or pools of whole loans may expose the Fund to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">credit risk of the issuer. Generally, such securities are unsecured obligations of the issuer; an issuer that becomes </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">subject to bankruptcy proceedings may be unable to make full and timely payments on its obligations to the Fund, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">even if the payments on the underlying loan or loans continue to be made timely and in full. In addition, when the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund owns such fractional loans or other securities, the Fund and its custodian generally do not have a contractual </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">relationship with, or personally identifiable information regarding, individual borrowers, so the Fund will not be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">able to enforce underlying loans directly against borrowers and may not be able to appoint an alternative servicing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">agent in the event that a platform or third-party servicer, as applicable, ceases to service the underlying loans. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Therefore, the Fund is more dependent on the platform and loan servicer for servicing than in the case in which the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund owns whole loans. Where such interests are secured, the Fund relies on the platform to perfect the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">security interest. In addition, there may be a delay between the time the Fund commits to purchase a security issued </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">by a platform, its affiliate or a special purpose entity sponsored by the platform or its affiliate and the issuance of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such security and, during such delay, the funds committed to such an investment will not earn interest on the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment nor will they be available for investment in other alternative lending-related securities, which will </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">reduce the effective rate of return on the investment. The Fund invests primarily in whole loans, and to a lesser </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extent in securities with exposure to fractional loans or other similar securities.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Equity Securities Risk. </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investments in <div style="display:inline;">the </div>equity securities of alternative lending platforms or REITs, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">including common stock, preferred stock, warrants or convertible stock, are subject to equity securities risk. Equity </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities risk is the risk that the value of equity securities to which the Fund is exposed will fall due to general </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">market or economic conditions; overall market changes; local, regional or global political, social or economic </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">instability; currency, interest rate and commodity price fluctuations; perceptions regarding the industries in which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the issuers participate and the particular circumstances and performance of the issuers. The prices of equities are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">also sensitive to rising interest rates, as the costs of capital rise and borrowing costs increase. The equity securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of smaller, less seasoned companies, such as platforms or their affiliates, are generally subject to greater price </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">fluctuations, limited liquidity, higher transaction costs and higher investment risk. The Fund invests in unlisted </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">equity securities, which generally involve a higher degree of valuation and performance uncertainty and greater </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">liquidity risk than investments in listed securities. Preferred securities are subject to issuer-specific and market risks </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">applicable generally to equity securities. In addition, preferred securities generally pay a dividend and rank ahead of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">common stocks and behind debt securities in claims for dividends and for assets of the issuer in a liquidation or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">bankruptcy. For this reason, the value of preferred securities will usually react more strongly than bonds and other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">debt to actual or perceived changes in the company’s financial condition or prospects. Preferred securities may also </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">be sensitive to changes in interest rates. When interest rates rise, the fixed dividend on preferred securities may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">less attractive, causing the price of preferred stocks to decline. Convertible securities are subject to the risks </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">applicable generally to debt securities, including credit risk. Convertible securities also react to changes in the value </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of the common stock into which they convert, and are thus subject to market risk. In the event of a liquidation of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the issuing company, holders of convertible securities typically would be paid before the company’s common </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shareholders but after holders of any senior debt obligations of <div style="display:inline;">the </div>company.</div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Servicer Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund’s direct and indirect investments in loans originated or sourced by alternative lending </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms are typically serviced by that platform or a third-party servicer. Loan servicing may entail the assessment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and/or collection of payments and fees from borrowers, the allocation and payment of such amounts to investors </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and the execution of collections processes upon nonpayment of borrower loans, which may include referral of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">overdue loans to collections personnel or outside collection agencies. Fees charged by a loan servicer reduce the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">returns on the Fund’s investments.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In the event that the servicer is unable to service the loan, there can be no guarantee that a backup servicer will be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">able to assume responsibility for servicing the loans in a timely or cost-effective manner; any resulting disruption or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">delay could jeopardize payments due to the Fund in respect of its investments or increase the costs associated with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s investments. If the servicer becomes subject to a bankruptcy or similar proceeding, there is some risk </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that the Fund’s investments could be recharacterized as a secured loan from the Fund to the platform, as described </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">more fully (with respect to the potential bankruptcy of a platform) under “—Regulatory Risk,” which could result </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in uncertainty, costs and delays from having the Fund’s investment deemed part of the bankruptcy estate of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform, rather than an asset owned outright by the Fund. Servicers may be subject to other risks described herein, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including “—Platform Risk.”</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Regulatory Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The loan industry is highly regulated and the alternative lending-related securities in which the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund invests are subject to extensive rules and regulations issued by governmental authorities in each of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">jurisdictions in which the Fund invests. These authorities also may impose obligations and restrictions on the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms’ activities or those of other entities involved in the alternative lending process. As a result of ongoing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">economic and other developments, changes to federal, state or local law or regulation may negatively affect the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s ability to receive payments of interest and repayments of principal on its investments.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The platforms’ failure to comply with the requirements of applicable law may cause, among other things, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms to be required to register with or be licensed by governmental authorities and/or the revocation of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">requisite licenses, the voiding of loan contracts, practice restrictions, impairment of the enforcement of loans or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">collection of interest, indemnification liability to contract counterparties, class action lawsuits, administrative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">enforcement actions and/or civil and criminal liability in the relevant jurisdiction. The evolving nature of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms’ respective business models may complicate their ability to determine the applicability of, and to effect </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">compliance with, such requirements. Moreover, legal and regulatory requirements and any interpretations of those </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">requirements are subject to periodic changes. Any such change necessitating new significant compliance obligations </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">could have an adverse effect on the platforms’ compliance costs and ability to operate. The platforms could seek to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">pass through any increase in their costs to their borrowers or investors, such as the Fund, in the form of higher </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">origination or servicing fees.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In connection with the sale and servicing of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">whole loans, fractions of whole loans or pools of whole loans, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms typically make representations and warranties to investors, such as the Fund, that the loans were </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">originated and are being serviced in accordance with and in compliance with applicable laws (and in some cases </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">specifically with the laws described herein) in all material respects. Despite these representations and warranties, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund cannot guarantee that the platforms have been and will continue to be in compliance with all applicable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">laws. If those representations and warranties were not correct, the platforms could be required to repurchase the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loans or indemnify the Fund for losses, but the Fund cannot be certain that the platform would be required and able </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to repurchase loans or indemnify the Fund for losses in all such cases.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition, regulators, enforcement agencies and courts are increasingly considering the role of non-bank lenders </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and secondary market loan purchasers. There is no guarantee that laws and regulations applicable to non-bank </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lenders will not change in a manner that adversely affects or restricts the Fund, including the ability of the Fund to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">acquire loans from platforms, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">enforce loans and collect interest and/</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">principal, or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise restricts or materially </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">increases the cost to the Fund of pursuing potential investment strategies.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Moreover, regulators could seek to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">impose liability on the Fund as purchaser and holder of loans for actions omissions of its vendors, such as servicers </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or sub-servicers.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Finally, increased reporting, registration, and compliance requirements may divert the attention of personnel and the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">management team of the Adviser, and may furthermore place the Fund at a competitive disadvantage to the extent </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that the Adviser or companies in which the Fund invests are required to disclose sensitive business information. The </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund will be required to bear the Fund’s expenses relating to compliance-related matters and regulatory filings, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which are likely to be material, including on a cumulative basis over the life of the Fund.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div> <div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The information below provides additional detail on some of the laws, rules and regulations relevant to the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Regulatory Regime in the United States. The platforms may be subject to laws including the following in the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">United States:</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">federal and state laws and regulations related to disclosures to and consents from borrowers and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prospective borrowers and loan terms, credit discrimination, credit reporting, debt servicing and collection </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and unfair, deceptive, abusive or unconscionable business practices;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">state consumer loan, small loan, commercial loan, loan brokerage, loan servicing, credit services </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">organization and collection agency licensing laws that apply to persons that arrange, broker, facilitate, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market, make, own in whole or in part, hold, acquire, purchase, service, collect or otherwise participate in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans covered by such laws;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:left;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">state usury laws and other laws that restrict the amount of interest or fees that may be charged on loans;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">state disclosure laws and regulations applicable to small business loans, merchant cash advances and other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commercial-purpose financings;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Truth-in-Lending Act and Regulation Z promulgated thereunder, and similar state laws, which require </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain disclosures to borrowers regarding the terms and conditions of their loans and credit transactions;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Section 5 of the Federal Trade Commission Act, and similar state laws, which prohibit unfair and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deceptive acts or practices in or affecting commerce, and Sections 1031 and 1036 of the Dodd-Frank Wall </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Street Reform and Consumer Protection Act, which prohibit unfair, deceptive or abusive acts or practices </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in connection with any consumer financial product or service, and the Federal Holder in Due Course Rule </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(16 CFR 433), which in certain circumstances permits borrowers to assert any claims and defenses that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">they would have had against a seller of goods or services obtained with the proceeds of a loan against an </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">originator or subsequent purchaser of the loan, and analogous state laws prohibiting unfair, deceptive or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unconscionable trade practices;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Credit Practices Rules, which (i) prohibit lenders from using certain contract provisions that the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Federal Trade Commission (the “FTC”) has found to be unfair; (ii) requires lenders to advise consumers </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">who co-sign obligations about their potential liability if the primary obligor fails to pay; and (iii) prohibits </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain late charges;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Equal Credit Opportunity Act and Regulation B promulgated thereunder, and similar state statutes, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which prohibit creditors from discriminating against credit applicants on the basis of race, color, sex, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sexual orientation, gender identity, age, religion, national origin, marital status, the fact that all or part of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the applicant’s income derives from any public assistance program or the fact that the applicant has in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">good faith exercised any right under the federal Consumer Credit Protection Act or any applicable state </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">law;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fair Credit Reporting Act, as amended by the Fair and Accurate Credit Transactions Act, which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">promotes the accuracy, fairness and privacy of information in the files of consumer reporting agencies, by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulating the use and reporting of information related to a credit applicant’s credit history and imposing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">restrictions on the marketing of credit products through prescreened solicitations based on consumer </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">report information, among other things;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fair Debt Collection Practices Act and similar state debt collection laws, which provide guidelines and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limitations on the conduct of third-party debt collectors (and some limitations on creditors collecting their </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">own debts) in connection with the collection of consumer debts;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Gramm-Leach-Bliley Act, which includes limitations on financial institutions’ disclosure of nonpublic </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">personal information about a consumer to nonaffiliated third parties, in certain circumstances requires </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial institutions to limit the use and further disclosure of nonpublic personal information by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nonaffiliated third parties to whom they disclose such information and requires financial institutions to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disclose certain privacy policies and practices with respect to information sharing with affiliated and </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-left:40pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">nonaffiliated entities as well as to safeguard personal customer information, and other federal and state or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">foreign privacy and data security laws and regulations, including the California Consumer Privacy Act </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(“CCPA”) and similar state laws of broad applicability;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Telephone Consumer Protection Act, which imposes various consumer consent requirements and other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">restrictions in connection with telemarketing activity and other communication with consumers by phone, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fax or text message, and which provides guidelines designed to safeguard consumer privacy in connection </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with such communications;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Federal Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 and the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Telemarketing Sales Rule and analogous state laws, which impose various restrictions on marketing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conducted using email, telephone, fax or text message;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Bankruptcy Code, which limits the extent to which creditors may seek to enforce debts against parties </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">who have filed for bankruptcy protection;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Servicemembers Civil Relief Act, which allows military members to suspend or postpone certain civil </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations so that the military member can devote his or her full attention to military duties and limits </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates on certain obligations of servicemembers to 6% per annum;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Military Lending Act, which limits the amount of interest and fees that may be charged on loans made </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to members of the military and provides for other consumer protections;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Electronic Fund Transfer Act and Regulation E promulgated thereunder, as well as rules of payment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">networks and the National Automated Clearing House Association, which require separate customer </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">authorization for a loan servicer to use electronic transfers for customer payments and provide disclosure </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirements, guidelines and restrictions on the electronic transfer of funds to and from consumers’ bank </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">accounts;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Electronic Signatures in Global and National Commerce Act and similar state laws, particularly the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Uniform Electronic Transactions Act, which authorize the creation of legally binding and enforceable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agreements utilizing electronic records and signatures and govern the circumstances in which a person </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may electronically provide disclosures otherwise required to be in writing;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the regulations promulgated by the Office of Foreign Assets Control under the U.S. Treasury Department </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">related to the administration and enforcement of sanctions against non-U.S. jurisdictions and persons, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including Specially Designated Nationals (SDNs), that threaten U.S. foreign policy and national security </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">goals, primarily to prevent targeted jurisdictions and persons from accessing the U.S. financial system;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Bank Secrecy Act, which relates to compliance with anti-money laundering, customer due diligence </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and record-keeping policies and procedures;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Uniform Consumer Credit Code as it may be adopted in various states, which relates to consumer </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">protections for borrowers</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Federal and state laws governing the use of artificial intelligence, machine learning and other technologies </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in connection with the marketing, solicitation, origination, underwriting, purchase, sale, servicing or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collection of loans;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:left;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">federal and state securities laws; and</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:left;width:423.00pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other federal, state and local laws and regulations.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">These rules require extensive disclosure to, and consents from, borrowers and prospective borrowers, prohibit </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">various lending practices such as discrimination and may impose multiple qualification and licensing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations on platform activities.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Moreover, under the Federal Holder in Due Course Rule referred to above, failure to perform or a violation of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">law by a merchant or service provider could give rise to claims and/or defenses by a borrower, or a group of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrowers, against the Fund, a servicer and certain other parties.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Consumer Financial Protection Bureau (“CFPB”) has broad authority over the U.S. consumer-focused </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">businesses in which certain platforms engage. This includes authority to write regulations under federal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">consumer financial protection laws, such as the Truth in Lending Act and the Equal Credit Opportunity Act, to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">supervise and conduct regulatory examinations of banks with more than $10 billion in assets and certain </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">non-banks, and to enforce federal consumer financial protection laws against market participants, including the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms. The CFPB is authorized to prevent “unfair, deceptive or abusive acts or practices” through its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulatory, supervisory and enforcement authority. To assist in its enforcement, the CFPB maintains an online </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">complaint system that allows consumers to log complaints with respect to various consumer finance products, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">including the loans that platforms facilitate. This system could inform future CFPB decisions with respect to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">its regulatory, enforcement or examination focus. Since March 2016, the CFPB has accepted consumer </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">complaints regarding consumer loans issued by online marketplace platforms, subjecting platforms to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">CFPB’s expectation for prompt handling of consumer complaints received through the system and making </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">available to the public non-personalized information regarding such complaints. Until the CFPB issues a final </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rulemaking defining which non-bank larger participants in the consumer lending market will be subject to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">CFPB’s supervisory authority, which includes the ability to conduct regulatory examinations, the platforms are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">only subject to the CFPB’s rulemaking and enforcement authority, unless they are determined to pose risk to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">consumers by the CFPB. The CFPB announced in April 2022 its intention to use its authority to supervise any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">non-bank that it determines is posing a risk to consumers. Since that time, the CFPB has entered into </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">non-public agreements with several entities that have agreed to the CFPB’s supervision. However, on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">September</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">25</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, 2025, the CFPB issued a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">final rule</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> to rescind amendments to the Procedures for Supervisory </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Designation Proceedings that it adopted in 2022 and 2024. While the future extension of supervisory authority </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to non-banks that the CFPB determines pose a risk to consumer is uncertain, it is possible that entities subject </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to CFPB supervision and examination, either as a result of such determination or a future larger participant </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rulemaking, could include fintech platforms that sell loans to or service loans for the Fund. The impact of such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">direct supervision by the CFPB is unknown, but could result in additional scrutiny for platforms, which could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have an adverse impact on platforms and the Fund.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The CFPB could implement rules that restrict platforms’ effectiveness in servicing loans for the Fund. For </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">example, on October 5, 2017, the CFPB issued a final rule regarding Payday, Vehicle Title and Certain </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">High-Cost Installment Loans (the “Final Rule”). The Final Rule mandated with respect to loans of 45 days or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">less or longer-term loans with balloon payments that lenders must take reasonable steps to ensure that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">prospective borrowers have the ability to repay them. In July 2020, the CFPB issued a final rule to rescind the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Final Rule’s mandatory underwriting requirements (i.e., the ability-to-repay requirements) and ratify the Final </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Rule’s payment provisions that prohibit lenders from making new attempts to debit a borrower’s account after </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">two failed attempts, absent express authorization by the borrower for further withdrawals. The Final Rule was </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">stayed pending resolution of legal claims regarding both the substance of the Final Rule and the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">constitutionality of the CFPB’s funding mechanism. In September 2021, the U.S. District Court for the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Western District of Texas upheld the payment provisions in the Final Rule and established a June 13, 2022 </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">effective date. Cmty. Fin. Servs. Ass’n of Am., Ltd. v. CFPB, 558 F. Supp. 3d 350 (W.D. Tex. 2021). However, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">implementation of the Final Rule was further stayed and in October 2022 the U.S. Court of Appeals for the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fifth Circuit held that the funding mechanism for the CFPB (12 U.S.C. § 5497) is unconstitutional. The </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">U.S. Supreme Court took the case on appeal and on May 16, 2024, rejected the Fifth Circuit ruling, and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">remanded the case back to the U.S. Court of Appeals. On June 14, 2024, the CFPB announced the Final Rule </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">would go into effect on March 30, 2025. On November 25, 2024, the Fifth Circuit issued an order effectively </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">confirming that the Final Rule would take effect on March 30, 2025. However, on March 28, 2025, the CFPB </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">announced it would not prioritize enforcement or supervisory actions related to the payment provisions of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Final Rule, despite the rule taking effect on March 30, 2025.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Actions by the CFPB could result in requirements to alter or cease offering affected loan products and services, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">making them less attractive and restricting the platforms’ ability to offer them. Actions by the CFPB or other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulators against the platforms, their originating banks or their competitors that discourage the use of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">alternative lending model or suggest to consumers the desirability of other loan products or services could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">result in reputational harm and a loss of borrowers or investors. The platforms’ compliance costs and litigation </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposure could increase materially if the CFPB or other regulators enact new regulations, change existing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulations, modify, through supervision or enforcement, past regulatory guidance or interpret existing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulations in a manner different or stricter than previous interpretations. In addition to the CFPB, the FTC can </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investigate and enforce certain federal consumer protection statutes as well the prohibition on unfair and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">deceptive acts or practices under Section 5 of the Federal Trade Commission Act or unfair, deceptive or </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">abusive acts or practices under Sections 1031 and 1036 of the Dodd-Frank Wall Street Reform and Consumer </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Protection Act. Similarly, state attorneys general have broad powers to investigate and enforce consumer </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">protection statutes, which they have used, and are likely to continue to use, with respect to the activities of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">certain platforms. Also, the platforms may be subject to regulatory examination or enforcement actions by state </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">authorities, particularly in states where the platforms are licensed. Moreover, platforms that collaborate with a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bank to offer loans are subject to the supervisory authority of the bank’s regulator(s).</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The CFPB issued an interpretive rule in 2022 to provide clarity regarding 12 U.S.C. 5552, which provides </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">states with authority to enforce requirements of federal consumer financial laws, and issued a report in January </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">2025 to provide state regulators and enforcement agencies a road map for how they can enforce federal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">consumer financial laws. Although the interpretive rule on states’ enforcement authority was rescinded as of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">May 15, 2025, the underlying statutory authority for states to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">enforce</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> federal consumer financial laws remains. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">With the change in presidential administrations in January 2025 and the expectation that federal regulators may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">be less aggressive in enforcing federal consumer financial laws as compared to the prior administration, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">several state regulators have signaled an intention to increase their oversight of consumer financial services </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">firms.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Different platforms adhere to different business models subject to different regulatory requirements. For </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">example, one platform may operate from a particular state to make loans to small- and mid-sized businesses </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">across the United States. The platform must comply with that state’s licensing requirements and possible usury </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">limitations, relying on contractual choice of law provisions when lending to borrowers that reside in other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">states. However, other states could seek to regulate the platform on the basis that loans were made to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrowers located in such other states. Alternatively, plaintiffs or an enforcement agency could assert that the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform’s choice of law was not valid and that the law of the borrower’s state of residency applies to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">transaction, particularly if enforcement of the parties’ choice of law is found to be contrary to a fundamental </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">public policy of the borrower’s home state. In either case, loans made in those other states could be subject to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the maximum interest rate limits (usury laws), if any, of such jurisdiction, which in turn could limit revenues </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">for the Fund or adversely affect the value of the Fund’s investments. Moreover, it could further subject the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform to such states’ licensing requirements and, potentially, to penalties for having previously conducted </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">business in such states without a license, which could adversely impact the platform or, in some cases, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">enforceability of some or all of the terms of loans originated by or through the platform without a license.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Another platform may follow a different model in which some or all loans sourced by the platform are made </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">by a bank. The platform may provide certain services to assist the bank in making the loan, but the loans will </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">be made subject to the bank’s underwriting guidelines, funding for the loans will come from the bank’s own </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">resources and the bank will be the named payee on the loans. As a result, the bank is generally considered to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">be the “true lender” of the loans originated through the platform. However, if challenged in litigation by a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrower, government enforcement agency or other litigant, a court may instead decide that the platform is the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">true lender of the loans. Plaintiffs and certain regulators have challenged various bank affiliation and similar </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">arrangements involving a variety of non-bank partners, often in market segments in which the Fund does not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">intend to invest, such as payday lending and refund anticipation lending, and recently challenges have been </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">initiated against marketplace lending platforms on similar theories. Currently, litigation is pending in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">California between a platform and the California Department of Financial Protection and Innovation which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">could become a bellwether for future true lender cases, for example. Cases raising true lender, usury or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">licensing questions related to loans made pursuant to arrangements in which platforms affiliated with banks </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">can be expected to arise from time to time and are likely to be dependent on the specific facts and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">circumstances involved as well as developing judicial interpretations of existing and new laws. Given the fact </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">specific nature of these kinds of cases, courts have recently applied differing interpretations when determining </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">which party is the true lender, with the diverging outcomes of these cases explained in whole or in part by the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">differing legal standards applied by courts and factual distinctions. The resulting uncertainty may increase the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">possibility of claims brought against the platforms by borrowers seeking to void their loans or to subject the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms to increased regulatory scrutiny and enforcement actions. To the extent that the platform or a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">purchaser of loans is deemed to be the true lender in any jurisdiction instead of the originating bank (whether </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">determined by a regulatory agency at the state or federal level or by a court), loans made to borrowers in that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">jurisdiction would be subject to the maximum interest rate limits (usury laws) of such jurisdiction and existing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loans may be unenforceable and the platform or purchaser of loans could be subject to additional regulatory </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">requirements in addition to any penalties and fines (including licensing), which could adversely affect the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and the value of its investments. Moreover, it may be determined that this business model is not sustainable in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">its current form, which could ultimately cause such platforms to alter or terminate their businesses. In such </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">circumstances, there could be a material adverse effect on the Fund’s ability to pursue its investment strategy </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as well as enforce remedies it may have against the platforms from which it obtained loans.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Many fintech platforms partner with state-chartered banks that rely on federal law, specifically, Section 27 of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Federal Deposit Insurance Act, which allows a state-chartered bank insured by the Federal Deposit </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Insurance Corporation to charge interest to borrowers on a nationwide basis based on the rates allowed by the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">state where the bank is located. Section 27 preempts inconsistent state law limitations except for loans that are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">made in states that opt out from federal exportation authority. Until 2023, Iowa and Puerto Rico were the only </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">jurisdictions to have enacted and maintained opt outs of Section 27, although the effect of such opt outs was </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unsettled given different interpretations of the opt out right under federal law. In December 2022, the Iowa </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Attorney General and Department of Banking announced the settlement of an enforcement action against an </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">out-of-state, state-chartered bank that made loans in Iowa through a bank partnership program. The state </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">asserted that its opt out from Section 27 preemption required the bank to comply with state law when lending </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to Iowa residents. The state claimed that the bank charged usurious interest on loans to Iowa residents. Without </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">admitting any violation of Iowa law, the bank agreed to an Assurance of Discontinuance under which it would </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make refunds to Iowa residents for interest collected in excess of the state’s usury ceiling.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In 2023, Colorado enacted legislation purporting to opt out of Section 27. The law was scheduled to become </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">effective July 1, 2024 but was later subject to an injunction covering members of the trade associations that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">initiated a legal challenge to Colorado’s interpretation of DIDMCA’s opt-out provision</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, which injunction </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">remains in place while the matter is pending</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. The impact of the Colorado legislation is unclear at this time and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">other states have considered legislation to opt out of Section 27</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, with Oregon recently enacting DIDMCA opt </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">out legislation that takes effect in early June 2026</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. To the extent that a state’s opt-out is effective in preventing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">out-of-state, state-chartered banks from exercising their ability to export the interest rates of their home state </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">when lending to residents of such an opt-out state, it could limit state-chartered banks that partner with fintech </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms from originating certain loans or result in liabilities for any loans originated in violation of such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">opt-out state’s usury ceiling.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Alternative lending platforms may be subject to risk of litigation alleging violations of federal and state laws </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and regulations and consumer law torts, including fraud. Moreover, many alternative lending-related securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(loans, in particular) are written using standardized documentation. Thus, many borrowers may be similarly </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">situated insofar as the provisions of their contractual obligations are concerned. Accordingly, allegations of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">violations of the provisions of applicable federal or state consumer protection laws could potentially result in a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">large class of claimants asserting claims against the platforms and other related entities.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Recent case law raised questions regarding the ability of platforms and loan purchasers to charge the same rate </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">as an originating bank after a loan has been sold to the platform by the originating bank and, in turn, sold to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">subsequent investors, such as the Fund. In 2015, the U.S. Court of Appeals for the Second Circuit issued a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">significant decision that interpreted the scope of federal preemption under the National Bank Act (the “NBA”) </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and held that a non-bank assignee of loans originated by a national bank was not entitled to the benefits of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">NBA preemption as to state law claims of usury. Although the decision is binding only in Connecticut, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">New York and Vermont, it may significantly affect non-bank assignees of loans, including the loan origination </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">practices of certain participants in the alternative lending-related industry. At a minimum, non-bank </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">assignees/purchasers of bank loans may face uncertainty regarding their ability to rely upon federal preemption </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of state usury laws in those three states; in addition, a number of alternative lending platforms purchase loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">from state-chartered banks promptly after origination and rely upon federal preemption to exempt the loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">from state usury caps. Following the Second Circuit’s decision, there have been a number of lawsuits in other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">parts of the country making similar allegations. In 2020, the Office of the Comptroller of the Currency </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(“OCC”) and the Federal Deposit Insurance Corporation separately issued final rules to provide that interest </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rate applicable to a loan originated by a bank on the date the loan was made remains valid when a loan is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">transferred or sold. Although attorneys general in several states have initiated litigation to challenge the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">agencies’ rules, a federal district court upheld the rules in 2022 and the states did not file an appeal. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Nonetheless, some uncertainty remains as future litigants could seek to challenge the rules.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition to potential legal and regulatory challenges to platforms, several states have initiated enforcement </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">actions or considered new legislation that may challenge the ability of state-chartered banks that partner with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms to offer loans without a license or at interest rates above a state’s usury ceiling. Although these </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">developments are relatively recent and some of their outcomes are uncertain, they could limit future </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment opportunities or revenues for the Fund. Moreover, if a bank were to be found to have originated </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loans without a license and/or at interest rates not authorized by law, it could adversely impact the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">enforceability of loans made by such bank, which could adversely affect the Fund.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition, numerous other statutory provisions, including federal bankruptcy laws and related state laws, may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">interfere with or affect the ability of an investor to enforce a loan facilitated through an alternative lending </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform. If a platform or related entity were to go into bankruptcy or become the subject of an insolvency </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">proceeding, the platform or related entity may stop performing its services with respect to the loans. Any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">replacement servicer retained for such services may assess higher fees and/or demand additional, less favorable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">terms with respect to its obligations. The servicer may also have the power, in connection with a bankruptcy or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">insolvency proceeding and with the approval of the court or the bankruptcy trustee or similar official, to assign </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">its rights and obligations as servicer to a third party without the consent, and even over the objection, of any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">affected parties. If the servicer is a debtor in bankruptcy or the subject of an insolvency or similar proceeding, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">this may limit the ability of affected parties to enforce the obligations of the servicer, to collect any amount </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">owing by the servicer or to terminate and replace the servicer. In addition, the sale of whole loans to the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may be found by a bankruptcy court not to have been a true sale, but recharacterized as a secured loan from </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund to the platform. If such a recharacterization occurs, most platform loan purchase agreements provide </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that the platform grants a security interest to the Fund in the loans subject to the purchase agreement, but the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund would incur the resulting uncertainty, costs and delays from having its loans deemed part of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">bankruptcy estate of the platform, rather than assets owned outright by the Fund. A bankruptcy court may also </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">reduce the monthly payments due under the related contract or loan and/or change the rate of interest and time </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of repayment of the indebtedness. Borrowers may delay or suspend making payments on loans because of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">uncertainties occasioned by the bankruptcy or similar proceeding to which a platform or its related entities are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">subject, even if the borrowers have no legal right to do so. It is possible that a period of adverse economic </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">conditions resulting in high defaults and delinquencies on alternative lending-related securities will increase </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the potential bankruptcy risk to platforms and its related entities.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The U.S. presidential election of 2024 resulted in a change of administration that resulted in significant </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">changes in leadership among the federal agencies that regulate consumer credit, including the CFPB, FTC, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">federal banking agencies and the Department of Justice. Federal consumer financial regulation is in a period of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">extended transition for a variety of reasons, including </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">review and reconsideration of regulations</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, executive </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">orders impacting the operations of federal agencies are being issued (with uncertainty around the scope of their </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">application and timing of their implementation), and reductions of personnel are occurring across federal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">agencies. There is considerable uncertainty as to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">future policies that the current U.S. administration may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">pursue in areas impacting financial regulation and consumer protection. Many of the current administration’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">executive orders are being challenged in court, with initial requests for injunctions being granted, denied, or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">extended, and the ultimate resolution of the legality of the executive orders is expected to take an extended </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">period of time. Further, in pending litigation challenges to rules, federal agencies have sought to suspend or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">dismiss the litigation in some cases, and in other cases have not yet taken action. The outlook is similarly </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">uncertain as to pending enforcement cases that have not been abandoned by the CFPB. It is also uncertain how </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">other federal and state regulators will respond to any changes at the CFPB, which may include increasing or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decreasing enforcement activity.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund cannot predict whether federal or state agencies with oversight over the platforms will take any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">action to adopt new regulations, provide guidance or take supervisory or enforcement actions that will </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">adversely or positively impact the marketplace lending industry or require changes to the business models of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms that may adversely affect the platforms’ businesses. If a change in the laws or the interpretations of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">current laws were to occur, certain U.S. platforms could be required to either change the manner in which they </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">conduct certain aspects of their operations or halt certain business operations all together, which could have a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">material adverse effect on the Fund’s ability to pursue its investment strategy.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">At any time there may be litigation pending as well as supervisory or enforcement actions taken against banks </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that issue or originate loans for the platforms. Any such litigation or supervisory or enforcement actions may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">significantly and adversely impact such banks’ ability to make loans or subject them or the platforms they </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">partner with to fines and penalties, which could consequently have a material adverse effect on the Fund. The </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms could also be forced to comply with the lending laws of all U.S. states, which may not be feasible </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and could result in platforms ceasing to operate. Any increase in cost or regulatory burden on a platform could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">have a material adverse effect on the Fund. Specifically, adverse supervisory or enforcement actions by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulatory agencies or rulings by courts in pending and potential future litigation could undermine the basis of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms’ business models and could result ultimately in a platform or its lender members (investors) being </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">characterized as a lender, which, as a consequence, would mean that additional U.S. consumer protection laws </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">would be applicable to the loans sourced on such platforms, potentially rendering such loans voidable or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unenforceable. In addition, a platform or its lender members could be subject to claims by borrowers, as well </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">as enforcement actions by regulators. Even if a platform were not required to cease conducting business with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">residents of certain states or to change its business practices to comply with applicable laws and regulations, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the platform or its lender members could be required to register or obtain and maintain licenses or regulatory </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">approvals in all 50 U.S. states at substantial cost. If a platform were subject to fines, penalties or other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulatory action or ceased to operate, this could have a material adverse effect on the Fund’s ability to pursue </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its investment strategy.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition to laws governing the activities of lenders and servicers, a limited number of states require </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">purchasers of certain loans, primarily consumer loans and mortgage loans, to be licensed or registered in order </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to own the loans or, in certain states, to collect a rate of interest above a specified rate. Moreover, recent </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">litigation involving securitization trusts that take assignment of loans suggests increased licensing, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">enforcement and litigation risk for purchasers of loans. The Fund intends to obtain licenses if and where </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">required in order to pursue its investment strategy. To the extent the Fund obtains such licenses or is required </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to comply with related regulatory requirements, the Fund could be subject to increased costs and regulatory </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">oversight by governmental authorities that may have an adverse effect on its results or operations. If the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">were delayed in obtaining, or were unable to obtain, required licenses in certain states, this could limit its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">ability to invest in loans to borrowers in those states. If the Fund were to be deemed to have acquired loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">without first obtaining a required license, the Fund could be subject to penalties, prohibited or restricted in its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">ability to enforce loans or collect interest, or subject to other damages, which could have a material adverse </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">effect on the Fund, its investment strategy, and/or results.