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false false false false true false true false No false true <table cellpadding="1" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif;border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td colspan="2" style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in">Shareholder Transaction Expenses</td> <td style="border-bottom: Black 1pt solid; font-weight: bold"> </td> <td colspan="2" id="xdx_490_20261028__20261028__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zuS32211a2ca" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Class I</td> <td style="border-bottom: Black 1pt solid; font-weight: bold"> </td></tr> <tr id="xdx_40E_ecef--SalesLoadPercent_dpn_zWOEtL2rvDYh" style="vertical-align: bottom"> <td style="width: 0.25in"> </td> <td style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in; vertical-align: top; text-align: left">Maximum Sales Load (as a percent of offering price)</td> <td style="border-bottom: Black 1pt solid; width: 1%"> </td> <td style="border-bottom: Black 1pt solid; text-align: left; width: 1%"> </td> <td style="border-bottom: Black 1pt solid; text-align: right; width: 9%">None</td> <td style="border-bottom: Black 1pt solid; text-align: left; width: 1%"> </td></tr> <tr id="xdx_402_ecef--DividendReinvestmentAndCashPurchaseFees_dn_z43StuCYvP32" style="vertical-align: bottom"> <td> </td> <td style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in; vertical-align: top; text-align: left">Dividend Reinvestment Plan Fees</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">None</td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td></tr> <tr id="xdx_40F_ecef--OtherTransactionExpense1Percent_dpn_zfRrgeJ9TXPe" style="vertical-align: bottom"> <td> </td> <td style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in; vertical-align: top; text-align: left">Contingent Deferred Sales Charge</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">None</td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td></tr> </table> 0 0 0 <table cellpadding="1" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif;border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-top: 0pt; padding-bottom: 0pt"> </td> <td style="padding-top: 0pt; text-indent: -0.125in; padding-left: 0.125in; vertical-align: top; text-align: left; padding-bottom: 0pt"> </td> <td style="padding-top: 0pt; padding-bottom: 0pt"> </td> <td style="padding-top: 0pt; text-align: left; padding-bottom: 0pt"> </td> <td id="xdx_498_20261028__20261028__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zhG3bnCDwsbd" style="padding-top: 0pt; text-align: right; padding-bottom: 0pt"> </td> <td style="padding-top: 0pt; text-align: left; padding-bottom: 0pt"> </td> </tr> <tr style="vertical-align: bottom"> <td colspan="2" style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in">Annual Expenses (as a percentage of net assets attributable to Class I shares)</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr id="xdx_402_ecef--ManagementFeesPercent_dp_z3QARZF7A225" style="vertical-align: bottom"> <td style="width: 0.25in"> </td> <td style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in; vertical-align: top; text-align: left">Management Fees</td> <td style="border-bottom: Black 1pt solid; width: 1%"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; width: 9%; text-align: right">1.25</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">%</td> </tr> <tr id="xdx_40D_ecef--OtherAnnualExpensesPercent_dp_z41GSl4gYsMe" style="vertical-align: bottom"> <td> </td> <td style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in; vertical-align: top; text-align: left">Other Expenses</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">5.56</td> <td style="border-bottom: Black 1pt solid; text-align: left">%</td> </tr> <tr id="xdx_403_ecef--DividendExpenseOnPreferredSharesPercent_dpn_zAA3vEBFG9lj" style="vertical-align: bottom"> <td> </td> <td style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in; vertical-align: top; text-align: left">Shareholder Servicing Fee</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">0.25</td> <td style="border-bottom: Black 1pt solid; text-align: left">%</td> </tr> <tr id="xdx_40F_ecef--DistributionServicingFeesPercent_dpn_zkfwaU5sW7Il" style="vertical-align: bottom"> <td> </td> <td style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in; vertical-align: top; text-align: left">Distribution Fee</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">None</td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr id="xdx_400_ecef--AcquiredFundFeesAndExpensesPercent_dp_zq2Vvn5x53sl" style="vertical-align: bottom"> <td> </td> <td style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in; vertical-align: top; text-align: left">Acquired Fund Fees and Expenses</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">0.03</td> <td style="border-bottom: Black 1pt solid; text-align: left">%</td></tr> <tr id="xdx_409_ecef--TotalAnnualExpensesPercent_dp_zR9J5cgQNpsb" style="vertical-align: bottom"> <td colspan="2" style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in">Total Annual Fund Operating Expenses</td> <td style="border-bottom: Black 1pt solid; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">7.09</td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">%</td> </tr> <tr id="xdx_40D_ecef--WaiversAndReimbursementsOfFeesPercent_dp_zNF0fk0vFzN1" style="vertical-align: bottom"> <td colspan="2" style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in">Less Fee Waiver and/or Expense Limitation1</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">(5.06</td> <td style="border-bottom: Black 1pt solid; text-align: left">)%</td> </tr> <tr id="xdx_404_ecef--NetExpenseOverAssetsPercent_dp_zD9C3gW8HgZk" style="vertical-align: bottom"> <td colspan="2" style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in">Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Limitation</td> <td style="border-bottom: Black 1pt solid; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2.03</td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">%</td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0in"></td><td style="width: 0.25in">1</td> <td style="text-align: justify"> The Adviser and the Fund have entered into an expense limitation and reimbursement agreement (the “Class I Expense Limitation Agreement”) under which the Adviser has agreed contractually to waive its fees and to pay or absorb the ordinary annual operating expenses of the Fund (exclusive of any taxes, interest, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, such as litigation or reorganization costs, but inclusive of organizational costs and offering costs), to the extent that they exceed 2.00% per annum of the Fund’s average daily net assets attributable to Class I shares (the “Class I Expense Limitation”). In consideration of the Adviser’s agreement to limit the Fund’s expenses, the Fund has agreed to repay the Adviser in the amount of any fees waived and Fund expenses paid or absorbed, subject to the limitations that: (1) the reimbursement for fees and expenses will be made only if payable not more than three years from the date in which they were incurred; and (2) the reimbursement may not be made if it would cause the lesser of the Class I Expense Limitation in place at the time of waiver or at the time of reimbursement to be exceeded. The Class I Expense Limitation Agreement will remain in effect at least until October 31, 2027, unless and until the Board approves its modification or termination. The Class I Expense Limitation Agreement may be terminated only by the Fund’s Board on 60 days’ written notice to the Adviser. See “Management of the Fund.”</td></tr> </table> 0.0125 0.0556 0.0025 0 0.0003 0.0709 -0.0506 0.0203 <table cellpadding="3" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif;border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; vertical-align: bottom; width: 19%; font-weight: bold; text-align: center">Share Class</td> <td style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: center; width: 2%; font-weight: bold"> </td> <td id="xdx_482_ecef--ExpenseExampleYear01_zi7OaxeEWnYa" style="border-bottom: Black 1pt solid; vertical-align: bottom; width: 18%; font-weight: bold; text-align: center">1 Year</td> <td style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: center; width: 2%; font-weight: bold"> </td> <td id="xdx_48D_ecef--ExpenseExampleYears1to3_zsMAcz19k0dk" style="border-bottom: Black 1pt solid; vertical-align: bottom; width: 18%; font-weight: bold; text-align: center">3 Years</td> <td style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: center; width: 2%; font-weight: bold"> </td> <td id="xdx_489_ecef--ExpenseExampleYears1to5_zoRFM02JndL8" style="border-bottom: Black 1pt solid; vertical-align: bottom; width: 18%; font-weight: bold; text-align: center">5 Years</td> <td style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: center; width: 2%; font-weight: bold"> </td> <td id="xdx_485_ecef--ExpenseExampleYears1to10_zkBZ7eG32bJe" style="border-bottom: Black 1pt solid; vertical-align: bottom; width: 19%; font-weight: bold; text-align: center">10 Years</td></tr> <tr id="xdx_412_20261028__20261028__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zlpUIKQwyvH7" style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: center">Class I</td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: center">$21</td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: center">$164</td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: center">$301</td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: center">$619</td></tr> </table> 21 164 301 619 <p id="xdx_805_ecef--InvestmentObjectivesAndPracticesTextBlock_hus-gaap--StatementClassOfStockAxis__custom--ClassIMember_z5ygkaX0Z8uh" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">INVESTMENT OBJECTIVE, POLICIES AND STRATEGIES Investment Objective and Policies The Fund’s investment objective is to seek total return through current income and capital appreciation. The Fund seeks to achieve its investment objective by investing primarily in a wide array of loans and securitized debt instruments. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in domestic credit instruments and loans. Such instruments will consist of a combination of: (i) MBS, as well as mortgage loans or pools of such loans; (ii) other ABS, or other instrument secured by financial, physical, and/or intangible asset (e.g., receivables or pools of receivables), and investments in any assets or instruments underlying the foregoing structured/secured obligations; (iii) other structured credit instruments, including but not limited to CMOs, CDOs, on an opportunistic basis, CLOs, and various other commercial and consumer loans and participations thereon; and (iv) corporate debt. The Fund may also invest in cash and cash equivalents. The Fund may also gain exposure to these asset classes through treasury futures, interest rate swap futures, and other credit derivatives. Under normal circumstances, the Fund will concentrate its investments (i.e., invest 25% or more of its total assets (measured at the time of purchase)) in (i) mortgage-related assets including loans and securities issued by government agencies or other governmental entities or by private originators or issuers and (ii) loans and securities backed by those loans related to the US Consumer such as auto loans and leases, credit cards and other unsecured consumer borrowings, point-of-sale loans, home improvement loans, solar loans, and other consumer borrowings. The Fund may also make loans to originators and/or owners of the above-referenced assets, which would serve as collateral for the Fund’s loan. The Fund may invest without limitation in high-yield securities, distressed or defaulted securities, and securities that are not rated by any rating agencies. These “high-yield” securities (also known as “junk bonds”) will generally be rated BB+ or lower by S&P or will be of equivalent quality rating from another Nationally Recognized Statistical Ratings Organization. If a bond is unrated, the Adviser may determine whether it is of comparable quality. The Fund’s investments in RMBS and ABS will span a broad segment of consumer creditworthiness segments, which will include exposure to prime, near-prime, and subprime consumers. The Fund may invest, without limitation, in securities of any maturity or duration. Instruments acquired by the Fund may be fixed, floating or inverse floating, interest-only or principal-only, and the obligors may have the right to defer to interest or make payments in kind. Maturity refers to the length of time until a bond’s principal is repaid with interest. Duration is a measure used to determine the sensitivity of a security’s price to changes in interest rates. Duration incorporates a security’s yield, coupon, final maturity, call and put features, and prepayment exposure into one measure, with a higher duration indicating greater sensitivity to interest rates. For example, if a portfolio has a duration of two years, and interest rates increase (fall) by 1%, the portfolio would decline (increase) in value by approximately 2%. However, duration may not accurately reflect the true interest rate sensitivity of instruments held by the Fund and, therefore the Fund’s exposure to changes in interest rates. The Fund’s allocation of its assets into various asset classes within its investment strategy will be based on the Adviser’s top-down research process and bottom-up credit selection process that seeks to construct a portfolio that achieves the Fund’s investment objective and offers compelling risk-adjusted returns. These processes generally include a consideration of macro-economic factors and market technicals (such as historical sector performance and pricing, market sentiment, fund flows, and other non-asset specific factors that may influence prices), the complexity and liquidity of a market sector or instruments, as well as a rigorous analysis of the borrower, any underlying collateral, and any structure that may be in place that could result in cash flows to the Fund being different than the payments made by the borrower. The Adviser attempts to mitigate risks that arise from duration, deal structure, collateral performance, and change in collateral values through security selection, portfolio construction, and, at times, hedging. In selecting investments, the Adviser will also consider diversification, liquidity, spread duration, rate duration, and credit risk. The Fund invests throughout the capital structure and across the borrower credit spectrum changing the credit risk profile of the Fund based on the Adviser’s assessment of the underlying credit fundamentals, as well as its assessment of the macro-economic environment and market technicals. The Fund seeks to identify investments with higher degrees of complexity (such as uncertainty in the timing of cash flows, highly structured investments, or other factors that may make the underwriting and monitoring of an investment more time consuming or difficult) and liquidity premia (which is the extra return investors demand for holding illiquid assets to compensate them for the risk and difficulty in selling them quickly at a fair price) than a typical corporate bond. Given the Fund seeks to achieve its mandate through investments in credit, the Fund’s spread duration (the sensitivity of an investment’s change in price to a change in the premium demanded by the market for an investment over the risk-free rate) will generally be 2 to 8 years. The Fund’s rate duration will generally be shorter than its spread duration. However, in an environment where the Fund is more defensively positioned, one could expect rate duration to extend and spread duration to shorten beyond the stated ranges and rate duration to exceed spread duration. Investment Process To select securities for the Fund’s portfolio the Adviser undergoes a rigorous bottom-up process stress testing the collateral, and structure of the investments to determine a price for an investment that it believes is below the intrinsic value of the instrument and results in the possibility of the investment opportunity offering compelling risk-adjusted returns. <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top">●</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Collateral. The Adviser reviews all collateral for an investment to determine the cashflows across a variety of market conditions to determine suitability for investment with a focus on the borrower’s ability to repay even in an economic downturn.</td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top">●</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Structure. The Adviser reviews the structure of the investment. The Adviser stress tests changes to cashflows of the security considering changes in collateral performance, interest rates, triggers, and call options to determine if there have been any adverse changes in an investments yield, duration, or weighted average life.</td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top">●</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Price. The Adviser considers the interest rate risk, credit risk, and liquidity risk of the investment to assess the reasonableness of its price. If the Adviser determines that the price of an investment adequately takes into consideration each of these risks, the investment is eligible for purchase by the Fund.</td> </tr> </table> The Adviser monitors the Fund’s investments on an ongoing basis. The Adviser monitors for changes in market dynamics, collateral performance versus the expected outcome at the time of purchase, and any news on issuers. Any degradation in the performance of an investment, negative headlines related to an investment, or external market forces that could cause any change in the performance or price of an asset triggers an immediate reassessment of any investment. The Adviser may sell an investment for several reasons, including a change in the relative attractiveness of a position versus other market opportunities, any deterioration in the performance of an asset, or if it wishes to increase the Fund’s liquidity. Subsidiaries Certain investments of the Fund will be held in Single-Asset Subsidiaries due to federal tax requirements, as discussed below. In addition, the Fund may engage in bank borrowings through a Financing Subsidiary, which may act as the borrower of one or more revolving credit facilities. The Subsidiaries are subject to the same investment restrictions as the Fund, when viewed on a consolidated basis. The principal investment strategies and principal investment risks of the Subsidiaries are the principal investment strategies and principal investment risks of the Fund as reflected in this Prospectus. The financial statements of the Subsidiaries are consolidated with those of the Fund. Because the Fund may invest a substantial portion of its assets in the Subsidiaries, which may hold some of the investments described in this Prospectus, the Fund may be considered to be investing indirectly in some of those investments through its Subsidiaries. For that reason, references to the Fund may also include the Subsidiaries. The Subsidiaries will be subject to the same investment restrictions and limitations, and follow the same compliance policies and procedures, as the Fund. The Fund complies with the provisions of the 1940 Act governing investment policies, capital structure and leverage on an aggregate basis with the Subsidiaries. In addition, the Subsidiaries comply with the provisions of the 1940 Act relating to affiliated transactions and custody. The Fund’s custodian also serves as the custodian to the Subsidiaries. The Adviser, who also serves in that role for the Subsidiaries, will also comply with the provisions of the 1940 Act regarding investment advisory contracts and are considered to be an investment adviser to the Fund under the 1940 Act. In order to qualify as a RIC under the Code, a fund must meet certain requirements regarding the source of its income, the diversification of its assets and the distribution of its income. The IRS has determined that only income realized directly from certain sources such as dividends, interest, securities loans, gains from stock or securities or foreign currencies, or other income derived with respect to its business of investing is qualifying income for purposes of qualifying as a RIC. Income realized from Bad Income Assets is not considered qualifying income to be treated as a RIC. As a result, a fund’s ability to realize income from investments in Bad Income Assets as part of its investment strategy would be limited to a maximum of 10% of its gross income. To comply with the IRS’ position, certain funds seek to gain exposure to Bad Income Assets primarily through investments in a subsidiary, which invests in Bad Income Assets. If a fund fails to qualify as a RIC, the fund will be subject to federal income tax on its net income at regular corporate rates (without reduction for distributions to shareholders). When distributed, that income also would be taxable to shareholders as an ordinary dividend to the extent attributable to the fund’s earnings and profits. If a fund were to fail to qualify as a RIC and became subject to federal income tax, shareholders of the fund would be subject to diminished returns. The Fund anticipates treating income and gain from the Subsidiaries as qualifying income. Leverage and Credit Facilities The Fund may utilize leverage, including borrowing from banks in an amount of up to 33 1/3% of the Fund’s consolidated assets (defined as net assets plus borrowing for investment purposes). The Fund is authorized to borrow money in connection with its investment activities, to satisfy repurchase requests from Fund shareholders, and to otherwise provide the Fund with liquidity. The Fund may enter into one or more Credit Facilities for the purpose of investment purchases and other liquidity requirements, subject to the limitations of the 1940 Act (as defined below) for borrowings. The Credit Facilities will be secured by the Fund’s assets. Other Information Regarding Investment Strategy The Fund may, from time to time, take defensive positions that are inconsistent with the Fund’s principal investment strategy in attempting to respond to adverse market, economic, political or other conditions. During such times, the Adviser may determine that the Fund should invest up to 100% of its assets in cash or cash equivalents, including money market instruments, prime commercial paper, repurchase agreements, Treasury bills and other short-term obligations of the U.S. Government, its agencies or instrumentalities. In these cases, the Fund may not achieve its investment objective. The Adviser may invest the Fund’s cash balances in any investments it deems appropriate. The Adviser expects that such investments will be made, without limitation and as permitted under the 1940 Act, in money market funds, repurchase agreements, U.S. Treasury and U.S. agency securities, municipal bonds and bank accounts. Any income earned from such investments is ordinarily reinvested by the Fund in accordance with its investment program. Many of the considerations entering into recommendations and decisions of the Adviser and the Fund’s Portfolio Managers (as defined below) are subjective. The Fund may engage in borrowings and the use of leverage in acquiring investments. The frequency and amount of portfolio purchases and sales (known as the “portfolio turnover rate”) will vary from year to year. The portfolio turnover rate is not expected to exceed 100%, but may vary greatly from year to year and will not be a limiting factor when the Adviser deems portfolio changes appropriate. Some of the Fund’s investments have limited liquidity, so it is not anticipated that the Fund will have high portfolio turnover. However, securities may be sold without regard to the length of time held when, in the opinion of the Adviser, investment considerations warrant such action. These policies may have the effect of increasing the annual rate of portfolio turnover of the Fund. Higher rates of portfolio turnover would likely result in higher brokerage commissions and may generate short-term capital gains taxable as ordinary income. If securities are not held for the applicable holding periods, dividends paid on them will not qualify for the advantageous federal tax rates. See “Tax Status” in the Fund’s SAI. The Fund will provide shareholders with at least 60 days’ prior notice of any change to its policy to invest at least 80% of its net assets, plus any borrowings for investment purposes, in domestic credit instruments and loans. For purposes of this policy, the Fund considers “credit instruments” to be debt obligations and other instruments that entitle the holder to receive payments of principal and/or interest, including the instruments described in clauses (i) through (iv) above, and considers an instrument to be “domestic” if the issuer or obligor is organized or located in the United States or the instrument is backed primarily by assets located in the United States. Fundamental Policies The Fund’s stated fundamental policies, which may only be changed by the affirmative vote of a majority of the outstanding voting securities of the Fund (the shares), are listed below. For the purposes of this prospectus, “majority of the outstanding voting securities of the Fund” means the vote, at an annual or special meeting of shareholders, duly called, (a) of 67% or more of the shares present at such meeting, if the holders of more than 50% of the outstanding shares are present or represented by proxy; or (b) of more than 50% of the outstanding shares, whichever is less. The Fund may not: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left">(1)</td> <td style="text-align: justify">Borrow money, except to the extent permitted by the Investment Company Act of 1940, as amended (the “1940 Act”) (which currently limits borrowing to no more than 33 1/3% of the value of the Fund’s total assets, including the value of the assets purchased with the proceeds of its indebtedness, if any). The Fund may borrow for investment purposes, for temporary liquidity, or to finance repurchases of its shares.