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Because loans are not ordinarily registered with the Commission or any state securities commission or listed </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">on any securities exchange, there is usually less publicly available information about such instruments. In </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">addition, loans in which the Fund invests may not be considered “securities” for purposes of the anti-fraud </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">protections of the federal securities laws. In the event certain loans in which the Fund invests are not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">considered securities, as a purchaser of these instruments, the Fund may not be entitled to the anti-fraud </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">protections of the federal securities laws. The Fund has been advised by the Staff of the Commission that it is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the view of the Commission and its Staff that the purchase of whole loans through alternative lending </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms involves the purchase of “securities” under the 1933 Act, issued by the originating platforms, and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the purchase of whole loans by the Fund involves the purchase of securities.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">If platforms or any related entities are required to register as investment companies under the 1940 Act or as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment advisers under the Investment Advisers Act of 1940, their ability to conduct business may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">materially adversely affected, and contracts entered into by a platform or related entity while in violation of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">registration requirements may be voidable. This could adversely affect the Fund’s ability to pursue its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment strategy and adversely affect the value of the Fund’s shares.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The U.S. federal Fair Debt Collection Practices Act (“FDCPA”) provides guidelines and limitations on the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">conduct of third-party debt servicers in connection with the collection of consumer debts. In order to ensure </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">compliance with the FDCPA, U.S. platforms often contract with professional third-party debt collection </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">agencies to engage in debt collection activities with respect to consumer debts. The CFPB, the U.S. federal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">agency responsible for administering the FDCPA, has considered comprehensive rulemaking regarding the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">operation of the FDCPA. While the agency has paused its rulemaking efforts, future regulatory enactments </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may adversely impact the ability of third-party debt collectors to recover claims from borrowers and may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">reduce amounts recovered or value of charged-off debts. Any such changes could have an adverse effect on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">U.S. platforms and, therefore, on the Fund as an investor through such platforms. The U.S. federal Fair Credit </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Reporting Act (“FCRA”) regulates consumer credit reporting. Under the FCRA, liability may be imposed on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">furnishers of data to credit reporting agencies, such as platforms that service loans for the Fund, to the extent </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that adverse credit information reported is false or inaccurate.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">U.S. federal law provides borrower service members on active military service with rights that may delay or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">impair a platform’s ability to collect on a loan. The Servicemembers Civil Relief Act (“SCRA”) requires that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the interest rate on pre-existing debts, such as service member loans, be set at no more than 6% while the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">qualified service member or reservist is on active duty. An investor in an alternative lending-related security </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that is dependent on the performance of such a loan, such as the Fund, will not receive the difference between </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">6% and the original stated interest rate for the loan during any such period. This law also permits courts to stay </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">proceedings and execution of judgments against service members and reservists on active duty, which may </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">delay recovery on any loans in default and, accordingly, payments on the instruments that are dependent on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">these loans. If there are any amounts under such a loan still due and owing to the platform after the final </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">maturity of the instrument that corresponds to the loan, a platform may have no further obligation to make </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">payments on the instrument to the Fund, even if the platform later receives payments after the final maturity of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the instrument.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Platforms do not take military service into account in assigning loan grades to borrower service member loan </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">requests. In addition, platforms do not request prospective borrowers to confirm if they are a qualified service </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">member or reservists within the meaning of the SCRA as part of the borrower registration process. As a result, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the platform may not always be able to ensure compliance with the requirements of the SCRA as well as the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Military Lending Act, which, among other things, limits the cost of credit on a covered loan to 36% per year.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition, regulatory changes applicable to the collateral securing certain loans to which the Fund may have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposure, particularly non-traditional forms of collateral (e.g., digital assets like bitcoin), may adversely </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact the value of such collateral or a platform’s or loan servicer’s ability to service such loans.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Lender Liability. </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">A number of judicial decisions have upheld judgments of borrowers against lending </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">institutions on the basis of various evolving legal theories, collectively termed “lender liability.” Generally, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lender liability is founded on the premise that a lender has violated a duty (whether implied or contractual) of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">good faith, commercial reasonableness and fair dealing, or a similar duty owed to the borrower or has assumed </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">an excessive degree of control over the borrower resulting in the creation of a fiduciary duty owed to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrower or its other creditors or shareholders. If a loan held by the Fund were found to have been made or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">serviced under circumstances that give rise to lender liability, the borrower’s obligation to repay that loan </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">could be reduced or eliminated or the Fund’s recovery on that loan could be otherwise impaired, which would </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely impact the value of that loan.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In limited cases, courts have subordinated the loans of a senior lender to a borrower to claims of other creditors </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of the borrower when the senior lender or its agents, such as a loan servicer, is found to have engaged in unfair, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">inequitable or fraudulent conduct with respect to the other creditors. If a loan held by the Fund were subject to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such subordination, it would be junior in right of payment to other indebtedness of the borrower, which could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely impact the value of that loan.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Regulatory Regime in the United Kingdom.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may invest in alternative lending-related securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">through platforms domiciled in the UK. Such platforms must be authorized and regulated by the Financial </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Conduct Authority (“FCA”) in order to engage in the regulated activity of “operating an electronic system in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">relation to lending.”</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The FCA imposes regulatory controls for platform operators, including the application of conduct of business </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rules (in particular, relating to disclosure and promotions), minimum capital requirements, client money </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">protection rules, dispute resolution rules and a requirement for firms to take reasonable steps to ensure existing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loans continue to the administered if the firm goes out of business. These regulations and any further new laws </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and regulations could have a material adverse effect on UK platforms’ businesses and may result in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">interruption of operations by such platforms or the passing on of the costs of increased regulatory compliance </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to investors, such as the Fund, in the form of higher origination or servicing fees.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in loans that constitute regulated credit agreements (consumer credit loans) under the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Financial Services and Markets Act 2000 (“FSMA”). Article 60B of the amended Financial Services and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Markets Act 2000 (Regulated Activities) Order 2001 (the “RAO”) provides that the activity of entering into a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulated credit agreement as lender or exercising or having the right to exercise the lender’s rights and duties </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">under such credit agreement requires FCA authorization. However, article 60I of the RAO and paragraph 55 of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the schedule to the Financial Services and Markets Act 2000 (Exemption Order) 2001 provide exemptions </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">from authorization to persons who acquire rights under a regulated credit agreements (but who do not make </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">any such loans or extend any new credit), provided that the servicer of such loans is appropriately authorized </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">by the FCA and the relevant service agreement complies with the requirements of the relevant exception being </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">relied on.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund is not authorized by the FCA in respect of consumer credit activities. To the extent that it acquires </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">any loans that are regulated credit agreements under FSMA, the Fund will be required to ensure that a person </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">with the appropriate FCA authorization is engaged to service such regulated credit agreements in accordance </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">with the exemptions from authorization under article 60B and paragraph 55 outlined above. If the FCA were to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">successfully challenge the Fund’s reliance on this exemption, this could adversely affect the Fund’s ability to </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">invest in consumer loans in the United Kingdom or other alternative lending-related securities relating to such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consumer loans, and could subject to the Fund to costs that could adversely affect the results of the Fund.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The future regulatory regime in the United Kingdom is currently uncertain as a result of the United Kingdom’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exit from the European Union on January 31, 2020 (“Brexit”). While an agreement governing post-Brexit trade </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">between the United Kingdom and the European Union became effective on January 1, 2021, significant issues, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such as market access for financial firms and applicable data protection standards, remain unsettled, and it is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unclear what form a permanent arrangement with respect to such issues may take or what impact it would have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">on the United Kingdom regulatory regime. From January 1, 2021, EU law ceased to apply in the UK. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">However, many EU laws were assimilated into English law and these assimilated laws will continue to apply </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">until such time as they are repealed, replaced or amended. The United Kingdom government has enacted </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">legislation that will repeal, replace or otherwise make substantial amendments to the European Union laws that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">currently apply in the United Kingdom. It is impossible to predict the consequences on the Fund and its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments. Such changes could be materially detrimental to investors, including the Fund. Brexit may have a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">significant impact on the U.K., Europe, and global economies, which may result in increased volatility and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">illiquidity, new legal and regulatory uncertainties and potentially lower economic growth for these economies, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">which could adversely affect Fund performance. The ultimate effect of these and other social-political or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">geopolitical issues are not known but could profoundly affect particular economies and markets as well as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">global economies and markets, which may include companies or assets held or considered for prospective </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment by the Fund and could negatively affect the value and liquidity of the Fund’s investments.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Regulatory Regime in Other Jurisdictions. </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The platforms and their investors may face regulation in the other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">jurisdictions in which the Fund invests. Many other jurisdictions have regulatory regimes in place to authorize </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or regulate platforms. If any entity operating a platform through which the Fund invests, or any entity that is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the lender under a loan agreement facilitated by that platform, were to lose its license or have its license </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">suspended or revoked, the platform might be forced to cease its operations, which could impair the ability of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund to pursue its investment strategy by investing in loans originated by that platform, and could disrupt </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the servicing and administration of loans to which the Fund has exposure through that platform. Any such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">disruption could impact the quality of debt collection procedures in relation to those loans and could result in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">reduced returns to the Fund from those investments. In addition, some jurisdictions may regulate the terms of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loans issued through a platform or impose additional requirements on investments in such loans, which could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">impact the value of alternative lending-related securities purchased from a platform operating in such a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">jurisdiction or the ability of the Fund to pursue its investment strategy by investing in loans originated by such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">a platform. New or amended laws or regulations could disrupt the business operations of platforms operating </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in jurisdictions in which the Fund invests and could result in the platforms passing on of increased regulatory </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compliance costs to investors, such as the Fund, in the form of higher origination or servicing fees.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Privacy and Data Security Laws Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> There has been an increase in legislative and regulatory activity related to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">privacy and data security issues in recent years. GLBA and other laws limit the disclosure of certain non-public </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">personal information about a consumer to non-affiliated third parties and require financial institutions to disclose </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">certain privacy policies and practices with respect to information sharing with both affiliates and non-affiliated third </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">parties. Many states and a number of non-U.S. jurisdictions have enacted privacy and data security laws providing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">consumers with certain rights and requiring safeguards on the privacy and security of consumers’ personally </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">identifiable information. For example, on January 1, 2020, the California Consumer Privacy Act (the “CCPA”) took </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">effect and creates obligations on covered companies to, among other things, disclose certain personal information </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">about California residents with those residents, allow those residents to request that certain personal information be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">deleted, and allow those residents to opt-out of the sale of their information. This law and its implementing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulations are evolving and subject to interpretation. Similarly, there are a number of legislative proposals related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to privacy and data security in the European Union and the United States, at both the federal and state level. Other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">laws deal with obligations to safeguard and dispose of private information in a manner designed to avoid its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">dissemination. Privacy rules adopted by the U.S. Federal Trade Commission implement GLBA and other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">requirements and govern the disclosure of consumer financial information by certain financial institutions, ranging </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">from banks to private investment funds. U.S. platforms following certain models generally are required to have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">privacy policies that conform to these GLBA and other requirements. In addition, such platforms typically have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">policies and procedures intended to maintain platform participants’ personal information securely and dispose of it </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properly.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund generally does not intend to obtain or hold borrowers’ non-public personally identifiable information, and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund intends to implement procedures designed to prevent the disclosure of non-public personally identifiable </div></div></div> <div style="line-height:12.0pt;text-align:justify"><div style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;display:inline;">information to the Fund. However, service providers to the Fund, including the Fund’s custodians and the platforms </div><div style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;display:inline;">acting as loan servicers for the Fund, may obtain, hold or process such information. While the Fund has adopted </div><div style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;display:inline;">policies and procedures regarding the platforms’ and custodian’s protection and use of non-public personally </div><div style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;display:inline;">identifiable information, the Fund cannot guarantee the security of that data and cannot guarantee that service </div><div style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;display:inline;">providers have been and will continue to comply with GLBA, CCPA, other data security and privacy laws and any </div><div style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;display:inline;">other related regulatory requirements. Violations of GLBA, CCPA and other laws could subject the Fund to </div><div style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;display:inline;">litigation and/or fines, penalties or other regulatory action, which, individually or in the aggregate, could have an </div><div style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;display:inline;">adverse effect on the Fund. In addition, given that proposed laws and regulations related to privacy and data </div><div style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;display:inline;">security are pending in numerous U.S. states and other jurisdictions, the Fund may also face regulations related to </div><div style="color:#000000;font-family:Times New Roman;font-size:10pt;display:inline;">privacy and data security in the other jurisdictions in which the Fund invests.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Borrowing and Leverage Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund and its Subsidiaries have obtained and may in the future obtain </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">financing to make investments and/or to fund Share repurchases. The Fund currently utilizes leverage through </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">reverse repurchase agreements. The Fund also may obtain leverage through derivative instruments or asset-backed </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities that afford the Fund economic leverage. Leverage magnifies the Fund’s exposure to declines in the value </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of one or more underlying reference assets or creates investment risk with respect to a larger pool of assets than the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund would otherwise have and may be considered a speculative technique. For example, if the Fund obtains </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">structural leverage through its Subsidiaries that finance their investments in alternative lending-related securities, a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">decrease in the value of those securities will negatively impact the Fund’s NAV to a greater extent than if the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">had not used leverage. The value of an investment in the Fund will be more volatile and other risks tend to be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">compounded if and to the extent that the Fund borrows or uses derivatives or other investments that have embedded </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">leverage. In addition, the Fund’s interests in Subsidiaries that have entered into borrowing arrangements typically </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">will rank after such borrowings and if the Subsidiaries’ assets decline in value, the return on the Fund’s equity </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest may be adversely affected.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s borrowings are typically secured by investments held by Subsidiaries of the Fund. The Subsidiaries of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund that pledge investments to secure the Fund’s borrowings are typically separate bankruptcy-remote entities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">formed for the purpose of holding specific securities and pledging those securities to secure the Fund’s borrowing. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The assets of any such Subsidiary are not available to other creditors, or to any other Subsidiary or the Fund, except </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to the extent of permitted distributions made to the Fund. The Fund’s borrowings may impose financial and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">operating covenants that restrict the Fund’s business activities, including limitations that could hinder the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to make additional investments and/or to fund Share repurchases.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Market conditions may unfavorably impact the Fund’s or its Subsidiaries’ ability to secure borrowings on favorable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or commercially feasible terms. Borrowing will also cost the Fund interest expense and other fees. Unless the rate </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of return, net of applicable Fund expenses, on the Fund’s investments exceeds the costs to the Fund of the leverage </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">it utilizes, the investment of the Fund’s net assets attributable to leverage will generate less income than will be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">needed to pay the costs of the leverage and the facility fees that the Fund or its Subsidiaries pay, resulting in a loss </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to the Fund even if the rate of return on those assets is positive. The costs of borrowing will reduce the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">return. To the extent the Fund or a Subsidiary is able to secure financing, fluctuations in interest rates could increase </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the costs associated with the Fund’s or Subsidiary’s use of certain forms of leverage, and such costs could reduce </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s return.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The 1940 Act requires a closed-end fund to maintain asset coverage of not less than 300% of the value of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">outstanding amount of senior securities representing indebtedness (as defined in the 1940 Act) at the time that it </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">issues senior securities and generally requires a closed-end fund to make provision to prohibit the declaration of any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">dividend (except a dividend payable in stock of the fund) or distribution on the fund’s stock or the repurchase of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">any of the fund’s stock, unless, at the time of the declaration or repurchase, there is asset coverage of at least 300%, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">after deducting the amount of the dividend, distribution or purchase price, as the case may be. To satisfy 1940 Act </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">requirements in connection with leverage or to meet obligations, the Fund may be required to dispose of portfolio </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities when such disposition might not otherwise be desirable. Engaging in such transactions may cause the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations or to comply with the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">requirements of Rule 18f-4. Because, as discussed in more detail under “—Illiquidity Risk”, the Fund’s portfolio </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">will be substantially illiquid, any such disposition or liquidation could result in losses to the Fund. There can be no </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assurances that the Fund’s use of leverage <div style="display:inline;">will </div>be successful.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Securitization Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund seeks to sell certain whole loans, and may sell other alternative lending-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments, to special purpose entities, sometimes referred to as securitization vehicles, formed by third parties for </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the purpose of acquiring alternative lending-related investments and issuing securities. The Fund may increase the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">volume and frequency of its sales as an active and reliable secondary market continues to develop over time, and a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">material portion of its performance may be dependent on such sales. If the development of this market were to slow, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">stop or reverse, it may adversely impact the Fund. In connection with the sale or contribution by the Fund or its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Subsidiaries of certain of its alternative lending-related investments to any such special purpose entity, the Fund or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">its Subsidiaries may be required to make certain representations about the alternative lending-related investments </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">sold or contributed to such special purpose entity. The Fund or its Subsidiaries also may be required to indemnify </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such special purpose entity, or to repurchase the alternative lending-related investments to which such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">representations relate, to the extent that any such representation is found to have been inaccurate on the date that it </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">was made.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In making such representations, the Fund or applicable Subsidiary may rely upon certain representations and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">warranties made to the Fund by the platform from which the Fund or such Subsidiary originally acquired the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">relevant alternative lending-related investment. If the Fund or the applicable Subsidiary relies on any such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">representations made by a platform, the Fund or such Subsidiary is expected to have a right of indemnification </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">from, or a right to sell the relevant alternative lending-related investment back to, such platform if such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">representations by such platform are found to have been inaccurate on the date on which they were made. In the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">event that the Fund or the applicable Subsidiary is required to indemnify, or to repurchase alternative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending-related investments from, a special purpose entity as a result of a representation made by the Fund to such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">special purpose entity, it is expected that the Fund or such Subsidiary will seek to recoup its losses by exercising its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rights to a similar remedy against the platform from which it purchased such alternative lending-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments. However, it is possible that the Fund or such Subsidiary will not be able to obtain representations from </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the relevant platform that back up all representations required to be made by the Fund in connection with a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securitization, and the Fund may be unable to recoup some or all of such losses through such arrangements.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Risk of Fraud.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may be subject <div style="display:inline;">to </div>the risk of fraudulent activity associated with the various parties </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">involved in alternative lending, including the platforms, issuers, banks, borrowers and third parties handling </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrower and investor information. Prospective borrowers may materially misrepresent any of the information they </div></div></div> <div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">provide to the platforms, including their credit history, the existence or value of purported collateral, the purpose of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the loan, their occupation or their employment status. Platforms may not verify all of the information provided by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">prospective borrowers. As discussed under “—Credit/Counterparty Risk,” the accuracy of a platform’s evaluation of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">a borrower’s creditworthiness could be significantly impaired if based on flawed information. Except where a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform is required to repurchase loans or securities or indemnify investors, fraud may adversely affect the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">ability to receive the principal and interest payments that it expects to receive on its investments and, therefore, may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">negatively impact the Fund’s performance. A platform may have the exclusive right and ability to investigate claims </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of borrower identity theft, which creates a conflict of interest, as platforms may be obligated to repurchase loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and/or indemnify investors in the case of fraud and may, therefore, have an incentive to deny or fail to investigate </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">properly a claim of fraud. Furthermore, there can be no guarantee that the resources, technologies or fraud </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prevention measures implemented by a platform will be sufficient to accurately detect and prevent fraud.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund is also subject to the risk of fraudulent activity by a platform or a backup servicer. In the event that a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform or backup servicer engages in fraudulent activity, the pools of loans originated or sourced by the platform </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or any loans serviced by the platform or backup servicer may be impaired or may not be of the quality that the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">anticipated, thereby increasing the risk of default in respect of such loans.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Below-Investment-Grade Securities and Unrated Securities Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may have exposure to investments </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that are rated below investment grade or that are unrated but are judged by the Adviser to be of comparable quality. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The alternative lending-related securities in which the Fund invests (or, in the case of asset-backed securities or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed securities, the loans that back them) typically are not rated by a nationally recognized statistical </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rating organization. Although the Fund’s Fundamental Investment Restrictions do not permit the Fund to invest in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loans of subprime quality, some unrated securities purchased by the Fund may be of credit quality comparable to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities rated below investment grade by a nationally recognized statistical rating organization. In addition, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund may invest in securities that are rated below investment grade. Below-investment-grade debt securities, which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">are commonly called “junk bonds,” are rated below BBB- by S&P Global Ratings or Baa3 by Moody’s Investors </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Service, Inc., or have comparable ratings by another rating organization. Accordingly, certain of the Fund’s unrated </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments could constitute a highly risky and speculative investment, similar to an investment in “junk bonds.” As </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">described under “—Credit/Counterparty Risk,” in evaluating the creditworthiness of borrowers of such unrated </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments, the Adviser may rely on the ratings ascribed to such borrowers by the relevant platform. The Adviser </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may also rely on reports from one or more independent vendors as part of its investment process or may create its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">own internal risk model for this purpose.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The analysis of the creditworthiness of borrowers may be less reliable than for more traditional borrowings, such as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">bank loans, and more complex than for issuers of higher-rated investments. The Fund’s ability to achieve its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment objective may, as a result, be more dependent upon the platform’s credit analysis than would be the case </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">if the Fund had exposure to more traditional investments. In addition, such investments may be subject to greater </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">risks than other investments, including greater levels of risk related to changes in interest rates, credit risk </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(including a greater risk of default) and liquidity risk. There is a greater risk of loss associated with alternative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending-related securities and the ability of a borrower to make payments is predominantly speculative for </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">below-investment-grade investments or unrated investments judged by the Adviser to have a similar quality. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Borrowers may be in default or have a currently identifiable vulnerability to default on their payments of principal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and/or interest or other payments or may otherwise present elements of danger with respect to payments of principal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or interest. Below-investment-grade investments or unrated investments judged by the Adviser to be of comparable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">quality may be more susceptible to real or perceived adverse economic and competitive industry or business </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">conditions than higher-grade investments. Yields on below-investment-grade investments will fluctuate and may, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">therefore, cause the Fund’s value to be more volatile. Certain investments of the Fund may be downgraded to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">below-investment-grade status (or may be judged by the Adviser to be of comparable quality) after the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchases them.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Pursuant to the Fundamental Investment Restrictions, the Fund may not invest in loans that are of subprime quality </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">at the time of investment.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Interest Rate Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The values of <div style="display:inline;">the </div>Fund’s investments in income-producing alternative lending-related securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(such as whole loans, other debt instruments, preferred securities and convertible securities) and debt securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">issued by REITs change in response to interest rate changes. In general, the value of a debt security is likely to fall </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">as interest rates rise. This risk is generally greater for obligations with longer maturities or for debt securities that do </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">not pay current interest. Debt securities with floating interest rates can be less sensitive to interest rate changes, </div></div> </div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">although, to the extent the Fund’s income is based on short-term interest rates that fluctuate over short periods of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">time, income received by the Fund may decrease as a result of a decline in interest rates; floating rate loans can also </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">decrease in value if their interest rates do not rise as quickly or as much as market interest rates. Conversely, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">variable rate instruments generally will not increase in value if interest rates decline. When interest rates increase or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">for other reasons, debt securities may be repaid more slowly than expected. As a result, the maturity of the debt </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instrument may be extended, increasing the potential for loss.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Interest rate changes can be sudden and unpredictable, and the Fund may lose money as a result. A wide variety of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">factors can cause interest rates to fluctuate (e.g., central bank monetary policies, inflation rates, general economic </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">conditions and market developments), and debt securities may be difficult to value during such periods. The Federal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Reserve has recently increased interest rates from historically low levels in light of higher inflation and may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">continue to do so. Any additional interest rate increases in the future could have an adverse effect on prices for debt </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities, overall economic activity, the financial condition of borrowers, the supply of alternative lending-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities and on the management of the Fund, which could cause the value the Fund to decline.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Prepayment Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Borrowers may decide to prepay all or a portion of the remaining principal amount due under a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loan at any time, without penalty, unless the underlying loan agreement provides for prepayment penalties. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Prepayment reduces the yield to maturity and the average life of a loan or other security. In the event of a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">prepayment of all or a portion of the remaining unpaid principal amount of a loan to which the Fund has investment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposure, the Fund will receive such prepayment, but further interest will cease to accrue on the prepaid portion of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the loan after the date of the prepayment. If the Fund buys a security at a premium, the premium could be lost in the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">event of a prepayment. In periods of falling interest rates, the rate of prepayments (and price fluctuation) tends to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">increase as borrowers are incentivized to pay off debt and refinance at new lower rates. Borrowers may also seek to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">prepay debt obligations in order to refinance at lower interest rates if their credit standing improves such that they </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">are eligible to borrow at a lower interest rate. During such periods, the Fund generally will be forced to reinvest the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">prepayment proceeds at lower rates of return than the Fund expected to earn on the prepaid assets, provided that the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund is able to identify suitable reinvestment opportunities, which may adversely impact the Fund’s performance.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Illiquidity Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> To the extent consistent with the repurchase liquidity requirement of an interval fund, the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may invest without limitation in illiquid investments. Illiquidity risk is the risk that the investments held by the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund may be difficult or impossible to sell at the time that the Fund would like without significantly changing the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">market value of the investment. Alternative lending-related securities, which typically are contractually </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">non-transferable, are not listed on any securities exchange and/or are not registered under the 1933 Act, are illiquid. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Although an active, reliable secondary market for alternative lending-related securities generally does not exist, a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">secondary market for certain alternative lending-related securities is developing. However, there can be no </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">assurance that an active market will develop or that such a market will exist for any particular security. To the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">extent that there is any secondary market for the Fund’s alternative lending-related securities, it is over-the-counter, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">as opposed to exchange-traded, and may, therefore, provide less transparency; such markets may also be smaller </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and less active than the market for investments that are higher-rated, which may adversely affect the prices at which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund can sell its investments and may result in losses to the Fund. At any given time, the Fund’s portfolio is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">substantially illiquid.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s ability to realize full value in the event of the need to liquidate certain assets may be impaired and/or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">result in losses to the Fund. The Fund may be unable to sell its investments, even under circumstances when the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Adviser believes it would be in the best interests of the Fund to do so. Illiquid investments may also be difficult to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">value and their pricing may be more volatile than more liquid investments, which could adversely affect the price at </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">which the Fund is able to sell such instruments. Investors, like the Fund, that are acquiring or otherwise gaining </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposure to such loans and other related instruments usually must, among other things, hold the loans through </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">maturity in order to recoup their entire investment and during that time will be unable to make additional </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments using the capital that is put towards such investments or any proceeds on a potential sale of such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments. Illiquidity risk also may be greater in times of financial stress. The risks associated with illiquid </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">instruments may be particularly acute in situations in which the Fund’s operations require cash (such as in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">connection with repurchase offers) and could result in the Fund borrowing to meet its short-term needs or incurring </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">losses on the sale of illiquid instruments.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Valuation Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund is subject <div style="display:inline;">to </div>valuation risk, which is the risk that one or more of the securities in which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund invests are priced incorrectly, due to factors such as incomplete data, market instability or human error. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund typically uses a third-party pricing service to value the Fund’s investments in alternative lending-related </div></div></div> <div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities, as market quotations generally are not available. The Fund’s investments may also be fair valued by the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Adviser Valuation Committee as described under, and in accordance with the procedures described under, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">“Determination of Net Asset Value” below. There is no assurance that the Fund could sell a portfolio asset for the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">value established for it at any time and it is possible that the Fund would incur a loss because a portfolio asset is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">sold at a discount to its established value. <div style="display:inline;">If </div>assets are mispriced, shareholders could lose money upon sale in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">connection with a periodic repurchase offer or could pay too much for Shares purchased.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Competition, Ramp-up and Exposure Risks.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The market for alternative lending-related securities is highly </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">competitive and rapidly evolving. The Fund faces competition for access to platforms and alternative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending-related securities, including from other institutional investors; such competitors may have higher risk </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">tolerance, greater financial or other resources and/or other advantages. The competitive pressures the Fund faces </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may impact the Fund’s ability to make investments consistent with its investment objective. Various platforms also </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">compete with one other as well as with more traditional lenders, including banks with substantially greater financial </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">resources. If the Fund is inhibited from deploying capital in a timely or efficient manner, it may be forced to invest </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in cash, cash equivalents or other assets that may result in lower returns than may otherwise be available through </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">alternative lending-related securities.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">There can be no assurances as to how long it will take the Fund to invest the net proceeds from additional sales of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund Shares, and the longer the period the greater the likelihood that the Fund’s performance will be adversely </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">affected. Pending deployment of any incremental net proceeds from Share sales, the Fund generally invests cash </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">held in cash deposits and cash equivalents. The Fund typically limits the sale of its securities based on the Adviser’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assessment of its ability to invest the proceeds in an effective and timely manner.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">If the Fund’s access to platforms is limited, whether due to ramp-up, termination of existing arrangements or failure </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to secure arrangements with other platforms, its exposure to the risks of the platforms to which the Fund is exposed, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">as discussed under “—Platform Risk,” and the risks of increased exposure to a potentially more limited pool of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">portfolio investments, may increase. Moreover, a platform may be unable to sustain its current lending model or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may change its underwriting or credit models, borrower acquisition channels, quality of debt collection procedures </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and/or servicing models in ways that may make such investments unsuitable for the Fund; such changes may occur </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">after the Fund has already made its investments and, as most of the Fund’s alternative lending-related securities are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">illiquid, the Fund may not be able to divest itself of the instruments at all or at an advantageous time or price. Even </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">if the Fund is exposed to a varied pool of assets, the Fund’s investment focus on alternative lending-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities will cause the Fund to be subject to greater overall risk than if the Fund’s exposures were less focused, as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">it is exposed to events affecting the alternative lending-related industry.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Even if the Fund’s alternative lending-related securities are varied as to borrower type, geographic location, loan </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">purpose or other features, they may nevertheless have some similar characteristics and may, therefore, be subject to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">many of the same risks and/or regulatory regimes and may respond in a similar manner to particular economic, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market, political or other developments.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Geographic Focus Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund will seek to build a geographically diverse portfolio, with assets currently </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">focused primarily in the U.S., United Kingdom, Australia and New Zealand. The Fund is not subject to any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">geographic restrictions when investing and, therefore, could focus its investments in a particular geographic region, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">whether in the U.S. or abroad. A geographic focus in a particular region may expose the Fund to an increased risk </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of loss due to risks associated with that region. Certain regions from time to time will experience weaker economic </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">conditions than others and, consequently, will likely experience higher rates of delinquency and loss than on similar </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments across the geographic regions to which the Fund is exposed. In the event that a significant portion of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s investments relate to loans owed by borrowers resident or operating in certain specific geographic </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regions, any localized economic conditions, weather events, natural or man-made disasters or other factors affecting </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">those regions in particular could increase delinquency and defaults on the assets to which the Fund is exposed and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">could negatively impact Fund performance. Further, any focus of the Fund’s investments in one or more regions </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">would have a disproportionate effect on the Fund if governmental authorities in any such region took action against </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any of the participants in the alternative lending industry doing business in that region.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Non-U.S. Securities Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may invest in the alternative <div style="display:inline;">lending</div>-related securities of non-U.S. issuers. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Such investments may involve risks not ordinarily associated with exposure to alternative lending-related securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of U.S. issuers. The foreign alternative lending industry may be subject to less governmental supervision and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulation than exists in the U.S.; conversely, foreign regulatory regimes applicable to the alternative lending </div></div></div> <div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">industry may be more complex and more restrictive than those in the U.S., resulting in higher costs associated with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such investments, and such regulatory regimes may be subject to interpretation or change without prior notice to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investors, such as the Fund. Non-U.S. platforms may not be subject to accounting, auditing, and financial reporting </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">standards and practices comparable to those in the U.S. Due to difference in legal systems, there may be difficulty </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in obtaining or enforcing a court judgment outside the U.S. For example, bankruptcy laws may differ across the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">jurisdictions in which the Fund may invest, and it may be difficult for the servicer to pursue borrowers who borrow </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">through non-U.S. platforms. In addition, to the extent that investments are made in a limited number of countries, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">events in those countries will have a more significant impact on the Fund. The Fund’s investments in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. securities may be subject to risks of increased transaction costs, potential delays in settlement or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unfavorable differences between the U.S. economy and foreign economies.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s exposure to alternative lending-related securities issued by non-U.S. issuers may be subject to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">withholding and other foreign taxes, which may adversely affect the net return on such investments. As described </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">further under “—Currency Risk,” fluctuations in foreign currency exchange rates and exchange controls may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">adversely affect the market value of the Fund’s investments in alternative lending-related securities of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. issuers. The Fund is unlikely to be able to pass through to its shareholders foreign income tax credits in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect of any foreign income taxes it pays.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Government Securities Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may invest directly or indirectly in securities issued or guaranteed by the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">U.S. government (including U.S. Treasury obligations that differ in their interest rates, maturities and times of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">issuance) or its agencies and instrumentalities (such as the Government National Mortgage Association (Ginnie </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Mae), the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(Freddie Mac)). U.S. government securities are subject to market risk, risks related to changes in interest rates and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">credit risk. Securities, such as those issued or guaranteed by Ginnie Mae or the U.S. Treasury, that are backed by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the full faith and credit of the United States are guaranteed only as to the timely payment of interest and principal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">when held to maturity and the market prices for such securities will fluctuate. Notwithstanding that these securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">are backed by the full faith and credit of the United States, circumstances could arise that would prevent the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">payment of interest or principal. This would result in losses to the Fund. Securities issued or guaranteed by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">U.S. government related organizations, such as Fannie Mae and Freddie Mac, are not backed by the full faith and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">credit of the U.S. government and no assurance can be given that the U.S. government would provide financial </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">support. Therefore, U.S. government-related organizations may not have the funds to meet their payment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">obligations in the future. As a result of their high credit quality and market liquidity, U.S. Government securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally provide a lower current return than obligations of other issuers.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Currency Risk. The Fund’s Shares are priced in U.S. dollars and the distributions paid by the Fund are paid </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">in U.S. dollars. However, a portion of the Fund’s assets may be denominated in foreign (non-U.S.) currencies </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">and income received by the Fund from a portion of its investments may be paid in foreign currencies.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Currency risk is the risk that fluctuations in exchange rates will adversely affect the market value of the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments. Currency risk includes the risk that the foreign currencies in which the Fund’s investments are traded, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in which the Fund receives income or in which the Fund has taken a position, will decline in value relative to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">U.S. dollar. Currency risk also includes the risk that a currency to which the Fund has obtained exposure through </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">hedging declines in value relative to the currency being hedged, in which event the Fund may realize a loss both on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the hedging instrument and on the currency being hedged. There can be no assurances or guarantees that any efforts </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund makes to hedge exposure to foreign exchange rate risks that arise as a result of its investments will </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">successfully hedge against such risks or that adequate hedging arrangements will be available on an economically </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">viable basis, and in some cases, hedging arrangements may result in additional costs being incurred or losses being </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">greater than if hedging had not been used. Currency exchange rates can fluctuate significantly for many reasons. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Derivative transactions in foreign currencies (such as futures, forwards, options and swaps) may involve leverage </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk in addition to currency risk.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In purchasing or selling local currency to fund trades denominated in that currency, the Fund is exposed to the risk </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that the value of the foreign currency will increase or decrease, which may impact the value of the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments in foreign currencies, securities denominated in foreign currencies, derivatives that provide exposure to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">foreign currencies and the Fund’s income available for distribution. Some countries have and may continue to adopt </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">internal economic policies that affect their currency valuations in a manner that may be disadvantageous for </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">U.S. investors or U.S. companies seeking to do business in those countries. For example, a foreign government may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unilaterally devalue its currency against other currencies, which typically would have the effect of reducing the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">U.S. dollar value of investments denominated in that currency. In addition, a country may impose formal or </div></div></div> <div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">informal currency exchange controls. These controls may restrict or prohibit the Fund’s ability to repatriate both </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment capital and income, which could undermine the value and liquidity of the Fund’s portfolio holdings and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">potentially place the Fund’s assets at risk of total loss. As a result, if the exchange rate for any such currency </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">declines after the Fund’s income has been earned and converted into U.S. dollars but before payment to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">shareholders, the Fund could be required to liquidate portfolio investments to make such distributions. Similarly, if </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund incurs an expense in U.S. dollars and the exchange rate declines before the expense is paid, the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">would have to convert a greater <div style="display:inline;">amount </div>to U.S. dollars to pay for the expense at that time than it would have had to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">convert at the time the Fund incurred the expense.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Risk of Investments in Other Pooled Investment Vehicles.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Investing in another pooled investment vehicle, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">including securitization vehicles that issue asset-backed securities, including mortgage-backed securities, exposes </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund to all of the risks of that vehicle’s investments. The Fund bears its pro rata share of the expenses of any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such vehicle, in addition to its own expenses. The values of other pooled investment vehicles are subject to change </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">as the values of their respective component assets fluctuate. To the extent the Fund invests in managed pooled </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment vehicles, the performance of the Fund’s investments in such vehicles will be dependent upon the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment and research abilities of persons other than the Adviser. The securities offered by such vehicles typically </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">are not registered under the securities laws because they are offered in transactions that are exempt from </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registration.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Market Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The value of the Fund’s investments may decline, sometimes rapidly or unpredictably, due to general </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">economic conditions that are not specifically related to a particular issuer or borrower, such as real or perceived </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">adverse economic or political conditions throughout the world, inflation, changes in interest or currency rates or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">adverse investor sentiment generally. The value of the Fund’s investments also may decline because of factors that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">affect a particular industry or industries. These risks may be particularly acute for the Fund, as alternative lending is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">a new and evolving industry. Additionally, the Fund’s performance may be negatively impacted by current market </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">factors such as military conflicts abroad, global supply chain issues and inflation.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Volatility Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The market value of the alternative lending-related securities to which the Fund has exposure may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">increase or decrease, sometimes rapidly and unpredictably, based upon changes in an issuer’s financial condition </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and/or overall market and economic conditions. Because many of the Fund’s investments may be illiquid and/or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">below investment grade (or unrated, but of a similar quality), the Fund may be subject to increased volatility risk. In </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, the Fund’s use of leverage increases the volatility of the Fund’s value.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Management and Operational Risk; Cyber-Security Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund is subject to management risk because it </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">relies on the Adviser’s ability to achieve its investment objective. The Fund runs the risk that the Adviser’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment techniques will fail to produce desired results and cause the Fund to incur significant losses. The </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Adviser may select investments that do not perform as anticipated by the Adviser, may choose to hedge or not to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hedge positions at disadvantageous times and may fail to use derivatives effectively.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Any imperfections, errors, or limitations in quantitative analyses and models used by the Adviser as part of its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment process could affect the Fund’s performance. Models that appear to explain prior market data can fail to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">predict future market events. Further, the data used in models may be inaccurate or may not include the most recent </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information about a company or a security.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund is also subject to the risk of loss as a result of other services provided by the Adviser and other service </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">providers, including pricing, administrative, accounting, tax, legal, custody, transfer agency and other services. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Operational risk includes the possibility of loss caused by inadequate procedures and controls, human error and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">cyber attacks, disruptions and failures affecting, or by, a service provider. For example, trading delays or errors </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(both human and systematic) could prevent the Fund from benefiting from potential investment gains or avoiding </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">losses.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund and its service providers’ use of internet, technology and information systems may expose the Fund to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">potential risks linked to cyber-security breaches of those technological or information systems. Cyber-security </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">breaches could allow unauthorized parties to gain access to proprietary information, customer data or Fund assets, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or cause the Fund or its service providers to suffer data corruption or lose operational functionality. With the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">increased use of technology, mobile devices and cloud-based service offerings and the dependence on the internet </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and computer systems to perform necessary business functions, investment companies (such as the Fund) and their </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">service providers (including the Adviser) may be prone to operational and information security risks resulting from </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">cyber attacks and/or other technological malfunctions. In general, cyber attacks are deliberate, but unintentional </div></div></div> <div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">events may have similar effects. Cyber attacks include, among others, stealing or corrupting data maintained online </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or digitally, preventing legitimate users from accessing information or services on a website, ransomware, releasing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">confidential information without authorization, and causing operational disruption. Successful cyber attacks against, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or security breakdowns of, the Fund, the Adviser, or the custodian, transfer agent, or other third-party service </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">provider may adversely affect the Fund or its shareholders. For instance, cyber attacks may interfere with the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">processing of shareholder transactions, interfere with quantitative models, affect the Fund’s ability to calculate its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">NAV, cause the release of private shareholder information or confidential Fund information, impede trading, cause </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">reputational damage, result in theft of Fund assets, and subject the Fund to regulatory fines, penalties or financial </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">losses, reimbursement or other compensation costs, and additional compliance costs. Similar types of cyber-security </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">risks are also present for issuers of securities in which the Fund invests, such issuers’ counterparties or the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">alternative-lending platforms from which the Fund purchases alternative lending-related securities, which could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">result in material adverse consequences for such issuers or market participants, and could cause the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment in such securities to lose value. While the Adviser has established business continuity plans and systems </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that it believes are reasonably designed to prevent cyber attacks, there are inherent limitations in such plans and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">systems including the possibility that certain risks have not been, or cannot be, identified. Service providers may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">have limited indemnification obligations to the Adviser or the Fund, each of whom could be negatively impacted as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a result.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Alternative Lending Platform Operational and Technology Risk. </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Alternative lending-related securities are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">typically originated and/or documented in electronic form and there are ordinarily no tangible written documents </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">evidencing such loans or any payments owed thereon. In addition, the Fund depends on electronic systems </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">maintained by the custodian and the alternative lending platforms or their affiliates or service providers to maintain </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">records, evidence ownership of the Fund’s investments and of the collateral securing certain loans the Fund may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">have exposure to, appropriately safeguard such investments and collateral, service and administer such investments </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and manage collateral, if any. This means the Fund is vulnerable to the risks associated with such electronic </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">systems, including, among others: power loss, computer systems failures and internet, telecommunications or data </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">network failures; operator negligence or improper operation by, or supervision of, employees; physical and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">electronic loss of data or security breaches, misappropriation and similar events; computer viruses; cyber attacks, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intentional acts of vandalism and similar events; and hurricanes, fires, floods and other natural disasters.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition, alternative lending platforms rely on software that is highly technical and complex and depend on the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">ability of such software to store, retrieve, process and manage immense amounts of data. Such software may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">contain errors or flaws. Some errors may only be discovered after the code has been released for external or internal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">use. Errors or other design defects within the software on which a platform relies may result in a negative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">experience for borrowers who use the platform, delay introductions of new features or enhancements, result in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">errors or compromise the platform’s ability to protect borrower or investor data or its own intellectual property. Any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">errors, flaws or defects discovered in the software on which a platform relies could negatively impact operations of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the platform and the ability of the platform to perform its obligations with respect to the loans or collateral </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">associated with the platform. The electronic systems on which platforms rely may be subject to cyber attacks that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">could result, among other things, in data breaches, the release of confidential information and lost collateral and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">thus expose the platform to significant liability. A security breach could also irreparably damage a platform’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reputation and thus its ability to continue to operate its business.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition, despite any security measures established to safeguard the information in these systems, the highly </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">automated nature of a platform or other service provider involved in the alternative lending process and of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">digital nature of certain forms of non-traditional collateral may make it an attractive target and potentially more </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">vulnerable to cyber attacks, computer viruses, physical or electronic break-ins, employee error, malfeasance and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">similar disruptions, which could negatively affect the Fund. If a platform or other service provider were unable to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">prevent such malicious activity, the breach could compromise the systems and result in the theft, loss or public </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">dissemination of collateral or the information stored therein. As a result, the platform or other service provider or a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrower could suffer, among other things, financial loss, the disruption of its business, liability to third parties, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulatory intervention, the loss of collateral or reputational damage and the platform’s or other service provider’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">ability to fulfill its servicing or other obligations would be adversely affected, which may adversely affect the Fund. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Because techniques used to sabotage or obtain unauthorized access to systems change frequently and generally are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">not recognized until they are launched against a target, the platforms or other service providers may be unable to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">anticipate these techniques or to implement adequate preventative measures. In addition, certain legal or regulatory </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">provisions may require companies to notify individuals of data security breaches involving their personal data. If </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">security measures are breached because of third-party action, employee error, malfeasance or otherwise, or if design </div></div></div> <div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">flaws in software are exposed and exploited, relationships with borrowers and investors could be severely damaged. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Any failure of the systems technology on which the Fund relies, or other similar issues, could have a material </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">adverse effect on the ability of the Fund to acquire, monitor or otherwise transact in alternative lending-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities and, therefore, may impact the performance of the Fund.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">A platform may rely on data centers or third-party service providers or vendors to deliver its services or maintain </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">custody of certain forms of collateral. Any disruption of the businesses of such third parties, which may be subject </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to all of the foregoing risks, could similarly impede the platform’s business and operations or could interrupt or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">delay a platform’s ability to deliver on its obligations. As described in “—Risks Relating to Collateral or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Guarantees” above, there are operational risks relating to collateral held by a custodian, which may be the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">alternative lending platform, a custodial agent and/or the borrower.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">These potential risks may cause a decrease in the amount of loans acquired by the platforms, which may directly </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">affect the Fund and its ability to achieve its investment objective. The potential for security breaches may also </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">adversely affect the Fund due to its reputational impact on the platforms and wider effect on the alternative lending </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">industry as a whole. Any of the foregoing failures or disruptions could have a material adverse effect on the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance of the Fund.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Derivatives Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may invest in a variety of derivatives, including futures contracts, forward contracts, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">swaps and other exchange-traded and over-the-counter (“OTC”) derivatives contracts. The use of derivatives </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">involves risks that are in addition to, and potentially greater than, the risks of investing directly in securities and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">other more traditional assets. Derivatives are financial contracts the value of which depends on, or is derived from, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">an asset or other underlying reference. Derivatives involve the risk that changes in their value may not move as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">expected relative to changes in the value of the underlying investment they are designed to track. The Fund may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">invest in derivatives for investment purposes and for hedging and risk management purposes. Derivatives risk may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">be more significant when derivatives are used to enhance return or as a substitute for a cash investment option, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rather than solely to hedge the risk of a position held by the Fund. See the Statement of Additional Information for </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">additional information of the various types and uses of derivatives in the Fund’s strategies.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">OTC derivatives are not traded on exchanges or standardized; rather, banks and dealers act as principals in these </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">markets negotiating each transaction on an individual basis. There have been periods during which certain banks or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">dealers have refused to quote prices for OTC derivatives contracts or have quoted prices with an unusually wide </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">spread between the price at which they are prepared to buy and the price at which they are prepared to sell. There is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">no limitation on the daily price movements of OTC derivatives. Principals in the OTC derivatives markets have no </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligation to continue to make markets in the OTC derivatives traded.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s use of OTC derivatives exposes it to the risk that the counterparties will be unable or unwilling to make </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">timely settlement payments or otherwise honor their obligations. An OTC derivatives contract typically can be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">closed only with the consent of the other party to the contract. If the counterparty defaults, the Fund will still have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">contractual remedies but may not be able to enforce them. In addition, in the event of a counterparty bankruptcy, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund may experience significant delays in obtaining any recovery under the derivative contract in a bankruptcy or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">other reorganization proceeding or may obtain a limited or no recovery of amounts due to it under the derivative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">contract, including the return of any collateral that has been provided to the counterparty. Because the contract for </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">each OTC derivative is individually negotiated, the counterparty may interpret contractual terms differently than the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund and, if it does, the Fund may decide not to pursue its claims against the counterparty to avoid incurring the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">cost and unpredictability of legal proceedings. The Fund, therefore, may be unable to obtain payments the Adviser </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">believes are owed to it under OTC derivatives contracts, or those payments may be delayed or made only after the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund has incurred the costs of litigation.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Derivatives also present other risks described herein, including market risk, illiquidity risk, currency risk and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">credit/counterparty risk. OTC derivatives are generally highly illiquid. Many derivatives, in particular OTC </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">derivatives, are complex and their valuation often requires modeling and judgment, which increases the risk of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mispricing or improper valuation. The pricing models used may not produce valuations that are consistent with the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">values the Fund realizes when it closes or sells an OTC derivative. Valuation risk is more pronounced when the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund enters into OTC derivatives with specialized terms because the value of those derivatives in some cases is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">determined only by reference to similar derivatives with more standardized terms. As a result, incorrect valuations </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may result in increased cash payments to counterparties, undercollateralization and/or errors in the calculation of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s NAV.</div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s use of derivatives may not be effective or have the desired results. Moreover, suitable derivatives will </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">not be available in all circumstances. The Adviser may decide not to use derivatives to hedge or otherwise reduce </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s risk exposures, potentially resulting in losses for the Fund.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Derivatives in which the Fund may invest may have embedded leverage (i.e., a notional value in excess of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">assets needed to establish and/or maintain the derivative position). As a result, adverse changes in the value or level </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of the underlying investment may result in a loss substantially greater than the amount invested in the derivative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">itself. See “Borrowing and Leverage Risk” above.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s use of derivatives may be subject to special tax rules, which are in some cases uncertain under current </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">law and could affect the amount, timing and character of distributions to shareholders. See “Distributions and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Federal Income Tax Matters” below.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in derivatives that (i) do not require the counterparty to post collateral (e.g., foreign currency </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">forwards), (ii) require a counterparty to post collateral but do not provide for the Fund’s security interest in it to be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">perfected, (iii) require a significant upfront deposit by the Fund unrelated to the derivative’s intrinsic value or (iv) </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">do not require that collateral be regularly marked-to-market. When a counterparty’s obligations are not fully secured </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">by collateral, the Fund runs the risk of having limited recourse if the counterparty defaults. Even when obligations </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">are required by contract to be collateralized, the Fund often will not receive the collateral the day the collateral is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">required to be posted. When a counterparty’s obligations are not fully secured by a perfected security interest in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">collateral, the Fund runs a greater risk of not being able to recover what it is owed if the counterparty defaults </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">because it is essentially an unsecured creditor of the counterparty. Also, in the event of a counterparty’s (or its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">affiliate’s) insolvency, the possibility exists that the Fund’s ability to exercise remedies, such as the termination of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">transactions, netting of obligations and realization on collateral, could be stayed or eliminated under new special </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">resolution regimes adopted in the United States, the European Union and various other jurisdictions. Such regimes </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">provide government authorities with broad authority to intervene when a financial institution is experiencing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">financial difficulty. In particular, the regulatory authorities could reduce, eliminate, or convert to equity the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">liabilities to the Fund of a counterparty who is subject to such proceedings in the European Union (sometimes </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">referred to as a “bail in”).</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in derivatives with a limited number of counterparties and events affecting the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">creditworthiness of any of those counterparties may have a pronounced effect on the Fund. The Fund may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to provide more margin for its derivatives investments during periods of market disruptions or stress.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Rule 18f-4 provides for the regulation of a registered investment company’s use of derivatives and certain related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">instruments. As required by Rule 18f-4, the Fund will adopt and implement a derivatives risk management program </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to govern its use of derivatives and will appoint a derivatives risk manager who conducts periodic reviews of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">program prior to relying on Rule 18f-4. The Fund’s derivatives risk management program will include policies and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">procedures that are reasonably designed to manage the Fund’s derivatives risks. In accordance with Rule 18f-4, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">most investments or trading practices that involve contractual obligations to pay in the future described above under </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">“Borrowing and Leverage” are considered to be derivatives, and the Fund’s derivatives exposure (including its use </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of reverse repurchase agreements, which the Fund has elected to treat as derivatives under Rule 18f-4) will be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">limited through a value-at-risk (“VaR”) test. Rule 18f-4 may restrict the Fund’s ability to engage in certain </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">derivatives transactions and/or increase the costs of such derivatives transactions, which may adversely affect the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of the Fund’s investments and/or performance of the Fund.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Specific risks involved in the use of certain types of derivatives in which the Fund may invest include:</div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Futures Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> A purchase or sale of a futures contract may result in losses in excess of the amount invested in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the futures contract. There can be no guarantee that there will be a correlation between price movements in the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">futures and in the underlying reference asset positions underlying the futures contract. Futures exchanges may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">limit the amount of fluctuation permitted in certain futures contract prices during a single trading day. Once the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">daily limit has been reached in a futures contract subject to the limit, no more trades may be made on that day </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">at a price beyond that limit. The daily limit governs only price movements during a particular trading day and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">therefore does not limit potential losses because the limit may work to prevent the liquidation of unfavorable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">positions. Futures prices have occasionally moved beyond the daily limits for several consecutive days with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">little or no trading. There can be no assurance that a liquid market will exist at a time when the Fund seeks to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">close out a futures contract, and the Fund would remain obligated to meet margin requirements until the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">position is closed. If the Fund were to borrow money to use for trading purposes, the effects of such leverage </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">would be magnified. Cash posted as margin in connection with the Fund’s futures contracts will not be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">available to the Fund for investment or other purposes. In addition, the Fund’s futures broker may limit the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund’s ability to invest in certain futures contracts. Such restrictions may adversely affect the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">performance and its ability to achieve its investment objective. In connection with futures contracts and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">options on futures contracts, the Fund (directly or through a Subsidiary) typically posts margin directly to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">FCM, who is expected typically to rehypothecate the margin to an exchange or clearinghouse. Prior to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rehypothecation, such margin may be held by the FCM in commingled accounts with margin from other clients </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of the FCM. The margin maintained by the FCM is not subject to the regulatory protections provided by bank </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">custody arrangements. If margin is posted to the FCM and rehypothecated, neither the Fund nor the FCM to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">whom the margin was posted will have custody of the margin. If margin posted by the Fund is not maintained </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">with the Fund's custodian, the Fund is fully exposed to the fraud and unsecured credit risk of the FCM to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">whom the margin is posted.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The CFTC and certain exchanges have established (and continue to evaluate and revise) limits, referred to as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">“position limits,” on the maximum net long or net short positions that any person or entity may hold or control </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in particular futures and options contracts (and certain related swap positions). Unless an exemption applies, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">all positions owned or controlled by the same person or entity, even if in different accounts, must be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">aggregated for purposes of determining whether the applicable position limits have been exceeded. Thus, even </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">if the Fund does not intend to exceed applicable position limits, it is possible that positions held by different </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">clients managed by the Adviser and its affiliates may be aggregated for this purpose. Therefore, the trading </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">decisions of the Adviser may have to be modified or positions held by the Fund may have to be liquidated in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">order to avoid exceeding such limits. The modification of investment decisions or the elimination of open </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">positions, if it occurs, may adversely affect the profitability of the Fund. A violation of position limits could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also lead to regulatory action materially adverse to the Fund’s investment strategy.</div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Forwards Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Forward contracts are subject to some of the same risks as futures described above. However, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">forwards are not traded on exchanges and are not standardized; rather, banks and dealers act as principals in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">these markets negotiating each transaction on an individual basis. Trading in forward contracts is generally </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unregulated. There is no limitation on the daily price movements of forward contracts. Principals in the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">forward markets have no obligation to continue to make markets in the forward contracts traded. There have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">been periods during which certain banks or dealers have refused to quote prices for forward contracts or have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">quoted prices with an unusually wide spread between the price at which they are prepared to buy and that at </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">which they are prepared to sell. Disruptions can occur in the forward markets because of unusually high </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">trading volume, political intervention or other factors. For example, the imposition of credit controls by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governmental authorities might limit forward trading, to the possible detriment of the Fund.</div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Swaps Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The use of swaps involves investment techniques and risks that are different from those associated </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">with portfolio security transactions. These instruments typically are not traded on exchanges; under recently </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">adopted rules and regulations, however, transactions in some types of swaps (including interest rate swaps and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">credit default swaps on North American and European indices) are required to be centrally cleared (“cleared </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">swaps”). For OTC swaps, there is a risk that the other party to certain of these instruments will not perform its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">obligations to the Fund or that the Fund may be unable to enter into offsetting positions to terminate its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposure or liquidate its position under certain of these instruments when it wishes to do so. Such occurrences </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">could result in losses to the Fund. For cleared swaps, the Fund’s counterparty is a clearinghouse rather than a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">bank or broker. Since the Fund is not a member of the clearinghouses and only members of a clearinghouse </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(“clearing members”) can participate directly in the clearinghouse, the Fund holds cleared swaps through </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">accounts at clearing members. In cleared swaps, the Fund makes payments (including margin payments) to and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">receives payments from a clearinghouse through its account at clearing members. Clearing members guarantee </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance of their clients’ obligations to the clearinghouse.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In some ways, cleared swap arrangements are less favorable to funds than bilateral arrangements. For example, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund may be required to provide more margin for cleared swaps positions than for bilateral derivatives </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">positions. Also, in contrast to a bilateral derivatives position, following a period of notice to the Fund, a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">clearing member generally can require termination of an existing cleared swap position at any time or an </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">increase in margin requirements above the margin that the clearing member required at the beginning of a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">transaction. Clearinghouses also have broad rights to increase margin requirements for existing positions or to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">terminate those positions at any time. Any increase in margin requirements or termination of existing cleared </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">derivatives positions by the clearing member or the clearinghouse could interfere with the ability of the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to pursue its investment strategy. Further, any increase in margin requirements by a clearing member could </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">expose the Fund to greater credit risk to its clearing member because margin for cleared swaps positions in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">excess of a clearinghouse’s margin requirements typically is held by the clearing member. Credit risk of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">market participants with respect to derivatives that are centrally cleared is concentrated in a few </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">clearinghouses, and it is not clear how an insolvency proceeding of a clearinghouse would be conducted and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">what impact an insolvency of a clearinghouse would have on the financial system. The Fund might not be fully </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">protected in the event of the bankruptcy of the Fund’s clearing member because the Fund would be limited to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">recovering only a pro rata share of the funds held by the clearing member on behalf of customers for cleared </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">with the applicable regulations, or in the event of fraud or misappropriation of customer assets by a clearing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">member, the Fund could have only an unsecured creditor claim in an insolvency of the clearing member with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect to the assets held by the clearing member.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Also, the Fund is subject to risk if it enters into a derivatives transaction that is required to be cleared (or that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Adviser expects to be cleared), and no clearing member is willing or able to clear the transaction on the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund’s behalf. In those cases, the position might have to be terminated, and the Fund could lose some or all of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the benefit of the position, including loss of an increase in the value of the position and loss of hedging </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">protection. In addition, the documentation governing the relationship between the Fund and clearing members </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">is drafted by the clearing members and generally is less favorable to the Fund than typical bilateral derivatives </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">documentation.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Additionally, some types of cleared derivatives are required to be executed on an exchange or on a swap </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">execution facility. A swap execution facility is a trading platform where multiple market participants can </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">execute derivatives by accepting bids and offers made by multiple other participants in the platform. While this </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">execution requirement is designed to increase transparency and liquidity in the cleared derivatives market, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">trading on a swap execution facility can create additional costs and risks for the Fund. For example, swap </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">execution facilities typically charge fees, and if the Fund executes derivatives on a swap execution facility </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">through a broker intermediary, the intermediary may impose fees as well. Also, the Fund may be required to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">indemnify a swap execution facility, or a broker intermediary who executes cleared derivatives on a swap </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">execution facility on the Fund’s behalf, against any losses or costs that may be incurred as a result of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s transactions on the swap execution facility.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The U.S. government and the European Union have adopted mandatory minimum margin requirements for </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">bilateral derivatives. As a general matter, under such requirements, the Fund’s transactions are subject to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">variation margin requirements and, depending on the aggregate notional value of bilateral derivatives entered </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">into by the Fund, initial margin requirements may apply in the near future. Such requirements could increase </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the amount of margin the Fund needs to provide in connection with its derivatives transactions and, therefore, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make derivatives transactions more expensive.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">These and other new rules and regulations could, among other things, further restrict the Fund’s ability to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">engage in, or increase the cost to the Fund of, derivatives transactions, for example, by making some types of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">derivatives no longer available to the Fund, increasing margin or capital requirements or otherwise limiting </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">liquidity or increasing transaction costs. Certain aspects of these regulations are still being implemented, so </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">their potential impact on the Fund and the financial system is not yet known. While the regulations and central </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">clearing of some derivatives transactions are designed to reduce systemic risk (i.e., the risk that the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">interdependence of large derivatives dealers could cause them to suffer liquidity, solvency or other challenges </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">simultaneously), there is no assurance that they will achieve that result, and in the meantime, as noted above, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">central clearing and related requirements expose the Fund to new kinds of costs and risks.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Swap agreements may be subject to contractual restrictions on transferability and termination and they may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">have terms of greater than seven days. The Fund’s obligations under a swap agreement will be accrued daily </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(offset against any amounts owed to the Fund under the swap).</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Subsidiary Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> By investing through its Subsidiaries, <div style="display:inline;">the </div>Fund is exposed to the risks associated with the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Subsidiaries' investments. The investments that may be held by a Subsidiary are generally similar to those that are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">permitted to be held by the Fund and are subject to the same risks that apply to similar investments if held directly </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">by the Fund. Subsidiaries are not registered as investment companies under the 1940 Act and are not subject to all </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of the investor protections of the 1940 Act, although each Subsidiary is managed pursuant to the compliance </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">policies and procedures of the Fund applicable to it. Changes in the laws of the United States and/or the jurisdiction </div></div></div> <div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in which a Subsidiary is organized <div style="display:inline;">could </div>result in the inability of the Fund and/or such Subsidiary to operate as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">described in this prospectus and could adversely affect the Fund</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Short Sale Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Short sales are transactions in which the Fund sells an asset it does not own to a third party by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">paying a premium to borrow the asset in anticipation of purchasing the same asset at the market price on a later date </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to close out the short position. The Fund may incur a loss if the market price of the asset underlying the short sale </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">increases between the date of the short sale and the date on which the Fund must replace the borrowed asset or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">otherwise close out the transaction and such loss may exceed the initial investment. Under adverse market </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">conditions, the Fund may have difficulty purchasing an asset to meet its short sale delivery obligations, and may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">have to sell portfolio assets to raise sufficient capital to fulfill its short sale obligations at a disadvantageous time. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Entering into short sales where the Fund does not own the underlying asset creates a form of investment leverage, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">which can magnify the Fund’s exposure to changes in the value of the asset. Because the Fund may enter into short </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">sales with respect to assets that it does not already own, the loss to the Fund from a short sale is theoretically </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unlimited, as the potential increase in the market price of the asset is unlimited. The amount of any gain will be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">decreased, and the amount of any loss increased, by the amount of the premium, dividends, interest, or expenses the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund may be required to pay in connection with a short sale. There can be no assurance that the Fund will be able </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to close out a short sales position at an advantageous time or price. To the extent that the Fund enters into short </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">sales for hedging purposes, there can be no guarantee that the investment will be effective; any lack of correlation </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">between the assets used in the short position and the exposure the Fund sought to hedge could result in losses.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Small and Mid-Capitalization Investing Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may gain exposure to the securities of small </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">capitalization companies, mid-capitalization companies, recently organized companies and derivative instruments </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">related to those securities. For example, the Fund may invest in equity or debt securities of companies in or related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to the alternative lending industry or may gain exposure to the borrowings of such issuers facilitated through an </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">alternative lending platform. Historically, such securities, and particularly securities of smaller capitalization </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">companies, have been more volatile in price than those of larger capitalized, more established companies. Many of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the risks that apply to small capitalization companies apply equally to mid-capitalization companies, and such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">companies are included in the term “small capitalization companies” for the purposes of this risk factor. The </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities of small capitalization and recently organized companies pose greater investment risks because such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">companies may have limited product lines, distribution channels and financial and managerial resources. In </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">particular, small capitalization companies may be operating at a loss or have significant variations in operating </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">results; may be engaged in a rapidly changing business with products subject to substantial risk of obsolescence; </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may require substantial additional capital to support their operations, to finance expansion or to maintain their </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">competitive position; and may have substantial borrowings or may otherwise have a weak financial condition. In </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">addition, these companies may face intense competition, including competition from companies with greater </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">financial resources, more extensive development, manufacturing, marketing, and other capabilities and a larger </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">number of qualified managerial and technical personnel. The equity securities of alternative lending platforms or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">other issuers in this industry that are small capitalization companies are often traded over the counter or on regional </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exchanges and may not be traded in the volumes typical on a national securities exchange. Consequently, the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or entities in which the Fund obtains exposure may be required to dispose of such securities or remain in a short </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">position over a longer (and potentially less favorable) period of time than is required to dispose of or close out of a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">short position with respect to the securities of larger, more established companies. Investments in equity or debt </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">instruments issued by small capitalization companies may also be more difficult to value than other types of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities because of the foregoing considerations as well as, if applicable, lower trading volumes. Investments in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">companies with limited or no operating histories are more speculative and entail greater risk than do investments in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies with an established operating record.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Tax Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund has elected to be <div style="display:inline;">treated </div>as a regulated investment company (“RIC”) under Subchapter M of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Chapter 1 of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Code </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and intends each year to qualify and to be eligible to be treated as such. In order to qualify </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">for such treatment, the Fund must derive at least 90% of its gross income each taxable year from qualifying income, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">meet certain asset diversification tests at the end of each fiscal quarter, and distribute at least 90% of its investment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">company taxable income for each taxable year. The Fund’s investment strategy will potentially be limited by its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">intention to qualify for treatment as a RIC. The tax treatment of certain of the Fund’s investments under one or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">more of the qualification or distribution tests applicable to RICs is not certain. An adverse determination or future </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">guidance by the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Internal Revenue Service (“</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">IRS</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">”)</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> or a change in law might affect the Fund’s ability to qualify for </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such treatment.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div> <div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">If, in any year, the Fund were to fail to qualify for treatment as a RIC under the Code for any reason, and were not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">able to cure such failure, the Fund would be treated as a “C corporation” under the Code and, as such, would be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">subject to tax on its taxable <div style="display:inline;">income </div>at corporate rates, and all distributions from earnings and profits, including any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">distributions of net tax-exempt income and net long-term capital gains, would be taxable to shareholders as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dividends.