</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left">(2)</td> <td style="text-align: justify">Issue senior securities, except to the extent permitted by Section 18 of the 1940 Act (which currently limits the issuance of a class of senior securities that is indebtedness to no more than 33 1/3% of the value of the Fund’s total assets or, if the class of senior security is stock, to no more than 50% of the value of the Fund’s total assets).</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left">(3)</td> <td style="text-align: justify">Underwrite securities of other issuers, except insofar as the Fund may be deemed an underwriter under the Securities Act of 1933, as amended (the “Securities Act”) in connection with the disposition of its portfolio securities. The Fund may invest in restricted securities (those that must be registered under the Securities Act before they may be offered or sold to the public) to the extent permitted by the 1940 Act.</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left">(4)</td> <td style="text-align: justify">Invest more than 25% of the market value of its assets in the securities of companies or entities engaged in any one industry or group of industries other than mortgage-related assets and loans and securities backed by those loans related to the US Consumer. This limitation does not apply to investment in the securities of the U.S. Government, its agencies or instrumentalities, as well as to investments in investment companies that primarily invest in such securities.</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left">(5)</td> <td style="text-align: justify">Purchase or sell commodities, commodity contracts, including commodity futures contracts, unless acquired as a result of ownership of securities or other investments, except that the Fund may invest in securities or other instruments backed by or linked to commodities, and invest in companies that are engaged in a commodities business or have a significant portion of their assets in commodities, and may invest in commodity pools and other entities that purchase and sell commodities and commodity contracts.</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left">(6)</td> <td style="text-align: justify">Purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this restriction shall not prevent the Fund from investing in securities of companies engaged in the real estate business or securities or other instruments backed by real estate or mortgages), or commodities or commodity contracts.</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left">(7)</td> <td style="text-align: justify">Make loans to others other than in accordance with its investment objectives and policies.</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left">(8)</td> <td style="text-align: justify">In addition, the Fund has adopted a fundamental policy that it will make quarterly repurchase offers for no less than for 5% of the shares outstanding at NAV less any repurchase fee, unless suspended or postponed in accordance with regulatory requirements, and each repurchase pricing shall occur no later than the 14th day after the Repurchase Request Deadline, or the next business day if the 14th is not a business day.</td> </tr> </table> For purposes of the Fund’s concentration policy, if the Fund invests in one or more investment companies, the Fund will examine the holdings of such investment companies to ensure that the Fund is not indirectly concentrating its investments in a particular industry or group of industries. If a restriction on a Fund’s investments is adhered to at the time an investment is made, a subsequent change in the percentage of Fund assets invested in certain securities or other instruments, or change in average duration of a Fund’s investment portfolio, resulting from changes in the value of a Fund’s total assets, will not be considered a violation of the restriction; provided, however, that the asset coverage requirement applicable to borrowings shall be maintained in the manner contemplated by applicable law. There is no assurance what portion, if any, of the Fund’s investments will qualify for the reduced federal income tax rates applicable to qualified dividends under the Code. As a result, there can be no assurance as to what portion of the Fund’s distributions will be designated as qualified dividend income. See “U.S. Federal Income Tax Matters.” RISK FACTORS An investment in the Fund’s shares is subject to risks. The value of the Fund’s investments will increase or decrease based on changes in the prices of the investments it holds. This will cause the value of the Fund’s shares to increase or decrease. You may lose part or all of your investment by investing in the Fund. By itself, the Fund does not constitute a balanced investment program. Before investing in the Fund you should consider carefully the following risks. There may be additional risks that the Fund does not currently foresee or consider material. You may wish to consult with your legal or tax advisers before deciding whether to invest in the Fund. Risks Related to an Investment in the Fund <p id="xdx_844_ecef--RiskTextBlock_hcef--RiskAxis__custom--MinimalCapitalizationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zXCuyI1V1Otd" style="font: 10pt Times New Roman, Times, Serif; margin: 0;text-align: justify">Minimal Capitalization Risk. There is a risk that the amount of capital actually raised by the Fund through the offering of its shares may be insufficient to achieve profitability or allow the Fund to realize its investment objective. An inability to raise additional capital may adversely affect the Fund’s financial condition, liquidity and results of operations, as well as its compliance with regulatory requirements. <p id="xdx_844_ecef--RiskTextBlock_hcef--RiskAxis__custom--LimitedOperatingHistoryMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zlMpf2JIHNFj" style="font: 10pt Times New Roman, Times, Serif; margin: 0;text-align: justify">Limited Operating History. The Fund is a closed-end investment company with a limited history of operations. The Fund may not be able to achieve its investment objective, including as a result of inopportune market or economic conditions. <p id="xdx_847_ecef--RiskTextBlock_hcef--RiskAxis__custom--AllocationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zPNHrejJFOvg" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Allocation Risk. The ability of the Fund to achieve its investment objective depends, in part, on the ability of the Adviser to allocate effectively the Fund’s assets among the various asset classes in which the Fund invests. There can be no assurance that the actual allocations will be effective in achieving the Fund’s investment objective or delivering positive returns. <p id="xdx_84D_ecef--RiskTextBlock_hcef--RiskAxis__custom--IssuerAndNonDiversificationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zAMcYdQvcUKe" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Issuer and Non-Diversification Risk. Specific securities can perform differently from the market as a whole for reasons related to the issuer, such as adherence to credit underwriting standards, servicing practices, and market perception of issuer quality. The Fund’s performance may be more sensitive to any single economic, business, political or regulatory occurrence than the value of shares of a diversified investment company because as a non-diversified fund, the Fund may invest more than 5% of its total assets in the securities of one or more issuers. <p id="xdx_84F_ecef--RiskTextBlock_hcef--RiskAxis__custom--LiquidityRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_z61CsFbdIqwc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Liquidity Risk. The Fund is a closed-end investment company structured as an “interval fund” and designed for long-term investors. Unlike many closed-end investment companies, the Fund’s shares are not listed on any securities exchange and are not publicly traded. There currently is no secondary market for the shares and the Adviser does not expect that a secondary market will develop. Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no less than 5% of the Fund’s shares outstanding at NAV. There is no guarantee that shareholders will be able to sell all of the shares they desire in a quarterly repurchase offer. The Fund’s investments are also subject to liquidity risk. Liquidity risk exists when particular investments of the Fund would be difficult to purchase or sell, possibly preventing the Fund from selling such illiquid securities at an advantageous time or price, or possibly requiring the Fund to dispose of other investments at unfavorable times or prices in order to satisfy its obligations. Funds with principal investment strategies that involve securities of companies with smaller market capitalizations, derivatives or securities with substantial market and/or credit risk tend to have the greatest exposure to liquidity risk. <p id="xdx_845_ecef--RiskTextBlock_hcef--RiskAxis__custom--ManagementRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zI1qLm5uK0dj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management Risk. The NAV of the Fund changes daily based on the performance of the securities in which it invests. The Adviser’s judgment about the attractiveness, value and potential appreciation of a particular security in which the Fund invests may prove to be incorrect and may not produce the desired results. <p id="xdx_846_ecef--RiskTextBlock_hcef--RiskAxis__custom--ChangesInTradeNegotiationsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zzCpA1aGhlah" style="font: 10pt Times New Roman, Times, Serif; margin: 0;text-align: justify">Changes in Trade Negotiations Risk. In recent years, the U.S. government has indicated its intent to alter its approach to international trade policy and in some cases to renegotiate, or potentially terminate, certain existing bilateral or multi-lateral trade agreements and treaties with foreign countries, and has made proposals and taken actions related thereto. Tariffs on imported goods could further increase costs, decrease margins, reduce the competitiveness of products and services offered by current and future issuers, obligors, or guarantors of the Fund’s portfolio securities and adversely affect the revenues and profitability of such companies whose businesses rely on goods imported from such impacted jurisdictions. <p id="xdx_84A_ecef--RiskTextBlock_hcef--RiskAxis__custom--HighlyVolatileMarketsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zm6UQRBmKyVa" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">Highly Volatile Markets Risk. The prices of instruments in which the Fund may invest are influenced by numerous factors, including interest rates, currency rates, default rates, governmental policies and political and economic events (both domestic and global). Moreover, political or economic crises, or other events may occur that can be highly disruptive to the markets in which the Fund may invest. In addition, governments from time to time intervene (directly and by regulation), which intervention may adversely affect the performance of the Fund and its investment activities. The Fund is also subject to the risk of a temporary or permanent failure of the exchanges and other markets on which its investments may trade. Sustained market turmoil and periods of heightened market volatility make it more difficult to produce positive trading results, and there can be no assurance that the Fund’s strategies will be successful in such markets. <p id="xdx_84A_ecef--RiskTextBlock_hcef--RiskAxis__custom--LegislationAndRegulatoryRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zdzwhWMrIcc9" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">Legislation and Regulatory Risk. New or amended regulations may be imposed by the Commodity Futures Trading Commission (the “CFTC”), the SEC, the Federal Reserve, the European Union (the “EU”) or other financial regulators, other governmental or intergovernmental regulatory authorities or self-regulatory organizations that supervise the financial markets, and could adversely affect the Fund. In particular, the CFTC and the SEC are empowered to promulgate a variety of new rules pursuant to financial reform legislation in the United States. The Fund also may be adversely affected by changes in the enforcement or interpretation of statutes and rules by these regulatory authorities or self-regulatory organizations. <p id="xdx_847_ecef--RiskTextBlock_hcef--RiskAxis__custom--MarketDisruptionsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zgGffkBE41K1" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">Market Disruptions Risk. The Fund may incur major losses in the event of market disruptions and other extraordinary events in which historical pricing relationships become materially distorted. The risk of loss from pricing distortions is compounded by the fact that in disrupted markets many positions become illiquid, making it difficult or impossible to close out positions against which the markets are moving. Market disruptions caused by unexpected political, military and terrorist events may from time to time cause dramatic losses for the Fund and such events can result in otherwise historically low-risk strategies performing with unprecedented volatility and risk. <p id="xdx_84F_ecef--RiskTextBlock_hcef--RiskAxis__custom--USDebtCeilingAndBudgetDeficitRisksMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zgomhhgjNiNc" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">U.S. Debt Ceiling and Budget Deficit Risks. U.S. debt ceiling and budget deficit concerns have increased the possibility of additional credit-rating downgrades and economic slowdowns, or a recession in the United States. Although U.S. lawmakers have historically passed legislation to raise the federal debt ceiling on multiple occasions, ratings agencies have lowered or threatened to lower the long-term sovereign credit rating on the United States. The impact of a U.S. default on its obligations or any further downgrades to the U.S. government’s sovereign credit rating or its perceived creditworthiness could adversely affect the U.S. and global financial markets and economic conditions. In addition, disagreement over the federal budget has caused the U.S. federal government to shut down for periods of time. Continued adverse political and economic conditions could have a material adverse effect on the Fund’s business, financial condition and results of operations. <p id="xdx_840_ecef--RiskTextBlock_hcef--RiskAxis__custom--FailureOfFinancialInstitutionsAndSustainedFinancialMarketIlliquidityMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zZddoTq6lcG8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Failure of Financial Institutions and Sustained Financial Market Illiquidity. The failure of certain financial institutions, namely banks, may increase the possibility of a sustained deterioration of financial market liquidity, or illiquidity at clearing, cash management and/or custodial financial institutions. The failure of a bank (or banks) with which the Fund and/or the Fund’s underlying investments have a commercial relationship could adversely affect, among other things, the Fund and/or the Fund’s underlying investments’ ability to pursue key strategic initiatives, including by affecting the Fund’s ability to borrow from financial institutions on favorable terms. <p id="xdx_843_ecef--RiskTextBlock_hcef--RiskAxis__custom--CorrelationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zqL88SnuDUo3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Correlation Risk. The Fund seeks to produce returns that are less correlated to the broader financial markets over time. Although the prices of equity securities and fixed income securities, as well as other asset classes, often rise and fall at different times so that a fall in the price of one may be offset by a rise in the price of the other, in down markets the prices of these securities and asset classes can also fall in tandem. Because the Fund allocates its investments among different asset classes, the Fund is subject to correlation risk. <p id="xdx_84F_ecef--RiskTextBlock_hcef--RiskAxis__custom--RepurchasePolicyRisksMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zgfNKGRX0Tnl" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Repurchase Policy Risks. Quarterly repurchases by the Fund of its shares typically will be funded from available cash or sales of portfolio securities. However, payment for repurchased shares may require the Fund to liquidate portfolio holdings earlier than the Adviser otherwise would liquidate such holdings, potentially resulting in losses, and may increase the Fund’s portfolio turnover. The Adviser may take measures to attempt to avoid or minimize such potential losses and turnover, and instead of liquidating portfolio holdings, may borrow money to finance repurchases of shares. If the Fund borrows to finance repurchases, interest on any such borrowing will negatively affect shareholders who do not tender their shares in a repurchase offer by increasing the Fund’s expenses and reducing any net investment income. To the extent the Fund finances repurchase proceeds by selling investments, the Fund may hold a larger proportion of its net assets in less liquid securities. Also, the sale of securities to fund repurchases could reduce the market price of those securities, which in turn would reduce the Fund’s NAV. Repurchase of shares will tend to reduce the amount of outstanding shares and, depending upon the Fund’s investment performance, its net assets. A reduction in the Fund’s net assets may increase the Fund’s expense ratio, to the extent that additional shares are not sold. In addition, the repurchase of shares by the Fund may be a taxable event to shareholders. If shareholders tender for repurchase more than the Repurchase Offer Amount for a given repurchase offer, the Fund will repurchase the shares on a pro rata basis, so shareholders may not be able to tender as many shares as they would like during any quarterly repurchase offer. <p id="xdx_842_ecef--RiskTextBlock_hcef--RiskAxis__custom--DistributionPolicyRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zcffLivrtPZf" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Distribution Policy Risk. The Fund’s distribution policy is to make monthly distributions to shareholders. All or a portion of a distribution may consist solely of a return of capital (i.e. from your original investment) and not a return of net profit. Shareholders should not assume that the source of a distribution from the Fund is net profit. Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares. <p id="xdx_844_ecef--RiskTextBlock_hcef--RiskAxis__custom--TaxRisksMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zliNXVFsY3kg" style="font: 10pt Times New Roman, Times, Serif; margin: 0;text-align: justify">Tax Risks. The repurchase of shares by the Fund may be a taxable event to shareholders. The Fund’s distribution policy to make monthly distributions to shareholders may consist of a return of capital. A return of capital distribution generally will not be taxable but will reduce the shareholder’s cost basis and result in a higher capital gain or lower capital loss when those shares on which the distribution was received are sold. Once a shareholder’s cost basis is reduced to zero, further distributions will be treated as capital gain, if the shareholder holds shares of the Fund as capital assets. <p id="xdx_844_ecef--RiskTextBlock_hcef--RiskAxis__custom--CybersecurityRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zIPDwBxDKwld" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cybersecurity Risk. Cybersecurity refers to the combination of technologies, processes and procedures established to protect information technology systems and data from unauthorized access, attack or damage. The Fund and its affiliates and third-party service providers are subject to cybersecurity risks. Cybersecurity risks have significantly increased in recent years and the Fund could suffer such losses in the future. The Fund’s and its affiliates’ and third-party service providers’ computer systems, software, and networks may be vulnerable to unauthorized access, computer viruses or other malicious code, and other events that could have a security impact. If one or more of such events occur, this potentially could jeopardize confidential and other information, including nonpublic personal information and sensitive business data, processed and stored in, and transmitted through, computer systems and networks, or otherwise cause interruptions or malfunctions in the Fund’s operations or the operations of their respective affiliates and third-party service providers. This could result in significant losses, reputational damage, litigation, regulatory fines or penalties, or otherwise adversely affect the Fund’s business, financial condition or results of operations. Privacy and information security laws and regulation changes, and compliance with those changes, may result in cost increases due to system changes and the development of new administrative processes. In addition, the Fund may be required to expend significant additional resources to modify the Fund’s protective measures and to investigate and remediate vulnerabilities or other exposures arising from operational and security risks. Risks Related to the Fund’s Investments <p id="xdx_84A_ecef--RiskTextBlock_hcef--RiskAxis__custom--UseOfLeverageByTheFundMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zy1caSoVCHKl" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Use of Leverage by the Fund. Although the Fund has the option to borrow, there are significant risks that may be assumed in connection with such borrowings. Investors in the Fund should consider the various risks of financial leverage, including, without limitation, the matters described below. There is no assurance that a leveraging strategy would be successful. Financial leverage involves risks and special considerations for shareholders including: (i) the likelihood of greater volatility of NAV of the shares than a comparable portfolio without leverage; (ii) the risk that fluctuations in interest rates on borrowings and short-term debt that the Fund must pay will reduce the return to the shareholders; (iii) the effect of financial leverage in a market experiencing rising interest rates, which would likely cause a greater decline in the NAV of the shares than if the Fund were not leveraged; and (iv) the potential for an increase in operating costs, which may reduce the Fund’s total return. In the event that the Fund would be required to sell assets at a loss, including in order to redeem or pay off any borrowing, such a sale would reduce the Fund’s NAV and may make it difficult for the NAV to recover. The Fund nevertheless may continue to use financial leverage if the Adviser expects that the benefits to the shareholders of maintaining the leveraged position likely would outweigh a resulting reduction in the current return. Certain types of borrowings by the Fund would result in the Fund being subject to covenants in credit agreements relating to asset coverage and Fund composition requirements that are more stringent than those currently imposed on the Fund by the 1940 Act. In addition, borrowings by the Fund may be made on a secured basis. The Custodian will then either segregate the assets securing the Fund’s borrowings for the benefit of the Fund’s lenders or arrangements will be made with a suitable sub-custodian. If the assets used to secure a borrowing decrease in value, the Fund may be required to pledge additional collateral to the lender in the form of cash or securities to avoid liquidation of those assets. In the event of a default, the lenders will have the right, through the Custodian, to redeem the Fund’s investments in underlying Investment Funds without consideration of whether doing so would be in the best interests of the Fund’s shareholders. The rights of any lenders to the Fund to receive payments of interest on and repayments of principal of borrowings will be senior to the rights of the Fund’s shareholders, and the terms of the Fund’s borrowings may contain provisions that limit certain activities of the Fund and could result in precluding the purchase of instruments that the Fund would otherwise purchase. The use of financial leverage involves financial risk and would increase the exposure of the Fund’s investment returns to adverse economic factors such as rising interest rates, downturns in the economy or deterioration in the condition of the investments. There would be a risk that operating cash flow available to the Fund would be insufficient to meet required payments and a risk that it would not be possible to refinance existing indebtedness or that the terms of such refinancing would not be as favorable as the terms of existing indebtedness. Borrowings by the Fund may be secured by any or all of the assets of the Fund, with the consequences that the Fund may lose more than its equity stake in any one investment, and may lose all of its capital. <p id="xdx_84F_ecef--RiskTextBlock_hcef--RiskAxis__custom--InvestmentsInBankLoansAndParticipationsMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zxRj6i4bmLy8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Investments in Bank Loans and Participations. The special risks associated with investing in bank loans and participations include: (i) the possible invalidation of an investment transaction as a fraudulent conveyance under relevant creditors’ rights laws; (ii) environmental liabilities that may arise with respect to collateral securing the obligations; (iii) adverse consequences resulting from participating in such instruments with other institutions with lower credit quality; (iv) limitations on the ability of the Fund to directly enforce any of their respective rights with respect to participations; and (v) generation of income that is subject to U.S. federal income taxation as income effectively connected with a U.S. trade or business. The Fund will attempt to balance the magnitude of these risks against the potential investment gain prior to entering into each such investment. Successful claims by third parties arising from these and other risks, absent bad faith, may be borne by the Funds. Bank loans do not presently have the liquidity of conventional debt securities and are often subject to restrictions on resale. Due to the illiquidity of bank loans, the Fund may not be able to dispose of its investments in bank loans in a timely fashion and at a fair price, which could adversely affect the performance of the Fund. With respect to bank loans acquired as participations by the Fund, because the holder of a participation generally has no contractual relationship with a borrower, the Fund will have to rely upon a third party to pursue appropriate remedies against a borrower in the event of a default. As a result, the Fund may be subject to delays, expenses and risks that are greater than those that would be involved if the Fund could enforce its rights directly against a borrower or through the agent. Furthermore, a borrower of a bank loan, in some cases, may prepay the bank loan. Prepayments could adversely affect the Fund’s interest income to the extent that the Fund is unable to reinvest promptly payments in bank loans or otherwise or if such prepayments were made during a period of declining interest rates. <p id="xdx_84E_ecef--RiskTextBlock_hcef--RiskAxis__custom--AssetBackedSecuritieMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zdFo9g0d0rR3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Asset-backed securities. Asset-backed securities often involve risks that are different from risks associated with other types of debt instruments. For instance, asset-backed securities may be particularly sensitive to changes in prevailing interest rates. In addition, the underlying assets may be subject to prepayments that shorten the securities’ weighted average maturity and may lower their return. Similarly, ABS may be subject to defaults that result in the loss of principal and/or a downgrade of credit rating reducing the market value of the investment. Delinquencies and defaults are likely to increase during periods of economic decline or distress, but also occur during periods of economic growth. Asset-backed securities are also subject to risks associated with their structure and the nature of the assets underlying the security and the servicing of those assets. Payment of interest and repayment of principal on asset-backed securities is largely dependent upon the cash flows generated by the assets backing the securities and, in certain cases, supported by letters of credit, surety bonds or other credit enhancements. The values of asset-backed securities may be substantially dependent on the servicing of the underlying asset pools, and are therefore subject to risks associated with the negligence by, or defalcation of, their servicers. Furthermore, debtors may be entitled to the protection of a number of state and federal consumer credit laws with respect to the assets underlying these securities, which may give the debtor the right to avoid or reduce payment. In addition, due to their often complicated structures, various asset-backed securities may be difficult to value and may constitute illiquid investments. If many borrowers on the underlying loans or other obligations default, losses could exceed the credit enhancement level and result in losses to investors in asset-backed securities. An investment in subordinated (residual) classes of asset-backed securities (sometimes referred to as “equity”) is typically considered to be an illiquid and highly speculative investment, as losses on the underlying assets are first absorbed by the subordinated classes. The risks associated with an investment in such subordinated classes of asset-backed securities include credit risk and liquidity risk. <p id="xdx_849_ecef--RiskTextBlock_hcef--RiskAxis__custom--MortgageBackedSecuritieMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zdONzqtb7mX4" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mortgage-backed securities. The investment characteristics of mortgage-backed securities differ from traditional debt securities. Among the major differences are that interest and principal payments are made more frequently, usually monthly, and that the principal may be prepaid at any time because the underlying loans or other assets generally may be prepaid at any time. The frequency at which prepayments (including voluntary prepayments by the obligors and liquidations due to default and foreclosures) occur on loans underlying mortgage-backed securities will be affected by a variety of factors including the prevailing level of interest rates as well as the availability of mortgage credit, the relative economic vitality of the area in which the related properties are located, the servicing of the mortgage loans, possible changes in tax laws, other opportunities for investment, homeowner mobility and other economic, social, geographic, demographic and legal factors. In general, any factors that increase the attractiveness of selling a mortgaged property or refinancing a mortgage loan, enhance a borrower’s ability to sell or refinance or increase the likelihood of default under a mortgage loan, would be expected to cause the rate of prepayment in respect of a pool of mortgage loans to accelerate. Particular investments may experience outright losses, as in the case of an interest only security in an environment of faster actual or anticipated prepayments. Also, particular investment may underperform relative to hedges that a portfolio manager may have constructed for these investments, resulting in a loss. In contrast, any factors having an opposite effect would be expected to cause the rate of prepayment of a pool of mortgage loans to slow. The rate of prepayment on a pool of mortgage loans is likely to be affected by prevailing market interest rates for mortgage loans of a comparable type, term and risk level. When the prevailing market interest rate is below a mortgage coupon, a borrower generally has an increased incentive to refinance its mortgage loan. Even in the case of adjustable rate mortgage loans, as prevailing market interest rates decline, and without regard to whether the mortgage rates on such loans decline in a manner consistent therewith, the related borrowers may have an increased incentive to refinance for purposes of either (i) converting to a fixed rate loan and thereby “locking in” such rate or (ii) taking advantage of a different index, margin or rate cap or floor on another adjustable rate mortgage loan. Therefore, as prevailing market interest rates decline, prepayment speeds would be expected to accelerate. An investment in subordinated classes of mortgage-backed securities (sometimes referred to as “equity” or “b-piece”) is typically considered to be an illiquid and highly speculative investment, as losses on the underlying assets are first absorbed by the subordinated classes. The risks associated with an investment in such subordinated classes of asset-backed securities include credit risk and liquidity risk. In the case of a mortgage-backed security related to multifamily or commercial loans, prevailing market interest rates, the outlook for market interest rates and economic conditions generally may cause some borrowers to refinance or sell their properties in order to realize their equity therein, lower their financing costs, to meet cash flow needs or to make other investments. In addition, some borrowers may be motivated by U.S. federal and state tax laws (which are subject to change) to sell their properties prior to the exhaustion of tax depreciation benefits. <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top">○</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Residential Mortgage-Backed Securities. RMBS are mortgage-backed securities that may be secured by interests in a single residential mortgage loan or a pool of mortgage loans secured by residential property. RMBS may be senior, subordinate, interest-only, principal-only, investment-grade, non-investment grade or unrated. The Fund may acquire RMBS from private originators as well as from other mortgage loan investors, including savings and loan associations, mortgage bankers, commercial banks, finance companies and investment banks. The credit quality of any RMBS issue depends primarily on the credit quality of the underlying mortgage loans. Each of these types of RMBS may</td> </tr> </table> be impacted differently by changes in the behavior of the underlying borrower. For example, an acceleration of prepayment rates may adversely affect the performance of senior or subordinate RMBS purchased at premium to par or interest-only RMBS, while positively impacting those positions purchased at a discount to par or principal-only RMBS. Prepayment, delinquency, default, and foreclosure rates may affect the performance of RMBS. Factors in the underlying mortgages such as the FICO score of the borrower, the loan to value of the loan, the change in the borrower’s home price, and other various factors may influence the likelihood of prepayment, delinquency, default, and/or foreclosure. As such, the Fund’s investment in RMBS is more sensitive to economic factors that impact the value of residential real estate, the borrower’s ability to repay their mortgage, and the broad availability of consumer credit. At any one time, a portfolio of mortgage-backed securities may be backed by residential mortgage loans with disproportionately large aggregate principal amounts secured by properties in only a few states or regions. As a result, the residential mortgage loans may be more susceptible to geographic risks relating to such areas, such as adverse economic conditions, adverse events affecting industries located in such areas and natural hazards affecting such areas, than would be the case for a pool of mortgage loans having more diverse property locations. <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top">○</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Commercial Mortgage-Backed Securities. CMBS are fixed income instruments that are secured by mortgage loans on commercial real property. CMBS typically take the form of multi-class debt or pass-through certificates secured by mortgage loans on commercial properties. They generally are structured to provide protection to investors in senior tranches against potential losses on the underlying mortgage loans. Such protection generally is provided by causing holders of subordinated classes of securities (“Subordinated CMBS”) to take the first loss in the event of defaults on the underlying commercial mortgage loans. Other protection, which may benefit all of the classes or particular classes, may include issuer guarantees, reserve funds, additional Subordinated CMBS, cross-collateralization and over-collateralization. The Fund may invest in CMBS or Subordinated CMBS.</td> </tr> </table> Mortgage loans on commercial properties underlying mortgage-backed securities often are structured so that a substantial portion of the loan principal is not amortized over the loan term but is payable at maturity and repayment of the loan principal thus often depends upon the future availability of real estate financing from the existing or an alternative lender and/or upon the current value and salability of the real estate. Therefore, the unavailability of real estate financing may lead to default. Most commercial mortgage loans underlying mortgage-backed securities are effectively nonrecourse obligations of the borrower, meaning that there is no recourse against the borrower’s assets other than the collateral. If borrowers are not able or willing to refinance or dispose of encumbered property to pay the principal and interest owed on such mortgage loans, payments on the subordinated classes of the related mortgage-backed securities are likely to be adversely affected. The ultimate extent of the loss, if any, to the subordinated classes of mortgage-backed securities may only be determined after a negotiated discounted settlement, restructuring or sale of the mortgage note, or the foreclosure (or deed in lieu of foreclosure) of the mortgage encumbering the property and subsequent liquidation of the property. Especially in the case of a mortgage-backed security related to commercial mortgage loans, the rate of principal payments on the loans in the related pool will also be affected by the nature and extent of any restrictions on prepayments that are set forth in the mortgage loans, and the extent to which such provisions may be enforced. Such restrictions may include a prohibition on prepayments for specified periods of time and/or requirements that principal prepayments be accompanied by the payment of prepayment penalties or be subject to yield maintenance premiums. <p id="xdx_844_ecef--RiskTextBlock_hcef--RiskAxis__custom--ResidentialLoansAndMortgagesRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zn0kUKUawG71" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Residential Loans and Mortgages Risk. In addition to interest rate, default and other risks of fixed income securities, investments in whole loans and debt instruments backed by residential loans or mortgages (or pools of loans or mortgages) carry additional risks, including the possibility that the quality of the collateral may decline in value and the potential for the liquidity of residential loans and mortgages to vary over time. These risks are greater for subprime residential and mortgage loans. Because they do not trade in a liquid market, residential loans can typically only be sold to a limited universe of institutional investors and may be difficult for the Fund to value. In addition, in the event that a loan is foreclosed on, the Fund could become the owner (in whole or in part) of any collateral, which may include, among other things, real estate or other real or personal property, and the Fund would bear the costs and liabilities of owning, holding or disposing of such property. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--DistressedAndDefaultedInvestmentsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zjZEo6S4Ikkb" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Distressed and Defaulted Investments Risk. Investments in obligations of financially distressed obligors involve substantial risks. These obligations may present a substantial risk of default or may be in default at the time of investment. The Fund may incur additional expenses to the extent it is required to seek recovery upon a default in the payment of principal or interest on its portfolio holdings. To the extent the Fund invests in mortgage loans that are in default, the Fund may not be able to repossess and sell the underlying properties in a timely manner. The resulting time delay could reduce the value of the investment in the defaulted mortgage loans. In any reorganization or liquidation proceeding relating to an obligor, the Fund may lose its entire investment or may be required to accept cash or securities with a value less than its original investment. Among the risks inherent in investments in a troubled obligor is the fact that it frequently may be difficult to obtain information as to the obligor’s true financial condition. The Adviser’s judgment about the credit quality of an obligor and the relative value and liquidity of its investments may prove to be wrong. <p id="xdx_845_ecef--RiskTextBlock_hcef--RiskAxis__custom--USGovernmentObligationsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zMOaYnl7dz38" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">U.S. Government Obligations Risk. U.S. Treasury obligations are backed by the “full faith and credit” of the U.S. government and generally have negligible credit risk. Securities issued or guaranteed by federal agencies or authorities and U.S. government-sponsored instrumentalities or enterprises may or may not be backed by the full faith and credit of the U.S. government. The Fund may be subject to such risk to the extent it invests in securities issued or guaranteed by federal agencies or authorities and U.S. government-sponsored instrumentalities or enterprises. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--CollateralizedLoanObligationsCLOsAndCollateralizedDebtObligationsCDOsMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zZgAIPXdJWLj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Collateralized Loan Obligations (“CLOs”) and Collateralized Debt Obligations (“CDOs”). The Fund’s investments may include CDOs and/or CLOs which are subject to the following risks: (i) distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) CDOs and/or CLOs typically will have no significant underlying assets other than their underlying senior secured debt obligations or loans and payments on the CDOs and/or CLOs are and will be payable solely from the cash flows from such senior secured debt obligations and/or loans; (iv) the complex structure of the CDOs and/or CLOs and their interests may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results; (v) CDOs and/or CLOs are typically highly levered, and therefore the CDO and/or CLO interests that the Fund may invest in are subject to a higher risk of total loss; (vi) investments in CDOs and/or CLOs may be riskier and less transparent to us and our Shareholders than direct investments in the underlying companies; (vii) the potential for interruption and deferral of cash flow to our investments in the equity and junior debt tranches of CDOs and/or CLOs; (viii) interests in CDOs and/or CLOs may be illiquid; (ix) investments in foreign CDOs and/or CLOs may involve significant risks in addition to the risks inherent in U.S. CDOs and/or CLOs; (x) we may invest with collateral managers that have no or limited performance or operating history; (xi) the inability of a CDO or CLO collateral manager to reinvest the proceeds of any prepayments may adversely affect us; (xii) the loans underlying the CDOs and/or CLOS may be sold and replaced resulting in a loss to us; (xiii) we may not have direct rights against the underlying borrowers or obligors comprising the CDOs and/or CLOs’ investments or the entities that sponsored the CDOs and/or CLOs; and (xiv) investments in equity and junior debt tranches of CDOs and/or CLOs will likely be subordinate to the other debt tranches of such CDOs and/or CLOs, and are subject to a higher degree of risk of total loss. <p id="xdx_84A_ecef--RiskTextBlock_hcef--RiskAxis__custom--ValuationOfPrivateInvestmentsMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zXOoiNPVClWi" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Valuation of Private Investments. Some of the Fund’s investments are not publicly traded, and the Fund may consider information provided by the trustee, servicer, and other third party services provides with respect to each private investment to determine the estimated value of the Fund’s investment therein. The valuation as of a specific date may vary from the actual sale price that may be obtained if such investment were sold to a third party. To determine the estimated value of the Fund’s investment in private investments, the Fund considers, among other things, information provided by the private investments, including monthly or quarterly unaudited financial statements, which if inaccurate could adversely affect the Fund’s ability to value accurately the Fund’s investment. <p id="xdx_84E_ecef--RiskTextBlock_hcef--RiskAxis__custom--FixedIncomeRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zftKkZBdArT" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fixed Income Risk. The value of investments in fixed income securities will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities. In general, the market price of debt securities with longer maturities will increase or decrease more in response to changes in interest rates than shorter-term securities. Other risk factors include credit risk (the debtor may default) and prepayment risk (the debtor may pay its obligation early, reducing the amount of interest payments). These risks could affect the value of a particular investment, possibly causing the Fund’s share price and total return to be reduced and fluctuate more than other types of investments. <p id="xdx_843_ecef--RiskTextBlock_hcef--RiskAxis__custom--HighYieldAndUnratedSecuritiesRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zagFIuqWwqU1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">High Yield and Unrated Securities Risk. These securities are speculative investments that carry greater risks and are more susceptible to real or perceived adverse economic and competitive industry conditions than higher quality securities. High yield securities offer the potential for higher return, but also involve greater risk than bonds of higher quality, including an increased possibility that the security’s issuer, obligor or guarantor may not be able to make its payments of interest and principal (credit quality risk). If that happens, the value of the security may decrease. An economic downturn or period of rising interest rates (interest rate risk) could adversely affect the market for these securities and reduce the Fund’s ability to sell its securities (liquidity risk). Such securities also may be subject to resale restrictions. The lack of a liquid market for these securities could decrease the Fund’s share price. The risks associated with unrated securities can be similar to the risks of below investment grade securities. In addition, the determination of credit quality for an unrated security is based largely on the credit analysis performed by the Adviser, and not on rating agency evaluation. This analysis may be difficult to perform because information about these securities may not be in the public domain, and the issuers may not subject to reporting requirements under federal securities laws. <p id="xdx_840_ecef--RiskTextBlock_hcef--RiskAxis__custom--InterestsRateRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zX2WxzuDH3kc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Interest Rate Risk. The fixed-income instruments in which the Fund may invest are subject to the risk that market values of such securities will decline as interest rates increase. These changes in interest rates have a more pronounced effect on securities with longer durations. Typically, the impact of changes in interest rates on the market value of an instrument will be more pronounced for fixed-rate instruments, such as most mortgage bonds, than it will for floating rate instruments. Fluctuations in the value of portfolio securities will not affect interest income on existing portfolio securities but will be reflected in the Fund’s NAV. After a period of historically low interest rates, the Federal Reserve has raised certain benchmark interest rates. It cannot be predicted with certainty when, or how, these policies will change, but actions by the Federal Reserve and other central bankers may have a significant effect on interest rates and on the U.S. and world economies generally. Market volatility, rising interest rates, uncertainty around interest rates and/or unfavorable economic conditions could adversely affect our business. Fixed-income instruments that bear floating rate coupons may experience less price volatility related to changes in interest rates than those instruments that have a fixed-rate coupon. Floating rate instruments may experience changes in price related to interest rates based on the length of time between reset periods and the relative movement of the reference rate for the security versus the change in broader interest rate markets. Additionally, changes in interest rates may adversely impact the underlying borrower’s ability to repay as interest costs may rise sharply during periods of rising rates. As such, floating-rate securities may experience a larger change in credit risk than fixed-rate securities which may have an adverse impact on their price relative to fixed-rate securities. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--InflationDeflationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_z09LXY39ReGl" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inflation/Deflation Risk Inflation risk is the risk that the value of certain assets or income from the Fund’s investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the real value of the Fund and its distributions can decline. In addition, during any periods of rising inflation, the Fund’s operating costs and the borrowing costs associated with the Fund’s use of leverage would likely increase, which would tend to further reduce returns to shareholders. Deflation risk is the risk that prices throughout the economy decline over time—the opposite of inflation. Deflation may have an adverse effect on the creditworthiness of issuers and may make issuer defaults more likely, which may result in a decline in the value of the Fund’s portfolio. These risks may be heightened in the current economic environment due to recent monetary policy measures, tariffs and other trade policies, and shifts in interest rate trends. <p id="xdx_842_ecef--RiskTextBlock_hcef--RiskAxis__custom--DerivativesRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zfDXGowvf9P2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Derivatives Risk. The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Derivatives are subject to a number of risks, such as liquidity risk (which may be heightened for highly-customized derivatives), interest rate risk, market risk, credit risk, leveraging risk, counterparty risk, tax risk, and management risk, as well as risks arising from changes in applicable requirements. They also involve the risk of mispricing, the risk of unfavorable or ambiguous documentation and the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. The Fund’s use of derivatives may increase or accelerate the amount of taxes payable by common shareholders. <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: right; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: left; vertical-align: top">●</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Swaps Risk. The Fund’s use of swaps involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments and exposes the Fund to the risks associated with derivative instruments described above. In a standard “swap” transaction, two parties agree to exchange the returns, differentials in rates of return or some other amount earned or realized on the “notional amount” of predetermined investments or instruments, which may be adjusted for an interest factor. Swaps can involve greater risks than direct investment in securities, because swaps may be leveraged and subject to counterparty risk (e.g., the risk of a counterparty’s defaulting on the obligation or bankruptcy), credit risk and pricing risk (i.e., swaps may be difficult to value). Swaps are also subject to non-correlation risk because they may not be perfect substitutes for the instruments they are intended to hedge or replace. Swaps may also be considered illiquid. It may not be possible for the Fund to liquidate a swap position at an advantageous time or price, which may result in significant losses.</td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top">●</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Futures Risk. The Fund’s use of futures involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. These risks include (i) leverage risk (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the futures contract may not correlate perfectly with the underlying index. Investments in futures involve leverage, which means a small percentage of assets invested in futures can have a disproportionately large impact on the Fund. This risk could cause the Fund to lose more than the principal amount invested. Futures contracts may become mispriced or improperly valued when compared to the adviser’s expectation and may not produce the desired investment results. Additionally, changes in the value of futures contracts may not track or correlate perfectly with the underlying index because of temporary, or even long-term, supply and demand imbalances and because futures do not pay dividends unlike the stocks upon which they are based.</td> </tr> </table> Risks Associated with Debt Financing <p id="xdx_849_ecef--RiskTextBlock_hcef--RiskAxis__custom--LeveragingRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zfvRMSp7Uf5c" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Leveraging Risk. The use of leverage, such as borrowing money to purchase securities, by the Fund will magnify the Fund’s gains or losses. The use of leverage short positions in futures contracts will also magnify the Fund’s gains or losses. Generally, the use of leverage also will cause the Fund to have higher expenses (especially interest related dividend expenses) than those of funds that do not use such techniques. In addition, a lender to the Fund may terminate or refuse to renew any credit facility. If the Fund is unable to access additional credit, it may be forced to sell investments at inopportune times, which may further depress the returns on the Fund. The Fund may borrow no more than 33 1/3% of the value of the Fund’s total assets, including the value of the assets purchased with the proceeds of its indebtedness, if any. <p id="xdx_842_ecef--RiskTextBlock_hcef--RiskAxis__custom--CreditRisksMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zFqB7yjYCrRh" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Credit Risk. There is a risk that debt issuers will not make payments, resulting in losses to the Fund. In addition, the credit quality of securities may be lowered if an issuer’s financial condition changes. Lower credit quality may lead to greater volatility in the price of a security and in shares of the Fund. Lower credit quality also may affect liquidity and make it difficult to sell the security. Default, or the market’s perception that an issuer is likely to default, could reduce the value and liquidity of securities, thereby reducing the value of your investment in Fund shares. In addition, default may cause the Fund to incur expenses in seeking recovery of principal or interest on its portfolio holdings. Possible Risk of Conflicts <p id="xdx_84B_ecef--RiskTextBlock_hcef--RiskAxis__custom--AllocationOfInvestmentOpportunitiesRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zLFgmnTcY4A4" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Allocation of Investment Opportunities Risk. The Adviser, directly or through its affiliates, may manage or advise multiple investment vehicles or accounts that have investment objectives that are similar to the Fund and that may seek to make investments or sell investments in the same securities or other instruments, sectors or strategies as the Fund. This may create potential conflicts, particularly in circumstances where the availability of such investment opportunities is limited or where the liquidity of such investment opportunities is limited. The results of the Fund’s investment activities may differ significantly from the results achieved by such other managed investment vehicles or accounts. It is possible that one or more of such vehicles or accounts will achieve investment results that are substantially more or less favorable than the results achieved by the Fund. <p id="xdx_844_ecef--RiskTextBlock_hcef--RiskAxis__custom--MinimalCapitalizationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zXCuyI1V1Otd" style="font: 10pt Times New Roman, Times, Serif; margin: 0;text-align: justify">Minimal Capitalization Risk. There is a risk that the amount of capital actually raised by the Fund through the offering of its shares may be insufficient to achieve profitability or allow the Fund to realize its investment objective. An inability to raise additional capital may adversely affect the Fund’s financial condition, liquidity and results of operations, as well as its compliance with regulatory requirements. <p id="xdx_844_ecef--RiskTextBlock_hcef--RiskAxis__custom--LimitedOperatingHistoryMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zlMpf2JIHNFj" style="font: 10pt Times New Roman, Times, Serif; margin: 0;text-align: justify">Limited Operating History. The Fund is a closed-end investment company with a limited history of operations. The Fund may not be able to achieve its investment objective, including as a result of inopportune market or economic conditions. <p id="xdx_847_ecef--RiskTextBlock_hcef--RiskAxis__custom--AllocationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zPNHrejJFOvg" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Allocation Risk. The ability of the Fund to achieve its investment objective depends, in part, on the ability of the Adviser to allocate effectively the Fund’s assets among the various asset classes in which the Fund invests. There can be no assurance that the actual allocations will be effective in achieving the Fund’s investment objective or delivering positive returns. <p id="xdx_84D_ecef--RiskTextBlock_hcef--RiskAxis__custom--IssuerAndNonDiversificationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zAMcYdQvcUKe" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Issuer and Non-Diversification Risk. Specific securities can perform differently from the market as a whole for reasons related to the issuer, such as adherence to credit underwriting standards, servicing practices, and market perception of issuer quality. The Fund’s performance may be more sensitive to any single economic, business, political or regulatory occurrence than the value of shares of a diversified investment company because as a non-diversified fund, the Fund may invest more than 5% of its total assets in the securities of one or more issuers. <p id="xdx_84F_ecef--RiskTextBlock_hcef--RiskAxis__custom--LiquidityRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_z61CsFbdIqwc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Liquidity Risk. The Fund is a closed-end investment company structured as an “interval fund” and designed for long-term investors. Unlike many closed-end investment companies, the Fund’s shares are not listed on any securities exchange and are not publicly traded. There currently is no secondary market for the shares and the Adviser does not expect that a secondary market will develop. Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no less than 5% of the Fund’s shares outstanding at NAV. There is no guarantee that shareholders will be able to sell all of the shares they desire in a quarterly repurchase offer. The Fund’s investments are also subject to liquidity risk. Liquidity risk exists when particular investments of the Fund would be difficult to purchase or sell, possibly preventing the Fund from selling such illiquid securities at an advantageous time or price, or possibly requiring the Fund to dispose of other investments at unfavorable times or prices in order to satisfy its obligations. Funds with principal investment strategies that involve securities of companies with smaller market capitalizations, derivatives or securities with substantial market and/or credit risk tend to have the greatest exposure to liquidity risk. <p id="xdx_845_ecef--RiskTextBlock_hcef--RiskAxis__custom--ManagementRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zI1qLm5uK0dj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management Risk. The NAV of the Fund changes daily based on the performance of the securities in which it invests. The Adviser’s judgment about the attractiveness, value and potential appreciation of a particular security in which the Fund invests may prove to be incorrect and may not produce the desired results. <p id="xdx_846_ecef--RiskTextBlock_hcef--RiskAxis__custom--ChangesInTradeNegotiationsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zzCpA1aGhlah" style="font: 10pt Times New Roman, Times, Serif; margin: 0;text-align: justify">Changes in Trade Negotiations Risk. In recent years, the U.S. government has indicated its intent to alter its approach to international trade policy and in some cases to renegotiate, or potentially terminate, certain existing bilateral or multi-lateral trade agreements and treaties with foreign countries, and has made proposals and taken actions related thereto. Tariffs on imported goods could further increase costs, decrease margins, reduce the competitiveness of products and services offered by current and future issuers, obligors, or guarantors of the Fund’s portfolio securities and adversely affect the revenues and profitability of such companies whose businesses rely on goods imported from such impacted jurisdictions. <p id="xdx_84A_ecef--RiskTextBlock_hcef--RiskAxis__custom--HighlyVolatileMarketsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zm6UQRBmKyVa" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">Highly Volatile Markets Risk. The prices of instruments in which the Fund may invest are influenced by numerous factors, including interest rates, currency rates, default rates, governmental policies and political and economic events (both domestic and global). Moreover, political or economic crises, or other events may occur that can be highly disruptive to the markets in which the Fund may invest. In addition, governments from time to time intervene (directly and by regulation), which intervention may adversely affect the performance of the Fund and its investment activities. The Fund is also subject to the risk of a temporary or permanent failure of the exchanges and other markets on which its investments may trade. Sustained market turmoil and periods of heightened market volatility make it more difficult to produce positive trading results, and there can be no assurance that the Fund’s strategies will be successful in such markets. <p id="xdx_84A_ecef--RiskTextBlock_hcef--RiskAxis__custom--LegislationAndRegulatoryRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zdzwhWMrIcc9" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">Legislation and Regulatory Risk. New or amended regulations may be imposed by the Commodity Futures Trading Commission (the “CFTC”), the SEC, the Federal Reserve, the European Union (the “EU”) or other financial regulators, other governmental or intergovernmental regulatory authorities or self-regulatory organizations that supervise the financial markets, and could adversely affect the Fund. In particular, the CFTC and the SEC are empowered to promulgate a variety of new rules pursuant to financial reform legislation in the United States. The Fund also may be adversely affected by changes in the enforcement or interpretation of statutes and rules by these regulatory authorities or self-regulatory organizations. <p id="xdx_847_ecef--RiskTextBlock_hcef--RiskAxis__custom--MarketDisruptionsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zgGffkBE41K1" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">Market Disruptions Risk. The Fund may incur major losses in the event of market disruptions and other extraordinary events in which historical pricing relationships become materially distorted. The risk of loss from pricing distortions is compounded by the fact that in disrupted markets many positions become illiquid, making it difficult or impossible to close out positions against which the markets are moving. Market disruptions caused by unexpected political, military and terrorist events may from time to time cause dramatic losses for the Fund and such events can result in otherwise historically low-risk strategies performing with unprecedented volatility and risk. <p id="xdx_84F_ecef--RiskTextBlock_hcef--RiskAxis__custom--USDebtCeilingAndBudgetDeficitRisksMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zgomhhgjNiNc" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">U.S. Debt