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Repurchase Offers Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> As described under “Periodic Repurchase Offers” below, the Fund is an “interval fund.” </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In order to provide liquidity to shareholders, the Fund, subject to applicable law, conducts quarterly repurchase </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">offers of the Fund’s outstanding Shares at NAV, subject to approval of the Board. In all cases such repurchase offers </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">will be for at least 5% and not more than 25%, of its outstanding Shares at NAV, pursuant to Rule 23c-3 under the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">1940 Act. The Fund believes that these repurchase offers are generally beneficial to the Fund’s shareholders, and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">repurchases generally are funded from available cash or sales of portfolio securities, which are substantially illiquid. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">However, repurchase offers and the need to fund repurchase obligations may affect the ability of the Fund to be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">fully invested or may force the Fund to maintain a higher percentage of its assets in liquid investments, which may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">harm the Fund’s investment performance. Moreover, diminution in the size of the Fund through repurchases may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">result in untimely sales of portfolio securities (with associated imputed transaction costs, which may be significant), </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and may limit the ability of the Fund to participate in new investment opportunities or to achieve its investment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">objective. In compliance with its procedures, the Fund, to the extent possible, holds at least 5% of net assets in cash </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or other liquid assets at all times in order to meet its repurchase obligations. The Fund may accumulate cash by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">holding back (i.e., not reinvesting) payments received in connection with the Fund’s investments. The Fund believes </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that payments received in connection with the Fund’s investments will generate sufficient cash to meet the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">maximum potential amount of the Fund’s repurchase obligations. If at any time cash and other liquid assets held by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund are not sufficient to meet the Fund’s repurchase obligations, the Fund intends, if necessary, to sell </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments. Although the Fund’s investments are illiquid and the secondary market for its investments is limited, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund believes that it would be able to find willing buyers for investments if such sales were ever necessary to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">supplement such cash generated by payments received in connection with the Fund’s investments. Because the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund employs investment leverage, repurchases of Shares compound the adverse effects of leverage in a declining </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">market. In addition, if the Fund borrows to finance repurchases, interest on that borrowing will negatively affect </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">shareholders who do not tender their Shares by increasing the Fund’s expenses and reducing any net investment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">income. If a repurchase offer is oversubscribed, the Fund will repurchase the Shares tendered on a pro rata basis, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and shareholders will have to wait until the next repurchase offer to make another repurchase request. As a result, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">shareholders may be unable to liquidate all or a given percentage of their investment in the Fund during a particular </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">repurchase offer. Some shareholders, in anticipation of proration, may tender more Shares than they wish to have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">repurchased in a particular quarter, thereby increasing the likelihood that proration will occur. A shareholder may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">subject to market and other risks, and the NAV of Shares tendered in a repurchase offer may decline between the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Repurchase Request Deadline and the date on which the NAV for tendered Shares is determined. In addition, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase of Shares by the Fund may be a taxable event to shareholders.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Portfolio Turnover.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> A change in the securities held by the Fund is known as “portfolio turnover.” If the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">realizes profits or gains when it sells investments, it generally must pay those profits or gains to shareholders, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">increasing its taxable distributions, which generally are taxable as ordinary income to shareholders. Increased </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">portfolio turnover may also result in higher brokerage fees or other transaction costs, which can reduce the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">performance. Portfolio turnover will not be a limiting factor should the Adviser deem it advisable to purchase or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sell securities.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Temporary Defensive and Interim Investments.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> For temporary defensive purposes in times of adverse or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unstable market, economic or political conditions, the Fund can invest up to 100% of its assets in investments that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may be inconsistent with its principal investment strategies. Generally, the Fund would invest in money market </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">instruments or in other short-term U.S. or non-U.S. government securities. The Fund might also hold these types of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities as interim investments pending the investment of proceeds from the sale of its Shares or the sale of its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">portfolio securities or to meet anticipated repurchases of its Shares. To the extent the Fund invests in these </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities, it might not achieve its investment <div style="display:inline;">objective</div>.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Anti-Takeover Provisions. </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s Agreement and Declaration of Trust, together with any amendments thereto, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">includes provisions that could limit the ability of other entities or persons to acquire control of the Fund or convert </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund to open-end status.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Default Risk. </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The value of the Fund’s investments in whole loans and other alternative lending-related securities, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such as shares, certificates, notes or other securities representing an interest in and the right to receive principal and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">interest payments due on whole loans or fractions of whole loans, is dependent on the borrowers’ continued and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">timely payments. The Fund receives payments on such investments only if the party servicing the loans receives the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrowers’ payments on the corresponding or underlying loans and passes such payments through to the Fund. If a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrower fails to make interest payments or repay principal when due on a loan in which the Fund has investment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposure, or if the value of such a loan decreases, the value of the Fund’s investments will be adversely affected. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">There can be no assurance that payments due on underlying loans will be made.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">If a borrower is unable or fails to make payments on a loan for any reason, the Fund may be greatly limited in its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">ability to recover any outstanding principal or interest due, as (among other reasons) the Fund may not have direct </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">recourse against the borrower or may otherwise be limited in its ability to directly enforce its rights under the loan, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">whether through the borrower or the platform through which such loan was originated or sourced, the loan may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unsecured or under-collateralized and/or it may be impracticable to commence a legal proceeding against the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">defaulting borrower. If the Fund were unable to recover unpaid principal or interest due, this would cause the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund’s NAV to decrease. As described further under “—Risk of Unsecured Loans,” the Fund generally will not be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">able to offset losses on defaulting loans by looking to collateral or obligations of guarantors, insurers or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">governmental authorities, as many of the loans to which the Fund has exposure are obligations not secured by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">collateral or (except for certain loans to businesses) backed by any guarantee. In certain cases, after the loan has </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">matured, the servicing party may have no obligation to make late payments to investors in such loan and, to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">extent that the servicing party receives any funds from defaulting borrowers, the servicing party may retain those </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">funds to cover attorneys’ fees, collection fees or other costs incurred in pursuing collection, which will diminish or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">eliminate the amount that the servicing party would otherwise pass on to the investor.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Borrowings obtained through alternative lending platforms may not limit borrowers from incurring additional debt. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">If a borrower incurs additional debt obligations after obtaining a loan, the borrower’s creditworthiness may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">diminish, and any additional obligations could cause the borrower to experience financial distress, insolvency or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">bankruptcy, all of which would impair the borrower’s ability to repay the loan underlying the Fund’s investment. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Under certain circumstances, payments to the Fund may be reclaimed in a bankruptcy proceeding if any such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">payment or distribution is later determined to have been a fraudulent conveyance or a preferential payment, which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">will result in losses to the Fund. If the additional debt obligation of the borrower is secured by collateral and the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loan to which the Fund is exposed is unsecured, the borrower may be motivated to repay the secured loan before </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">meeting its obligations under the unsecured loan.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Furthermore, the ability of secured creditors to pursue remedies against the collateral of the borrower may impair </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the borrower’s ability to repay its unsecured loan, or it may impair the platform’s or servicer’s ability to collect on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the loan upon default. The loans in which the Fund invests generally do not include any cross-default provisions. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Cross-default provisions render a default on one outstanding debt obligation an automatic default on another debt </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">obligation of the borrower, which permits creditors to react more quickly to take steps to protect their interests. In </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">contrast, the loans in which the Fund invests typically will be placed in default or referred to collection only if there </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">are independent defaults on such loans, irrespective of whether the borrower has defaulted on a different debt </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">obligation. Not only will the Fund not benefit from such protective provisions, the Fund also generally will not be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">made aware of any additional debt incurred by a borrower or whether such debt is secured or unsecured.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Default rates on loans may be adversely affected by a number of factors outside the Fund’s control, such as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">economic downturns or general economic or political conditions, including prevailing interest rates, the rate of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unemployment, the level of consumer confidence, residential real estate values, the value of various currencies, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">energy or gasoline prices, changes in consumer spending, the number of bankruptcies, insolvencies, disruptions in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the credit markets, the borrower’s circumstances, the stigma of bankruptcy, decreases in the value of the underlying </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">collateral of any secured loans and other factors. For example, see “—Risks Relating to Collateral or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Guarantees.” In addition, the COVID-19 pandemic has impacted, and other infectious illness outbreaks may in the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">future impact, loan repayment and default rates. See “—Epidemic and Pandemic Risk.”</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The default history for alternative lending borrowing arrangements is limited. Future defaults may be higher than </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">historical defaults and the timing of defaults may vary significantly from historical observations. As described </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">further under “—Credit/Counterparty Risk,” the credit profile and interest rates available to certain borrowers who </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">seek credit through alternative lending platforms may result in a higher rate of default for alternative lending-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities as compared with the debt instruments associated with more traditional lending models, such as banks, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">although pursuant to the Fundamental Investment Restrictions, the Fund may not invest in loans that are of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">subprime quality at the time of investment. If the impact of defaults on loans to which the Fund has exposure </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">exceeds the profits on non-defaulting loans, the Fund will be unable to achieve its investment objective.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investments in equity securities issued by alternative lending platforms themselves (or their affiliates) or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">REITs are also subject to the risk of loss. If a platform or other issuer defaults on its outstanding obligations, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund’s equity interest in such issuer may be diminished or extinguished and the Fund can expect to realize on any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such investments only to the extent that the issuer’s creditors are made whole and the issuer still has residual profits </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that would benefit equity holders.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Loan Modification Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> At any time, and particularly during economic downturns or periods of market volatility, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the terms of any loan to which the Fund gains exposure, including the interest rate, timing of payments or the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">overall amount to be repaid, may be modified in the discretion of the loan servicer or by operation of federal, state </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or local law or regulation in order to provide relief to borrowers experiencing financial hardship. Any such loan </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">modification or forbearance may result in less favorable terms for the Fund and could adversely affect Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">performance by, among other things, postponing the receipt of payments by the Fund or reducing the overall </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">amount to be repaid by the borrower. The servicing entity typically will make all decisions regarding any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">modification, forbearance or other form of relief that may be provided to a borrower, and the Fund will typically </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">have no ability to set the terms of any loan modification or forbearance or to influence the decision of the servicing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">entity.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Risk of Unsecured Loans.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Many of the Fund’s alternative lending are associated with loans that are unsecured </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">obligations of borrowers. This means that they are not secured by any collateral, not insured by any third party, not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">backed by any governmental authority in any way and, except in the case of certain loans to businesses, not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">guaranteed by any third party. When a borrower defaults on an unsecured loan, the holder’s only recourse is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">generally to accelerate the loan and enter into litigation to recover the outstanding principal and interest. There is no </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">assurance that such litigation would result in full repayment of the loan and the costs of such measures may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">frequently exceed the outstanding unpaid amount of the borrowing. The Fund generally will need to rely on the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">efforts of the platforms, servicers or their designated collection agencies to collect on defaulted loans and there is no </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">guarantee that such parties will be successful in their efforts to collect on loans. The Fund typically does not know </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the identity of borrowers and contracts with the platforms or third-party loan servicers to service the loans and, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">therefore, does not expect to (and in many cases will have no way to) pursue borrowers that fail to repay principal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or interest. In addition, the Fund’s investments in shares, certificates, notes or other securities representing an </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">interest in a special purpose entity organized by an alternative lending platform and the right to receive principal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and interest payments due on whole loans or fractions of whole loans owned by such entity are typically unsecured </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">obligations of the issuer. As a result, the Fund generally may not look to the underlying loans to satisfy delinquent </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">payments on such interests, even though payments on such interests depend entirely on payments by underlying </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrowers on their loans.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Risks Relating to Collateral <div style="display:inline;">or </div>Guarantees.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Even if a loan to which the Fund is exposed is secured, there can be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">no assurance that the collateral will, if or when recovered and liquidated, generate sufficient (or any) funds to offset </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">any losses associated with a defaulting loan. In some cases, borrowers of secured loans may be required to provide </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">more collateral (or margin) when the value of the collateral falls below the loan’s margin requirements. In such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">cases, the platform or loan servicer will issue a margin call requiring the borrower to deposit additional cash or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">acceptable collateral. If the borrower fails to meet the margin call within the allotted time or, in the case of a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">secured loan that provides that the loan servicer may liquidate a portion of the collateral on deposit to cover the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">outstanding principal on the loan if the value of the collateral declines beyond a specified threshold, the platform or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loan servicer may close out all or a portion of the borrower’s loan by liquidating all or a portion of the collateral on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">deposit. If the platform or loan servicer is unable to liquidate the collateral (timely or at all) or is forced to liquidate </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the collateral at a disadvantageous time or price or if the value of the proceeds from the liquidation of the collateral </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">are less than the amounts owed under the secured loans, the value of the loan will be adversely affected. In </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">purchasing secured loans, the Fund is not limited to any particular form of collateral and platforms may accept </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">forms of collateral such as equity securities, shares of exchange-traded funds or bitcoin that may fluctuate </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">substantially in value due to market conditions, which could adversely affect the value of the collateral, and, in turn, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">result in losses to the Fund. In addition, loans purchased through platforms that accept a single type of collateral for </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">all loans could experience losses simultaneously. As described further under “ – Platform Risk,” the Fund is also </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">subject to the risk that a platform or loan servicer will fail to sufficiently value collateral, issue margin calls, close </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">out a loan by liquidating all or a portion of a borrower’s collateral or otherwise administer a loan’s margin </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirements timely or at all, in which case a loan to which the Fund has exposure may be adversely impacted.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">It is possible that the same collateral could secure multiple loans, in which case the liquidation proceeds of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">collateral may be insufficient to cover the payments due on all the loans secured by that collateral. There can be no </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">guarantee that the collateral can be liquidated at the value the Fund believes the collateral is worth or at all, and any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">costs associated with such liquidation could reduce or eliminate the amount of funds otherwise available to offset </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the payments due under the loan. As described further under “—Default Risk” and “—Risk of Unsecured Loans,” </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund generally will need to rely on the efforts of the platforms, servicers or their designated collection agencies </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to collect on defaulted loans and there is no guarantee that such parties will be successful in their efforts to collect. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">To the extent that the loan obligations in which the Fund invests are guaranteed by a third party, there can be no </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">assurance that the guarantor will perform its payment obligations should the underlying borrower default on its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">payments. As described under “—Default Risk,” the Fund could suffer delays or limitations on its ability to realize </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the benefits of the collateral to the extent the borrower becomes bankrupt or insolvent. Moreover, the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">security interests may be unperfected for a variety of reasons, including the failure to make a required filing by the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">servicer and, as a result, the Fund may not have priority over other creditors as it expected.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Epidemic and Pandemic Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The impact of COVID-19, and other infectious illness outbreaks that may arise in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the future, could adversely affect the economies of many nations or the entire global economy, individual issuers </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and capital markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illnesses in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">emerging market countries may be greater due to generally less established healthcare systems. Public health crises </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">caused by the COVID-19 outbreak and other infectious illness outbreaks that may arise in the future may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exacerbate other pre-existing political, social and economic risks in certain countries or globally. Such impacts </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">present material uncertainty and risk with respect to the Fund’s investment performance and financial results. The </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">impact of COVID-19 or any future public health crisis may also heighten the other risks disclosed in this </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prospectus.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">For example, during the height of the COVID-19 pandemic, the share of loans in the Fund’s portfolio that were </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">placed in forbearance or otherwise modified increased substantially, which reduced, and may in the future reduce </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">again, the principal and interest payments received by the Fund each month. Loans placed in forbearance or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">otherwise modified may default at higher rates than they otherwise would have in the absence of the COVID-19 </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">pandemic, which could adversely affect the Fund’s performance and your investment in the Fund. In addition, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">alternative lending platforms to which the Fund has exposure substantially reduced the number of loans they </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">originated each month in response to the early waves of the COVID-19 crisis. If this decrease in originations </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">resumes, the Fund could face additional competition for access to platforms and alternative lending-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities, and could be prevented from deploying capital in a timely or efficient manner. As discussed further under </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">“Competition, Ramp-up and Exposure Risks” below, this could force the Fund to invest in cash, cash equivalents or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">other assets that may result in lower returns than may otherwise be available through investments in alternative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending-related securities. Furthermore, as discussed in more detail under “Platform Risk,” the Fund relies on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">alternative lending platforms to, among other things, originate or source alternative lending-related securities and to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">service loans to which the Fund has exposure. The disruption to the platforms’ businesses caused by the COVID-19 </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">pandemic or any future public health crisis could limit or eliminate the ability of the Fund to invest in loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">originated or sourced by one or more platforms or inhibit a platform’s ability to service loans to which the Fund has </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposure, which could have an adverse effect on the Fund and its performance. The impact of COVID-19 or any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">future public health crisis may also heighten the other risks disclosed in this prospectus.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Asset-Backed Securities Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund’s <div style="display:inline;">investments </div>in pass-through certificates, securitization vehicles or other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">special purpose entities that hold alternative lending-related securities (collectively, “asset-backed securities”) may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">involve risks that differ from or are greater than risks associated with other types of investments. For example, such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">asset-backed securities may be more sensitive to changes in prevailing interest rates than other securities. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The rate</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of prepayments on underlying assets will also affect the price and volatility of an asset-backed security,</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> may have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the effect of shortening </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or extending the effective duration of the security relative to what was anticipated at the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">time of purchase</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> and may lower </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> return. The asset-backed securities in which the Fund invests are also subject to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">risks associated with their structure</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">,</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> the nature of the underlying assets and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the servicing of those assets; </div></div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">for this reason, many of the other risks described herein are relevant to the asset-backed securities to which the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund has exposure. There is risk that the underlying debt securities will default and that recovery on repossessed </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">collateral might be unavailable or inadequate to support payments on the underlying investments. Payment of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">interest and repayment of principal on asset-backed securities, as well as the return associated with an equity </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment in an asset-backed security, is largely dependent upon the cash flows generated by the underlying loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or other assets backing the securities. For example, the ongoing COVID-19 pandemic has impacted, and other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">infectious illness outbreaks may in the future impact, loan repayment and default rates. See “Epidemic and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Pandemic Risk.” The risks and returns for investors like the Fund in asset-backed securities depend on the tranche </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in which the investor holds an interest. The debt tranche(s) are entitled to receive payment before the equity if the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">cash flow generated by the underlying assets is insufficient to allow the vehicle to make payments on all of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">tranches. The debt tranche(s), therefore, may receive higher credit ratings (if rated) and the equity tranche may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">considered more speculative. Many asset-backed securities in which the Fund invests may be difficult to value and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may be deemed illiquid. Asset-backed securities may have the effect of magnifying the Fund’s exposure to changes </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in the value of the underlying assets and may also result in increased volatility in the Fund’s NAV. This means the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund may have the potential for greater gains, as well as the potential for greater losses, than if the Fund owned the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">underlying asset directly. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">For example, any mishandling of related documentation by a servicer may also affect the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rights of the security holder in and to the underlying collateral.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The value of an investment in the Fund may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">more volatile and other risks tend to be compounded if and to the extent that the Fund is exposed to asset-backed </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities. In the event that the market for asset-backed securities experiences high volatility and a lack of liquidity, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the value of many asset-backed securities may decline. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">In addition, when investing in asset-backed securities, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund will indirectly bear additional fees and expenses, such as trustee or administrator fees, that it would not bear if </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">it invested directly in the assets underlying the asset-backed <div style="display:inline;">securities</div>, which may cause the Fund’s performance to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">be lower than if it had invested directly in such underlying assets.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Mortgage-Backed Securities Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund’s investments in securitization vehicles or other special purpose </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">entities that hold mortgages or mortgage-backed securities may involve risks that differ from or are greater than </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">risks associated with other types of investments. For example, such mortgage-backed securities may be more </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">sensitive to changes in prevailing interest rates than other securities. The rate of pre-payments on underlying </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mortgages will affect the price and volatility of a mortgage-backed security, and may have the effect of shortening </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or extending the effective duration of the security relative to what was anticipated at the time of purchase. For </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">example, the ongoing COVID-19 pandemic has impacted, and other infectious illness outbreaks may in the future </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">impact, the rate of loan modification, forbearance and other forms of relief that may extend the effective duration of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a mortgage-backed security. See “—Epidemic and Pandemic Risk.”</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Generally, rising interest rates tend to extend the duration of fixed rate mortgage-related assets, making them more </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">sensitive to changes in interest rates. As a result, in a period of rising interest rates, the Fund may exhibit additional </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">volatility since individual mortgage holders are less likely to exercise prepayment options, thereby putting </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">additional downward pressure on the value of these securities and potentially causing the Fund to lose money. This </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">is known as extension risk. Mortgage-backed securities can be highly sensitive to rising interest rates, such that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">even small movements can cause the Fund to lose value. Mortgage-backed securities, and in particular those not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">backed by a government guarantee, are subject to credit risk. When interest rates decline, borrowers may pay off </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">their mortgages sooner than expected. This can reduce the returns of the Fund because the Fund may have to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reinvest that money at the lower prevailing interest rates.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The mortgage-backed securities in which the Fund invests are also subject to risks associated with their structure </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and the nature of the underlying mortgages and the servicing of those mortgages; for this reason, many of the other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">risks described herein are relevant to the mortgage-backed securities to which the Fund has exposure. There is risk </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that the underlying debt securities will default. In the event of default, the holder of a mortgage-backed security </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may not have a security interest in the underlying collateral, and even if such a security interest exists, the recovery </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">on repossessed collateral might be unavailable or inadequate to support payments on the underlying investments. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">During periods of deteriorating economic conditions, such as recessions or periods of rising unemployment, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">delinquencies and losses generally increase, sometimes dramatically, with respect to securitizations involving </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mortgage loans. Payment of interest and repayment of principal on mortgage-backed securities, as well as the return </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">associated with an equity investment in a mortgage-backed security, is largely dependent upon the cash flows </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">generated by the underlying mortgages backing the securities. The risks and returns for investors like the Fund in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed securities depend on the tranche in which the investor holds an interest. The debt tranche(s) are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">entitled to receive payment before the equity if the cash flow generated by the underlying mortgages is insufficient </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to allow the vehicle to make payments on all of the tranches. The debt tranche(s), therefore, may receive higher </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">credit ratings (if rated) and the equity tranche may be considered more speculative. Many mortgage-backed </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities in which the Fund invests may be difficult to value and may be deemed illiquid. Mortgage-backed </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities may have the effect of magnifying the Fund’s exposure to changes in the value of the underlying </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mortgages and may also result in increased volatility in the Fund’s NAV. This means the Fund may have the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">potential for greater gains, as well as the potential for greater losses, than if the Fund owned the underlying </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mortgages directly. The value of an investment in the Fund may be more volatile and other risks tend to be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">compounded if and to the extent that the Fund is exposed to mortgage-backed securities. In the event that the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">market for mortgage-backed securities experiences high volatility and a lack of liquidity, the value of many </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed securities may decline. Any mishandling <div style="display:inline;">of </div>related documentation by a servicer may also affect </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the rights of the security holders in and to the underlying collateral.</div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Real Property Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may gain exposure to loans collateralized or secured by, or relating to, real property, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or it may invest in equity or debt securities issued by REITs. The value of an investment in REIT securities or of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">real property underlying a loan will be subject to the risks generally incident to the ownership of improved and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unimproved real estate. Factors affecting real estate values include the supply of real property in particular markets, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">overbuilding, changes in zoning laws, casualty or condemnation losses, delays in completion of construction, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">changes in operations costs and property taxes, levels of occupancy, adequacy of rent to cover operating expenses, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">possible environmental liabilities, regulatory limitations on rent, fluctuations in rental income, increased </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">competition, and other risks related to local and regional market conditions. The value of these investments also </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may be affected by changes in interest rates, macroeconomic developments, and social and economic trends. For </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">instance, during periods of declining interest rates, mortgagors may elect to prepay, which prepayment may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">diminish the yield on mortgage-backed securities.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Some borrowers may intend to use resale proceeds to repay their loans. A decline in property values could result in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a loan that is greater than the property value, which could increase the likelihood of borrower default.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The payment schedules with respect to many real estate-related loans are based on projected revenues generated by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the property over the term of the loan. These projections are based on factors such as expected vacancy rates, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">expense rates and other projected income and expense figures relating to the property. The actual revenues </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">generated by a property could fall short of projections, due to factors such as lower-than-expected rental revenues, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or greater-than-expected vacancy rates or property management expenses. In such cases, a borrower may be unable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to repay a loan. To the extent the Fund has exposure to construction or rehabilitation/renovation loans, it may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">adversely impacted by, among other things, risks involving the timeliness of the project’s completion, the integrity </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of appraisal values, whether or not the completed property can be sold for the amount anticipated and the length of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the construction and/or sale process.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">A borrower’s ability to repay a loan relating to real property or the value of securities issued by a REIT that holds </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">real property might also be adversely affected if toxic environmental contamination were to be discovered to exist </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">on the property. Environmental contamination may give rise to a diminution in value of the underlying property or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may lead to liability for clean-up costs or other remedial actions. A platform or third-party servicer could be forced </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to take on potential additional liabilities and responsibilities in the event of foreclosure. A platform may choose not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to foreclose on a contaminated property as the potential liability could exceed the value of the real property or the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">principal balance of the related loan. The failure to perform the required remedial actions could, in some </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">jurisdictions, give rise to a lien on mortgaged property to ensure the reimbursement of remedial costs, which could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decrease the value of the property that serves as collateral.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The state of law is currently unclear as to whether and under what circumstances clean-up costs, or the obligation to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">take remedial actions, can be imposed on a secured lender (which may, under certain circumstances, include an </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">alternative lending platform or the Fund). If the Fund or a platform does become liable for cleanup costs, it may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">bring an action for contribution against the current owners or operators, the owners or operators at the time of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">on-site disposal activity or any other party who contributed to the environmental hazard, but these persons or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">entities may be bankrupt or otherwise judgment-proof. Furthermore, an action against the borrower may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely affected by the limitations on recourse in the loan documents.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">REIT Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> In general, the <div style="display:inline;">value</div> of a REIT’s shares changes in light of factors affecting the real estate industry. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">See “—Real Property Risk” above. REITs are also subject to the risk of fluctuations in income from underlying </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">assets, poor performance by the REIT’s manager, the manager’s inability to manage cash flows generated by the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">REIT’s assets, adverse local or general economic conditions, possible lack of availability of financing, changes in </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">interest rates, self-liquidation, adverse economic conditions, adverse changes in the tax laws, and, with regard to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">certain REITs, the risk of failing to qualify for tax-free pass-through of income under the Code and/or to maintain </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exempt status under the 1940 Act. If a REIT were ineligible for the favorable tax treatment afforded to REITs under </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Code, it would be subject to U.S. federal income tax, thus reducing its value. REITs also depend upon </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">specialized management skills, may have limited financial resources and may have limited diversification because </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">they invest in a limited number of properties or mortgages, a narrow geographic area or a single type of property or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mortgage. Also, the organizational documents of a REIT may contain provisions that make changes in control of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">REIT difficult and time-consuming. Finally, the equity securities of private REITs are not traded on national </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities exchanges, and are therefore generally illiquid.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition, different types of REITs have different risk profiles. The value of securities issued by equity REITs, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">which own properties that are leased to tenants and derive income from the collection of rents, may be affected by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">changes in the value of the underlying real property, fluctuations in the demand for real estate, defaults by tenants, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and decreases in market rates for rent. The value of securities issued by mortgage REITs, which invest the majority </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of their assets in real estate mortgages and derive income from the collection of interest payments, may be affected </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">by the quality of credit extended, prepayments and defaults by borrowers, and changes in market interest rates, and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may be more susceptible to interest rate risk (see “—Interest Rate Risk” below) than equity REITs. Hybrid REITs </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">invest in a combination of real property and real property mortgages, and are subject to the risks associated with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">both equity REITs and mortgage REITs to varying degrees depending on the relative weights of their investment in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">each category.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">By investing in REITs indirectly through the Fund, an investor will bear not only his or her proportionate share of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the expenses of the Fund, but also, indirectly, similar expenses of REITs. In addition, REITs depend generally on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">their ability to generate cash flow to make distributions to investors.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Credit/Counterparty Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The value of a debt security depends on the issuer’s credit quality or ability to pay </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">principal and interest when due. The securities in which the Fund may invest may have varying degrees of credit </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">risk and, subject to the Fundamental Investment Restrictions, which, among other things, prohibit the Fund from </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investing in loans of subprime quality, the Fund is not restricted by any borrower credit criteria or credit risk </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">limitation. The value of a debt security is likely to fall if an issuer or the guarantor of a security is unable or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unwilling (or perceived to be unable or unwilling) to make timely principal and/or interest payments or otherwise to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">honor its obligations or if the debt security’s rating is downgraded. The obligations of issuers are subject to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">bankruptcy, insolvency and other laws affecting the rights and remedies of creditors. The value of a debt security </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">can also decline in response to other changes in market, economic, industry, political and regulatory conditions that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">affect a particular type of debt security or issuer or debt securities generally, such as conditions in the alternative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending market or a decrease in the value of collateral, if any. The values of many debt securities may fall in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">response to a general increase in investor risk aversion or a decline in the confidence of investors generally in the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability of issuers to meet their obligations.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Unlike other debt instruments that are rated by nationally recognized statistical rating organizations, the alternative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending-related securities in which the Fund invests are typically unrated or rated only by the platform. Issuers may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">evaluate prospective borrowers by looking to a number of factors, including the borrower’s credit history and/or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">credit score as reported by one or more third-party credit reporting agencies. The Fund relies on the borrower’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">credit information, which is provided by the platforms. However, as described under “—Default Risk,” such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">information may be out of date, incomplete or inaccurate and may, therefore, not accurately reflect the borrower’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">actual creditworthiness. Although the Fund may not invest in loans of subprime quality, certain borrowers may have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">had credit difficulties in the past. Platforms may not have an obligation to update borrower information, and, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">therefore, the Fund may not be aware of any impairment in a borrower’s creditworthiness subsequent to the making </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of a particular loan.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Not all platforms from which the Fund purchases alternative lending-related securities check borrowers’ credit </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">scores; for those that do, although the Fund conducts diligence on the credit scoring methodology used by such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms, the Fund typically does not have access to all of the data that platforms utilize to assign credit scores to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">particular loans purchased by the Fund, and will not independently diligence or confirm the truthfulness of such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">information or otherwise evaluate the basis for the platform’s credit score of those loans. As a result, the Fund may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">make investments based on outdated, inaccurate or incomplete information. In addition, the platforms’ credit </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">decisions and scoring models are based on algorithms that could potentially contain programming or other errors or </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">prove to be ineffective or otherwise flawed. This could adversely affect pricing data and approval processes and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">could cause loans to be mispriced or <div style="display:inline;">misclassified</div>, which could ultimately have a negative impact on the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance.</div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Platform Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> As discussed in more detail in “—Default Risk” and “—Risk of Unsecured Loans,” the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">receives payments on whole loans or securities representing the right to receive principal and interest payments due </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">on loans only if the platform servicing the loans receives the borrower’s payments on such loans and passes such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">payments through to the Fund. If a borrower is unable or fails to make payments on a loan for any reason, the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may be greatly limited in its ability to recover any outstanding payments due, as (among other reasons) the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may not have direct recourse against the borrower or may otherwise be limited in its ability to directly enforce its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rights under the loan, whether through the borrower or the platform through which such loan was originated or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">sourced, the loan may be unsecured or under-collateralized and/or it may be impracticable or undesirable to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commence a legal proceeding against the defaulting borrower.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund may have limited knowledge about the underlying loans and is dependent upon the platform for </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">information regarding such underlying loans. Although the Fund conducts diligence on the platforms, the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">generally does not have the ability to independently verify the information provided by the platforms, other than </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">payment information regarding loans and other alternative lending-related securities owned by the Fund, which the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund observes directly as payments are received. Some investors, including the Fund, may not review the particular </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">characteristics of the loans in which they invest at the time of investment, but rather negotiate in advance with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms the general criteria of the investments, as described above. As a result, the Fund is dependent on the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">platforms’ ability to collect, verify and provide information to the Fund about each loan and borrower.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund relies on the borrower’s credit information, which is provided by the platforms. However, as described </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">under “—Default Risk,” such information may be out of date, incomplete or inaccurate and may, therefore, not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">accurately reflect the borrower’s actual creditworthiness. Platforms may not have an obligation to update borrower </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">information, and, therefore, the Fund may not be aware of any impairment in a borrower’s creditworthiness </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">subsequent to the making of a particular loan. Although the Fund conducts diligence on the credit scoring </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">methodology used by platforms from which the Fund purchases alternative lending-related securities, the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">typically does not have access to all of the data that platforms utilize to assign credit scores to particular loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">purchased by the Fund, and does not independently diligence or confirm the truthfulness of such information or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">otherwise evaluate the basis for the platform’s credit score of those loans. As a result, the Fund may make </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments based on outdated, inaccurate or incomplete information. In addition, the platforms’ credit decisions </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and scoring models are based on algorithms that could potentially contain programming or other errors or prove to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">be ineffective or otherwise flawed. This could adversely affect loan pricing data and approval processes and could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">cause loans to be mispriced or misclassified, which could ultimately have a negative impact on the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In certain circumstances, the Fund may be dependent on a platform or loan servicer to value collateral, issue margin </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">calls, close out a loan by liquidating all or a portion of a borrower’s collateral or otherwise administer a loan’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">margin requirements. The Fund is subject to the risk that a platform or loan servicer will fail to sufficiently provide </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such services, in which case a loan to which the Fund has exposure may be adversely impacted. The Fund is also </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">subject to the risk that a platform or loan servicer incorrectly prices collateral, due to factors such as incomplete </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">data, market instability or human error, which may result in the platform or loan servicer being unable to administer </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">a loan’s margin requirements or in the Fund otherwise being undercollateralized. These risks may be heightened in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the case of certain forms of collateral, such as digital assets like bitcoin or equity securities issued by operating </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies or by exchange-traded funds.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition, the underlying loans, in some cases, may be affected by the success of the platforms through which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">they are facilitated. Therefore, disruptions in the businesses of such platforms may also negatively impact the value </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of the Fund’s investments. Disruption in the business of a platform (such as the disruption caused by the COVID-19 </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">pandemic or by the shut-down of certain regional banks in March 2023) could limit or eliminate the ability of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund to invest in loans originated or sourced by that platform. During the height of the COVID-19 crisis, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">alternative lending platforms to which the Fund is exposed substantially reduced the number of loans they </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">originated each month. If a decrease in originations (or a similar decrease caused by a future public health or other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">crisis) resumes, the Fund could face additional competition for access to platforms and alternative lending-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities, and could be prevented from deploying capital in a timely or efficient manner. This could force the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to invest more of its assets in one or more of its other investment strategies, which may result in decreased </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">diversification of the Fund’s investment returns and/or other lower returns than may otherwise be available through </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments in alternative lending-related securities. The Fund may also invest in public or private equity securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of alternative lending platforms or enter into other financial transactions, including derivative transactions, to gain </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposure to such investments. The performance of equity instruments issued by a platform or derivatives thereon </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">depends on the success of the platform’s business and operations. As described above, the Fund may also invest in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">shares, certificates, notes or other securities representing the right to receive principal and interest payments due on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fractions of whole loans or pools of whole loans.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Platforms are for-profit businesses that, as a general matter, generate revenue by collecting fees on funded loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">from borrowers and by assessing a loan servicing fee on investors, which may be a fixed annual amount or a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">percentage of the loan or amounts collected. This business could be disrupted in multiple ways; for example, a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform could file for bankruptcy or a platform might suffer reputational harm from negative publicity about the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform or alternative lending more generally and the loss of investor confidence in the event that a loan facilitated </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">through the platform is not repaid and the investor loses money on its investment. Many platforms and/or their </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">affiliates have incurred operating losses since their inception and may continue to incur net losses in the future, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">particularly as their businesses grow and they incur additional operating expenses.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investments could be adversely impacted if a platform that services the Fund’s investments becomes </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unable or unwilling to fulfill its obligations to do so. In order to mitigate this risk, the Fund would seek to rely on a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">backup servicer provided through the platform or through an unaffiliated backup servicer. To the extent that it is not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">possible to collect on defaulted loans, or to the extent borrowers prepay loans, a platform that services loans may no </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">longer be able to collect a servicing fee, which would negatively impact its business operations. These or other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">similar negative events could adversely affect the platforms’ businesses and/or investor participation in a platform’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">marketplace and, in turn, the business of the platforms, which creates a risk of loss for the Fund’s investments in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities issued by a platform or derivatives thereon.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Platforms may have a higher risk profile than companies engaged in lines of business with a longer, more </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">established operating history and such investments should be viewed as longer-term investments. Alternative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending is relatively new and alternative lending platforms have relatively limited operating histories. They have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">met with and will continue to meet with challenges, including navigating evolving regulatory and competitive </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">environments; increasing the number of borrowers and investors utilizing their marketplace; increasing the volume </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of loans facilitated through their marketplace and transaction fees received for matching borrowers and investors </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">through their marketplace; entering into new markets and introducing new loan products; continuing to revise the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">marketplace’s proprietary credit decisions and scoring models; continuing to develop, maintain and scale their </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms; effectively maintaining and scaling financial and risk management controls and procedures; maintaining </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the security of the platform and the confidentiality of the information provided and utilized across the platform; and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">attracting, integrating and retaining an appropriate number of qualified employees. A platform may enter into </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">various business transactions, including mergers or acquisitions, that could require significant managerial attention, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">disrupt business and adversely affect its financial results. Platforms are subject to risk of litigation and any such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">litigation may be costly to defend and distracting to management. If platforms are not successful in addressing these </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">issues, the platforms’ businesses and their results of operations may be harmed, which may reduce the possible </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">available investments for the Fund or negatively impact the value of the Fund’s investments in platforms or in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">alternative lending-related securities more generally. Platforms that originate loans secured with non-traditional </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">forms of collateral (e.g., digital assets like bitcoin or equity securities issued by operating companies or by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exchange-traded funds) may have a higher risk profile than platforms that originate loans secured with traditional </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">forms of collateral.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Certain platforms may work with banks in order to originate loans to borrowers and may rely on such banks to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">satisfy certain legal and/or regulatory requirements. If an originating bank suspended, limited or ceased its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">operations, if the bank’s relationship with the platform were terminated for any reason or if the bank’s ability or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">willingness to continue to serve this function on the current or equivalent terms were in any way curtailed, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">impacted platform would need to negotiate and implement a substantially similar arrangement with another bank, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">satisfy any regulatory or licensing requirements with respect to the new bank or seek other solutions. There can be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">no assurances that the platform in this type of situation would not be forced to curtail or suspend its operations. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Platforms may have limited or no prior experience with transitioning loan originations to a new funding bank and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the process may result in delays in the issuance of loans, a platform’s inability to facilitate loans or other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unforeseeable consequences. If a platform is unable to enter in an alternative arrangement with a different funding </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">bank, the platform would need to obtain its own license in order to enable it to originate loans, as well as comply </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">with other laws, which would be costly and time-consuming. In the U.S., this would entail, at minimum, obtaining a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">license in each state in which the platform operates. Platforms operating in other jurisdictions would be subject to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the regulatory requirements of those jurisdictions, which may be burdensome and costly. If a platform is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unsuccessful in maintaining its relationships with the funding banks, its ability to provide loan products could be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">materially impaired and its operating results would suffer. The Fund relies on the continued success of the platforms </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that facilitate the loans in which the Fund invests. If such platforms were impaired in their ability to operate their </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending business, the Adviser may be required to seek alternative sources of investments, which could adversely </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">affect the Fund’s performance and/or prevent the Fund from pursuing its investment objective and strategies.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Platforms may rely on debt facilities and other forms of borrowing in order to finance many of the borrower loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">they facilitate. However, these financing sources may become unavailable after their current maturity dates or the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">terms may become less favorable to the borrowing platforms. As the volume of loans that a platform facilitates </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">increases, the platform may need to expand its borrowing capacity on its existing debt arrangements or may need to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">seek new sources of capital. The availability of such financing depends on multiple factors, some of which are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">outside of the platform’s control. Platforms may also default on or breach their existing debt agreements, which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">could diminish or eliminate their access to funding at all or on terms acceptable to the platforms. Such events could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">cause the Fund to incur losses on its investments that are dependent upon the performance of the platforms.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">As discussed under “—Operational and Technology Risk,” platforms are subject to various risks relating to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extensive use of information technology.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">As discussed under “—Regulatory Risk,” platforms may also be forced to defend legal action taken by regulators or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">governmental bodies. Alternative lending is a new industry operating in an evolving legal environment. Platforms </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may be subject to risk of litigation alleging violations of law and/or regulations, including, for example, consumer </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">protection laws, whether in the U.S. or in non-U.S. jurisdictions. Platforms may be unsuccessful in defending </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">against such lawsuits or other actions and, in addition to the costs incurred in fighting any such actions, platforms </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may be required to pay money in connection with the judgments, settlements or fines or may be forced to modify </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the terms of its borrower loans, which could cause the platform to realize a loss or receive a lower return on a loan </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">than originally anticipated. Platforms may also be parties to litigation or other legal action in an attempt to protect </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or enforce their rights or those of affiliates, including intellectual property rights, and may incur similar costs in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">connection with any such efforts.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investments in the equity securities of alternative lending platforms, including common stock, preferred </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">stock, warrants or convertible stock, are subject to equity securities risk. Equity securities risk is the risk that the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">value of equity securities to which the Fund is exposed will fall due to general market or economic conditions; </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">overall market changes; local, regional or global political, social or economic instability; currency, interest rate and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">commodity price fluctuations; perceptions regarding the industries in which the issuers participate and the particular </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">circumstances and performance of the issuers. Market conditions may affect certain types of equity securities to a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">greater extent than other types; for example, equity securities of issuers in new or emerging industries may be more </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">susceptible to market conditions and may experience volatility in returns. Equities to which the Fund may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposed are structurally subordinated to bonds and other debt instruments in a company’s capital structure, in terms </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of priority to corporate income and, therefore, will be subject to greater risk than debt instruments of such issuers. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The prices of equities are also sensitive to rising interest rates, as the costs of capital rise and borrowing costs </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">increase. The equity securities of smaller, less seasoned companies, such as platforms or their affiliates, are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">generally subject to greater price fluctuations, limited liquidity, higher transaction costs and higher investment risk. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Smaller companies may have limited product lines, markets or financial resources, may be dependent on a limited </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">management group and may lack substantial capital reserves or an established performance record. There may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">generally less publicly available information about such companies than for larger, more established companies. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund invests in unlisted equity securities, which generally involve a higher degree of valuation and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">performance uncertainty and greater liquidity risk than investments in listed securities. Such issuers tend to be more </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">susceptible to the actions of competitors and market conditions, including general economic downturns; often </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">operate at a financial loss; are more likely to depend on small numbers of key management persons such that the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">departure of any such persons could have a material adverse impact on the business and prospects of the company; </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and generally have less predictable operating results. Investments that are unlisted at the time of acquisition may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">remain unlisted and may, therefore, be difficult to value and/or realize. Preferred securities may pay fixed or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">adjustable rates of return. Preferred securities are subject to issuer-specific and market risks applicable generally to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">equity securities. In addition, preferred securities generally pay a dividend and rank ahead of common stocks and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">behind debt securities in claims for dividends and for assets of the issuer in a liquidation or bankruptcy. For this </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">reason, the value of preferred securities will usually react more strongly than bonds and other debt to actual or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">perceived changes in the company’s financial condition or prospects. Preferred securities may also be sensitive to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">changes in interest rates. When interest rates rise, the fixed dividend on preferred securities may be less attractive, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">causing the price of preferred stocks to decline. Preferred securities of smaller companies may be more vulnerable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to adverse developments than preferred stock of larger companies. Warrants are options to purchase equity </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities at specific prices valid for a specific period of time. Their prices do not necessarily move parallel to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">prices of the underlying securities. Convertible securities are subject to the risks applicable generally to debt </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities, including credit risk. Convertible securities also react to changes in the value of the common stock into </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">which they convert, and are thus subject to market risk. Because the value of a convertible security can be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">influenced by both interest rates and the common stock’s market movements, a convertible security generally is not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">as sensitive to interest rates as a similar debt security, and generally will not vary in value in response to other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">factors to the same extent as the underlying common stock. In the event of a liquidation of the issuing company, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">holders of convertible securities typically would be paid before the company’s common shareholders <div style="display:inline;">but </div>after </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">holders of any senior debt obligations of the company.</div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Risk of Securities Issued by Platforms, Their Affiliates or Special Purpose Entities Sponsored by Platforms </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">or Their Affiliates.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund’s investments in shares, certificates, notes or other securities issued by a platform, its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">affiliates or a special purpose entity sponsored by a platform or its affiliates that represent the right to receive </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">principal and interest payments due on fractions of whole loans or pools of whole loans may expose the Fund to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">credit risk of the issuer. Generally, such securities are unsecured obligations of the issuer; an issuer that becomes </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">subject to bankruptcy proceedings may be unable to make full and timely payments on its obligations to the Fund, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">even if the payments on the underlying loan or loans continue to be made timely and in full. In addition, when the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund owns such fractional loans or other securities, the Fund and its custodian generally do not have a contractual </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">relationship with, or personally identifiable information regarding, individual borrowers, so the Fund will not be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">able to enforce underlying loans directly against borrowers and may not be able to appoint an alternative servicing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">agent in the event that a platform or third-party servicer, as applicable, ceases to service the underlying loans. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Therefore, the Fund is more dependent on the platform and loan servicer for servicing than in the case in which the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund owns whole loans. Where such interests are secured, the Fund relies on the platform to perfect the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">security interest. In addition, there may be a delay between the time the Fund commits to purchase a security issued </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">by a platform, its affiliate or a special purpose entity sponsored by the platform or its affiliate and the issuance of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such security and, during such delay, the funds committed to such an investment will not earn interest on the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment nor will they be available for investment in other alternative lending-related securities, which will </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">reduce the effective rate of return on the investment. The Fund invests primarily in whole loans, and to a lesser </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">extent in securities with exposure to fractional loans or other similar securities.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Equity Securities Risk. </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s investments in <div style="display:inline;">the </div>equity securities of alternative lending platforms or REITs, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">including common stock, preferred stock, warrants or convertible stock, are subject to equity securities risk. Equity </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities risk is the risk that the value of equity securities to which the Fund is exposed will fall due to general </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">market or economic conditions; overall market changes; local, regional or global political, social or economic </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">instability; currency, interest rate and commodity price fluctuations; perceptions regarding the industries in which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the issuers participate and the particular circumstances and performance of the issuers. The prices of equities are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">also sensitive to rising interest rates, as the costs of capital rise and borrowing costs increase. The equity securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of smaller, less seasoned companies, such as platforms or their affiliates, are generally subject to greater price </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">fluctuations, limited liquidity, higher transaction costs and higher investment risk. The Fund invests in unlisted </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">equity securities, which generally involve a higher degree of valuation and performance uncertainty and greater </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">liquidity risk than investments in listed securities. Preferred securities are subject to issuer-specific and market risks </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">applicable generally to equity securities. In addition, preferred securities generally pay a dividend and rank ahead of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">common stocks and behind debt securities in claims for dividends and for assets of the issuer in a liquidation or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">bankruptcy. For this reason, the value of preferred securities will usually react more strongly than bonds and other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">debt to actual or perceived changes in the company’s financial condition or prospects. Preferred securities may also </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">be sensitive to changes in interest rates. When interest rates rise, the fixed dividend on preferred securities may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">less attractive, causing the price of preferred stocks to decline. Convertible securities are subject to the risks </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">applicable generally to debt securities, including credit risk. Convertible securities also react to changes in the value </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of the common stock into which they convert, and are thus subject to market risk. In the event of a liquidation of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the issuing company, holders of convertible securities typically would be paid before the company’s common </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">shareholders but after holders of any senior debt obligations of <div style="display:inline;">the </div>company.</div></div></div>
<div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Servicer Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund’s direct and indirect investments in loans originated or sourced by alternative lending </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms are typically serviced by that platform or a third-party servicer. Loan servicing may entail the assessment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and/or collection of payments and fees from borrowers, the allocation and payment of such amounts to investors </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and the execution of collections processes upon nonpayment of borrower loans, which may include referral of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">overdue loans to collections personnel or outside collection agencies. Fees charged by a loan servicer reduce the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">returns on the Fund’s investments.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In the event that the servicer is unable to service the loan, there can be no guarantee that a backup servicer will be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">able to assume responsibility for servicing the loans in a timely or cost-effective manner; any resulting disruption or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">delay could jeopardize payments due to the Fund in respect of its investments or increase the costs associated with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s investments. If the servicer becomes subject to a bankruptcy or similar proceeding, there is some risk </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that the Fund’s investments could be recharacterized as a secured loan from the Fund to the platform, as described </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">more fully (with respect to the potential bankruptcy of a platform) under “—Regulatory Risk,” which could result </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in uncertainty, costs and delays from having the Fund’s investment deemed part of the bankruptcy estate of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform, rather than an asset owned outright by the Fund. Servicers may be subject to other risks described herein, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including “—Platform Risk.”</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Regulatory Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The loan industry is highly regulated and the alternative lending-related securities in which the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund invests are subject to extensive rules and regulations issued by governmental authorities in each of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">jurisdictions in which the Fund invests. These authorities also may impose obligations and restrictions on the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms’ activities or those of other entities involved in the alternative lending process. As a result of ongoing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">economic and other developments, changes to federal, state or local law or regulation may negatively affect the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s ability to receive payments of interest and repayments of principal on its investments.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The platforms’ failure to comply with the requirements of applicable law may cause, among other things, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms to be required to register with or be licensed by governmental authorities and/or the revocation of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">requisite licenses, the voiding of loan contracts, practice restrictions, impairment of the enforcement of loans or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">collection of interest, indemnification liability to contract counterparties, class action lawsuits, administrative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">enforcement actions and/or civil and criminal liability in the relevant jurisdiction. The evolving nature of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms’ respective business models may complicate their ability to determine the applicability of, and to effect </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">compliance with, such requirements. Moreover, legal and regulatory requirements and any interpretations of those </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">requirements are subject to periodic changes. Any such change necessitating new significant compliance obligations </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">could have an adverse effect on the platforms’ compliance costs and ability to operate. The platforms could seek to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">pass through any increase in their costs to their borrowers or investors, such as the Fund, in the form of higher </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">origination or servicing fees.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In connection with the sale and servicing of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">whole loans, fractions of whole loans or pools of whole loans, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms typically make representations and warranties to investors, such as the Fund, that the loans were </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">originated and are being serviced in accordance with and in compliance with applicable laws (and in some cases </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">specifically with the laws described herein) in all material respects. Despite these representations and warranties, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund cannot guarantee that the platforms have been and will continue to be in compliance with all applicable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">laws. If those representations and warranties were not correct, the platforms could be required to repurchase the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loans or indemnify the Fund for losses, but the Fund cannot be certain that the platform would be required and able </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to repurchase loans or indemnify the Fund for losses in all such cases.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition, regulators, enforcement agencies and courts are increasingly considering the role of non-bank lenders </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and secondary market loan purchasers. There is no guarantee that laws and regulations applicable to non-bank </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lenders will not change in a manner that adversely affects or restricts the Fund, including the ability of the Fund to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">acquire loans from platforms, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">enforce loans and collect interest and/</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">principal, or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">otherwise restricts or materially </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">increases the cost to the Fund of pursuing potential investment strategies.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Moreover, regulators could seek to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">impose liability on the Fund as purchaser and holder of loans for actions omissions of its vendors, such as servicers </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">or sub-servicers.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Finally, increased reporting, registration, and compliance requirements may divert the attention of personnel and the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">management team of the Adviser, and may furthermore place the Fund at a competitive disadvantage to the extent </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that the Adviser or companies in which the Fund invests are required to disclose sensitive business information. The </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund will be required to bear the Fund’s expenses relating to compliance-related matters and regulatory filings, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which are likely to be material, including on a cumulative basis over the life of the Fund.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The information below provides additional detail on some of the laws, rules and regulations relevant to the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investments.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Regulatory Regime in the United States. The platforms may be subject to laws including the following in the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">United States:</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">federal and state laws and regulations related to disclosures to and consents from borrowers and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prospective borrowers and loan terms, credit discrimination, credit reporting, debt servicing and collection </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and unfair, deceptive, abusive or unconscionable business practices;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">state consumer loan, small loan, commercial loan, loan brokerage, loan servicing, credit services </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">organization and collection agency licensing laws that apply to persons that arrange, broker, facilitate, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market, make, own in whole or in part, hold, acquire, purchase, service, collect or otherwise participate in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">loans covered by such laws;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:left;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">state usury laws and other laws that restrict the amount of interest or fees that may be charged on loans;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">state disclosure laws and regulations applicable to small business loans, merchant cash advances and other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">commercial-purpose financings;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Truth-in-Lending Act and Regulation Z promulgated thereunder, and similar state laws, which require </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain disclosures to borrowers regarding the terms and conditions of their loans and credit transactions;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Section 5 of the Federal Trade Commission Act, and similar state laws, which prohibit unfair and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">deceptive acts or practices in or affecting commerce, and Sections 1031 and 1036 of the Dodd-Frank Wall </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Street Reform and Consumer Protection Act, which prohibit unfair, deceptive or abusive acts or practices </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in connection with any consumer financial product or service, and the Federal Holder in Due Course Rule </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(16 CFR 433), which in certain circumstances permits borrowers to assert any claims and defenses that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">they would have had against a seller of goods or services obtained with the proceeds of a loan against an </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">originator or subsequent purchaser of the loan, and analogous state laws prohibiting unfair, deceptive or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unconscionable trade practices;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Credit Practices Rules, which (i) prohibit lenders from using certain contract provisions that the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Federal Trade Commission (the “FTC”) has found to be unfair; (ii) requires lenders to advise consumers </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">who co-sign obligations about their potential liability if the primary obligor fails to pay; and (iii) prohibits </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">certain late charges;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Equal Credit Opportunity Act and Regulation B promulgated thereunder, and similar state statutes, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">which prohibit creditors from discriminating against credit applicants on the basis of race, color, sex, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sexual orientation, gender identity, age, religion, national origin, marital status, the fact that all or part of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the applicant’s income derives from any public assistance program or the fact that the applicant has in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">good faith exercised any right under the federal Consumer Credit Protection Act or any applicable state </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">law;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fair Credit Reporting Act, as amended by the Fair and Accurate Credit Transactions Act, which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">promotes the accuracy, fairness and privacy of information in the files of consumer reporting agencies, by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">regulating the use and reporting of information related to a credit applicant’s credit history and imposing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">restrictions on the marketing of credit products through prescreened solicitations based on consumer </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">report information, among other things;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fair Debt Collection Practices Act and similar state debt collection laws, which provide guidelines and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">limitations on the conduct of third-party debt collectors (and some limitations on creditors collecting their </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">own debts) in connection with the collection of consumer debts;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Gramm-Leach-Bliley Act, which includes limitations on financial institutions’ disclosure of nonpublic </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">personal information about a consumer to nonaffiliated third parties, in certain circumstances requires </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">financial institutions to limit the use and further disclosure of nonpublic personal information by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">nonaffiliated third parties to whom they disclose such information and requires financial institutions to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">disclose certain privacy policies and practices with respect to information sharing with affiliated and </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-left:40pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">nonaffiliated entities as well as to safeguard personal customer information, and other federal and state or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">foreign privacy and data security laws and regulations, including the California Consumer Privacy Act </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(“CCPA”) and similar state laws of broad applicability;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Telephone Consumer Protection Act, which imposes various consumer consent requirements and other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">restrictions in connection with telemarketing activity and other communication with consumers by phone, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">fax or text message, and which provides guidelines designed to safeguard consumer privacy in connection </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with such communications;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Federal Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 and the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Telemarketing Sales Rule and analogous state laws, which impose various restrictions on marketing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">conducted using email, telephone, fax or text message;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Bankruptcy Code, which limits the extent to which creditors may seek to enforce debts against parties </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">who have filed for bankruptcy protection;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Servicemembers Civil Relief Act, which allows military members to suspend or postpone certain civil </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations so that the military member can devote his or her full attention to military duties and limits </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest rates on certain obligations of servicemembers to 6% per annum;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Military Lending Act, which limits the amount of interest and fees that may be charged on loans made </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to members of the military and provides for other consumer protections;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Electronic Fund Transfer Act and Regulation E promulgated thereunder, as well as rules of payment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">networks and the National Automated Clearing House Association, which require separate customer </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">authorization for a loan servicer to use electronic transfers for customer payments and provide disclosure </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">requirements, guidelines and restrictions on the electronic transfer of funds to and from consumers’ bank </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">accounts;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Electronic Signatures in Global and National Commerce Act and similar state laws, particularly the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Uniform Electronic Transactions Act, which authorize the creation of legally binding and enforceable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">agreements utilizing electronic records and signatures and govern the circumstances in which a person </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may electronically provide disclosures otherwise required to be in writing;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the regulations promulgated by the Office of Foreign Assets Control under the U.S. Treasury Department </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">related to the administration and enforcement of sanctions against non-U.S. jurisdictions and persons, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">including Specially Designated Nationals (SDNs), that threaten U.S. foreign policy and national security </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">goals, primarily to prevent targeted jurisdictions and persons from accessing the U.S. financial system;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Bank Secrecy Act, which relates to compliance with anti-money laundering, customer due diligence </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and record-keeping policies and procedures;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Uniform Consumer Credit Code as it may be adopted in various states, which relates to consumer </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">protections for borrowers</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:justify;width:423.0pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Federal and state laws governing the use of artificial intelligence, machine learning and other technologies </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">in connection with the marketing, solicitation, origination, underwriting, purchase, sale, servicing or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">collection of loans;</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:left;width:423.0pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">federal and state securities laws; and</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div><div style="clear:both;margin-top:10pt;position:relative;width:100%"><div style="float:left;line-height:12pt;margin-left:20pt;text-align:left;width:4.6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">●</div></div><div style="float:left;line-height:12pt;margin-left:15.4pt;text-align:left;width:423.00pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">other federal, state and local laws and regulations.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="clear: both; position: relative; max-height: 0px;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">These rules require extensive disclosure to, and consents from, borrowers and prospective borrowers, prohibit </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">various lending practices such as discrimination and may impose multiple qualification and licensing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations on platform activities.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Moreover, under the Federal Holder in Due Course Rule referred to above, failure to perform or a violation of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">law by a merchant or service provider could give rise to claims and/or defenses by a borrower, or a group of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">borrowers, against the Fund, a servicer and certain other parties.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Consumer Financial Protection Bureau (“CFPB”) has broad authority over the U.S. consumer-focused </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">businesses in which certain platforms engage. This includes authority to write regulations under federal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">consumer financial protection laws, such as the Truth in Lending Act and the Equal Credit Opportunity Act, to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">supervise and conduct regulatory examinations of banks with more than $10 billion in assets and certain </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">non-banks, and to enforce federal consumer financial protection laws against market participants, including the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms. The CFPB is authorized to prevent “unfair, deceptive or abusive acts or practices” through its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulatory, supervisory and enforcement authority. To assist in its enforcement, the CFPB maintains an online </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">complaint system that allows consumers to log complaints with respect to various consumer finance products, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">including the loans that platforms facilitate. This system could inform future CFPB decisions with respect to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">its regulatory, enforcement or examination focus. Since March 2016, the CFPB has accepted consumer </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">complaints regarding consumer loans issued by online marketplace platforms, subjecting platforms to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">CFPB’s expectation for prompt handling of consumer complaints received through the system and making </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">available to the public non-personalized information regarding such complaints. Until the CFPB issues a final </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rulemaking defining which non-bank larger participants in the consumer lending market will be subject to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">CFPB’s supervisory authority, which includes the ability to conduct regulatory examinations, the platforms are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">only subject to the CFPB’s rulemaking and enforcement authority, unless they are determined to pose risk to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">consumers by the CFPB. The CFPB announced in April 2022 its intention to use its authority to supervise any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">non-bank that it determines is posing a risk to consumers. Since that time, the CFPB has entered into </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">non-public agreements with several entities that have agreed to the CFPB’s supervision. However, on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">September</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">25</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, 2025, the CFPB issued a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">final rule</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> to rescind amendments to the Procedures for Supervisory </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Designation Proceedings that it adopted in 2022 and 2024. While the future extension of supervisory authority </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to non-banks that the CFPB determines pose a risk to consumer is uncertain, it is possible that entities subject </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to CFPB supervision and examination, either as a result of such determination or a future larger participant </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rulemaking, could include fintech platforms that sell loans to or service loans for the Fund. The impact of such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">direct supervision by the CFPB is unknown, but could result in additional scrutiny for platforms, which could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">have an adverse impact on platforms and the Fund.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The CFPB could implement rules that restrict platforms’ effectiveness in servicing loans for the Fund. For </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">example, on October 5, 2017, the CFPB issued a final rule regarding Payday, Vehicle Title and Certain </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">High-Cost Installment Loans (the “Final Rule”). The Final Rule mandated with respect to loans of 45 days or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">less or longer-term loans with balloon payments that lenders must take reasonable steps to ensure that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">prospective borrowers have the ability to repay them. In July 2020, the CFPB issued a final rule to rescind the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Final Rule’s mandatory underwriting requirements (i.e., the ability-to-repay requirements) and ratify the Final </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Rule’s payment provisions that prohibit lenders from making new attempts to debit a borrower’s account after </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">two failed attempts, absent express authorization by the borrower for further withdrawals. The Final Rule was </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">stayed pending resolution of legal claims regarding both the substance of the Final Rule and the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">constitutionality of the CFPB’s funding mechanism. In September 2021, the U.S. District Court for the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Western District of Texas upheld the payment provisions in the Final Rule and established a June 13, 2022 </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">effective date. Cmty. Fin. Servs. Ass’n of Am., Ltd. v. CFPB, 558 F. Supp. 3d 350 (W.D. Tex. 2021). However, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">implementation of the Final Rule was further stayed and in October 2022 the U.S. Court of Appeals for the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fifth Circuit held that the funding mechanism for the CFPB (12 U.S.C. § 5497) is unconstitutional. The </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">U.S. Supreme Court took the case on appeal and on May 16, 2024, rejected the Fifth Circuit ruling, and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">remanded the case back to the U.S. Court of Appeals. On June 14, 2024, the CFPB announced the Final Rule </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">would go into effect on March 30, 2025. On November 25, 2024, the Fifth Circuit issued an order effectively </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">confirming that the Final Rule would take effect on March 30, 2025. However, on March 28, 2025, the CFPB </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">announced it would not prioritize enforcement or supervisory actions related to the payment provisions of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Final Rule, despite the rule taking effect on March 30, 2025.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Actions by the CFPB could result in requirements to alter or cease offering affected loan products and services, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">making them less attractive and restricting the platforms’ ability to offer them. Actions by the CFPB or other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulators against the platforms, their originating banks or their competitors that discourage the use of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">alternative lending model or suggest to consumers the desirability of other loan products or services could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">result in reputational harm and a loss of borrowers or investors. The platforms’ compliance costs and litigation </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposure could increase materially if the CFPB or other regulators enact new regulations, change existing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulations, modify, through supervision or enforcement, past regulatory guidance or interpret existing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulations in a manner different or stricter than previous interpretations. In addition to the CFPB, the FTC can </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investigate and enforce certain federal consumer protection statutes as well the prohibition on unfair and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">deceptive acts or practices under Section 5 of the Federal Trade Commission Act or unfair, deceptive or </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">abusive acts or practices under Sections 1031 and 1036 of the Dodd-Frank Wall Street Reform and Consumer </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Protection Act. Similarly, state attorneys general have broad powers to investigate and enforce consumer </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">protection statutes, which they have used, and are likely to continue to use, with respect to the activities of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">certain platforms. Also, the platforms may be subject to regulatory examination or enforcement actions by state </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">authorities, particularly in states where the platforms are licensed. Moreover, platforms that collaborate with a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">bank to offer loans are subject to the supervisory authority of the bank’s regulator(s).</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The CFPB issued an interpretive rule in 2022 to provide clarity regarding 12 U.S.C. 5552, which provides </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">states with authority to enforce requirements of federal consumer financial laws, and issued a report in January </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">2025 to provide state regulators and enforcement agencies a road map for how they can enforce federal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">consumer financial laws. Although the interpretive rule on states’ enforcement authority was rescinded as of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">May 15, 2025, the underlying statutory authority for states to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">enforce</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> federal consumer financial laws remains. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">With the change in presidential administrations in January 2025 and the expectation that federal regulators may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">be less aggressive in enforcing federal consumer financial laws as compared to the prior administration, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">several state regulators have signaled an intention to increase their oversight of consumer financial services </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">firms.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Different platforms adhere to different business models subject to different regulatory requirements. For </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">example, one platform may operate from a particular state to make loans to small- and mid-sized businesses </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">across the United States. The platform must comply with that state’s licensing requirements and possible usury </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">limitations, relying on contractual choice of law provisions when lending to borrowers that reside in other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">states. However, other states could seek to regulate the platform on the basis that loans were made to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrowers located in such other states. Alternatively, plaintiffs or an enforcement agency could assert that the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform’s choice of law was not valid and that the law of the borrower’s state of residency applies to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">transaction, particularly if enforcement of the parties’ choice of law is found to be contrary to a fundamental </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">public policy of the borrower’s home state. In either case, loans made in those other states could be subject to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the maximum interest rate limits (usury laws), if any, of such jurisdiction, which in turn could limit revenues </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">for the Fund or adversely affect the value of the Fund’s investments. Moreover, it could further subject the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform to such states’ licensing requirements and, potentially, to penalties for having previously conducted </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">business in such states without a license, which could adversely impact the platform or, in some cases, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">enforceability of some or all of the terms of loans originated by or through the platform without a license.