Ceiling and Budget Deficit Risks. U.S. debt ceiling and budget deficit concerns have increased the possibility of additional credit-rating downgrades and economic slowdowns, or a recession in the United States. Although U.S. lawmakers have historically passed legislation to raise the federal debt ceiling on multiple occasions, ratings agencies have lowered or threatened to lower the long-term sovereign credit rating on the United States. The impact of a U.S. default on its obligations or any further downgrades to the U.S. government’s sovereign credit rating or its perceived creditworthiness could adversely affect the U.S. and global financial markets and economic conditions. In addition, disagreement over the federal budget has caused the U.S. federal government to shut down for periods of time. Continued adverse political and economic conditions could have a material adverse effect on the Fund’s business, financial condition and results of operations. <p id="xdx_840_ecef--RiskTextBlock_hcef--RiskAxis__custom--FailureOfFinancialInstitutionsAndSustainedFinancialMarketIlliquidityMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zZddoTq6lcG8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Failure of Financial Institutions and Sustained Financial Market Illiquidity. The failure of certain financial institutions, namely banks, may increase the possibility of a sustained deterioration of financial market liquidity, or illiquidity at clearing, cash management and/or custodial financial institutions. The failure of a bank (or banks) with which the Fund and/or the Fund’s underlying investments have a commercial relationship could adversely affect, among other things, the Fund and/or the Fund’s underlying investments’ ability to pursue key strategic initiatives, including by affecting the Fund’s ability to borrow from financial institutions on favorable terms. <p id="xdx_843_ecef--RiskTextBlock_hcef--RiskAxis__custom--CorrelationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zqL88SnuDUo3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Correlation Risk. The Fund seeks to produce returns that are less correlated to the broader financial markets over time. Although the prices of equity securities and fixed income securities, as well as other asset classes, often rise and fall at different times so that a fall in the price of one may be offset by a rise in the price of the other, in down markets the prices of these securities and asset classes can also fall in tandem. Because the Fund allocates its investments among different asset classes, the Fund is subject to correlation risk. <p id="xdx_84F_ecef--RiskTextBlock_hcef--RiskAxis__custom--RepurchasePolicyRisksMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zgfNKGRX0Tnl" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Repurchase Policy Risks. Quarterly repurchases by the Fund of its shares typically will be funded from available cash or sales of portfolio securities. However, payment for repurchased shares may require the Fund to liquidate portfolio holdings earlier than the Adviser otherwise would liquidate such holdings, potentially resulting in losses, and may increase the Fund’s portfolio turnover. The Adviser may take measures to attempt to avoid or minimize such potential losses and turnover, and instead of liquidating portfolio holdings, may borrow money to finance repurchases of shares. If the Fund borrows to finance repurchases, interest on any such borrowing will negatively affect shareholders who do not tender their shares in a repurchase offer by increasing the Fund’s expenses and reducing any net investment income. To the extent the Fund finances repurchase proceeds by selling investments, the Fund may hold a larger proportion of its net assets in less liquid securities. Also, the sale of securities to fund repurchases could reduce the market price of those securities, which in turn would reduce the Fund’s NAV. Repurchase of shares will tend to reduce the amount of outstanding shares and, depending upon the Fund’s investment performance, its net assets. A reduction in the Fund’s net assets may increase the Fund’s expense ratio, to the extent that additional shares are not sold. In addition, the repurchase of shares by the Fund may be a taxable event to shareholders. If shareholders tender for repurchase more than the Repurchase Offer Amount for a given repurchase offer, the Fund will repurchase the shares on a pro rata basis, so shareholders may not be able to tender as many shares as they would like during any quarterly repurchase offer. <p id="xdx_842_ecef--RiskTextBlock_hcef--RiskAxis__custom--DistributionPolicyRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zcffLivrtPZf" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Distribution Policy Risk. The Fund’s distribution policy is to make monthly distributions to shareholders. All or a portion of a distribution may consist solely of a return of capital (i.e. from your original investment) and not a return of net profit. Shareholders should not assume that the source of a distribution from the Fund is net profit. Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares. <p id="xdx_844_ecef--RiskTextBlock_hcef--RiskAxis__custom--TaxRisksMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zliNXVFsY3kg" style="font: 10pt Times New Roman, Times, Serif; margin: 0;text-align: justify">Tax Risks. The repurchase of shares by the Fund may be a taxable event to shareholders. The Fund’s distribution policy to make monthly distributions to shareholders may consist of a return of capital. A return of capital distribution generally will not be taxable but will reduce the shareholder’s cost basis and result in a higher capital gain or lower capital loss when those shares on which the distribution was received are sold. Once a shareholder’s cost basis is reduced to zero, further distributions will be treated as capital gain, if the shareholder holds shares of the Fund as capital assets. <p id="xdx_844_ecef--RiskTextBlock_hcef--RiskAxis__custom--CybersecurityRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zIPDwBxDKwld" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cybersecurity Risk. Cybersecurity refers to the combination of technologies, processes and procedures established to protect information technology systems and data from unauthorized access, attack or damage. The Fund and its affiliates and third-party service providers are subject to cybersecurity risks. Cybersecurity risks have significantly increased in recent years and the Fund could suffer such losses in the future. The Fund’s and its affiliates’ and third-party service providers’ computer systems, software, and networks may be vulnerable to unauthorized access, computer viruses or other malicious code, and other events that could have a security impact. If one or more of such events occur, this potentially could jeopardize confidential and other information, including nonpublic personal information and sensitive business data, processed and stored in, and transmitted through, computer systems and networks, or otherwise cause interruptions or malfunctions in the Fund’s operations or the operations of their respective affiliates and third-party service providers. This could result in significant losses, reputational damage, litigation, regulatory fines or penalties, or otherwise adversely affect the Fund’s business, financial condition or results of operations. Privacy and information security laws and regulation changes, and compliance with those changes, may result in cost increases due to system changes and the development of new administrative processes. In addition, the Fund may be required to expend significant additional resources to modify the Fund’s protective measures and to investigate and remediate vulnerabilities or other exposures arising from operational and security risks. Risks Related to the Fund’s Investments <p id="xdx_84A_ecef--RiskTextBlock_hcef--RiskAxis__custom--UseOfLeverageByTheFundMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zy1caSoVCHKl" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Use of Leverage by the Fund. Although the Fund has the option to borrow, there are significant risks that may be assumed in connection with such borrowings. Investors in the Fund should consider the various risks of financial leverage, including, without limitation, the matters described below. There is no assurance that a leveraging strategy would be successful. Financial leverage involves risks and special considerations for shareholders including: (i) the likelihood of greater volatility of NAV of the shares than a comparable portfolio without leverage; (ii) the risk that fluctuations in interest rates on borrowings and short-term debt that the Fund must pay will reduce the return to the shareholders; (iii) the effect of financial leverage in a market experiencing rising interest rates, which would likely cause a greater decline in the NAV of the shares than if the Fund were not leveraged; and (iv) the potential for an increase in operating costs, which may reduce the Fund’s total return. In the event that the Fund would be required to sell assets at a loss, including in order to redeem or pay off any borrowing, such a sale would reduce the Fund’s NAV and may make it difficult for the NAV to recover. The Fund nevertheless may continue to use financial leverage if the Adviser expects that the benefits to the shareholders of maintaining the leveraged position likely would outweigh a resulting reduction in the current return. Certain types of borrowings by the Fund would result in the Fund being subject to covenants in credit agreements relating to asset coverage and Fund composition requirements that are more stringent than those currently imposed on the Fund by the 1940 Act. In addition, borrowings by the Fund may be made on a secured basis. The Custodian will then either segregate the assets securing the Fund’s borrowings for the benefit of the Fund’s lenders or arrangements will be made with a suitable sub-custodian. If the assets used to secure a borrowing decrease in value, the Fund may be required to pledge additional collateral to the lender in the form of cash or securities to avoid liquidation of those assets. In the event of a default, the lenders will have the right, through the Custodian, to redeem the Fund’s investments in underlying Investment Funds without consideration of whether doing so would be in the best interests of the Fund’s shareholders. The rights of any lenders to the Fund to receive payments of interest on and repayments of principal of borrowings will be senior to the rights of the Fund’s shareholders, and the terms of the Fund’s borrowings may contain provisions that limit certain activities of the Fund and could result in precluding the purchase of instruments that the Fund would otherwise purchase. The use of financial leverage involves financial risk and would increase the exposure of the Fund’s investment returns to adverse economic factors such as rising interest rates, downturns in the economy or deterioration in the condition of the investments. There would be a risk that operating cash flow available to the Fund would be insufficient to meet required payments and a risk that it would not be possible to refinance existing indebtedness or that the terms of such refinancing would not be as favorable as the terms of existing indebtedness. Borrowings by the Fund may be secured by any or all of the assets of the Fund, with the consequences that the Fund may lose more than its equity stake in any one investment, and may lose all of its capital. <p id="xdx_84F_ecef--RiskTextBlock_hcef--RiskAxis__custom--InvestmentsInBankLoansAndParticipationsMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zxRj6i4bmLy8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Investments in Bank Loans and Participations. The special risks associated with investing in bank loans and participations include: (i) the possible invalidation of an investment transaction as a fraudulent conveyance under relevant creditors’ rights laws; (ii) environmental liabilities that may arise with respect to collateral securing the obligations; (iii) adverse consequences resulting from participating in such instruments with other institutions with lower credit quality; (iv) limitations on the ability of the Fund to directly enforce any of their respective rights with respect to participations; and (v) generation of income that is subject to U.S. federal income taxation as income effectively connected with a U.S. trade or business. The Fund will attempt to balance the magnitude of these risks against the potential investment gain prior to entering into each such investment. Successful claims by third parties arising from these and other risks, absent bad faith, may be borne by the Funds. Bank loans do not presently have the liquidity of conventional debt securities and are often subject to restrictions on resale. Due to the illiquidity of bank loans, the Fund may not be able to dispose of its investments in bank loans in a timely fashion and at a fair price, which could adversely affect the performance of the Fund. With respect to bank loans acquired as participations by the Fund, because the holder of a participation generally has no contractual relationship with a borrower, the Fund will have to rely upon a third party to pursue appropriate remedies against a borrower in the event of a default. As a result, the Fund may be subject to delays, expenses and risks that are greater than those that would be involved if the Fund could enforce its rights directly against a borrower or through the agent. Furthermore, a borrower of a bank loan, in some cases, may prepay the bank loan. Prepayments could adversely affect the Fund’s interest income to the extent that the Fund is unable to reinvest promptly payments in bank loans or otherwise or if such prepayments were made during a period of declining interest rates. <p id="xdx_84E_ecef--RiskTextBlock_hcef--RiskAxis__custom--AssetBackedSecuritieMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zdFo9g0d0rR3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Asset-backed securities. Asset-backed securities often involve risks that are different from risks associated with other types of debt instruments. For instance, asset-backed securities may be particularly sensitive to changes in prevailing interest rates. In addition, the underlying assets may be subject to prepayments that shorten the securities’ weighted average maturity and may lower their return. Similarly, ABS may be subject to defaults that result in the loss of principal and/or a downgrade of credit rating reducing the market value of the investment. Delinquencies and defaults are likely to increase during periods of economic decline or distress, but also occur during periods of economic growth. Asset-backed securities are also subject to risks associated with their structure and the nature of the assets underlying the security and the servicing of those assets. Payment of interest and repayment of principal on asset-backed securities is largely dependent upon the cash flows generated by the assets backing the securities and, in certain cases, supported by letters of credit, surety bonds or other credit enhancements. The values of asset-backed securities may be substantially dependent on the servicing of the underlying asset pools, and are therefore subject to risks associated with the negligence by, or defalcation of, their servicers. Furthermore, debtors may be entitled to the protection of a number of state and federal consumer credit laws with respect to the assets underlying these securities, which may give the debtor the right to avoid or reduce payment. In addition, due to their often complicated structures, various asset-backed securities may be difficult to value and may constitute illiquid investments. If many borrowers on the underlying loans or other obligations default, losses could exceed the credit enhancement level and result in losses to investors in asset-backed securities. An investment in subordinated (residual) classes of asset-backed securities (sometimes referred to as “equity”) is typically considered to be an illiquid and highly speculative investment, as losses on the underlying assets are first absorbed by the subordinated classes. The risks associated with an investment in such subordinated classes of asset-backed securities include credit risk and liquidity risk. <p id="xdx_849_ecef--RiskTextBlock_hcef--RiskAxis__custom--MortgageBackedSecuritieMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zdONzqtb7mX4" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mortgage-backed securities. The investment characteristics of mortgage-backed securities differ from traditional debt securities. Among the major differences are that interest and principal payments are made more frequently, usually monthly, and that the principal may be prepaid at any time because the underlying loans or other assets generally may be prepaid at any time. The frequency at which prepayments (including voluntary prepayments by the obligors and liquidations due to default and foreclosures) occur on loans underlying mortgage-backed securities will be affected by a variety of factors including the prevailing level of interest rates as well as the availability of mortgage credit, the relative economic vitality of the area in which the related properties are located, the servicing of the mortgage loans, possible changes in tax laws, other opportunities for investment, homeowner mobility and other economic, social, geographic, demographic and legal factors. In general, any factors that increase the attractiveness of selling a mortgaged property or refinancing a mortgage loan, enhance a borrower’s ability to sell or refinance or increase the likelihood of default under a mortgage loan, would be expected to cause the rate of prepayment in respect of a pool of mortgage loans to accelerate. Particular investments may experience outright losses, as in the case of an interest only security in an environment of faster actual or anticipated prepayments. Also, particular investment may underperform relative to hedges that a portfolio manager may have constructed for these investments, resulting in a loss. In contrast, any factors having an opposite effect would be expected to cause the rate of prepayment of a pool of mortgage loans to slow. The rate of prepayment on a pool of mortgage loans is likely to be affected by prevailing market interest rates for mortgage loans of a comparable type, term and risk level. When the prevailing market interest rate is below a mortgage coupon, a borrower generally has an increased incentive to refinance its mortgage loan. Even in the case of adjustable rate mortgage loans, as prevailing market interest rates decline, and without regard to whether the mortgage rates on such loans decline in a manner consistent therewith, the related borrowers may have an increased incentive to refinance for purposes of either (i) converting to a fixed rate loan and thereby “locking in” such rate or (ii) taking advantage of a different index, margin or rate cap or floor on another adjustable rate mortgage loan. Therefore, as prevailing market interest rates decline, prepayment speeds would be expected to accelerate. An investment in subordinated classes of mortgage-backed securities (sometimes referred to as “equity” or “b-piece”) is typically considered to be an illiquid and highly speculative investment, as losses on the underlying assets are first absorbed by the subordinated classes. The risks associated with an investment in such subordinated classes of asset-backed securities include credit risk and liquidity risk. In the case of a mortgage-backed security related to multifamily or commercial loans, prevailing market interest rates, the outlook for market interest rates and economic conditions generally may cause some borrowers to refinance or sell their properties in order to realize their equity therein, lower their financing costs, to meet cash flow needs or to make other investments. In addition, some borrowers may be motivated by U.S. federal and state tax laws (which are subject to change) to sell their properties prior to the exhaustion of tax depreciation benefits. <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top">○</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Residential Mortgage-Backed Securities. RMBS are mortgage-backed securities that may be secured by interests in a single residential mortgage loan or a pool of mortgage loans secured by residential property. RMBS may be senior, subordinate, interest-only, principal-only, investment-grade, non-investment grade or unrated. The Fund may acquire RMBS from private originators as well as from other mortgage loan investors, including savings and loan associations, mortgage bankers, commercial banks, finance companies and investment banks. The credit quality of any RMBS issue depends primarily on the credit quality of the underlying mortgage loans. Each of these types of RMBS may</td> </tr> </table> be impacted differently by changes in the behavior of the underlying borrower. For example, an acceleration of prepayment rates may adversely affect the performance of senior or subordinate RMBS purchased at premium to par or interest-only RMBS, while positively impacting those positions purchased at a discount to par or principal-only RMBS. Prepayment, delinquency, default, and foreclosure rates may affect the performance of RMBS. Factors in the underlying mortgages such as the FICO score of the borrower, the loan to value of the loan, the change in the borrower’s home price, and other various factors may influence the likelihood of prepayment, delinquency, default, and/or foreclosure. As such, the Fund’s investment in RMBS is more sensitive to economic factors that impact the value of residential real estate, the borrower’s ability to repay their mortgage, and the broad availability of consumer credit. At any one time, a portfolio of mortgage-backed securities may be backed by residential mortgage loans with disproportionately large aggregate principal amounts secured by properties in only a few states or regions. As a result, the residential mortgage loans may be more susceptible to geographic risks relating to such areas, such as adverse economic conditions, adverse events affecting industries located in such areas and natural hazards affecting such areas, than would be the case for a pool of mortgage loans having more diverse property locations. <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top">○</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Commercial Mortgage-Backed Securities. CMBS are fixed income instruments that are secured by mortgage loans on commercial real property. CMBS typically take the form of multi-class debt or pass-through certificates secured by mortgage loans on commercial properties. They generally are structured to provide protection to investors in senior tranches against potential losses on the underlying mortgage loans. Such protection generally is provided by causing holders of subordinated classes of securities (“Subordinated CMBS”) to take the first loss in the event of defaults on the underlying commercial mortgage loans. Other protection, which may benefit all of the classes or particular classes, may include issuer guarantees, reserve funds, additional Subordinated CMBS, cross-collateralization and over-collateralization. The Fund may invest in CMBS or Subordinated CMBS.