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Another platform may follow a different model in which some or all loans sourced by the platform are made </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">by a bank. The platform may provide certain services to assist the bank in making the loan, but the loans will </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">be made subject to the bank’s underwriting guidelines, funding for the loans will come from the bank’s own </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">resources and the bank will be the named payee on the loans. As a result, the bank is generally considered to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">be the “true lender” of the loans originated through the platform. However, if challenged in litigation by a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrower, government enforcement agency or other litigant, a court may instead decide that the platform is the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">true lender of the loans. Plaintiffs and certain regulators have challenged various bank affiliation and similar </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">arrangements involving a variety of non-bank partners, often in market segments in which the Fund does not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">intend to invest, such as payday lending and refund anticipation lending, and recently challenges have been </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">initiated against marketplace lending platforms on similar theories. Currently, litigation is pending in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">California between a platform and the California Department of Financial Protection and Innovation which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">could become a bellwether for future true lender cases, for example. Cases raising true lender, usury or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">licensing questions related to loans made pursuant to arrangements in which platforms affiliated with banks </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">can be expected to arise from time to time and are likely to be dependent on the specific facts and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">circumstances involved as well as developing judicial interpretations of existing and new laws. Given the fact </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">specific nature of these kinds of cases, courts have recently applied differing interpretations when determining </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">which party is the true lender, with the diverging outcomes of these cases explained in whole or in part by the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">differing legal standards applied by courts and factual distinctions. The resulting uncertainty may increase the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">possibility of claims brought against the platforms by borrowers seeking to void their loans or to subject the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms to increased regulatory scrutiny and enforcement actions. To the extent that the platform or a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">purchaser of loans is deemed to be the true lender in any jurisdiction instead of the originating bank (whether </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">determined by a regulatory agency at the state or federal level or by a court), loans made to borrowers in that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">jurisdiction would be subject to the maximum interest rate limits (usury laws) of such jurisdiction and existing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loans may be unenforceable and the platform or purchaser of loans could be subject to additional regulatory </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">requirements in addition to any penalties and fines (including licensing), which could adversely affect the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and the value of its investments. Moreover, it may be determined that this business model is not sustainable in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">its current form, which could ultimately cause such platforms to alter or terminate their businesses. In such </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">circumstances, there could be a material adverse effect on the Fund’s ability to pursue its investment strategy </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">as well as enforce remedies it may have against the platforms from which it obtained loans.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Many fintech platforms partner with state-chartered banks that rely on federal law, specifically, Section 27 of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Federal Deposit Insurance Act, which allows a state-chartered bank insured by the Federal Deposit </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Insurance Corporation to charge interest to borrowers on a nationwide basis based on the rates allowed by the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">state where the bank is located. Section 27 preempts inconsistent state law limitations except for loans that are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">made in states that opt out from federal exportation authority. Until 2023, Iowa and Puerto Rico were the only </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">jurisdictions to have enacted and maintained opt outs of Section 27, although the effect of such opt outs was </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unsettled given different interpretations of the opt out right under federal law. In December 2022, the Iowa </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Attorney General and Department of Banking announced the settlement of an enforcement action against an </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">out-of-state, state-chartered bank that made loans in Iowa through a bank partnership program. The state </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">asserted that its opt out from Section 27 preemption required the bank to comply with state law when lending </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to Iowa residents. The state claimed that the bank charged usurious interest on loans to Iowa residents. Without </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">admitting any violation of Iowa law, the bank agreed to an Assurance of Discontinuance under which it would </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make refunds to Iowa residents for interest collected in excess of the state’s usury ceiling.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In 2023, Colorado enacted legislation purporting to opt out of Section 27. The law was scheduled to become </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">effective July 1, 2024 but was later subject to an injunction covering members of the trade associations that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">initiated a legal challenge to Colorado’s interpretation of DIDMCA’s opt-out provision</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, which injunction </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">remains in place while the matter is pending</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. The impact of the Colorado legislation is unclear at this time and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">other states have considered legislation to opt out of Section 27</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, with Oregon recently enacting DIDMCA opt </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">out legislation that takes effect in early June 2026</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">. To the extent that a state’s opt-out is effective in preventing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">out-of-state, state-chartered banks from exercising their ability to export the interest rates of their home state </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">when lending to residents of such an opt-out state, it could limit state-chartered banks that partner with fintech </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms from originating certain loans or result in liabilities for any loans originated in violation of such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">opt-out state’s usury ceiling.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Alternative lending platforms may be subject to risk of litigation alleging violations of federal and state laws </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and regulations and consumer law torts, including fraud. Moreover, many alternative lending-related securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(loans, in particular) are written using standardized documentation. Thus, many borrowers may be similarly </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">situated insofar as the provisions of their contractual obligations are concerned. Accordingly, allegations of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">violations of the provisions of applicable federal or state consumer protection laws could potentially result in a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">large class of claimants asserting claims against the platforms and other related entities.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Recent case law raised questions regarding the ability of platforms and loan purchasers to charge the same rate </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">as an originating bank after a loan has been sold to the platform by the originating bank and, in turn, sold to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">subsequent investors, such as the Fund. In 2015, the U.S. Court of Appeals for the Second Circuit issued a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">significant decision that interpreted the scope of federal preemption under the National Bank Act (the “NBA”) </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and held that a non-bank assignee of loans originated by a national bank was not entitled to the benefits of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">NBA preemption as to state law claims of usury. Although the decision is binding only in Connecticut, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">New York and Vermont, it may significantly affect non-bank assignees of loans, including the loan origination </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">practices of certain participants in the alternative lending-related industry. At a minimum, non-bank </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">assignees/purchasers of bank loans may face uncertainty regarding their ability to rely upon federal preemption </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of state usury laws in those three states; in addition, a number of alternative lending platforms purchase loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">from state-chartered banks promptly after origination and rely upon federal preemption to exempt the loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">from state usury caps. Following the Second Circuit’s decision, there have been a number of lawsuits in other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">parts of the country making similar allegations. In 2020, the Office of the Comptroller of the Currency </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(“OCC”) and the Federal Deposit Insurance Corporation separately issued final rules to provide that interest </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rate applicable to a loan originated by a bank on the date the loan was made remains valid when a loan is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">transferred or sold. Although attorneys general in several states have initiated litigation to challenge the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">agencies’ rules, a federal district court upheld the rules in 2022 and the states did not file an appeal. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Nonetheless, some uncertainty remains as future litigants could seek to challenge the rules.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition to potential legal and regulatory challenges to platforms, several states have initiated enforcement </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">actions or considered new legislation that may challenge the ability of state-chartered banks that partner with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms to offer loans without a license or at interest rates above a state’s usury ceiling. Although these </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">developments are relatively recent and some of their outcomes are uncertain, they could limit future </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment opportunities or revenues for the Fund. Moreover, if a bank were to be found to have originated </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loans without a license and/or at interest rates not authorized by law, it could adversely impact the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">enforceability of loans made by such bank, which could adversely affect the Fund.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition, numerous other statutory provisions, including federal bankruptcy laws and related state laws, may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">interfere with or affect the ability of an investor to enforce a loan facilitated through an alternative lending </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform. If a platform or related entity were to go into bankruptcy or become the subject of an insolvency </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">proceeding, the platform or related entity may stop performing its services with respect to the loans. Any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">replacement servicer retained for such services may assess higher fees and/or demand additional, less favorable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">terms with respect to its obligations. The servicer may also have the power, in connection with a bankruptcy or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">insolvency proceeding and with the approval of the court or the bankruptcy trustee or similar official, to assign </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">its rights and obligations as servicer to a third party without the consent, and even over the objection, of any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">affected parties. If the servicer is a debtor in bankruptcy or the subject of an insolvency or similar proceeding, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">this may limit the ability of affected parties to enforce the obligations of the servicer, to collect any amount </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">owing by the servicer or to terminate and replace the servicer. In addition, the sale of whole loans to the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may be found by a bankruptcy court not to have been a true sale, but recharacterized as a secured loan from </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund to the platform. If such a recharacterization occurs, most platform loan purchase agreements provide </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that the platform grants a security interest to the Fund in the loans subject to the purchase agreement, but the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund would incur the resulting uncertainty, costs and delays from having its loans deemed part of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">bankruptcy estate of the platform, rather than assets owned outright by the Fund. A bankruptcy court may also </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">reduce the monthly payments due under the related contract or loan and/or change the rate of interest and time </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of repayment of the indebtedness. Borrowers may delay or suspend making payments on loans because of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">uncertainties occasioned by the bankruptcy or similar proceeding to which a platform or its related entities are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">subject, even if the borrowers have no legal right to do so. It is possible that a period of adverse economic </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">conditions resulting in high defaults and delinquencies on alternative lending-related securities will increase </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the potential bankruptcy risk to platforms and its related entities.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The U.S. presidential election of 2024 resulted in a change of administration that resulted in significant </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">changes in leadership among the federal agencies that regulate consumer credit, including the CFPB, FTC, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">federal banking agencies and the Department of Justice. Federal consumer financial regulation is in a period of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">extended transition for a variety of reasons, including </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">review and reconsideration of regulations</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, executive </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">orders impacting the operations of federal agencies are being issued (with uncertainty around the scope of their </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">application and timing of their implementation), and reductions of personnel are occurring across federal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">agencies. There is considerable uncertainty as to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">future policies that the current U.S. administration may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">pursue in areas impacting financial regulation and consumer protection. Many of the current administration’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">executive orders are being challenged in court, with initial requests for injunctions being granted, denied, or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">extended, and the ultimate resolution of the legality of the executive orders is expected to take an extended </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">period of time. Further, in pending litigation challenges to rules, federal agencies have sought to suspend or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">dismiss the litigation in some cases, and in other cases have not yet taken action. The outlook is similarly </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">uncertain as to pending enforcement cases that have not been abandoned by the CFPB. It is also uncertain how </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">other federal and state regulators will respond to any changes at the CFPB, which may include increasing or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">decreasing enforcement activity.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund cannot predict whether federal or state agencies with oversight over the platforms will take any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">action to adopt new regulations, provide guidance or take supervisory or enforcement actions that will </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">adversely or positively impact the marketplace lending industry or require changes to the business models of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms that may adversely affect the platforms’ businesses. If a change in the laws or the interpretations of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">current laws were to occur, certain U.S. platforms could be required to either change the manner in which they </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">conduct certain aspects of their operations or halt certain business operations all together, which could have a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">material adverse effect on the Fund’s ability to pursue its investment strategy.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">At any time there may be litigation pending as well as supervisory or enforcement actions taken against banks </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that issue or originate loans for the platforms. Any such litigation or supervisory or enforcement actions may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">significantly and adversely impact such banks’ ability to make loans or subject them or the platforms they </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">partner with to fines and penalties, which could consequently have a material adverse effect on the Fund. The </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms could also be forced to comply with the lending laws of all U.S. states, which may not be feasible </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and could result in platforms ceasing to operate. Any increase in cost or regulatory burden on a platform could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">have a material adverse effect on the Fund. Specifically, adverse supervisory or enforcement actions by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulatory agencies or rulings by courts in pending and potential future litigation could undermine the basis of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms’ business models and could result ultimately in a platform or its lender members (investors) being </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">characterized as a lender, which, as a consequence, would mean that additional U.S. consumer protection laws </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">would be applicable to the loans sourced on such platforms, potentially rendering such loans voidable or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unenforceable. In addition, a platform or its lender members could be subject to claims by borrowers, as well </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">as enforcement actions by regulators. Even if a platform were not required to cease conducting business with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">residents of certain states or to change its business practices to comply with applicable laws and regulations, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the platform or its lender members could be required to register or obtain and maintain licenses or regulatory </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">approvals in all 50 U.S. states at substantial cost. If a platform were subject to fines, penalties or other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulatory action or ceased to operate, this could have a material adverse effect on the Fund’s ability to pursue </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">its investment strategy.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition to laws governing the activities of lenders and servicers, a limited number of states require </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">purchasers of certain loans, primarily consumer loans and mortgage loans, to be licensed or registered in order </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to own the loans or, in certain states, to collect a rate of interest above a specified rate. Moreover, recent </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">litigation involving securitization trusts that take assignment of loans suggests increased licensing, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">enforcement and litigation risk for purchasers of loans. The Fund intends to obtain licenses if and where </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">required in order to pursue its investment strategy. To the extent the Fund obtains such licenses or is required </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to comply with related regulatory requirements, the Fund could be subject to increased costs and regulatory </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">oversight by governmental authorities that may have an adverse effect on its results or operations. If the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">were delayed in obtaining, or were unable to obtain, required licenses in certain states, this could limit its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">ability to invest in loans to borrowers in those states. If the Fund were to be deemed to have acquired loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">without first obtaining a required license, the Fund could be subject to penalties, prohibited or restricted in its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">ability to enforce loans or collect interest, or subject to other damages, which could have a material adverse </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">effect on the Fund, its investment strategy, and/or results.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Because loans are not ordinarily registered with the Commission or any state securities commission or listed </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">on any securities exchange, there is usually less publicly available information about such instruments. In </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">addition, loans in which the Fund invests may not be considered “securities” for purposes of the anti-fraud </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">protections of the federal securities laws. In the event certain loans in which the Fund invests are not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">considered securities, as a purchaser of these instruments, the Fund may not be entitled to the anti-fraud </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">protections of the federal securities laws. The Fund has been advised by the Staff of the Commission that it is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the view of the Commission and its Staff that the purchase of whole loans through alternative lending </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platforms involves the purchase of “securities” under the 1933 Act, issued by the originating platforms, and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that the purchase of whole loans by the Fund involves the purchase of securities.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">If platforms or any related entities are required to register as investment companies under the 1940 Act or as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment advisers under the Investment Advisers Act of 1940, their ability to conduct business may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">materially adversely affected, and contracts entered into by a platform or related entity while in violation of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">registration requirements may be voidable. This could adversely affect the Fund’s ability to pursue its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment strategy and adversely affect the value of the Fund’s shares.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The U.S. federal Fair Debt Collection Practices Act (“FDCPA”) provides guidelines and limitations on the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">conduct of third-party debt servicers in connection with the collection of consumer debts. In order to ensure </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">compliance with the FDCPA, U.S. platforms often contract with professional third-party debt collection </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">agencies to engage in debt collection activities with respect to consumer debts. The CFPB, the U.S. federal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">agency responsible for administering the FDCPA, has considered comprehensive rulemaking regarding the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">operation of the FDCPA. While the agency has paused its rulemaking efforts, future regulatory enactments </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may adversely impact the ability of third-party debt collectors to recover claims from borrowers and may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">reduce amounts recovered or value of charged-off debts. Any such changes could have an adverse effect on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">U.S. platforms and, therefore, on the Fund as an investor through such platforms. The U.S. federal Fair Credit </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Reporting Act (“FCRA”) regulates consumer credit reporting. Under the FCRA, liability may be imposed on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">furnishers of data to credit reporting agencies, such as platforms that service loans for the Fund, to the extent </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">that adverse credit information reported is false or inaccurate.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">U.S. federal law provides borrower service members on active military service with rights that may delay or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">impair a platform’s ability to collect on a loan. The Servicemembers Civil Relief Act (“SCRA”) requires that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the interest rate on pre-existing debts, such as service member loans, be set at no more than 6% while the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">qualified service member or reservist is on active duty. An investor in an alternative lending-related security </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that is dependent on the performance of such a loan, such as the Fund, will not receive the difference between </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">6% and the original stated interest rate for the loan during any such period. This law also permits courts to stay </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">proceedings and execution of judgments against service members and reservists on active duty, which may </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">delay recovery on any loans in default and, accordingly, payments on the instruments that are dependent on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">these loans. If there are any amounts under such a loan still due and owing to the platform after the final </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">maturity of the instrument that corresponds to the loan, a platform may have no further obligation to make </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">payments on the instrument to the Fund, even if the platform later receives payments after the final maturity of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the instrument.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Platforms do not take military service into account in assigning loan grades to borrower service member loan </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">requests. In addition, platforms do not request prospective borrowers to confirm if they are a qualified service </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">member or reservists within the meaning of the SCRA as part of the borrower registration process. As a result, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the platform may not always be able to ensure compliance with the requirements of the SCRA as well as the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Military Lending Act, which, among other things, limits the cost of credit on a covered loan to 36% per year.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition, regulatory changes applicable to the collateral securing certain loans to which the Fund may have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposure, particularly non-traditional forms of collateral (e.g., digital assets like bitcoin), may adversely </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">impact the value of such collateral or a platform’s or loan servicer’s ability to service such loans.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Lender Liability. </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">A number of judicial decisions have upheld judgments of borrowers against lending </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">institutions on the basis of various evolving legal theories, collectively termed “lender liability.” Generally, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lender liability is founded on the premise that a lender has violated a duty (whether implied or contractual) of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">good faith, commercial reasonableness and fair dealing, or a similar duty owed to the borrower or has assumed </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">an excessive degree of control over the borrower resulting in the creation of a fiduciary duty owed to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrower or its other creditors or shareholders. If a loan held by the Fund were found to have been made or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">serviced under circumstances that give rise to lender liability, the borrower’s obligation to repay that loan </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">could be reduced or eliminated or the Fund’s recovery on that loan could be otherwise impaired, which would </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely impact the value of that loan.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In limited cases, courts have subordinated the loans of a senior lender to a borrower to claims of other creditors </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of the borrower when the senior lender or its agents, such as a loan servicer, is found to have engaged in unfair, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">inequitable or fraudulent conduct with respect to the other creditors. If a loan held by the Fund were subject to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such subordination, it would be junior in right of payment to other indebtedness of the borrower, which could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">adversely impact the value of that loan.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Regulatory Regime in the United Kingdom.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may invest in alternative lending-related securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">through platforms domiciled in the UK. Such platforms must be authorized and regulated by the Financial </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Conduct Authority (“FCA”) in order to engage in the regulated activity of “operating an electronic system in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">relation to lending.”</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The FCA imposes regulatory controls for platform operators, including the application of conduct of business </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rules (in particular, relating to disclosure and promotions), minimum capital requirements, client money </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">protection rules, dispute resolution rules and a requirement for firms to take reasonable steps to ensure existing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loans continue to the administered if the firm goes out of business. These regulations and any further new laws </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and regulations could have a material adverse effect on UK platforms’ businesses and may result in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">interruption of operations by such platforms or the passing on of the costs of increased regulatory compliance </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">to investors, such as the Fund, in the form of higher origination or servicing fees.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in loans that constitute regulated credit agreements (consumer credit loans) under the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Financial Services and Markets Act 2000 (“FSMA”). Article 60B of the amended Financial Services and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Markets Act 2000 (Regulated Activities) Order 2001 (the “RAO”) provides that the activity of entering into a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulated credit agreement as lender or exercising or having the right to exercise the lender’s rights and duties </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">under such credit agreement requires FCA authorization. However, article 60I of the RAO and paragraph 55 of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the schedule to the Financial Services and Markets Act 2000 (Exemption Order) 2001 provide exemptions </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">from authorization to persons who acquire rights under a regulated credit agreements (but who do not make </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">any such loans or extend any new credit), provided that the servicer of such loans is appropriately authorized </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">by the FCA and the relevant service agreement complies with the requirements of the relevant exception being </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">relied on.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund is not authorized by the FCA in respect of consumer credit activities. To the extent that it acquires </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">any loans that are regulated credit agreements under FSMA, the Fund will be required to ensure that a person </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">with the appropriate FCA authorization is engaged to service such regulated credit agreements in accordance </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">with the exemptions from authorization under article 60B and paragraph 55 outlined above. If the FCA were to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">successfully challenge the Fund’s reliance on this exemption, this could adversely affect the Fund’s ability to </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">invest in consumer loans in the United Kingdom or other alternative lending-related securities relating to such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">consumer loans, and could subject to the Fund to costs that could adversely affect the results of the Fund.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The future regulatory regime in the United Kingdom is currently uncertain as a result of the United Kingdom’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exit from the European Union on January 31, 2020 (“Brexit”). While an agreement governing post-Brexit trade </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">between the United Kingdom and the European Union became effective on January 1, 2021, significant issues, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such as market access for financial firms and applicable data protection standards, remain unsettled, and it is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unclear what form a permanent arrangement with respect to such issues may take or what impact it would have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">on the United Kingdom regulatory regime. From January 1, 2021, EU law ceased to apply in the UK. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">However, many EU laws were assimilated into English law and these assimilated laws will continue to apply </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">until such time as they are repealed, replaced or amended. The United Kingdom government has enacted </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">legislation that will repeal, replace or otherwise make substantial amendments to the European Union laws that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">currently apply in the United Kingdom. It is impossible to predict the consequences on the Fund and its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments. Such changes could be materially detrimental to investors, including the Fund. Brexit may have a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">significant impact on the U.K., Europe, and global economies, which may result in increased volatility and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">illiquidity, new legal and regulatory uncertainties and potentially lower economic growth for these economies, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">which could adversely affect Fund performance. The ultimate effect of these and other social-political or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">geopolitical issues are not known but could profoundly affect particular economies and markets as well as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">global economies and markets, which may include companies or assets held or considered for prospective </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">investment by the Fund and could negatively affect the value and liquidity of the Fund’s investments.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Regulatory Regime in Other Jurisdictions. </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The platforms and their investors may face regulation in the other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">jurisdictions in which the Fund invests. Many other jurisdictions have regulatory regimes in place to authorize </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or regulate platforms. If any entity operating a platform through which the Fund invests, or any entity that is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the lender under a loan agreement facilitated by that platform, were to lose its license or have its license </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">suspended or revoked, the platform might be forced to cease its operations, which could impair the ability of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund to pursue its investment strategy by investing in loans originated by that platform, and could disrupt </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the servicing and administration of loans to which the Fund has exposure through that platform. Any such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">disruption could impact the quality of debt collection procedures in relation to those loans and could result in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">reduced returns to the Fund from those investments. In addition, some jurisdictions may regulate the terms of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loans issued through a platform or impose additional requirements on investments in such loans, which could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">impact the value of alternative lending-related securities purchased from a platform operating in such a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">jurisdiction or the ability of the Fund to pursue its investment strategy by investing in loans originated by such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">a platform. New or amended laws or regulations could disrupt the business operations of platforms operating </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in jurisdictions in which the Fund invests and could result in the platforms passing on of increased regulatory </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">compliance costs to investors, such as the Fund, in the form of higher origination or servicing fees.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Privacy and Data Security Laws Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> There has been an increase in legislative and regulatory activity related to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">privacy and data security issues in recent years. GLBA and other laws limit the disclosure of certain non-public </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">personal information about a consumer to non-affiliated third parties and require financial institutions to disclose </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">certain privacy policies and practices with respect to information sharing with both affiliates and non-affiliated third </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">parties. Many states and a number of non-U.S. jurisdictions have enacted privacy and data security laws providing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">consumers with certain rights and requiring safeguards on the privacy and security of consumers’ personally </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">identifiable information. For example, on January 1, 2020, the California Consumer Privacy Act (the “CCPA”) took </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">effect and creates obligations on covered companies to, among other things, disclose certain personal information </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">about California residents with those residents, allow those residents to request that certain personal information be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">deleted, and allow those residents to opt-out of the sale of their information. This law and its implementing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulations are evolving and subject to interpretation. Similarly, there are a number of legislative proposals related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to privacy and data security in the European Union and the United States, at both the federal and state level. Other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">laws deal with obligations to safeguard and dispose of private information in a manner designed to avoid its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">dissemination. Privacy rules adopted by the U.S. Federal Trade Commission implement GLBA and other </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">requirements and govern the disclosure of consumer financial information by certain financial institutions, ranging </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">from banks to private investment funds. U.S. platforms following certain models generally are required to have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">privacy policies that conform to these GLBA and other requirements. In addition, such platforms typically have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">policies and procedures intended to maintain platform participants’ personal information securely and dispose of it </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">properly.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund generally does not intend to obtain or hold borrowers’ non-public personally identifiable information, and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund intends to implement procedures designed to prevent the disclosure of non-public personally identifiable </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;display:inline;">information to the Fund. However, service providers to the Fund, including the Fund’s custodians and the platforms </div><div style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;display:inline;">acting as loan servicers for the Fund, may obtain, hold or process such information. While the Fund has adopted </div><div style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;display:inline;">policies and procedures regarding the platforms’ and custodian’s protection and use of non-public personally </div><div style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;display:inline;">identifiable information, the Fund cannot guarantee the security of that data and cannot guarantee that service </div><div style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;display:inline;">providers have been and will continue to comply with GLBA, CCPA, other data security and privacy laws and any </div><div style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;display:inline;">other related regulatory requirements. Violations of GLBA, CCPA and other laws could subject the Fund to </div><div style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;display:inline;">litigation and/or fines, penalties or other regulatory action, which, individually or in the aggregate, could have an </div><div style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;display:inline;">adverse effect on the Fund. In addition, given that proposed laws and regulations related to privacy and data </div><div style="color:#000000;font-family:Times New Roman;font-size:10pt;margin-left:0%;display:inline;">security are pending in numerous U.S. states and other jurisdictions, the Fund may also face regulations related to </div><div style="color:#000000;font-family:Times New Roman;font-size:10pt;display:inline;">privacy and data security in the other jurisdictions in which the Fund invests.</div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Borrowing and Leverage Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund and its Subsidiaries have obtained and may in the future obtain </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">financing to make investments and/or to fund Share repurchases. The Fund currently utilizes leverage through </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">reverse repurchase agreements. The Fund also may obtain leverage through derivative instruments or asset-backed </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities that afford the Fund economic leverage. Leverage magnifies the Fund’s exposure to declines in the value </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of one or more underlying reference assets or creates investment risk with respect to a larger pool of assets than the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund would otherwise have and may be considered a speculative technique. For example, if the Fund obtains </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">structural leverage through its Subsidiaries that finance their investments in alternative lending-related securities, a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">decrease in the value of those securities will negatively impact the Fund’s NAV to a greater extent than if the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">had not used leverage. The value of an investment in the Fund will be more volatile and other risks tend to be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">compounded if and to the extent that the Fund borrows or uses derivatives or other investments that have embedded </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">leverage. In addition, the Fund’s interests in Subsidiaries that have entered into borrowing arrangements typically </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">will rank after such borrowings and if the Subsidiaries’ assets decline in value, the return on the Fund’s equity </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">interest may be adversely affected.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s borrowings are typically secured by investments held by Subsidiaries of the Fund. The Subsidiaries of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund that pledge investments to secure the Fund’s borrowings are typically separate bankruptcy-remote entities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">formed for the purpose of holding specific securities and pledging those securities to secure the Fund’s borrowing. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The assets of any such Subsidiary are not available to other creditors, or to any other Subsidiary or the Fund, except </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to the extent of permitted distributions made to the Fund. The Fund’s borrowings may impose financial and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">operating covenants that restrict the Fund’s business activities, including limitations that could hinder the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">ability to make additional investments and/or to fund Share repurchases.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Market conditions may unfavorably impact the Fund’s or its Subsidiaries’ ability to secure borrowings on favorable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or commercially feasible terms. Borrowing will also cost the Fund interest expense and other fees. Unless the rate </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of return, net of applicable Fund expenses, on the Fund’s investments exceeds the costs to the Fund of the leverage </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">it utilizes, the investment of the Fund’s net assets attributable to leverage will generate less income than will be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">needed to pay the costs of the leverage and the facility fees that the Fund or its Subsidiaries pay, resulting in a loss </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to the Fund even if the rate of return on those assets is positive. The costs of borrowing will reduce the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">return. To the extent the Fund or a Subsidiary is able to secure financing, fluctuations in interest rates could increase </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the costs associated with the Fund’s or Subsidiary’s use of certain forms of leverage, and such costs could reduce </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s return.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The 1940 Act requires a closed-end fund to maintain asset coverage of not less than 300% of the value of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">outstanding amount of senior securities representing indebtedness (as defined in the 1940 Act) at the time that it </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">issues senior securities and generally requires a closed-end fund to make provision to prohibit the declaration of any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">dividend (except a dividend payable in stock of the fund) or distribution on the fund’s stock or the repurchase of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">any of the fund’s stock, unless, at the time of the declaration or repurchase, there is asset coverage of at least 300%, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">after deducting the amount of the dividend, distribution or purchase price, as the case may be. To satisfy 1940 Act </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">requirements in connection with leverage or to meet obligations, the Fund may be required to dispose of portfolio </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities when such disposition might not otherwise be desirable. Engaging in such transactions may cause the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund to liquidate positions when it may not be advantageous to do so to satisfy its obligations or to comply with the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">requirements of Rule 18f-4. Because, as discussed in more detail under “—Illiquidity Risk”, the Fund’s portfolio </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">will be substantially illiquid, any such disposition or liquidation could result in losses to the Fund. There can be no </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assurances that the Fund’s use of leverage <div style="display:inline;">will </div>be successful.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Effects of Leverage.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Assuming that senior securities represent approximately </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">36.66</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">% of the Fund’s total assets </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(including the amounts of such senior securities) and that the Fund bears expenses relating to such senior securities </div></div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">at an annual effective interest rate of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">5.66</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">% (based on interest rates for such senior securities as of a recent date), </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the annual return that the Fund’s portfolio must experience (net of expenses) in order to cover the costs of such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">senior securities would be approximately </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">1.26</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">%. These figures are merely estimates based on current market </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">conditions, used for illustration purposes only. Actual expenses associated with senior securities used by the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may vary frequently and may be significantly higher or lower than the rate used for the example above.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The following table is furnished in response to requirements of the Commission. It is designed to illustrate the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">effects of the Fund’s leverage due to senior securities on corresponding Share total return, assuming investment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">portfolio total returns (consisting of income and changes in the value of investments held in the Fund’s portfolio) of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">-10%, -5%, 0%, 5% and 10%. These assumed investment portfolio returns are hypothetical figures and are not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">necessarily indicative of the investment portfolio returns expected to be experienced by the Fund. The table further </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">assumes that the Fund’s senior securities represent approximately </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">36.66</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">% of the Fund’s total assets (including such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">senior securities) and an annual rate of interest of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">5.66</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">% (as discussed above). Your actual returns may be greater or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">less than those appearing below.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 1pt; line-height: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="margin-top:0.0pt">
<table cellpadding="0" cellspacing="0" style="text-align:start; empty-cells:show;width:468pt">
<tr style="height:21.5pt">
<td style="vertical-align:Bottom;width:254.88pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Assumed Return on Portfolio (Net of Expenses)</div></div></div></td>
<td style="vertical-align:Bottom;width:49.49pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(10.00)%</div></div></div></td>
<td style="vertical-align:Bottom;width:44.49pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(5.00)%</div></div></div></td>
<td style="vertical-align:Bottom;width:44.49pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">0.00%</div></div></div></td>
<td style="vertical-align:Bottom;width:37.83pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">5.00%</div></div></div></td>
<td style="vertical-align:Bottom;width:36.83pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">10.00%</div></div></div></td></tr>
<tr style="height:11.5pt">
<td style="vertical-align:Bottom;width:254.88pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Corresponding Share Total Return</div></div></div></td>
<td style="vertical-align:Bottom;width:49.49pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(14.93<div style="display:inline;"></div><div style="display:inline;"></div>)%</div></div></div></td>
<td style="vertical-align:Bottom;width:44.49pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(8.09)%</div></div></div></td>
<td style="vertical-align:Bottom;width:44.49pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(1.26)%</div></div></div></td>
<td style="vertical-align:Bottom;width:37.83pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">5.57%</div></div></div></td>
<td style="vertical-align:Bottom;width:36.83pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">12.41%</div></div></div></td></tr></table></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Corresponding Share total <div style="display:inline;">return </div>is made up of two elements—the Share dividends paid by the Fund (the amount of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">which is largely determined by the net investment income of the Fund after paying interest expenses on the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">senior securities) and gains or losses on the value of the securities the Fund owns.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund currently uses leverage (whether <div style="display:inline;">through </div>the use of senior securities or otherwise) to achieve its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment objective, as a liquidity source to fund repurchases or for temporary and extraordinary purposes and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may consider other potential uses in the future. The Fund’s willingness to use leverage, and the extent to which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">leverage is used at any time, will depend on many factors, including Stone Ridge’s assessment of the yield curve </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">environment, interest rate trends, market conditions, and other factors.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Effects of Leverage.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Assuming that senior securities represent approximately </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">36.66</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">% of the Fund’s total assets </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(including the amounts of such senior securities) and that the Fund bears expenses relating to such senior securities </div></div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">at an annual effective interest rate of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">5.66</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">% (based on interest rates for such senior securities as of a recent date), </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the annual return that the Fund’s portfolio must experience (net of expenses) in order to cover the costs of such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">senior securities would be approximately </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">1.26</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">%. These figures are merely estimates based on current market </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">conditions, used for illustration purposes only. Actual expenses associated with senior securities used by the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">may vary frequently and may be significantly higher or lower than the rate used for the example above.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The following table is furnished in response to requirements of the Commission. It is designed to illustrate the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">effects of the Fund’s leverage due to senior securities on corresponding Share total return, assuming investment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">portfolio total returns (consisting of income and changes in the value of investments held in the Fund’s portfolio) of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">-10%, -5%, 0%, 5% and 10%. These assumed investment portfolio returns are hypothetical figures and are not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">necessarily indicative of the investment portfolio returns expected to be experienced by the Fund. The table further </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">assumes that the Fund’s senior securities represent approximately </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">36.66</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">% of the Fund’s total assets (including such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">senior securities) and an annual rate of interest of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">5.66</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">% (as discussed above). Your actual returns may be greater or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">less than those appearing below.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 1pt; line-height: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="margin-top:0.0pt">
<table cellpadding="0" cellspacing="0" style="text-align:start; empty-cells:show;width:468pt">
<tr style="height:21.5pt">
<td style="vertical-align:Bottom;width:254.88pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Assumed Return on Portfolio (Net of Expenses)</div></div></div></td>
<td style="vertical-align:Bottom;width:49.49pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(10.00)%</div></div></div></td>
<td style="vertical-align:Bottom;width:44.49pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(5.00)%</div></div></div></td>
<td style="vertical-align:Bottom;width:44.49pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">0.00%</div></div></div></td>
<td style="vertical-align:Bottom;width:37.83pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">5.00%</div></div></div></td>
<td style="vertical-align:Bottom;width:36.83pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">10.00%</div></div></div></td></tr>
<tr style="height:11.5pt">
<td style="vertical-align:Bottom;width:254.88pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Corresponding Share Total Return</div></div></div></td>
<td style="vertical-align:Bottom;width:49.49pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(14.93<div style="display:inline;"></div><div style="display:inline;"></div>)%</div></div></div></td>
<td style="vertical-align:Bottom;width:44.49pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(8.09)%</div></div></div></td>
<td style="vertical-align:Bottom;width:44.49pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(1.26)%</div></div></div></td>
<td style="vertical-align:Bottom;width:37.83pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">5.57%</div></div></div></td>
<td style="vertical-align:Bottom;width:36.83pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">12.41%</div></div></div></td></tr></table></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Corresponding Share total <div style="display:inline;">return </div>is made up of two elements—the Share dividends paid by the Fund (the amount of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">which is largely determined by the net investment income of the Fund after paying interest expenses on the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">senior securities) and gains or losses on the value of the securities the Fund owns.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund currently uses leverage (whether <div style="display:inline;">through </div>the use of senior securities or otherwise) to achieve its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment objective, as a liquidity source to fund repurchases or for temporary and extraordinary purposes and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may consider other potential uses in the future. The Fund’s willingness to use leverage, and the extent to which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">leverage is used at any time, will depend on many factors, including Stone Ridge’s assessment of the yield curve </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">environment, interest rate trends, market conditions, and other factors.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The following table is furnished in response to requirements of the Commission. It is designed to illustrate the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">effects of the Fund’s leverage due to senior securities on corresponding Share total return, assuming investment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">portfolio total returns (consisting of income and changes in the value of investments held in the Fund’s portfolio) of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">-10%, -5%, 0%, 5% and 10%. These assumed investment portfolio returns are hypothetical figures and are not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">necessarily indicative of the investment portfolio returns expected to be experienced by the Fund. The table further </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">assumes that the Fund’s senior securities represent approximately </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">36.66</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">% of the Fund’s total assets (including such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">senior securities) and an annual rate of interest of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">5.66</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">% (as discussed above). Your actual returns may be greater or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">less than those appearing below.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 1pt; line-height: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div>
<table cellpadding="0" cellspacing="0" style="text-align:start; empty-cells:show;width:468pt">
<tr style="height:21.5pt">
<td style="vertical-align:Bottom;width:254.88pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Assumed Return on Portfolio (Net of Expenses)</div></div></div></td>
<td style="vertical-align:Bottom;width:49.49pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(10.00)%</div></div></div></td>
<td style="vertical-align:Bottom;width:44.49pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(5.00)%</div></div></div></td>
<td style="vertical-align:Bottom;width:44.49pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">0.00%</div></div></div></td>
<td style="vertical-align:Bottom;width:37.83pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">5.00%</div></div></div></td>
<td style="vertical-align:Bottom;width:36.83pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">10.00%</div></div></div></td></tr>
<tr style="height:11.5pt">
<td style="vertical-align:Bottom;width:254.88pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:6pt;text-align:Left;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0pt; letter-spacing: 0px; top: 0px;display:inline;">Corresponding Share Total Return</div></div></div></td>
<td style="vertical-align:Bottom;width:49.49pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(14.93<div style="display:inline;"></div><div style="display:inline;"></div>)%</div></div></div></td>
<td style="vertical-align:Bottom;width:44.49pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(8.09)%</div></div></div></td>
<td style="vertical-align:Bottom;width:44.49pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(1.26)%</div></div></div></td>
<td style="vertical-align:Bottom;width:37.83pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;margin-right:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">5.57%</div></div></div></td>
<td style="vertical-align:Bottom;width:36.83pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:6pt;text-align:Right;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">12.41%</div></div></div></td></tr></table>
-0.1493
-0.0809
-0.0126
0.0557
0.1241
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Securitization Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund seeks to sell certain whole loans, and may sell other alternative lending-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments, to special purpose entities, sometimes referred to as securitization vehicles, formed by third parties for </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the purpose of acquiring alternative lending-related investments and issuing securities. The Fund may increase the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">volume and frequency of its sales as an active and reliable secondary market continues to develop over time, and a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">material portion of its performance may be dependent on such sales. If the development of this market were to slow, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">stop or reverse, it may adversely impact the Fund. In connection with the sale or contribution by the Fund or its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Subsidiaries of certain of its alternative lending-related investments to any such special purpose entity, the Fund or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">its Subsidiaries may be required to make certain representations about the alternative lending-related investments </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">sold or contributed to such special purpose entity. The Fund or its Subsidiaries also may be required to indemnify </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such special purpose entity, or to repurchase the alternative lending-related investments to which such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">representations relate, to the extent that any such representation is found to have been inaccurate on the date that it </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">was made.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In making such representations, the Fund or applicable Subsidiary may rely upon certain representations and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">warranties made to the Fund by the platform from which the Fund or such Subsidiary originally acquired the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">relevant alternative lending-related investment. If the Fund or the applicable Subsidiary relies on any such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">representations made by a platform, the Fund or such Subsidiary is expected to have a right of indemnification </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">from, or a right to sell the relevant alternative lending-related investment back to, such platform if such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">representations by such platform are found to have been inaccurate on the date on which they were made. In the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">event that the Fund or the applicable Subsidiary is required to indemnify, or to repurchase alternative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending-related investments from, a special purpose entity as a result of a representation made by the Fund to such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">special purpose entity, it is expected that the Fund or such Subsidiary will seek to recoup its losses by exercising its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rights to a similar remedy against the platform from which it purchased such alternative lending-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments. However, it is possible that the Fund or such Subsidiary will not be able to obtain representations from </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the relevant platform that back up all representations required to be made by the Fund in connection with a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securitization, and the Fund may be unable to recoup some or all of such losses through such arrangements.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Risk of Fraud.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may be subject <div style="display:inline;">to </div>the risk of fraudulent activity associated with the various parties </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">involved in alternative lending, including the platforms, issuers, banks, borrowers and third parties handling </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrower and investor information. Prospective borrowers may materially misrepresent any of the information they </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">provide to the platforms, including their credit history, the existence or value of purported collateral, the purpose of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the loan, their occupation or their employment status. Platforms may not verify all of the information provided by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">prospective borrowers. As discussed under “—Credit/Counterparty Risk,” the accuracy of a platform’s evaluation of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">a borrower’s creditworthiness could be significantly impaired if based on flawed information. Except where a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform is required to repurchase loans or securities or indemnify investors, fraud may adversely affect the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">ability to receive the principal and interest payments that it expects to receive on its investments and, therefore, may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">negatively impact the Fund’s performance. A platform may have the exclusive right and ability to investigate claims </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of borrower identity theft, which creates a conflict of interest, as platforms may be obligated to repurchase loans </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and/or indemnify investors in the case of fraud and may, therefore, have an incentive to deny or fail to investigate </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">properly a claim of fraud. Furthermore, there can be no guarantee that the resources, technologies or fraud </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">prevention measures implemented by a platform will be sufficient to accurately detect and prevent fraud.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund is also subject to the risk of fraudulent activity by a platform or a backup servicer. In the event that a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">platform or backup servicer engages in fraudulent activity, the pools of loans originated or sourced by the platform </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or any loans serviced by the platform or backup servicer may be impaired or may not be of the quality that the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">anticipated, thereby increasing the risk of default in respect of such loans.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Below-Investment-Grade Securities and Unrated Securities Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may have exposure to investments </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that are rated below investment grade or that are unrated but are judged by the Adviser to be of comparable quality. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The alternative lending-related securities in which the Fund invests (or, in the case of asset-backed securities or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mortgage-backed securities, the loans that back them) typically are not rated by a nationally recognized statistical </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rating organization. Although the Fund’s Fundamental Investment Restrictions do not permit the Fund to invest in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loans of subprime quality, some unrated securities purchased by the Fund may be of credit quality comparable to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities rated below investment grade by a nationally recognized statistical rating organization. In addition, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund may invest in securities that are rated below investment grade. Below-investment-grade debt securities, which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">are commonly called “junk bonds,” are rated below BBB- by S&P Global Ratings or Baa3 by Moody’s Investors </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Service, Inc., or have comparable ratings by another rating organization. Accordingly, certain of the Fund’s unrated </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments could constitute a highly risky and speculative investment, similar to an investment in “junk bonds.” As </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">described under “—Credit/Counterparty Risk,” in evaluating the creditworthiness of borrowers of such unrated </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments, the Adviser may rely on the ratings ascribed to such borrowers by the relevant platform. The Adviser </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may also rely on reports from one or more independent vendors as part of its investment process or may create its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">own internal risk model for this purpose.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The analysis of the creditworthiness of borrowers may be less reliable than for more traditional borrowings, such as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">bank loans, and more complex than for issuers of higher-rated investments. The Fund’s ability to achieve its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment objective may, as a result, be more dependent upon the platform’s credit analysis than would be the case </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">if the Fund had exposure to more traditional investments. In addition, such investments may be subject to greater </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">risks than other investments, including greater levels of risk related to changes in interest rates, credit risk </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(including a greater risk of default) and liquidity risk. There is a greater risk of loss associated with alternative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending-related securities and the ability of a borrower to make payments is predominantly speculative for </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">below-investment-grade investments or unrated investments judged by the Adviser to have a similar quality. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Borrowers may be in default or have a currently identifiable vulnerability to default on their payments of principal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and/or interest or other payments or may otherwise present elements of danger with respect to payments of principal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or interest. Below-investment-grade investments or unrated investments judged by the Adviser to be of comparable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">quality may be more susceptible to real or perceived adverse economic and competitive industry or business </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">conditions than higher-grade investments. Yields on below-investment-grade investments will fluctuate and may, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">therefore, cause the Fund’s value to be more volatile. Certain investments of the Fund may be downgraded to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">below-investment-grade status (or may be judged by the Adviser to be of comparable quality) after the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">purchases them.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Pursuant to the Fundamental Investment Restrictions, the Fund may not invest in loans that are of subprime quality </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">at the time of investment.</div></div></div>
<div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Interest Rate Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The values of <div style="display:inline;">the </div>Fund’s investments in income-producing alternative lending-related securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(such as whole loans, other debt instruments, preferred securities and convertible securities) and debt securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">issued by REITs change in response to interest rate changes. In general, the value of a debt security is likely to fall </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">as interest rates rise. This risk is generally greater for obligations with longer maturities or for debt securities that do </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">not pay current interest. Debt securities with floating interest rates can be less sensitive to interest rate changes, </div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">although, to the extent the Fund’s income is based on short-term interest rates that fluctuate over short periods of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">time, income received by the Fund may decrease as a result of a decline in interest rates; floating rate loans can also </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">decrease in value if their interest rates do not rise as quickly or as much as market interest rates. Conversely, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">variable rate instruments generally will not increase in value if interest rates decline. When interest rates increase or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">for other reasons, debt securities may be repaid more slowly than expected. As a result, the maturity of the debt </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">instrument may be extended, increasing the potential for loss.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Interest rate changes can be sudden and unpredictable, and the Fund may lose money as a result. A wide variety of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">factors can cause interest rates to fluctuate (e.g., central bank monetary policies, inflation rates, general economic </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">conditions and market developments), and debt securities may be difficult to value during such periods. The Federal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Reserve has recently increased interest rates from historically low levels in light of higher inflation and may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">continue to do so. Any additional interest rate increases in the future could have an adverse effect on prices for debt </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities, overall economic activity, the financial condition of borrowers, the supply of alternative lending-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities and on the management of the Fund, which could cause the value the Fund to decline.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Prepayment Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Borrowers may decide to prepay all or a portion of the remaining principal amount due under a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">loan at any time, without penalty, unless the underlying loan agreement provides for prepayment penalties. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Prepayment reduces the yield to maturity and the average life of a loan or other security. In the event of a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">prepayment of all or a portion of the remaining unpaid principal amount of a loan to which the Fund has investment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposure, the Fund will receive such prepayment, but further interest will cease to accrue on the prepaid portion of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the loan after the date of the prepayment. If the Fund buys a security at a premium, the premium could be lost in the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">event of a prepayment. In periods of falling interest rates, the rate of prepayments (and price fluctuation) tends to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">increase as borrowers are incentivized to pay off debt and refinance at new lower rates. Borrowers may also seek to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">prepay debt obligations in order to refinance at lower interest rates if their credit standing improves such that they </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">are eligible to borrow at a lower interest rate. During such periods, the Fund generally will be forced to reinvest the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">prepayment proceeds at lower rates of return than the Fund expected to earn on the prepaid assets, provided that the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund is able to identify suitable reinvestment opportunities, which may adversely impact the Fund’s performance.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Illiquidity Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> To the extent consistent with the repurchase liquidity requirement of an interval fund, the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may invest without limitation in illiquid investments. Illiquidity risk is the risk that the investments held by the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund may be difficult or impossible to sell at the time that the Fund would like without significantly changing the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">market value of the investment. Alternative lending-related securities, which typically are contractually </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">non-transferable, are not listed on any securities exchange and/or are not registered under the 1933 Act, are illiquid. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Although an active, reliable secondary market for alternative lending-related securities generally does not exist, a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">secondary market for certain alternative lending-related securities is developing. However, there can be no </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">assurance that an active market will develop or that such a market will exist for any particular security. To the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">extent that there is any secondary market for the Fund’s alternative lending-related securities, it is over-the-counter, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">as opposed to exchange-traded, and may, therefore, provide less transparency; such markets may also be smaller </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and less active than the market for investments that are higher-rated, which may adversely affect the prices at which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund can sell its investments and may result in losses to the Fund. At any given time, the Fund’s portfolio is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">substantially illiquid.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s ability to realize full value in the event of the need to liquidate certain assets may be impaired and/or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">result in losses to the Fund. The Fund may be unable to sell its investments, even under circumstances when the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Adviser believes it would be in the best interests of the Fund to do so. Illiquid investments may also be difficult to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">value and their pricing may be more volatile than more liquid investments, which could adversely affect the price at </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">which the Fund is able to sell such instruments. Investors, like the Fund, that are acquiring or otherwise gaining </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposure to such loans and other related instruments usually must, among other things, hold the loans through </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">maturity in order to recoup their entire investment and during that time will be unable to make additional </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments using the capital that is put towards such investments or any proceeds on a potential sale of such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments. Illiquidity risk also may be greater in times of financial stress. The risks associated with illiquid </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">instruments may be particularly acute in situations in which the Fund’s operations require cash (such as in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">connection with repurchase offers) and could result in the Fund borrowing to meet its short-term needs or incurring </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">losses on the sale of illiquid instruments.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Valuation Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund is subject <div style="display:inline;">to </div>valuation risk, which is the risk that one or more of the securities in which </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund invests are priced incorrectly, due to factors such as incomplete data, market instability or human error. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund typically uses a third-party pricing service to value the Fund’s investments in alternative lending-related </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities, as market quotations generally are not available. The Fund’s investments may also be fair valued by the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Adviser Valuation Committee as described under, and in accordance with the procedures described under, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">“Determination of Net Asset Value” below. There is no assurance that the Fund could sell a portfolio asset for the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">value established for it at any time and it is possible that the Fund would incur a loss because a portfolio asset is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">sold at a discount to its established value. <div style="display:inline;">If </div>assets are mispriced, shareholders could lose money upon sale in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">connection with a periodic repurchase offer or could pay too much for Shares purchased.</div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Competition, Ramp-up and Exposure Risks.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The market for alternative lending-related securities is highly </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">competitive and rapidly evolving. The Fund faces competition for access to platforms and alternative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">lending-related securities, including from other institutional investors; such competitors may have higher risk </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">tolerance, greater financial or other resources and/or other advantages. The competitive pressures the Fund faces </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may impact the Fund’s ability to make investments consistent with its investment objective. Various platforms also </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">compete with one other as well as with more traditional lenders, including banks with substantially greater financial </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">resources. If the Fund is inhibited from deploying capital in a timely or efficient manner, it may be forced to invest </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in cash, cash equivalents or other assets that may result in lower returns than may otherwise be available through </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">alternative lending-related securities.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">There can be no assurances as to how long it will take the Fund to invest the net proceeds from additional sales of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund Shares, and the longer the period the greater the likelihood that the Fund’s performance will be adversely </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">affected. Pending deployment of any incremental net proceeds from Share sales, the Fund generally invests cash </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">held in cash deposits and cash equivalents. The Fund typically limits the sale of its securities based on the Adviser’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">assessment of its ability to invest the proceeds in an effective and timely manner.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">If the Fund’s access to platforms is limited, whether due to ramp-up, termination of existing arrangements or failure </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to secure arrangements with other platforms, its exposure to the risks of the platforms to which the Fund is exposed, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">as discussed under “—Platform Risk,” and the risks of increased exposure to a potentially more limited pool of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">portfolio investments, may increase. Moreover, a platform may be unable to sustain its current lending model or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may change its underwriting or credit models, borrower acquisition channels, quality of debt collection procedures </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and/or servicing models in ways that may make such investments unsuitable for the Fund; such changes may occur </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">after the Fund has already made its investments and, as most of the Fund’s alternative lending-related securities are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">illiquid, the Fund may not be able to divest itself of the instruments at all or at an advantageous time or price. Even </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">if the Fund is exposed to a varied pool of assets, the Fund’s investment focus on alternative lending-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities will cause the Fund to be subject to greater overall risk than if the Fund’s exposures were less focused, as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">it is exposed to events affecting the alternative lending-related industry.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Even if the Fund’s alternative lending-related securities are varied as to borrower type, geographic location, loan </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">purpose or other features, they may nevertheless have some similar characteristics and may, therefore, be subject to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">many of the same risks and/or regulatory regimes and may respond in a similar manner to particular economic, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">market, political or other developments.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Geographic Focus Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund will seek to build a geographically diverse portfolio, with assets currently </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">focused primarily in the U.S., United Kingdom, Australia and New Zealand. The Fund is not subject to any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">geographic restrictions when investing and, therefore, could focus its investments in a particular geographic region, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">whether in the U.S. or abroad. A geographic focus in a particular region may expose the Fund to an increased risk </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of loss due to risks associated with that region. Certain regions from time to time will experience weaker economic </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">conditions than others and, consequently, will likely experience higher rates of delinquency and loss than on similar </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments across the geographic regions to which the Fund is exposed. In the event that a significant portion of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s investments relate to loans owed by borrowers resident or operating in certain specific geographic </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regions, any localized economic conditions, weather events, natural or man-made disasters or other factors affecting </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">those regions in particular could increase delinquency and defaults on the assets to which the Fund is exposed and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">could negatively impact Fund performance. Further, any focus of the Fund’s investments in one or more regions </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">would have a disproportionate effect on the Fund if governmental authorities in any such region took action against </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">any of the participants in the alternative lending industry doing business in that region.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Non-U.S. Securities Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may invest in the alternative <div style="display:inline;">lending</div>-related securities of non-U.S. issuers. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Such investments may involve risks not ordinarily associated with exposure to alternative lending-related securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of U.S. issuers. The foreign alternative lending industry may be subject to less governmental supervision and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulation than exists in the U.S.; conversely, foreign regulatory regimes applicable to the alternative lending </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">industry may be more complex and more restrictive than those in the U.S., resulting in higher costs associated with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such investments, and such regulatory regimes may be subject to interpretation or change without prior notice to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investors, such as the Fund. Non-U.S. platforms may not be subject to accounting, auditing, and financial reporting </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">standards and practices comparable to those in the U.S. Due to difference in legal systems, there may be difficulty </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in obtaining or enforcing a court judgment outside the U.S. For example, bankruptcy laws may differ across the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">jurisdictions in which the Fund may invest, and it may be difficult for the servicer to pursue borrowers who borrow </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">through non-U.S. platforms. In addition, to the extent that investments are made in a limited number of countries, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">events in those countries will have a more significant impact on the Fund. The Fund’s investments in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. securities may be subject to risks of increased transaction costs, potential delays in settlement or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">unfavorable differences between the U.S. economy and foreign economies.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s exposure to alternative lending-related securities issued by non-U.S. issuers may be subject to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">withholding and other foreign taxes, which may adversely affect the net return on such investments. As described </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">further under “—Currency Risk,” fluctuations in foreign currency exchange rates and exchange controls may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">adversely affect the market value of the Fund’s investments in alternative lending-related securities of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">non-U.S. issuers. The Fund is unlikely to be able to pass through to its shareholders foreign income tax credits in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect of any foreign income taxes it pays.</div></div></div>
<div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Government Securities Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may invest directly or indirectly in securities issued or guaranteed by the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">U.S. government (including U.S. Treasury obligations that differ in their interest rates, maturities and times of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">issuance) or its agencies and instrumentalities (such as the Government National Mortgage Association (Ginnie </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Mae), the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(Freddie Mac)). U.S. government securities are subject to market risk, risks related to changes in interest rates and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">credit risk. Securities, such as those issued or guaranteed by Ginnie Mae or the U.S. Treasury, that are backed by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the full faith and credit of the United States are guaranteed only as to the timely payment of interest and principal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">when held to maturity and the market prices for such securities will fluctuate. Notwithstanding that these securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">are backed by the full faith and credit of the United States, circumstances could arise that would prevent the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">payment of interest or principal. This would result in losses to the Fund. Securities issued or guaranteed by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">U.S. government related organizations, such as Fannie Mae and Freddie Mac, are not backed by the full faith and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">credit of the U.S. government and no assurance can be given that the U.S. government would provide financial </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">support. Therefore, U.S. government-related organizations may not have the funds to meet their payment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">obligations in the future. As a result of their high credit quality and market liquidity, U.S. Government securities </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">generally provide a lower current return than obligations of other issuers.</div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Currency Risk. The Fund’s Shares are priced in U.S. dollars and the distributions paid by the Fund are paid </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">in U.S. dollars. However, a portion of the Fund’s assets may be denominated in foreign (non-U.S.) currencies </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">and income received by the Fund from a portion of its investments may be paid in foreign currencies.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Currency risk is the risk that fluctuations in exchange rates will adversely affect the market value of the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments. Currency risk includes the risk that the foreign currencies in which the Fund’s investments are traded, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in which the Fund receives income or in which the Fund has taken a position, will decline in value relative to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">U.S. dollar. Currency risk also includes the risk that a currency to which the Fund has obtained exposure through </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">hedging declines in value relative to the currency being hedged, in which event the Fund may realize a loss both on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the hedging instrument and on the currency being hedged. There can be no assurances or guarantees that any efforts </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund makes to hedge exposure to foreign exchange rate risks that arise as a result of its investments will </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">successfully hedge against such risks or that adequate hedging arrangements will be available on an economically </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">viable basis, and in some cases, hedging arrangements may result in additional costs being incurred or losses being </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">greater than if hedging had not been used. Currency exchange rates can fluctuate significantly for many reasons. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Derivative transactions in foreign currencies (such as futures, forwards, options and swaps) may involve leverage </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">risk in addition to currency risk.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In purchasing or selling local currency to fund trades denominated in that currency, the Fund is exposed to the risk </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that the value of the foreign currency will increase or decrease, which may impact the value of the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments in foreign currencies, securities denominated in foreign currencies, derivatives that provide exposure to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">foreign currencies and the Fund’s income available for distribution. Some countries have and may continue to adopt </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">internal economic policies that affect their currency valuations in a manner that may be disadvantageous for </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">U.S. investors or U.S. companies seeking to do business in those countries. For example, a foreign government may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unilaterally devalue its currency against other currencies, which typically would have the effect of reducing the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">U.S. dollar value of investments denominated in that currency. In addition, a country may impose formal or </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">informal currency exchange controls. These controls may restrict or prohibit the Fund’s ability to repatriate both </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment capital and income, which could undermine the value and liquidity of the Fund’s portfolio holdings and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">potentially place the Fund’s assets at risk of total loss. As a result, if the exchange rate for any such currency </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">declines after the Fund’s income has been earned and converted into U.S. dollars but before payment to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">shareholders, the Fund could be required to liquidate portfolio investments to make such distributions. Similarly, if </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund incurs an expense in U.S. dollars and the exchange rate declines before the expense is paid, the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">would have to convert a greater <div style="display:inline;">amount </div>to U.S. dollars to pay for the expense at that time than it would have had to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">convert at the time the Fund incurred the expense.</div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Risk of Investments in Other Pooled Investment Vehicles.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Investing in another pooled investment vehicle, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">including securitization vehicles that issue asset-backed securities, including mortgage-backed securities, exposes </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund to all of the risks of that vehicle’s investments. The Fund bears its pro rata share of the expenses of any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">such vehicle, in addition to its own expenses. The values of other pooled investment vehicles are subject to change </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">as the values of their respective component assets fluctuate. To the extent the Fund invests in managed pooled </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment vehicles, the performance of the Fund’s investments in such vehicles will be dependent upon the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment and research abilities of persons other than the Adviser. The securities offered by such vehicles typically </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">are not registered under the securities laws because they are offered in transactions that are exempt from </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">registration.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Market Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The value of the Fund’s investments may decline, sometimes rapidly or unpredictably, due to general </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">economic conditions that are not specifically related to a particular issuer or borrower, such as real or perceived </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">adverse economic or political conditions throughout the world, inflation, changes in interest or currency rates or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">adverse investor sentiment generally. The value of the Fund’s investments also may decline because of factors that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">affect a particular industry or industries. These risks may be particularly acute for the Fund, as alternative lending is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">a new and evolving industry. Additionally, the Fund’s performance may be negatively impacted by current market </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">factors such as military conflicts abroad, global supply chain issues and inflation.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Volatility Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The market value of the alternative lending-related securities to which the Fund has exposure may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">increase or decrease, sometimes rapidly and unpredictably, based upon changes in an issuer’s financial condition </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and/or overall market and economic conditions. Because many of the Fund’s investments may be illiquid and/or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">below investment grade (or unrated, but of a similar quality), the Fund may be subject to increased volatility risk. In </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">addition, the Fund’s use of leverage increases the volatility of the Fund’s value.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Management and Operational Risk; Cyber-Security Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund is subject to management risk because it </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">relies on the Adviser’s ability to achieve its investment objective. The Fund runs the risk that the Adviser’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment techniques will fail to produce desired results and cause the Fund to incur significant losses. The </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Adviser may select investments that do not perform as anticipated by the Adviser, may choose to hedge or not to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">hedge positions at disadvantageous times and may fail to use derivatives effectively.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Any imperfections, errors, or limitations in quantitative analyses and models used by the Adviser as part of its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment process could affect the Fund’s performance. Models that appear to explain prior market data can fail to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">predict future market events. Further, the data used in models may be inaccurate or may not include the most recent </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">information about a company or a security.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund is also subject to the risk of loss as a result of other services provided by the Adviser and other service </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">providers, including pricing, administrative, accounting, tax, legal, custody, transfer agency and other services. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Operational risk includes the possibility of loss caused by inadequate procedures and controls, human error and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">cyber attacks, disruptions and failures affecting, or by, a service provider. For example, trading delays or errors </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(both human and systematic) could prevent the Fund from benefiting from potential investment gains or avoiding </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">losses.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund and its service providers’ use of internet, technology and information systems may expose the Fund to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">potential risks linked to cyber-security breaches of those technological or information systems. Cyber-security </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">breaches could allow unauthorized parties to gain access to proprietary information, customer data or Fund assets, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or cause the Fund or its service providers to suffer data corruption or lose operational functionality. With the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">increased use of technology, mobile devices and cloud-based service offerings and the dependence on the internet </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and computer systems to perform necessary business functions, investment companies (such as the Fund) and their </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">service providers (including the Adviser) may be prone to operational and information security risks resulting from </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">cyber attacks and/or other technological malfunctions. In general, cyber attacks are deliberate, but unintentional </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">events may have similar effects. Cyber attacks include, among others, stealing or corrupting data maintained online </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or digitally, preventing legitimate users from accessing information or services on a website, ransomware, releasing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">confidential information without authorization, and causing operational disruption. Successful cyber attacks against, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or security breakdowns of, the Fund, the Adviser, or the custodian, transfer agent, or other third-party service </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">provider may adversely affect the Fund or its shareholders. For instance, cyber attacks may interfere with the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">processing of shareholder transactions, interfere with quantitative models, affect the Fund’s ability to calculate its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">NAV, cause the release of private shareholder information or confidential Fund information, impede trading, cause </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">reputational damage, result in theft of Fund assets, and subject the Fund to regulatory fines, penalties or financial </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">losses, reimbursement or other compensation costs, and additional compliance costs. Similar types of cyber-security </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">risks are also present for issuers of securities in which the Fund invests, such issuers’ counterparties or the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">alternative-lending platforms from which the Fund purchases alternative lending-related securities, which could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">result in material adverse consequences for such issuers or market participants, and could cause the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investment in such securities to lose value. While the Adviser has established business continuity plans and systems </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that it believes are reasonably designed to prevent cyber attacks, there are inherent limitations in such plans and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">systems including the possibility that certain risks have not been, or cannot be, identified. Service providers may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">have limited indemnification obligations to the Adviser or the Fund, each of whom could be negatively impacted as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">a result.</div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Alternative Lending Platform Operational and Technology Risk. </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Alternative lending-related securities are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">typically originated and/or documented in electronic form and there are ordinarily no tangible written documents </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">evidencing such loans or any payments owed thereon. In addition, the Fund depends on electronic systems </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">maintained by the custodian and the alternative lending platforms or their affiliates or service providers to maintain </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">records, evidence ownership of the Fund’s investments and of the collateral securing certain loans the Fund may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">have exposure to, appropriately safeguard such investments and collateral, service and administer such investments </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and manage collateral, if any. This means the Fund is vulnerable to the risks associated with such electronic </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">systems, including, among others: power loss, computer systems failures and internet, telecommunications or data </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">network failures; operator negligence or improper operation by, or supervision of, employees; physical and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">electronic loss of data or security breaches, misappropriation and similar events; computer viruses; cyber attacks, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">intentional acts of vandalism and similar events; and hurricanes, fires, floods and other natural disasters.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition, alternative lending platforms rely on software that is highly technical and complex and depend on the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">ability of such software to store, retrieve, process and manage immense amounts of data. Such software may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">contain errors or flaws. Some errors may only be discovered after the code has been released for external or internal </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">use. Errors or other design defects within the software on which a platform relies may result in a negative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">experience for borrowers who use the platform, delay introductions of new features or enhancements, result in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">errors or compromise the platform’s ability to protect borrower or investor data or its own intellectual property. Any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">errors, flaws or defects discovered in the software on which a platform relies could negatively impact operations of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the platform and the ability of the platform to perform its obligations with respect to the loans or collateral </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">associated with the platform. The electronic systems on which platforms rely may be subject to cyber attacks that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">could result, among other things, in data breaches, the release of confidential information and lost collateral and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">thus expose the platform to significant liability. A security breach could also irreparably damage a platform’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">reputation and thus its ability to continue to operate its business.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In addition, despite any security measures established to safeguard the information in these systems, the highly </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">automated nature of a platform or other service provider involved in the alternative lending process and of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">digital nature of certain forms of non-traditional collateral may make it an attractive target and potentially more </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">vulnerable to cyber attacks, computer viruses, physical or electronic break-ins, employee error, malfeasance and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">similar disruptions, which could negatively affect the Fund. If a platform or other service provider were unable to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">prevent such malicious activity, the breach could compromise the systems and result in the theft, loss or public </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">dissemination of collateral or the information stored therein. As a result, the platform or other service provider or a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">borrower could suffer, among other things, financial loss, the disruption of its business, liability to third parties, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">regulatory intervention, the loss of collateral or reputational damage and the platform’s or other service provider’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">ability to fulfill its servicing or other obligations would be adversely affected, which may adversely affect the Fund. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Because techniques used to sabotage or obtain unauthorized access to systems change frequently and generally are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">not recognized until they are launched against a target, the platforms or other service providers may be unable to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">anticipate these techniques or to implement adequate preventative measures. In addition, certain legal or regulatory </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">provisions may require companies to notify individuals of data security breaches involving their personal data. If </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">security measures are breached because of third-party action, employee error, malfeasance or otherwise, or if design </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">flaws in software are exposed and exploited, relationships with borrowers and investors could be severely damaged. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Any failure of the systems technology on which the Fund relies, or other similar issues, could have a material </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">adverse effect on the ability of the Fund to acquire, monitor or otherwise transact in alternative lending-related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities and, therefore, may impact the performance of the Fund.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">A platform may rely on data centers or third-party service providers or vendors to deliver its services or maintain </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">custody of certain forms of collateral. Any disruption of the businesses of such third parties, which may be subject </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to all of the foregoing risks, could similarly impede the platform’s business and operations or could interrupt or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">delay a platform’s ability to deliver on its obligations. As described in “—Risks Relating to Collateral or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Guarantees” above, there are operational risks relating to collateral held by a custodian, which may be the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">alternative lending platform, a custodial agent and/or the borrower.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">These potential risks may cause a decrease in the amount of loans acquired by the platforms, which may directly </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">affect the Fund and its ability to achieve its investment objective. The potential for security breaches may also </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">adversely affect the Fund due to its reputational impact on the platforms and wider effect on the alternative lending </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">industry as a whole. Any of the foregoing failures or disruptions could have a material adverse effect on the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance of the Fund.