</td> </tr> </table> Mortgage loans on commercial properties underlying mortgage-backed securities often are structured so that a substantial portion of the loan principal is not amortized over the loan term but is payable at maturity and repayment of the loan principal thus often depends upon the future availability of real estate financing from the existing or an alternative lender and/or upon the current value and salability of the real estate. Therefore, the unavailability of real estate financing may lead to default. Most commercial mortgage loans underlying mortgage-backed securities are effectively nonrecourse obligations of the borrower, meaning that there is no recourse against the borrower’s assets other than the collateral. If borrowers are not able or willing to refinance or dispose of encumbered property to pay the principal and interest owed on such mortgage loans, payments on the subordinated classes of the related mortgage-backed securities are likely to be adversely affected. The ultimate extent of the loss, if any, to the subordinated classes of mortgage-backed securities may only be determined after a negotiated discounted settlement, restructuring or sale of the mortgage note, or the foreclosure (or deed in lieu of foreclosure) of the mortgage encumbering the property and subsequent liquidation of the property. Especially in the case of a mortgage-backed security related to commercial mortgage loans, the rate of principal payments on the loans in the related pool will also be affected by the nature and extent of any restrictions on prepayments that are set forth in the mortgage loans, and the extent to which such provisions may be enforced. Such restrictions may include a prohibition on prepayments for specified periods of time and/or requirements that principal prepayments be accompanied by the payment of prepayment penalties or be subject to yield maintenance premiums. <p id="xdx_844_ecef--RiskTextBlock_hcef--RiskAxis__custom--ResidentialLoansAndMortgagesRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zn0kUKUawG71" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Residential Loans and Mortgages Risk. In addition to interest rate, default and other risks of fixed income securities, investments in whole loans and debt instruments backed by residential loans or mortgages (or pools of loans or mortgages) carry additional risks, including the possibility that the quality of the collateral may decline in value and the potential for the liquidity of residential loans and mortgages to vary over time. These risks are greater for subprime residential and mortgage loans. Because they do not trade in a liquid market, residential loans can typically only be sold to a limited universe of institutional investors and may be difficult for the Fund to value. In addition, in the event that a loan is foreclosed on, the Fund could become the owner (in whole or in part) of any collateral, which may include, among other things, real estate or other real or personal property, and the Fund would bear the costs and liabilities of owning, holding or disposing of such property. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--DistressedAndDefaultedInvestmentsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zjZEo6S4Ikkb" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Distressed and Defaulted Investments Risk. Investments in obligations of financially distressed obligors involve substantial risks. These obligations may present a substantial risk of default or may be in default at the time of investment. The Fund may incur additional expenses to the extent it is required to seek recovery upon a default in the payment of principal or interest on its portfolio holdings. To the extent the Fund invests in mortgage loans that are in default, the Fund may not be able to repossess and sell the underlying properties in a timely manner. The resulting time delay could reduce the value of the investment in the defaulted mortgage loans. In any reorganization or liquidation proceeding relating to an obligor, the Fund may lose its entire investment or may be required to accept cash or securities with a value less than its original investment. Among the risks inherent in investments in a troubled obligor is the fact that it frequently may be difficult to obtain information as to the obligor’s true financial condition. The Adviser’s judgment about the credit quality of an obligor and the relative value and liquidity of its investments may prove to be wrong. <p id="xdx_845_ecef--RiskTextBlock_hcef--RiskAxis__custom--USGovernmentObligationsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zMOaYnl7dz38" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">U.S. Government Obligations Risk. U.S. Treasury obligations are backed by the “full faith and credit” of the U.S. government and generally have negligible credit risk. Securities issued or guaranteed by federal agencies or authorities and U.S. government-sponsored instrumentalities or enterprises may or may not be backed by the full faith and credit of the U.S. government. The Fund may be subject to such risk to the extent it invests in securities issued or guaranteed by federal agencies or authorities and U.S. government-sponsored instrumentalities or enterprises. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--CollateralizedLoanObligationsCLOsAndCollateralizedDebtObligationsCDOsMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zZgAIPXdJWLj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Collateralized Loan Obligations (“CLOs”) and Collateralized Debt Obligations (“CDOs”). The Fund’s investments may include CDOs and/or CLOs which are subject to the following risks: (i) distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) CDOs and/or CLOs typically will have no significant underlying assets other than their underlying senior secured debt obligations or loans and payments on the CDOs and/or CLOs are and will be payable solely from the cash flows from such senior secured debt obligations and/or loans; (iv) the complex structure of the CDOs and/or CLOs and their interests may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results; (v) CDOs and/or CLOs are typically highly levered, and therefore the CDO and/or CLO interests that the Fund may invest in are subject to a higher risk of total loss; (vi) investments in CDOs and/or CLOs may be riskier and less transparent to us and our Shareholders than direct investments in the underlying companies; (vii) the potential for interruption and deferral of cash flow to our investments in the equity and junior debt tranches of CDOs and/or CLOs; (viii) interests in CDOs and/or CLOs may be illiquid; (ix) investments in foreign CDOs and/or CLOs may involve significant risks in addition to the risks inherent in U.S. CDOs and/or CLOs; (x) we may invest with collateral managers that have no or limited performance or operating history; (xi) the inability of a CDO or CLO collateral manager to reinvest the proceeds of any prepayments may adversely affect us; (xii) the loans underlying the CDOs and/or CLOS may be sold and replaced resulting in a loss to us; (xiii) we may not have direct rights against the underlying borrowers or obligors comprising the CDOs and/or CLOs’ investments or the entities that sponsored the CDOs and/or CLOs; and (xiv) investments in equity and junior debt tranches of CDOs and/or CLOs will likely be subordinate to the other debt tranches of such CDOs and/or CLOs, and are subject to a higher degree of risk of total loss. <p id="xdx_84A_ecef--RiskTextBlock_hcef--RiskAxis__custom--ValuationOfPrivateInvestmentsMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zXOoiNPVClWi" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Valuation of Private Investments. Some of the Fund’s investments are not publicly traded, and the Fund may consider information provided by the trustee, servicer, and other third party services provides with respect to each private investment to determine the estimated value of the Fund’s investment therein. The valuation as of a specific date may vary from the actual sale price that may be obtained if such investment were sold to a third party. To determine the estimated value of the Fund’s investment in private investments, the Fund considers, among other things, information provided by the private investments, including monthly or quarterly unaudited financial statements, which if inaccurate could adversely affect the Fund’s ability to value accurately the Fund’s investment. <p id="xdx_84E_ecef--RiskTextBlock_hcef--RiskAxis__custom--FixedIncomeRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zftKkZBdArT" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fixed Income Risk. The value of investments in fixed income securities will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities. In general, the market price of debt securities with longer maturities will increase or decrease more in response to changes in interest rates than shorter-term securities. Other risk factors include credit risk (the debtor may default) and prepayment risk (the debtor may pay its obligation early, reducing the amount of interest payments). These risks could affect the value of a particular investment, possibly causing the Fund’s share price and total return to be reduced and fluctuate more than other types of investments. <p id="xdx_843_ecef--RiskTextBlock_hcef--RiskAxis__custom--HighYieldAndUnratedSecuritiesRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zagFIuqWwqU1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">High Yield and Unrated Securities Risk. These securities are speculative investments that carry greater risks and are more susceptible to real or perceived adverse economic and competitive industry conditions than higher quality securities. High yield securities offer the potential for higher return, but also involve greater risk than bonds of higher quality, including an increased possibility that the security’s issuer, obligor or guarantor may not be able to make its payments of interest and principal (credit quality risk). If that happens, the value of the security may decrease. An economic downturn or period of rising interest rates (interest rate risk) could adversely affect the market for these securities and reduce the Fund’s ability to sell its securities (liquidity risk). Such securities also may be subject to resale restrictions. The lack of a liquid market for these securities could decrease the Fund’s share price. The risks associated with unrated securities can be similar to the risks of below investment grade securities. In addition, the determination of credit quality for an unrated security is based largely on the credit analysis performed by the Adviser, and not on rating agency evaluation. This analysis may be difficult to perform because information about these securities may not be in the public domain, and the issuers may not subject to reporting requirements under federal securities laws. <p id="xdx_840_ecef--RiskTextBlock_hcef--RiskAxis__custom--InterestsRateRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zX2WxzuDH3kc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Interest Rate Risk. The fixed-income instruments in which the Fund may invest are subject to the risk that market values of such securities will decline as interest rates increase. These changes in interest rates have a more pronounced effect on securities with longer durations. Typically, the impact of changes in interest rates on the market value of an instrument will be more pronounced for fixed-rate instruments, such as most mortgage bonds, than it will for floating rate instruments. Fluctuations in the value of portfolio securities will not affect interest income on existing portfolio securities but will be reflected in the Fund’s NAV. After a period of historically low interest rates, the Federal Reserve has raised certain benchmark interest rates. It cannot be predicted with certainty when, or how, these policies will change, but actions by the Federal Reserve and other central bankers may have a significant effect on interest rates and on the U.S. and world economies generally. Market volatility, rising interest rates, uncertainty around interest rates and/or unfavorable economic conditions could adversely affect our business. Fixed-income instruments that bear floating rate coupons may experience less price volatility related to changes in interest rates than those instruments that have a fixed-rate coupon. Floating rate instruments may experience changes in price related to interest rates based on the length of time between reset periods and the relative movement of the reference rate for the security versus the change in broader interest rate markets. Additionally, changes in interest rates may adversely impact the underlying borrower’s ability to repay as interest costs may rise sharply during periods of rising rates. As such, floating-rate securities may experience a larger change in credit risk than fixed-rate securities which may have an adverse impact on their price relative to fixed-rate securities. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--InflationDeflationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_z09LXY39ReGl" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inflation/Deflation Risk Inflation risk is the risk that the value of certain assets or income from the Fund’s investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the real value of the Fund and its distributions can decline. In addition, during any periods of rising inflation, the Fund’s operating costs and the borrowing costs associated with the Fund’s use of leverage would likely increase, which would tend to further reduce returns to shareholders. Deflation risk is the risk that prices throughout the economy decline over time—the opposite of inflation. Deflation may have an adverse effect on the creditworthiness of issuers and may make issuer defaults more likely, which may result in a decline in the value of the Fund’s portfolio. These risks may be heightened in the current economic environment due to recent monetary policy measures, tariffs and other trade policies, and shifts in interest rate trends. <p id="xdx_842_ecef--RiskTextBlock_hcef--RiskAxis__custom--DerivativesRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zfDXGowvf9P2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Derivatives Risk. The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Derivatives are subject to a number of risks, such as liquidity risk (which may be heightened for highly-customized derivatives), interest rate risk, market risk, credit risk, leveraging risk, counterparty risk, tax risk, and management risk, as well as risks arising from changes in applicable requirements. They also involve the risk of mispricing, the risk of unfavorable or ambiguous documentation and the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. The Fund’s use of derivatives may increase or accelerate the amount of taxes payable by common shareholders. <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: right; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: left; vertical-align: top">●</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Swaps Risk. The Fund’s use of swaps involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments and exposes the Fund to the risks associated with derivative instruments described above. In a standard “swap” transaction, two parties agree to exchange the returns, differentials in rates of return or some other amount earned or realized on the “notional amount” of predetermined investments or instruments, which may be adjusted for an interest factor. Swaps can involve greater risks than direct investment in securities, because swaps may be leveraged and subject to counterparty risk (e.g., the risk of a counterparty’s defaulting on the obligation or bankruptcy), credit risk and pricing risk (i.e., swaps may be difficult to value). Swaps are also subject to non-correlation risk because they may not be perfect substitutes for the instruments they are intended to hedge or replace. Swaps may also be considered illiquid. It may not be possible for the Fund to liquidate a swap position at an advantageous time or price, which may result in significant losses.</td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top">●</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Futures Risk. The Fund’s use of futures involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. These risks include (i) leverage risk (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the futures contract may not correlate perfectly with the underlying index. Investments in futures involve leverage, which means a small percentage of assets invested in futures can have a disproportionately large impact on the Fund. This risk could cause the Fund to lose more than the principal amount invested. Futures contracts may become mispriced or improperly valued when compared to the adviser’s expectation and may not produce the desired investment results. Additionally, changes in the value of futures contracts may not track or correlate perfectly with the underlying index because of temporary, or even long-term, supply and demand imbalances and because futures do not pay dividends unlike the stocks upon which they are based.</td> </tr> </table> Risks Associated with Debt Financing <p id="xdx_849_ecef--RiskTextBlock_hcef--RiskAxis__custom--LeveragingRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zfvRMSp7Uf5c" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Leveraging Risk. The use of leverage, such as borrowing money to purchase securities, by the Fund will magnify the Fund’s gains or losses. The use of leverage short positions in futures contracts will also magnify the Fund’s gains or losses. Generally, the use of leverage also will cause the Fund to have higher expenses (especially interest related dividend expenses) than those of funds that do not use such techniques. In addition, a lender to the Fund may terminate or refuse to renew any credit facility. If the Fund is unable to access additional credit, it may be forced to sell investments at inopportune times, which may further depress the returns on the Fund. The Fund may borrow no more than 33 1/3% of the value of the Fund’s total assets, including the value of the assets purchased with the proceeds of its indebtedness, if any. <p id="xdx_842_ecef--RiskTextBlock_hcef--RiskAxis__custom--CreditRisksMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zFqB7yjYCrRh" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Credit Risk. There is a risk that debt issuers will not make payments, resulting in losses to the Fund. In addition, the credit quality of securities may be lowered if an issuer’s financial condition changes. Lower credit quality may lead to greater volatility in the price of a security and in shares of the Fund. Lower credit quality also may affect liquidity and make it difficult to sell the security. Default, or the market’s perception that an issuer is likely to default, could reduce the value and liquidity of securities, thereby reducing the value of your investment in Fund shares. In addition, default may cause the Fund to incur expenses in seeking recovery of principal or interest on its portfolio holdings. Possible Risk of Conflicts <p id="xdx_84B_ecef--RiskTextBlock_hcef--RiskAxis__custom--AllocationOfInvestmentOpportunitiesRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zLFgmnTcY4A4" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Allocation of Investment Opportunities Risk. The Adviser, directly or through its affiliates, may manage or advise multiple investment vehicles or accounts that have investment objectives that are similar to the Fund and that may seek to make investments or sell investments in the same securities or other instruments, sectors or strategies as the Fund. This may create potential conflicts, particularly in circumstances where the availability of such investment opportunities is limited or where the liquidity of such investment opportunities is limited. The results of the Fund’s investment activities may differ significantly from the results achieved by such other managed investment vehicles or accounts. It is possible that one or more of such vehicles or accounts will achieve investment results that are substantially more or less favorable than the results achieved by the Fund. <table border="0" cellpadding="3" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif;width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 25%; background-color: #FFFFFF; text-align: center; vertical-align: bottom">Title of Class</td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 25%; background-color: #FFFFFF; text-align: center">Amount Authorized</td> <td id="xdx_489_ecef--OutstandingSecurityHeldShares_dn_zWrPLE6TmLV8" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 25%; background-color: #FFFFFF; text-align: center">Amount Held by Fund or for its Account</td> <td id="xdx_487_ecef--OutstandingSecurityNotHeldShares_dn_zZluhUJRhFCh" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 25%; background-color: #FFFFFF; text-align: center">Amount Outstanding Excluding Amount Held by Fund or for its Account</td> </tr> <tr id="xdx_413_20261028__20261028__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zmtEpfzotjx6" style="font: 10pt Times New Roman, Times, Serif"> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: #FFFFFF; text-align: center">Class I Shares</td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #FFFFFF; text-align: center; vertical-align: bottom">Unlimited</td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #FFFFFF; text-align: center; vertical-align: bottom">None</td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #FFFFFF; text-align: center; vertical-align: bottom">3,092,459.96</td> </tr> <tr id="xdx_41C_20261028__20261028__us-gaap--StatementClassOfStockAxis__custom--ClassEMember_z32ixkerX43g" style="font: 10pt Times New Roman, Times, Serif"> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: #FFFFFF; text-align: center">Class F Shares</td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #FFFFFF; text-align: center; vertical-align: bottom">Unlimited</td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #FFFFFF; text-align: center; vertical-align: bottom">None</td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #FFFFFF; text-align: center; vertical-align: bottom"> None</td></tr> </table> 0 3092459.96 0 0 <table cellpadding="1" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif;border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td colspan="2" style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in">Shareholder Transaction Expenses</td> <td style="border-bottom: Black 1pt solid; font-weight: bold"> </td> <td colspan="2" id="xdx_498_20261028__20261028__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zeHQTv6DniA1" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Class F</td> <td style="border-bottom: Black 1pt solid; font-weight: bold"> </td></tr> <tr id="xdx_40A_ecef--SalesLoadPercent_dpn_zXW4OrWI6DB2" style="vertical-align: bottom"> <td style="width: 0.25in"> </td> <td style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in; vertical-align: top; text-align: left">Maximum Sales Load (as a percent of offering price)</td> <td style="border-bottom: Black 1pt solid; width: 1%"> </td> <td style="border-bottom: Black 1pt solid; text-align: left; width: 1%"> </td> <td style="border-bottom: Black 1pt solid; text-align: right; width: 9%">None</td> <td style="border-bottom: Black 1pt solid; text-align: left; width: 1%"> </td></tr> <tr id="xdx_40A_ecef--DividendReinvestmentAndCashPurchaseFees_dn_z8T3Xawnl2m" style="vertical-align: bottom"> <td> </td> <td style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in; vertical-align: top; text-align: left">Dividend Reinvestment Plan Fees</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">None</td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td></tr> <tr id="xdx_40B_ecef--OtherTransactionExpense1Percent_dpn_zXGTkCFDFVTf" style="vertical-align: bottom"> <td> </td> <td style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in; vertical-align: top; text-align: left">Contingent Deferred Sales Charge</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">None</td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td></tr> </table> 0 0 0 <table cellpadding="1" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif;border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-top: 0pt; padding-bottom: 0pt"> </td> <td style="padding-top: 0pt; text-indent: -0.125in; padding-left: 0.125in; vertical-align: top; text-align: left; padding-bottom: 0pt"> </td> <td style="padding-top: 0pt; padding-bottom: 0pt"> </td> <td style="padding-top: 0pt; text-align: left; padding-bottom: 0pt"> </td> <td id="xdx_49C_20261028__20261028__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_z4o6sYuIbEec" style="padding-top: 0pt; text-align: right; padding-bottom: 0pt"> </td> <td style="padding-top: 0pt; text-align: left; padding-bottom: 0pt"> </td> </tr> <tr style="vertical-align: bottom"> <td colspan="2" style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in">Annual Expenses (as a percentage of net assets attributable to Class F shares)</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr id="xdx_404_ecef--ManagementFeesPercent_dp_znlzpR4Yyc4b" style="vertical-align: bottom"> <td style="width: 0.25in"> </td> <td style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in; vertical-align: top; text-align: left">Management Fees</td> <td style="border-bottom: Black 1pt solid; width: 1%"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; width: 9%; text-align: right">1.25</td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">%</td> </tr> <tr id="xdx_40D_ecef--OtherAnnualExpensesPercent_dp_zxzCGi5ppDxa" style="vertical-align: bottom"> <td> </td> <td style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in; vertical-align: top; text-align: left">Other Expenses</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">5.56</td> <td style="border-bottom: Black 1pt solid; text-align: left">%</td> </tr> <tr id="xdx_40E_ecef--DividendExpenseOnPreferredSharesPercent_dpn_zQ1lzh4lnSY8" style="vertical-align: bottom"> <td> </td> <td style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in; vertical-align: top; text-align: left">Shareholder Servicing Fee</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">None</td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr id="xdx_402_ecef--DistributionServicingFeesPercent_dpn_zo2XPEIVD4Xi" style="vertical-align: bottom"> <td> </td> <td style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in; vertical-align: top; text-align: left">Distribution Fee</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">None</td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> </tr> <tr id="xdx_409_ecef--AcquiredFundFeesAndExpensesPercent_dp_zJU9AGIe6U7l" style="vertical-align: bottom"> <td> </td> <td style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in; vertical-align: top; text-align: left">Acquired Fund Fees and Expenses</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">0.03</td> <td style="border-bottom: Black 1pt solid; text-align: left">%</td></tr> <tr id="xdx_40B_ecef--TotalAnnualExpensesPercent_dp_zhzUujNpZiH" style="vertical-align: bottom"> <td colspan="2" style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in">Total Annual Fund Operating Expenses</td> <td style="border-bottom: Black 1pt solid; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">6.84</td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">%</td> </tr> <tr id="xdx_405_ecef--WaiversAndReimbursementsOfFeesPercent_dp_zX4fU3cvW5K3" style="vertical-align: bottom"> <td colspan="2" style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in">Less Fee Waiver and/or Expense Limitation1</td> <td style="border-bottom: Black 1pt solid"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; text-align: right">(5.31</td> <td style="border-bottom: Black 1pt solid; text-align: left">)%</td> </tr> <tr id="xdx_40C_ecef--NetExpenseOverAssetsPercent_dp_zIkW5N0FvBo3" style="vertical-align: bottom"> <td colspan="2" style="border-bottom: Black 1pt solid; text-indent: -0.125in; padding-left: 0.125in">Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Limitation</td> <td style="border-bottom: Black 1pt solid; font-weight: bold"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">1.53</td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">%</td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0in"></td><td style="width: 0.25in">1</td> <td style="text-align: justify"> The Adviser and the Fund have entered into an expense limitation and reimbursement agreement (the “Class F Expense Limitation Agreement”) under which the Adviser has agreed contractually to waive its fees and to pay or absorb the ordinary annual operating expenses of the Fund (exclusive of any taxes, interest, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, such as litigation or reorganization costs, but inclusive of organizational costs and offering costs), to the extent that they exceed 1.50% per annum of the Fund’s average daily net assets attributable to Class F shares (the “Class F Expense Limitation”). In consideration of the Adviser’s agreement to limit the Fund’s expenses, the Fund has agreed to repay the Adviser in the amount of any fees waived and Fund expenses paid or absorbed, subject to the limitations that: (1) the reimbursement for fees and expenses will be made only if payable not more than three years from the date in which they were incurred; and (2) the reimbursement may not be made if it would cause the lesser of the Class F Expense Limitation in place at the time of waiver or at the time of reimbursement to be exceeded. The Class F Expense Limitation Agreement will remain in effect at least until October 31, 2027, unless and until the Board approves its modification or termination. The Class F Expense Limitation Agreement may be terminated only by the Fund’s Board on 60 days’ written notice to the Adviser. See “Management of the Fund.”</td></tr> </table> 0.0125 0.0556 0 0 0.0003 0.0684 -0.0531 0.0153 <table cellpadding="3" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif;border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; vertical-align: bottom; width: 19%; font-weight: bold; text-align: center">Share Class</td> <td style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: center; width: 2%; font-weight: bold"> </td> <td id="xdx_48E_ecef--ExpenseExampleYear01_zH4Mk9vcZCW1" style="border-bottom: Black 1pt solid; vertical-align: bottom; width: 18%; font-weight: bold; text-align: center">1 Year</td> <td style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: center; width: 2%; font-weight: bold"> </td> <td id="xdx_485_ecef--ExpenseExampleYears1to3_zPZ5936b4EY6" style="border-bottom: Black 1pt solid; vertical-align: bottom; width: 18%; font-weight: bold; text-align: center">3 Years</td> <td style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: center; width: 2%; font-weight: bold"> </td> <td id="xdx_482_ecef--ExpenseExampleYears1to5_zOTOonCsYPw1" style="border-bottom: Black 1pt solid; vertical-align: bottom; width: 18%; font-weight: bold; text-align: center">5 Years</td> <td style="border-bottom: Black 1pt solid; vertical-align: bottom; text-align: center; width: 2%; font-weight: bold"> </td> <td id="xdx_48F_ecef--ExpenseExampleYears1to10_zEiYdnrvR0L8" style="border-bottom: Black 1pt solid; vertical-align: bottom; width: 19%; font-weight: bold; text-align: center">10 Years</td></tr> <tr id="xdx_417_20261028__20261028__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_z7IvWsVnUAqg" style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: center">Class F</td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: center">$16</td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: center">$155</td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: center">$288</td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: center"> </td> <td style="border-bottom: Black 1pt solid; vertical-align: top; text-align: center">$602</td></tr> </table> 16 155 288 602 <p id="xdx_807_ecef--InvestmentObjectivesAndPracticesTextBlock_hus-gaap--StatementClassOfStockAxis__custom--ClassFMember_z3B6E8O7SrIg" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">INVESTMENT OBJECTIVE, POLICIES AND STRATEGIES Investment Objective and Policies The Fund’s investment objective is to seek total return through current income and capital appreciation. The Fund seeks to achieve its investment objective by investing primarily in a wide array of loans and securitized debt instruments. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in domestic credit instruments and loans. Such instruments will consist of a combination of: (i) MBS, as well as mortgage loans or pools of such loans; (ii) other ABS, or other instrument secured by financial, physical, and/or intangible asset (e.g., receivables or pools of receivables), and investments in any assets or instruments underlying the foregoing structured/secured obligations; (iii) other structured credit instruments, including but not limited to CMOs, CDOs, on an opportunistic basis, CLOs, and various other commercial and consumer loans and participations thereon; and (iv) corporate debt. The Fund may also invest in cash and cash equivalents. The Fund may also gain exposure to these asset classes through treasury futures, interest rate swap futures, and other credit derivatives. Under normal circumstances, the Fund will concentrate its investments (i.e., invest 25% or more of its total assets (measured at the time of purchase)) in (i) mortgage-related assets including loans and securities issued by government agencies or other governmental entities or by private originators or issuers and (ii) loans and securities backed by those loans related to the US Consumer such as auto loans and leases, credit cards and other unsecured consumer borrowings, point-of-sale loans, home improvement loans, solar loans, and other consumer borrowings. The Fund may also make loans to originators and/or owners of the above-referenced assets, which would serve as collateral for the Fund’s loan. The Fund may invest without limitation in high-yield securities, distressed or defaulted securities, and securities that are not rated by any rating agencies. These “high-yield” securities (also known as “junk bonds”) will generally be rated BB+ or lower by S&P or will be of equivalent quality rating from another Nationally Recognized Statistical Ratings Organization. If a bond is unrated, the Adviser may determine whether it is of comparable quality. The Fund’s investments in RMBS and ABS will span a broad segment of consumer creditworthiness segments, which will include exposure to prime, near-prime, and subprime consumers. The Fund may invest, without limitation, in securities of any maturity or duration. Instruments acquired by the Fund may be fixed, floating or inverse floating, interest-only or principal-only, and the obligors may have the right to defer to interest or make payments in kind. Maturity refers to the length of time until a bond’s principal is repaid with interest. Duration is a measure used to determine the sensitivity of a security’s price to changes in interest rates. Duration incorporates a security’s yield, coupon, final maturity, call and put features, and prepayment exposure into one measure, with a higher duration indicating greater sensitivity to interest rates. For example, if a portfolio has a duration of two years, and interest rates increase (fall) by 1%, the portfolio would decline (increase) in value by approximately 2%. However, duration may not accurately reflect the true interest rate sensitivity of instruments held by the Fund and, therefore the Fund’s exposure to changes in interest rates. The Fund’s allocation of its assets into various asset classes within its investment strategy will be based on the Adviser’s top-down research process and bottom-up credit selection process that seeks to construct a portfolio that achieves the Fund’s investment objective and offers compelling risk-adjusted returns. These processes generally include a consideration of macro-economic factors and market technicals (such as historical sector performance and pricing, market sentiment, fund flows, and other non-asset specific factors that may influence prices), the complexity and liquidity of a market sector or instruments, as well as a rigorous analysis of the borrower, any underlying collateral, and any structure that may be in place that could result in cash flows to the Fund being different than the payments made by the borrower. The Adviser attempts to mitigate risks that arise from duration, deal structure, collateral performance, and change in collateral values through security selection, portfolio construction, and, at times, hedging. In selecting investments, the Adviser will also consider diversification, liquidity, spread duration, rate duration, and credit risk. The Fund invests throughout the capital structure and across the borrower credit spectrum changing the credit risk profile of the Fund based on the Adviser’s assessment of the underlying credit fundamentals, as well as its assessment of the macro-economic environment and market technicals. The Fund seeks to identify investments with higher degrees of complexity (such as uncertainty in the timing of cash flows, highly structured investments, or other factors that may make the underwriting and monitoring of an investment more time consuming or difficult) and liquidity premia (which is the extra return investors demand for holding illiquid assets to compensate them for the risk and difficulty in selling them quickly at a fair price) than a typical corporate bond. Given the Fund seeks to achieve its mandate through investments in credit, the Fund’s spread duration (the sensitivity of an investment’s change in price to a change in the premium demanded by the market for an investment over the risk-free rate) will generally be 2 to 8 years. The Fund’s rate duration will generally be shorter than its spread duration. However, in an environment where the Fund is more defensively positioned, one could expect rate duration to extend and spread duration to shorten beyond the stated ranges and rate duration to exceed spread duration. Investment Process To select securities for the Fund’s portfolio the Adviser undergoes a rigorous bottom-up process stress testing the collateral, and structure of the investments to determine a price for an investment that it believes is below the intrinsic value of the instrument and results in the possibility of the investment opportunity offering compelling risk-adjusted returns. <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top">●</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Collateral. The Adviser reviews all collateral for an investment to determine the cashflows across a variety of market conditions to determine suitability for investment with a focus on the borrower’s ability to repay even in an economic downturn.</td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top">●</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Structure. The Adviser reviews the structure of the investment. The Adviser stress tests changes to cashflows of the security considering changes in collateral performance, interest rates, triggers, and call options to determine if there have been any adverse changes in an investments yield, duration, or weighted average life.</td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top">●</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Price. The Adviser considers the interest rate risk, credit risk, and liquidity risk of the investment to assess the reasonableness of its price. If the Adviser determines that the price of an investment adequately takes into consideration each of these risks, the investment is eligible for purchase by the Fund.</td> </tr> </table> The Adviser monitors the Fund’s investments on an ongoing basis. The Adviser monitors for changes in market dynamics, collateral performance versus the expected outcome at the time of purchase, and any news on issuers. Any degradation in the performance of an investment, negative headlines related to an investment, or external market forces that could cause any change in the performance or price of an asset triggers an immediate reassessment of any investment. The Adviser may sell an investment for several reasons, including a change in the relative attractiveness of a position versus other market opportunities, any deterioration in the performance of an asset, or if it wishes to increase the Fund’s liquidity. Subsidiaries Certain investments of the Fund will be held in Single-Asset Subsidiaries due to federal tax requirements, as discussed below. In addition, the Fund may engage in bank borrowings through a Financing Subsidiary, which may act as the borrower of one or more revolving credit facilities. The Subsidiaries are subject to the same investment restrictions as the Fund, when viewed on a consolidated basis. The principal investment strategies and principal investment risks of the Subsidiaries are the principal investment strategies and principal investment risks of the Fund as reflected in this Prospectus. The financial statements of the Subsidiaries are consolidated with those of the Fund. Because the Fund may invest a substantial portion of its assets in the Subsidiaries, which may hold some of the investments described in this Prospectus, the Fund may be considered to be investing indirectly in some of those investments through its Subsidiaries. For that reason, references to the Fund may also include the Subsidiaries. The Subsidiaries will be subject to the same investment restrictions and limitations, and follow the same compliance policies and procedures, as the Fund. The Fund complies with the provisions of the 1940 Act governing investment policies, capital structure and leverage on an aggregate basis with the Subsidiaries. In addition, the Subsidiaries comply with the provisions of the 1940 Act relating to affiliated transactions and custody. The Fund’s custodian also serves as the custodian to the Subsidiaries. The Adviser, who also serves in that role for the Subsidiaries, will also comply with the provisions of the 1940 Act regarding investment advisory contracts and are considered to be an investment adviser to the Fund under the 1940 Act. In order to qualify as a RIC under the Code, a fund must meet certain requirements regarding the source of its income, the diversification of its assets and the distribution of its income. The IRS has determined that only income realized directly from certain sources such as dividends, interest, securities loans, gains from stock or securities or foreign currencies, or other income derived with respect to its business of investing is qualifying income for purposes of qualifying as a RIC. Income realized from Bad Income Assets is not considered qualifying income to be treated as a RIC. As a result, a fund’s ability to realize income from investments in Bad Income Assets as part of its investment strategy would be limited to a maximum of 10% of its gross income. To comply with the IRS’ position, certain funds seek to gain exposure to Bad Income Assets primarily through investments in a subsidiary, which invests in Bad Income Assets. If a fund fails to qualify as a RIC, the fund will be subject to federal income tax on its net income at regular corporate rates (without reduction for distributions to shareholders). When distributed, that income also would be taxable to shareholders as an ordinary dividend to the extent attributable to the fund’s earnings and profits. If a fund were to fail to qualify as a RIC and became subject to federal income tax, shareholders of the fund would be subject to diminished returns. The Fund anticipates treating income and gain from the Subsidiaries as qualifying income. Leverage and Credit Facilities The Fund may utilize leverage, including borrowing from banks in an amount of up to 33 1/3% of the Fund’s consolidated assets (defined as net assets plus borrowing for investment purposes). The Fund is authorized to borrow money in connection with its investment activities, to satisfy repurchase requests from Fund shareholders, and to otherwise provide the Fund with liquidity. The Fund may enter into one or more Credit Facilities for the purpose of investment purchases and other liquidity requirements, subject to the limitations of the 1940 Act (as defined below) for borrowings. The Credit Facilities will be secured by the Fund’s assets. Other Information Regarding Investment Strategy The Fund may, from time to time, take defensive positions that are inconsistent with the Fund’s principal investment strategy in attempting to respond to adverse market, economic, political or other conditions. During such times, the Adviser may determine that the Fund should invest up to 100% of its assets in cash or cash equivalents, including money market instruments, prime commercial paper, repurchase agreements, Treasury bills and other short-term obligations of the U.S. Government, its agencies or instrumentalities. In these cases, the Fund may not achieve its investment objective. The Adviser may invest the Fund’s cash balances in any investments it deems appropriate. The Adviser expects that such investments will be made, without limitation and as permitted under the 1940 Act, in money market funds, repurchase agreements, U.S. Treasury and U.S. agency securities, municipal bonds and bank accounts. Any income earned from such investments is ordinarily reinvested by the Fund in accordance with its investment program. Many of the considerations entering into recommendations and decisions of the Adviser and the Fund’s Portfolio Managers (as defined below) are subjective. The Fund may engage in borrowings and the use of leverage in acquiring investments. The frequency and amount of portfolio purchases and sales (known as the “portfolio turnover rate”) will vary from year to year. The portfolio turnover rate is not expected to exceed 100%, but may vary greatly from year to year and will not be a limiting factor when the Adviser deems portfolio changes appropriate. Some of the Fund’s investments have limited liquidity, so it is not anticipated that the Fund will have high portfolio turnover. However, securities may be sold without regard to the length of time held when, in the opinion of the Adviser, investment considerations warrant such action. These policies may have the effect of increasing the annual rate of portfolio turnover of the Fund. Higher rates of portfolio turnover would likely result in higher brokerage commissions and may generate short-term capital gains taxable as ordinary income. If securities are not held for the applicable holding periods, dividends paid on them will not qualify for the advantageous federal tax rates. See “Tax Status” in the Fund’s SAI. The Fund will provide shareholders with at least 60 days’ prior notice of any change to its policy to invest at least 80% of its net assets, plus any borrowings for investment purposes, in domestic credit instruments and loans. For purposes of this policy, the Fund considers “credit instruments” to be debt obligations and other instruments that entitle the holder to receive payments of principal and/or interest, including the instruments described in clauses (i) through (iv) above, and considers an instrument to be “domestic” if the issuer or obligor is organized or located in the United States or the instrument is backed primarily by assets located in the United States. Fundamental Policies The Fund’s stated fundamental policies, which may only be changed by the affirmative vote of a majority of the outstanding voting securities of the Fund (the shares), are listed below. For the purposes of this prospectus, “majority of the outstanding voting securities of the Fund” means the vote, at an annual or special meeting of shareholders, duly called, (a) of 67% or more of the shares present at such meeting, if the holders of more than 50% of the outstanding shares are present or represented by proxy; or (b) of more than 50% of the outstanding shares, whichever is less. The Fund may not: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left">(1)</td> <td style="text-align: justify">Borrow money, except to the extent permitted by the Investment Company Act of 1940, as amended (the “1940 Act”) (which currently limits borrowing to no more than 33 1/3% of the value of the Fund’s total assets, including the value of the assets purchased with the proceeds of its indebtedness, if any). The Fund may borrow for investment purposes, for temporary liquidity, or to finance repurchases of its shares.