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Derivatives Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may invest in a variety of derivatives, including futures contracts, forward contracts, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">swaps and other exchange-traded and over-the-counter (“OTC”) derivatives contracts. The use of derivatives </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">involves risks that are in addition to, and potentially greater than, the risks of investing directly in securities and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">other more traditional assets. Derivatives are financial contracts the value of which depends on, or is derived from, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">an asset or other underlying reference. Derivatives involve the risk that changes in their value may not move as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">expected relative to changes in the value of the underlying investment they are designed to track. The Fund may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">invest in derivatives for investment purposes and for hedging and risk management purposes. Derivatives risk may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">be more significant when derivatives are used to enhance return or as a substitute for a cash investment option, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rather than solely to hedge the risk of a position held by the Fund. See the Statement of Additional Information for </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">additional information of the various types and uses of derivatives in the Fund’s strategies.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">OTC derivatives are not traded on exchanges or standardized; rather, banks and dealers act as principals in these </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">markets negotiating each transaction on an individual basis. There have been periods during which certain banks or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">dealers have refused to quote prices for OTC derivatives contracts or have quoted prices with an unusually wide </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">spread between the price at which they are prepared to buy and the price at which they are prepared to sell. There is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">no limitation on the daily price movements of OTC derivatives. Principals in the OTC derivatives markets have no </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligation to continue to make markets in the OTC derivatives traded.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s use of OTC derivatives exposes it to the risk that the counterparties will be unable or unwilling to make </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">timely settlement payments or otherwise honor their obligations. An OTC derivatives contract typically can be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">closed only with the consent of the other party to the contract. If the counterparty defaults, the Fund will still have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">contractual remedies but may not be able to enforce them. In addition, in the event of a counterparty bankruptcy, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund may experience significant delays in obtaining any recovery under the derivative contract in a bankruptcy or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">other reorganization proceeding or may obtain a limited or no recovery of amounts due to it under the derivative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">contract, including the return of any collateral that has been provided to the counterparty. Because the contract for </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">each OTC derivative is individually negotiated, the counterparty may interpret contractual terms differently than the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund and, if it does, the Fund may decide not to pursue its claims against the counterparty to avoid incurring the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">cost and unpredictability of legal proceedings. The Fund, therefore, may be unable to obtain payments the Adviser </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">believes are owed to it under OTC derivatives contracts, or those payments may be delayed or made only after the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund has incurred the costs of litigation.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Derivatives also present other risks described herein, including market risk, illiquidity risk, currency risk and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">credit/counterparty risk. OTC derivatives are generally highly illiquid. Many derivatives, in particular OTC </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">derivatives, are complex and their valuation often requires modeling and judgment, which increases the risk of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">mispricing or improper valuation. The pricing models used may not produce valuations that are consistent with the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">values the Fund realizes when it closes or sells an OTC derivative. Valuation risk is more pronounced when the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund enters into OTC derivatives with specialized terms because the value of those derivatives in some cases is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">determined only by reference to similar derivatives with more standardized terms. As a result, incorrect valuations </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may result in increased cash payments to counterparties, undercollateralization and/or errors in the calculation of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s NAV.</div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s use of derivatives may not be effective or have the desired results. Moreover, suitable derivatives will </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">not be available in all circumstances. The Adviser may decide not to use derivatives to hedge or otherwise reduce </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund’s risk exposures, potentially resulting in losses for the Fund.</div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Derivatives in which the Fund may invest may have embedded leverage (i.e., a notional value in excess of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">assets needed to establish and/or maintain the derivative position). As a result, adverse changes in the value or level </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of the underlying investment may result in a loss substantially greater than the amount invested in the derivative </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">itself. See “Borrowing and Leverage Risk” above.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s use of derivatives may be subject to special tax rules, which are in some cases uncertain under current </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">law and could affect the amount, timing and character of distributions to shareholders. See “Distributions and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">U.S. Federal Income Tax Matters” below.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in derivatives that (i) do not require the counterparty to post collateral (e.g., foreign currency </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">forwards), (ii) require a counterparty to post collateral but do not provide for the Fund’s security interest in it to be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">perfected, (iii) require a significant upfront deposit by the Fund unrelated to the derivative’s intrinsic value or (iv) </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">do not require that collateral be regularly marked-to-market. When a counterparty’s obligations are not fully secured </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">by collateral, the Fund runs the risk of having limited recourse if the counterparty defaults. Even when obligations </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">are required by contract to be collateralized, the Fund often will not receive the collateral the day the collateral is </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">required to be posted. When a counterparty’s obligations are not fully secured by a perfected security interest in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">collateral, the Fund runs a greater risk of not being able to recover what it is owed if the counterparty defaults </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">because it is essentially an unsecured creditor of the counterparty. Also, in the event of a counterparty’s (or its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">affiliate’s) insolvency, the possibility exists that the Fund’s ability to exercise remedies, such as the termination of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">transactions, netting of obligations and realization on collateral, could be stayed or eliminated under new special </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">resolution regimes adopted in the United States, the European Union and various other jurisdictions. Such regimes </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">provide government authorities with broad authority to intervene when a financial institution is experiencing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">financial difficulty. In particular, the regulatory authorities could reduce, eliminate, or convert to equity the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">liabilities to the Fund of a counterparty who is subject to such proceedings in the European Union (sometimes </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">referred to as a “bail in”).</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund may invest in derivatives with a limited number of counterparties and events affecting the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">creditworthiness of any of those counterparties may have a pronounced effect on the Fund. The Fund may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">required to provide more margin for its derivatives investments during periods of market disruptions or stress.</div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Rule 18f-4 provides for the regulation of a registered investment company’s use of derivatives and certain related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">instruments. As required by Rule 18f-4, the Fund will adopt and implement a derivatives risk management program </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to govern its use of derivatives and will appoint a derivatives risk manager who conducts periodic reviews of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">program prior to relying on Rule 18f-4. The Fund’s derivatives risk management program will include policies and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">procedures that are reasonably designed to manage the Fund’s derivatives risks. In accordance with Rule 18f-4, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">most investments or trading practices that involve contractual obligations to pay in the future described above under </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">“Borrowing and Leverage” are considered to be derivatives, and the Fund’s derivatives exposure (including its use </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of reverse repurchase agreements, which the Fund has elected to treat as derivatives under Rule 18f-4) will be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">limited through a value-at-risk (“VaR”) test. Rule 18f-4 may restrict the Fund’s ability to engage in certain </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">derivatives transactions and/or increase the costs of such derivatives transactions, which may adversely affect the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">value of the Fund’s investments and/or performance of the Fund.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Specific risks involved in the use of certain types of derivatives in which the Fund may invest include:</div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Futures Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> A purchase or sale of a futures contract may result in losses in excess of the amount invested in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the futures contract. There can be no guarantee that there will be a correlation between price movements in the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">futures and in the underlying reference asset positions underlying the futures contract. Futures exchanges may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">limit the amount of fluctuation permitted in certain futures contract prices during a single trading day. Once the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">daily limit has been reached in a futures contract subject to the limit, no more trades may be made on that day </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">at a price beyond that limit. The daily limit governs only price movements during a particular trading day and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">therefore does not limit potential losses because the limit may work to prevent the liquidation of unfavorable </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">positions. Futures prices have occasionally moved beyond the daily limits for several consecutive days with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">little or no trading. There can be no assurance that a liquid market will exist at a time when the Fund seeks to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">close out a futures contract, and the Fund would remain obligated to meet margin requirements until the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">position is closed. If the Fund were to borrow money to use for trading purposes, the effects of such leverage </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">would be magnified. Cash posted as margin in connection with the Fund’s futures contracts will not be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">available to the Fund for investment or other purposes. In addition, the Fund’s futures broker may limit the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund’s ability to invest in certain futures contracts. Such restrictions may adversely affect the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">performance and its ability to achieve its investment objective. In connection with futures contracts and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">options on futures contracts, the Fund (directly or through a Subsidiary) typically posts margin directly to the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">FCM, who is expected typically to rehypothecate the margin to an exchange or clearinghouse. Prior to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">rehypothecation, such margin may be held by the FCM in commingled accounts with margin from other clients </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of the FCM. The margin maintained by the FCM is not subject to the regulatory protections provided by bank </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">custody arrangements. If margin is posted to the FCM and rehypothecated, neither the Fund nor the FCM to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">whom the margin was posted will have custody of the margin. If margin posted by the Fund is not maintained </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">with the Fund's custodian, the Fund is fully exposed to the fraud and unsecured credit risk of the FCM to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">whom the margin is posted.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The CFTC and certain exchanges have established (and continue to evaluate and revise) limits, referred to as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">“position limits,” on the maximum net long or net short positions that any person or entity may hold or control </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in particular futures and options contracts (and certain related swap positions). Unless an exemption applies, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">all positions owned or controlled by the same person or entity, even if in different accounts, must be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">aggregated for purposes of determining whether the applicable position limits have been exceeded. Thus, even </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">if the Fund does not intend to exceed applicable position limits, it is possible that positions held by different </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">clients managed by the Adviser and its affiliates may be aggregated for this purpose. Therefore, the trading </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">decisions of the Adviser may have to be modified or positions held by the Fund may have to be liquidated in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">order to avoid exceeding such limits. The modification of investment decisions or the elimination of open </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">positions, if it occurs, may adversely affect the profitability of the Fund. A violation of position limits could </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">also lead to regulatory action materially adverse to the Fund’s investment strategy.</div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Forwards Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Forward contracts are subject to some of the same risks as futures described above. However, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">forwards are not traded on exchanges and are not standardized; rather, banks and dealers act as principals in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">these markets negotiating each transaction on an individual basis. Trading in forward contracts is generally </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unregulated. There is no limitation on the daily price movements of forward contracts. Principals in the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">forward markets have no obligation to continue to make markets in the forward contracts traded. There have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">been periods during which certain banks or dealers have refused to quote prices for forward contracts or have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">quoted prices with an unusually wide spread between the price at which they are prepared to buy and that at </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">which they are prepared to sell. Disruptions can occur in the forward markets because of unusually high </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">trading volume, political intervention or other factors. For example, the imposition of credit controls by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">governmental authorities might limit forward trading, to the possible detriment of the Fund.</div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;">Swaps Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The use of swaps involves investment techniques and risks that are different from those associated </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">with portfolio security transactions. These instruments typically are not traded on exchanges; under recently </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">adopted rules and regulations, however, transactions in some types of swaps (including interest rate swaps and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">credit default swaps on North American and European indices) are required to be centrally cleared (“cleared </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">swaps”). For OTC swaps, there is a risk that the other party to certain of these instruments will not perform its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">obligations to the Fund or that the Fund may be unable to enter into offsetting positions to terminate its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exposure or liquidate its position under certain of these instruments when it wishes to do so. Such occurrences </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">could result in losses to the Fund. For cleared swaps, the Fund’s counterparty is a clearinghouse rather than a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">bank or broker. Since the Fund is not a member of the clearinghouses and only members of a clearinghouse </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">(“clearing members”) can participate directly in the clearinghouse, the Fund holds cleared swaps through </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">accounts at clearing members. In cleared swaps, the Fund makes payments (including margin payments) to and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">receives payments from a clearinghouse through its account at clearing members. Clearing members guarantee </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">performance of their clients’ obligations to the clearinghouse.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In some ways, cleared swap arrangements are less favorable to funds than bilateral arrangements. For example, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund may be required to provide more margin for cleared swaps positions than for bilateral derivatives </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">positions. Also, in contrast to a bilateral derivatives position, following a period of notice to the Fund, a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">clearing member generally can require termination of an existing cleared swap position at any time or an </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">increase in margin requirements above the margin that the clearing member required at the beginning of a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">transaction. Clearinghouses also have broad rights to increase margin requirements for existing positions or to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">terminate those positions at any time. Any increase in margin requirements or termination of existing cleared </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">derivatives positions by the clearing member or the clearinghouse could interfere with the ability of the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to pursue its investment strategy. Further, any increase in margin requirements by a clearing member could </div></div></div><div style="line-height:12.0pt;margin-left:20pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">expose the Fund to greater credit risk to its clearing member because margin for cleared swaps positions in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">excess of a clearinghouse’s margin requirements typically is held by the clearing member. Credit risk of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">market participants with respect to derivatives that are centrally cleared is concentrated in a few </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">clearinghouses, and it is not clear how an insolvency proceeding of a clearinghouse would be conducted and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">what impact an insolvency of a clearinghouse would have on the financial system. The Fund might not be fully </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">protected in the event of the bankruptcy of the Fund’s clearing member because the Fund would be limited to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">recovering only a pro rata share of the funds held by the clearing member on behalf of customers for cleared </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">with the applicable regulations, or in the event of fraud or misappropriation of customer assets by a clearing </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">member, the Fund could have only an unsecured creditor claim in an insolvency of the clearing member with </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">respect to the assets held by the clearing member.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Also, the Fund is subject to risk if it enters into a derivatives transaction that is required to be cleared (or that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Adviser expects to be cleared), and no clearing member is willing or able to clear the transaction on the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund’s behalf. In those cases, the position might have to be terminated, and the Fund could lose some or all of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the benefit of the position, including loss of an increase in the value of the position and loss of hedging </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">protection. In addition, the documentation governing the relationship between the Fund and clearing members </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">is drafted by the clearing members and generally is less favorable to the Fund than typical bilateral derivatives </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">documentation.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Additionally, some types of cleared derivatives are required to be executed on an exchange or on a swap </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">execution facility. A swap execution facility is a trading platform where multiple market participants can </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">execute derivatives by accepting bids and offers made by multiple other participants in the platform. While this </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">execution requirement is designed to increase transparency and liquidity in the cleared derivatives market, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">trading on a swap execution facility can create additional costs and risks for the Fund. For example, swap </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">execution facilities typically charge fees, and if the Fund executes derivatives on a swap execution facility </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">through a broker intermediary, the intermediary may impose fees as well. Also, the Fund may be required to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">indemnify a swap execution facility, or a broker intermediary who executes cleared derivatives on a swap </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">execution facility on the Fund’s behalf, against any losses or costs that may be incurred as a result of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Fund’s transactions on the swap execution facility.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The U.S. government and the European Union have adopted mandatory minimum margin requirements for </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">bilateral derivatives. As a general matter, under such requirements, the Fund’s transactions are subject to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">variation margin requirements and, depending on the aggregate notional value of bilateral derivatives entered </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">into by the Fund, initial margin requirements may apply in the near future. Such requirements could increase </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the amount of margin the Fund needs to provide in connection with its derivatives transactions and, therefore, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">make derivatives transactions more expensive.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">These and other new rules and regulations could, among other things, further restrict the Fund’s ability to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">engage in, or increase the cost to the Fund of, derivatives transactions, for example, by making some types of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">derivatives no longer available to the Fund, increasing margin or capital requirements or otherwise limiting </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">liquidity or increasing transaction costs. Certain aspects of these regulations are still being implemented, so </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">their potential impact on the Fund and the financial system is not yet known. While the regulations and central </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">clearing of some derivatives transactions are designed to reduce systemic risk (i.e., the risk that the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">interdependence of large derivatives dealers could cause them to suffer liquidity, solvency or other challenges </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">simultaneously), there is no assurance that they will achieve that result, and in the meantime, as noted above, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">central clearing and related requirements expose the Fund to new kinds of costs and risks.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-left:20pt;margin-top:6pt;text-align:justify"><div style="margin-top:6pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Swap agreements may be subject to contractual restrictions on transferability and termination and they may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">have terms of greater than seven days. The Fund’s obligations under a swap agreement will be accrued daily </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">(offset against any amounts owed to the Fund under the swap).</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Subsidiary Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> By investing through its Subsidiaries, <div style="display:inline;">the </div>Fund is exposed to the risks associated with the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Subsidiaries' investments. The investments that may be held by a Subsidiary are generally similar to those that are </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">permitted to be held by the Fund and are subject to the same risks that apply to similar investments if held directly </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">by the Fund. Subsidiaries are not registered as investment companies under the 1940 Act and are not subject to all </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of the investor protections of the 1940 Act, although each Subsidiary is managed pursuant to the compliance </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">policies and procedures of the Fund applicable to it. Changes in the laws of the United States and/or the jurisdiction </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">in which a Subsidiary is organized <div style="display:inline;">could </div>result in the inability of the Fund and/or such Subsidiary to operate as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">described in this prospectus and could adversely affect the Fund</div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Short Sale Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> Short sales are transactions in which the Fund sells an asset it does not own to a third party by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">paying a premium to borrow the asset in anticipation of purchasing the same asset at the market price on a later date </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to close out the short position. The Fund may incur a loss if the market price of the asset underlying the short sale </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">increases between the date of the short sale and the date on which the Fund must replace the borrowed asset or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">otherwise close out the transaction and such loss may exceed the initial investment. Under adverse market </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">conditions, the Fund may have difficulty purchasing an asset to meet its short sale delivery obligations, and may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">have to sell portfolio assets to raise sufficient capital to fulfill its short sale obligations at a disadvantageous time. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Entering into short sales where the Fund does not own the underlying asset creates a form of investment leverage, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">which can magnify the Fund’s exposure to changes in the value of the asset. Because the Fund may enter into short </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">sales with respect to assets that it does not already own, the loss to the Fund from a short sale is theoretically </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unlimited, as the potential increase in the market price of the asset is unlimited. The amount of any gain will be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">decreased, and the amount of any loss increased, by the amount of the premium, dividends, interest, or expenses the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund may be required to pay in connection with a short sale. There can be no assurance that the Fund will be able </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to close out a short sales position at an advantageous time or price. To the extent that the Fund enters into short </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">sales for hedging purposes, there can be no guarantee that the investment will be effective; any lack of correlation </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">between the assets used in the short position and the exposure the Fund sought to hedge could result in losses.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Small and Mid-Capitalization Investing Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund may gain exposure to the securities of small </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">capitalization companies, mid-capitalization companies, recently organized companies and derivative instruments </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">related to those securities. For example, the Fund may invest in equity or debt securities of companies in or related </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">to the alternative lending industry or may gain exposure to the borrowings of such issuers facilitated through an </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">alternative lending platform. Historically, such securities, and particularly securities of smaller capitalization </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">companies, have been more volatile in price than those of larger capitalized, more established companies. Many of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the risks that apply to small capitalization companies apply equally to mid-capitalization companies, and such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">companies are included in the term “small capitalization companies” for the purposes of this risk factor. The </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities of small capitalization and recently organized companies pose greater investment risks because such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">companies may have limited product lines, distribution channels and financial and managerial resources. In </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">particular, small capitalization companies may be operating at a loss or have significant variations in operating </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">results; may be engaged in a rapidly changing business with products subject to substantial risk of obsolescence; </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may require substantial additional capital to support their operations, to finance expansion or to maintain their </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">competitive position; and may have substantial borrowings or may otherwise have a weak financial condition. In </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">addition, these companies may face intense competition, including competition from companies with greater </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">financial resources, more extensive development, manufacturing, marketing, and other capabilities and a larger </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">number of qualified managerial and technical personnel. The equity securities of alternative lending platforms or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">other issuers in this industry that are small capitalization companies are often traded over the counter or on regional </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">exchanges and may not be traded in the volumes typical on a national securities exchange. Consequently, the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or entities in which the Fund obtains exposure may be required to dispose of such securities or remain in a short </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">position over a longer (and potentially less favorable) period of time than is required to dispose of or close out of a </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">short position with respect to the securities of larger, more established companies. Investments in equity or debt </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">instruments issued by small capitalization companies may also be more difficult to value than other types of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities because of the foregoing considerations as well as, if applicable, lower trading volumes. Investments in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">companies with limited or no operating histories are more speculative and entail greater risk than do investments in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">companies with an established operating record.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Tax Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Fund has elected to be <div style="display:inline;">treated </div>as a regulated investment company (“RIC”) under Subchapter M of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Chapter 1 of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Code </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">and intends each year to qualify and to be eligible to be treated as such. In order to qualify </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">for such treatment, the Fund must derive at least 90% of its gross income each taxable year from qualifying income, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">meet certain asset diversification tests at the end of each fiscal quarter, and distribute at least 90% of its investment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">company taxable income for each taxable year. The Fund’s investment strategy will potentially be limited by its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">intention to qualify for treatment as a RIC. The tax treatment of certain of the Fund’s investments under one or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">more of the qualification or distribution tests applicable to RICs is not certain. An adverse determination or future </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">guidance by the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Internal Revenue Service (“</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">IRS</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">”)</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> or a change in law might affect the Fund’s ability to qualify for </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">such treatment.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">If, in any year, the Fund were to fail to qualify for treatment as a RIC under the Code for any reason, and were not </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">able to cure such failure, the Fund would be treated as a “C corporation” under the Code and, as such, would be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">subject to tax on its taxable <div style="display:inline;">income </div>at corporate rates, and all distributions from earnings and profits, including any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">distributions of net tax-exempt income and net long-term capital gains, would be taxable to shareholders as </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">dividends.</div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Repurchase Offers Risk.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> As described under “Periodic Repurchase Offers” below, the Fund is an “interval fund.” </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">In order to provide liquidity to shareholders, the Fund, subject to applicable law, conducts quarterly repurchase </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">offers of the Fund’s outstanding Shares at NAV, subject to approval of the Board. In all cases such repurchase offers </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">will be for at least 5% and not more than 25%, of its outstanding Shares at NAV, pursuant to Rule 23c-3 under the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">1940 Act. The Fund believes that these repurchase offers are generally beneficial to the Fund’s shareholders, and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">repurchases generally are funded from available cash or sales of portfolio securities, which are substantially illiquid. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">However, repurchase offers and the need to fund repurchase obligations may affect the ability of the Fund to be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">fully invested or may force the Fund to maintain a higher percentage of its assets in liquid investments, which may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">harm the Fund’s investment performance. Moreover, diminution in the size of the Fund through repurchases may </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">result in untimely sales of portfolio securities (with associated imputed transaction costs, which may be significant), </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and may limit the ability of the Fund to participate in new investment opportunities or to achieve its investment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">objective. In compliance with its procedures, the Fund, to the extent possible, holds at least 5% of net assets in cash </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">or other liquid assets at all times in order to meet its repurchase obligations. The Fund may accumulate cash by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">holding back (i.e., not reinvesting) payments received in connection with the Fund’s investments. The Fund believes </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">that payments received in connection with the Fund’s investments will generate sufficient cash to meet the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">maximum potential amount of the Fund’s repurchase obligations. If at any time cash and other liquid assets held by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund are not sufficient to meet the Fund’s repurchase obligations, the Fund intends, if necessary, to sell </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">investments. Although the Fund’s investments are illiquid and the secondary market for its investments is limited, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the Fund believes that it would be able to find willing buyers for investments if such sales were ever necessary to </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">supplement such cash generated by payments received in connection with the Fund’s investments. Because the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Fund employs investment leverage, repurchases of Shares compound the adverse effects of leverage in a declining </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">market. In addition, if the Fund borrows to finance repurchases, interest on that borrowing will negatively affect </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">shareholders who do not tender their Shares by increasing the Fund’s expenses and reducing any net investment </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">income. If a repurchase offer is oversubscribed, the Fund will repurchase the Shares tendered on a pro rata basis, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">and shareholders will have to wait until the next repurchase offer to make another repurchase request. As a result, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">shareholders may be unable to liquidate all or a given percentage of their investment in the Fund during a particular </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">repurchase offer. Some shareholders, in anticipation of proration, may tender more Shares than they wish to have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">repurchased in a particular quarter, thereby increasing the likelihood that proration will occur. A shareholder may be </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">subject to market and other risks, and the NAV of Shares tendered in a repurchase offer may decline between the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Repurchase Request Deadline and the date on which the NAV for tendered Shares is determined. In addition, the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">repurchase of Shares by the Fund may be a taxable event to shareholders.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Portfolio Turnover.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> A change in the securities held by the Fund is known as “portfolio turnover.” If the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">realizes profits or gains when it sells investments, it generally must pay those profits or gains to shareholders, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">increasing its taxable distributions, which generally are taxable as ordinary income to shareholders. Increased </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">portfolio turnover may also result in higher brokerage fees or other transaction costs, which can reduce the Fund’s </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">performance. Portfolio turnover will not be a limiting factor should the Adviser deem it advisable to purchase or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">sell securities.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Temporary Defensive and Interim Investments.</div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> For temporary defensive purposes in times of adverse or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">unstable market, economic or political conditions, the Fund can invest up to 100% of its assets in investments that </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">may be inconsistent with its principal investment strategies. Generally, the Fund would invest in money market </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">instruments or in other short-term U.S. or non-U.S. government securities. The Fund might also hold these types of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">securities as interim investments pending the investment of proceeds from the sale of its Shares or the sale of its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">portfolio securities or to meet anticipated repurchases of its Shares. To the extent the Fund invests in these </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">securities, it might not achieve its investment <div style="display:inline;">objective</div>.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">Anti-Takeover Provisions. </div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">The Fund’s Agreement and Declaration of Trust, together with any amendments thereto, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">includes provisions that could limit the ability of other entities or persons to acquire control of the Fund or convert </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">the Fund to open-end status.</div></div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:center"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-weight:bolder;display:inline;">DESCRIPTION OF THE FUND</div></div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Fund is an investment portfolio of Stone Ridge Trust V (the “Trust”), a statutory trust established under the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">laws of State of Delaware by the Certificate of Trust dated November 4, 2015. The Trust’s Agreement and </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Declaration of Trust (the “Declaration of Trust”) authorizes the issuance of an unlimited number of common Shares </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">of beneficial interest, par value, unless the Trustees shall otherwise determine, $0.001 per share. All Shares have </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">equal rights to the payment of dividends and other distributions and the distribution of assets upon liquidation. </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Shares are, when issued, fully paid and non-assessable by the Fund and have no pre-emptive or conversion rights or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">rights to cumulative voting.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Shareholders are entitled to share equally in dividends declared by the Board payable to holders of Shares and in </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">the net assets of the Fund available for distribution to holders of Shares upon liquidation after payment of the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">preferential amounts payable to holders of any outstanding preferred shares.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Declaration of Trust provides for indemnification out of Fund property for all loss and expense of any </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">shareholder or former shareholder held personally liable for the obligations of the Fund solely by reason of such </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">person’s status as a shareholder or former shareholder. Thus, the risk of a shareholder incurring financial loss on </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">account of shareholder liability is limited to circumstances in which the Fund would be unable to meet its </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">obligations.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">Shareholders have no pre-emptive or conversion rights. Upon liquidation of the Fund, after paying or adequately </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">providing for the payment of all liabilities of the Fund, and upon receipt of such releases, indemnities and refunding </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">agreements as they deem necessary for their protection, the Trustees may distribute the remaining assets of the Fund </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">among the holders of the Shares.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">The Board may classify or reclassify any issued or unissued Shares of the Fund into shares of any class by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">redesignating such Shares or by setting or changing in any one or more respects, from time to time, the preferences, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">conversion or other rights, voting powers, restrictions, limitations as to dividends, qualifications or terms or </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">conditions of repurchase of such Shares. Any such classification or reclassification will comply with the provisions </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">of the Declaration of Trust and the 1940 Act.</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; line-height: 12pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div><div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As of May 31, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">2026</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, the following amount of Shares of the Fund was authorized for registration and outstanding:</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 1pt; line-height: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="line-height:1.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"> </div></div><div style="margin-top:0.0pt">
<table cellpadding="0" cellspacing="0" style="text-align:start; empty-cells:show;width:468pt">
<tr style="height:15.75pt">
<td style="padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:115.5pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:0%;margin-right:2.60%;padding-bottom:1pt"><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">(1)</div></div></div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:118.5pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:2.53%;margin-right:2.53%;padding-bottom:1pt"><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">(2)</div></div></div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:118.5pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:2.53%;margin-right:2.53%;padding-bottom:1pt"><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">(3)</div></div></div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:115.5pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:2.60%;margin-right:0%;padding-bottom:1pt"><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">(4)</div></div></div></div></div></td></tr>
<tr style="height:36.5pt">
<td style="padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:115.5pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:0%;margin-right:2.60%;padding-bottom:1pt"><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">Title of Class</div></div></div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:118.5pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:2.53%;margin-right:2.53%;padding-bottom:1pt"><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">Amount Authorized</div></div></div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:118.5pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:2.53%;margin-right:2.53%;padding-bottom:1pt"><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">Amount Held by the </div></div></div><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">Fund for its Account</div></div></div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:115.5pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:2.60%;margin-right:0%;padding-bottom:1pt"><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">Amount Outstanding </div></div></div><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">Exclusive of Amount </div></div></div><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">Shown Under (3)</div></div></div></div></div></td></tr>
<tr style="height:23.75pt">
<td style="padding-bottom:3pt;padding-top:1.5pt;vertical-align:Bottom;width:115.5pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares of </div></div><div style="margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Beneficial Interest</div></div></div></td>
<td style="padding-bottom:3pt;padding-top:1.5pt;vertical-align:Bottom;width:118.5pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Unlimited</div></div></div></div></td>
<td style="padding-bottom:3pt;padding-top:1.5pt;vertical-align:Bottom;width:118.5pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></div></td>
<td style="padding-bottom:3pt;padding-top:1.5pt;vertical-align:Bottom;width:115.5pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:3pt;text-align:Center;white-space:nowrap"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">28,880,580</div></div></div></div></td></tr></table></div><div style="line-height:12.0pt;margin-top:10pt;text-align:justify"><div style="margin-top:10pt"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; font-style: normal; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;"><div style="font-style:italic;display:inline;"><div style="font-weight:bolder;display:inline;">Anti-Takeover Provisions.</div></div></div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"> The Declaration of Trust includes provisions that could have the effect of limiting the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">ability of other entities or persons to acquire control of the Trust or to change the composition of the Board by </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">discouraging a third party from seeking to obtain control of the Trust. These provisions may have the effect of </div></div></div><div style="line-height:12.0pt;text-align:justify"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">discouraging attempts to acquire control of the Trust, which attempts could have the effect of increasing the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">expenses of the Fund and interfering with the normal operation of the Fund. The Trustees are elected for indefinite </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">terms and do not stand for reelection. A Trustee may be removed from office without cause only by a written </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">instrument signed or adopted by a majority of the remaining Trustees or by a vote of the holders of at least </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">two-thirds of the class of Shares of the Trust that are entitled to elect a Trustee and that are entitled to vote on the </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">matter. The Declaration of Trust does not contain any other specific inhibiting provisions that would operate only </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">with respect to an extraordinary transaction such as a merger, reorganization, tender offer, sale or transfer of </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; margin-left: 0%; letter-spacing: 0px; top: 0px;display:inline;">substantially all of the Fund’s assets or <div style="display:inline;">liquidation</div>. Reference should be made to the Declaration of Trust on file </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">with the Commission for the full text of these provisions.</div></div>
<div style="line-height:12.0pt;margin-top:10pt;text-align:left"><div style="margin-top:10pt"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">As of May 31, </div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">2026</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">, the following amount of Shares of the Fund was authorized for registration and outstanding:</div><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 1pt; line-height: 1pt; letter-spacing: 0px; top: 0px;display:inline;"> </div></div></div></div><div style="line-height:1.0pt;margin-top:6pt;text-align:left"><div style="margin-top:6pt"> </div></div>
<table cellpadding="0" cellspacing="0" style="text-align:start; empty-cells:show;width:468pt">
<tr style="height:15.75pt">
<td style="padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:115.5pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:0%;margin-right:2.60%;padding-bottom:1pt"><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">(1)</div></div></div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:118.5pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:2.53%;margin-right:2.53%;padding-bottom:1pt"><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">(2)</div></div></div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:118.5pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:2.53%;margin-right:2.53%;padding-bottom:1pt"><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">(3)</div></div></div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:115.5pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:2.60%;margin-right:0%;padding-bottom:1pt"><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">(4)</div></div></div></div></div></td></tr>
<tr style="height:36.5pt">
<td style="padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:115.5pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:0%;margin-right:2.60%;padding-bottom:1pt"><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">Title of Class</div></div></div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:118.5pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:2.53%;margin-right:2.53%;padding-bottom:1pt"><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">Amount Authorized</div></div></div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:118.5pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:2.53%;margin-right:2.53%;padding-bottom:1pt"><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">Amount Held by the </div></div></div><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">Fund for its Account</div></div></div></div></div></td>
<td style="padding-bottom:1.5pt;padding-top:1.5pt;vertical-align:Bottom;width:115.5pt"><div style="line-height:13.0pt;text-align:left"><div style="border-bottom:0.5pt solid #000000;margin-left:2.60%;margin-right:0%;padding-bottom:1pt"><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">Amount Outstanding </div></div></div><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">Exclusive of Amount </div></div></div><div style="text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;"><div style="display:inline;font-weight:bolder;display:inline;">Shown Under (3)</div></div></div></div></div></td></tr>
<tr style="height:23.75pt">
<td style="padding-bottom:3pt;padding-top:1.5pt;vertical-align:Bottom;width:115.5pt"><div style="line-height:12pt;text-align:left"><div style="margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Common Shares of </div></div><div style="margin-right:3pt;text-align:Center;white-space:nowrap"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Beneficial Interest</div></div></div></td>
<td style="padding-bottom:3pt;padding-top:1.5pt;vertical-align:Bottom;width:118.5pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">Unlimited</div></div></div></div></td>
<td style="padding-bottom:3pt;padding-top:1.5pt;vertical-align:Bottom;width:118.5pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:3pt;margin-right:3pt;text-align:Center;white-space:nowrap"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">0</div></div></div></div></td>
<td style="padding-bottom:3pt;padding-top:1.5pt;vertical-align:Bottom;width:115.5pt"><div style="line-height:12pt;text-align:left"><div style="margin-left:3pt;text-align:Center;white-space:nowrap"><div style="display:inline;"><div style="color: rgb(0, 0, 0); font-family: "Times New Roman"; font-size: 10pt; letter-spacing: 0px; top: 0px;display:inline;">28,880,580</div></div></div></div></td></tr></table>
Common Shares
0
28880580
Reflects interest expenses paid on borrowings and the Fund’s use of leverage in the form of reverse repurchase agreements. “Interest Payments on Borrowed Funds” are based on actual amounts incurred during the Fund’s prior fiscal year and are annualized.
Distribution and/or Services Fees include a 0.05% fee paid pursuant to a distribution and servicing plan adopted by the Fund, a 0.05% fee paid pursuant to a services agreement between the Fund and the Adviser and 0.02% of intermediary fees borne by the Fund. See “Intermediary and Servicing Arrangements.”
The Fund is responsible for its operating expenses, including its organization expenses, which are expensed as incurred and are subject to the expense limitation agreement described below. Notwithstanding the foregoing, from April 17, 2026 through June 30, 2027, the Adviser has contractually agreed to waive its management fee and/or pay or otherwise bear operating and other expenses of the Fund (including offering expenses, but excluding brokerage and transactional expenses; borrowing and other investment-related costs and fees including interest payments on borrowed funds, loan servicing fees, loan collection and administration fees and expenses, interest and commitment fees; short dividend expense; acquired fund fees and expenses; taxes; litigation and indemnification expenses; judgments; and extraordinary expenses not incurred in the ordinary course of the Fund’s business (collectively, the “Excluded Expenses”)) solely to the extent necessary to limit the Total Annual Fund Operating Expenses, other than Excluded Expenses, to 2.30% of the average daily net assets of the Fund. The Adviser shall be entitled to recoup in later periods expenses that the Adviser has paid or otherwise borne (whether through reduction of its management fee or otherwise) to the extent that the expenses for the Fund (including offering expenses, but excluding Excluded Expenses) after such recoupment do not exceed the lower of (i) the annual expense limitation rate in effect at the time of the actual waiver/reimbursement and (ii) the annual expense limitation rate in effect at the time of the recoupment; provided, that the Adviser shall not be permitted to recoup any such fees or expenses beyond three years from the end of the month in which such fee was reduced or such expense was reimbursed. The expense limitation agreement may only be modified by a majority vote of the trustees who are not “interested persons” of the Fund (as defined by 1940 Act) and the consent of the Adviser.
The Fund commenced operations on May 23, 2016.
Represents value of total assets less all liabilities not represented by senior securities at the end of the period divided by senior security principal outstanding at the end of the period.