</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left">(2)</td> <td style="text-align: justify">Issue senior securities, except to the extent permitted by Section 18 of the 1940 Act (which currently limits the issuance of a class of senior securities that is indebtedness to no more than 33 1/3% of the value of the Fund’s total assets or, if the class of senior security is stock, to no more than 50% of the value of the Fund’s total assets).</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left">(3)</td> <td style="text-align: justify">Underwrite securities of other issuers, except insofar as the Fund may be deemed an underwriter under the Securities Act of 1933, as amended (the “Securities Act”) in connection with the disposition of its portfolio securities. The Fund may invest in restricted securities (those that must be registered under the Securities Act before they may be offered or sold to the public) to the extent permitted by the 1940 Act.</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left">(4)</td> <td style="text-align: justify">Invest more than 25% of the market value of its assets in the securities of companies or entities engaged in any one industry or group of industries other than mortgage-related assets and loans and securities backed by those loans related to the US Consumer. This limitation does not apply to investment in the securities of the U.S. Government, its agencies or instrumentalities, as well as to investments in investment companies that primarily invest in such securities.</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left">(5)</td> <td style="text-align: justify">Purchase or sell commodities, commodity contracts, including commodity futures contracts, unless acquired as a result of ownership of securities or other investments, except that the Fund may invest in securities or other instruments backed by or linked to commodities, and invest in companies that are engaged in a commodities business or have a significant portion of their assets in commodities, and may invest in commodity pools and other entities that purchase and sell commodities and commodity contracts.</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left">(6)</td> <td style="text-align: justify">Purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this restriction shall not prevent the Fund from investing in securities of companies engaged in the real estate business or securities or other instruments backed by real estate or mortgages), or commodities or commodity contracts.</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left">(7)</td> <td style="text-align: justify">Make loans to others other than in accordance with its investment objectives and policies.</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.5in; text-align: left">(8)</td> <td style="text-align: justify">In addition, the Fund has adopted a fundamental policy that it will make quarterly repurchase offers for no less than for 5% of the shares outstanding at NAV less any repurchase fee, unless suspended or postponed in accordance with regulatory requirements, and each repurchase pricing shall occur no later than the 14th day after the Repurchase Request Deadline, or the next business day if the 14th is not a business day.</td> </tr> </table> For purposes of the Fund’s concentration policy, if the Fund invests in one or more investment companies, the Fund will examine the holdings of such investment companies to ensure that the Fund is not indirectly concentrating its investments in a particular industry or group of industries. If a restriction on a Fund’s investments is adhered to at the time an investment is made, a subsequent change in the percentage of Fund assets invested in certain securities or other instruments, or change in average duration of a Fund’s investment portfolio, resulting from changes in the value of a Fund’s total assets, will not be considered a violation of the restriction; provided, however, that the asset coverage requirement applicable to borrowings shall be maintained in the manner contemplated by applicable law. There is no assurance what portion, if any, of the Fund’s investments will qualify for the reduced federal income tax rates applicable to qualified dividends under the Code. As a result, there can be no assurance as to what portion of the Fund’s distributions will be designated as qualified dividend income. See “U.S. Federal Income Tax Matters.” RISK FACTORS An investment in the Fund’s shares is subject to risks. The value of the Fund’s investments will increase or decrease based on changes in the prices of the investments it holds. This will cause the value of the Fund’s shares to increase or decrease. You may lose part or all of your investment by investing in the Fund. By itself, the Fund does not constitute a balanced investment program. Before investing in the Fund you should consider carefully the following risks. There may be additional risks that the Fund does not currently foresee or consider material. You may wish to consult with your legal or tax advisers before deciding whether to invest in the Fund. Risks Related to an Investment in the Fund <p id="xdx_847_ecef--RiskTextBlock_hcef--RiskAxis__custom--MinimalCapitalizationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zUO6Sw11TOK8" style="font: 10pt Times New Roman, Times, Serif; margin: 0;text-align: justify">Minimal Capitalization Risk. There is a risk that the amount of capital actually raised by the Fund through the offering of its shares may be insufficient to achieve profitability or allow the Fund to realize its investment objective. An inability to raise additional capital may adversely affect the Fund’s financial condition, liquidity and results of operations, as well as its compliance with regulatory requirements. <p id="xdx_847_ecef--RiskTextBlock_hcef--RiskAxis__custom--LimitedOperatingHistoryMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zy7zRiU1AuL1" style="font: 10pt Times New Roman, Times, Serif; margin: 0;text-align: justify">Limited Operating History. The Fund is a closed-end investment company with a limited history of operations. The Fund may not be able to achieve its investment objective, including as a result of inopportune market or economic conditions. <p id="xdx_847_ecef--RiskTextBlock_hcef--RiskAxis__custom--AllocationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zVDFoQBZGTg3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Allocation Risk. The ability of the Fund to achieve its investment objective depends, in part, on the ability of the Adviser to allocate effectively the Fund’s assets among the various asset classes in which the Fund invests. There can be no assurance that the actual allocations will be effective in achieving the Fund’s investment objective or delivering positive returns. <p id="xdx_84D_ecef--RiskTextBlock_hcef--RiskAxis__custom--IssuerAndNonDiversificationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_z63MPmchLYRg" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Issuer and Non-Diversification Risk. Specific securities can perform differently from the market as a whole for reasons related to the issuer, such as adherence to credit underwriting standards, servicing practices, and market perception of issuer quality. The Fund’s performance may be more sensitive to any single economic, business, political or regulatory occurrence than the value of shares of a diversified investment company because as a non-diversified fund, the Fund may invest more than 5% of its total assets in the securities of one or more issuers. <p id="xdx_843_ecef--RiskTextBlock_hcef--RiskAxis__custom--LiquidityRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zjCgMKYULL6k" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Liquidity Risk. The Fund is a closed-end investment company structured as an “interval fund” and designed for long-term investors. Unlike many closed-end investment companies, the Fund’s shares are not listed on any securities exchange and are not publicly traded. There currently is no secondary market for the shares and the Adviser does not expect that a secondary market will develop. Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no less than 5% of the Fund’s shares outstanding at NAV. There is no guarantee that shareholders will be able to sell all of the shares they desire in a quarterly repurchase offer. The Fund’s investments are also subject to liquidity risk. Liquidity risk exists when particular investments of the Fund would be difficult to purchase or sell, possibly preventing the Fund from selling such illiquid securities at an advantageous time or price, or possibly requiring the Fund to dispose of other investments at unfavorable times or prices in order to satisfy its obligations. Funds with principal investment strategies that involve securities of companies with smaller market capitalizations, derivatives or securities with substantial market and/or credit risk tend to have the greatest exposure to liquidity risk. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--ManagementRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zqmgrPFvAfc1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management Risk. The NAV of the Fund changes daily based on the performance of the securities in which it invests. The Adviser’s judgment about the attractiveness, value and potential appreciation of a particular security in which the Fund invests may prove to be incorrect and may not produce the desired results. <p id="xdx_846_ecef--RiskTextBlock_hcef--RiskAxis__custom--ChangesInTradeNegotiationsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zfD4dR1ySitf" style="font: 10pt Times New Roman, Times, Serif; margin: 0;text-align: justify">Changes in Trade Negotiations Risk. In recent years, the U.S. government has indicated its intent to alter its approach to international trade policy and in some cases to renegotiate, or potentially terminate, certain existing bilateral or multi-lateral trade agreements and treaties with foreign countries, and has made proposals and taken actions related thereto. Tariffs on imported goods could further increase costs, decrease margins, reduce the competitiveness of products and services offered by current and future issuers, obligors, or guarantors of the Fund’s portfolio securities and adversely affect the revenues and profitability of such companies whose businesses rely on goods imported from such impacted jurisdictions. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--HighlyVolatileMarketsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zcq1ugb6Cl58" style="font: 10pt Times New Roman, Times, Serif;margin-top: 0pt; margin-bottom: 0pt; text-align: justify">Highly Volatile Markets Risk. The prices of instruments in which the Fund may invest are influenced by numerous factors, including interest rates, currency rates, default rates, governmental policies and political and economic events (both domestic and global). Moreover, political or economic crises, or other events may occur that can be highly disruptive to the markets in which the Fund may invest. In addition, governments from time to time intervene (directly and by regulation), which intervention may adversely affect the performance of the Fund and its investment activities. The Fund is also subject to the risk of a temporary or permanent failure of the exchanges and other markets on which its investments may trade. Sustained market turmoil and periods of heightened market volatility make it more difficult to produce positive trading results, and there can be no assurance that the Fund’s strategies will be successful in such markets. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--LegislationAndRegulatoryRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zeOPOsVH1kf2" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">Legislation and Regulatory Risk. New or amended regulations may be imposed by the Commodity Futures Trading Commission (the “CFTC”), the SEC, the Federal Reserve, the European Union (the “EU”) or other financial regulators, other governmental or intergovernmental regulatory authorities or self-regulatory organizations that supervise the financial markets, and could adversely affect the Fund. In particular, the CFTC and the SEC are empowered to promulgate a variety of new rules pursuant to financial reform legislation in the United States. The Fund also may be adversely affected by changes in the enforcement or interpretation of statutes and rules by these regulatory authorities or self-regulatory organizations. <p id="xdx_840_ecef--RiskTextBlock_hcef--RiskAxis__custom--MarketDisruptionsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_z7Hb8ahSUc9a" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">Market Disruptions Risk. The Fund may incur major losses in the event of market disruptions and other extraordinary events in which historical pricing relationships become materially distorted. The risk of loss from pricing distortions is compounded by the fact that in disrupted markets many positions become illiquid, making it difficult or impossible to close out positions against which the markets are moving. Market disruptions caused by unexpected political, military and terrorist events may from time to time cause dramatic losses for the Fund and such events can result in otherwise historically low-risk strategies performing with unprecedented volatility and risk. <p id="xdx_84B_ecef--RiskTextBlock_hcef--RiskAxis__custom--USDebtCeilingAndBudgetDeficitRisksMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zoo8At3iHxVh" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">U.S. Debt Ceiling and Budget Deficit Risks. U.S. debt ceiling and budget deficit concerns have increased the possibility of additional credit-rating downgrades and economic slowdowns, or a recession in the United States. Although U.S. lawmakers have historically passed legislation to raise the federal debt ceiling on multiple occasions, ratings agencies have lowered or threatened to lower the long-term sovereign credit rating on the United States. The impact of a U.S. default on its obligations or any further downgrades to the U.S. government’s sovereign credit rating or its perceived creditworthiness could adversely affect the U.S. and global financial markets and economic conditions. In addition, disagreement over the federal budget has caused the U.S. federal government to shut down for periods of time. Continued adverse political and economic conditions could have a material adverse effect on the Fund’s business, financial condition and results of operations. <p id="xdx_842_ecef--RiskTextBlock_hcef--RiskAxis__custom--FailureOfFinancialInstitutionsAndSustainedFinancialMarketIlliquidityMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zUXGYcWNJcCi" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Failure of Financial Institutions and Sustained Financial Market Illiquidity. The failure of certain financial institutions, namely banks, may increase the possibility of a sustained deterioration of financial market liquidity, or illiquidity at clearing, cash management and/or custodial financial institutions. The failure of a bank (or banks) with which the Fund and/or the Fund’s underlying investments have a commercial relationship could adversely affect, among other things, the Fund and/or the Fund’s underlying investments’ ability to pursue key strategic initiatives, including by affecting the Fund’s ability to borrow from financial institutions on favorable terms. <p id="xdx_845_ecef--RiskTextBlock_hcef--RiskAxis__custom--CorrelationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zDP3GJfqczKj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Correlation Risk. The Fund seeks to produce returns that are less correlated to the broader financial markets over time. Although the prices of equity securities and fixed income securities, as well as other asset classes, often rise and fall at different times so that a fall in the price of one may be offset by a rise in the price of the other, in down markets the prices of these securities and asset classes can also fall in tandem. Because the Fund allocates its investments among different asset classes, the Fund is subject to correlation risk. <p id="xdx_849_ecef--RiskTextBlock_hcef--RiskAxis__custom--RepurchasePolicyRisksMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zd7DM3KItSsg" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Repurchase Policy Risks. Quarterly repurchases by the Fund of its shares typically will be funded from available cash or sales of portfolio securities. However, payment for repurchased shares may require the Fund to liquidate portfolio holdings earlier than the Adviser otherwise would liquidate such holdings, potentially resulting in losses, and may increase the Fund’s portfolio turnover. The Adviser may take measures to attempt to avoid or minimize such potential losses and turnover, and instead of liquidating portfolio holdings, may borrow money to finance repurchases of shares. If the Fund borrows to finance repurchases, interest on any such borrowing will negatively affect shareholders who do not tender their shares in a repurchase offer by increasing the Fund’s expenses and reducing any net investment income. To the extent the Fund finances repurchase proceeds by selling investments, the Fund may hold a larger proportion of its net assets in less liquid securities. Also, the sale of securities to fund repurchases could reduce the market price of those securities, which in turn would reduce the Fund’s NAV. Repurchase of shares will tend to reduce the amount of outstanding shares and, depending upon the Fund’s investment performance, its net assets. A reduction in the Fund’s net assets may increase the Fund’s expense ratio, to the extent that additional shares are not sold. In addition, the repurchase of shares by the Fund may be a taxable event to shareholders. If shareholders tender for repurchase more than the Repurchase Offer Amount for a given repurchase offer, the Fund will repurchase the shares on a pro rata basis, so shareholders may not be able to tender as many shares as they would like during any quarterly repurchase offer. <p id="xdx_847_ecef--RiskTextBlock_hcef--RiskAxis__custom--DistributionPolicyRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_z4Wqzl6H7YH9" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Distribution Policy Risk. The Fund’s distribution policy is to make monthly distributions to shareholders. All or a portion of a distribution may consist solely of a return of capital (i.e. from your original investment) and not a return of net profit. Shareholders should not assume that the source of a distribution from the Fund is net profit. Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares. <p id="xdx_84F_ecef--RiskTextBlock_hcef--RiskAxis__custom--TaxRisksMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zIMfN0TgpXnj" style="font: 10pt Times New Roman, Times, Serif; margin: 0;text-align: justify">Tax Risks. The repurchase of shares by the Fund may be a taxable event to shareholders. The Fund’s distribution policy to make monthly distributions to shareholders may consist of a return of capital. A return of capital distribution generally will not be taxable but will reduce the shareholder’s cost basis and result in a higher capital gain or lower capital loss when those shares on which the distribution was received are sold. Once a shareholder’s cost basis is reduced to zero, further distributions will be treated as capital gain, if the shareholder holds shares of the Fund as capital assets. <p id="xdx_840_ecef--RiskTextBlock_hcef--RiskAxis__custom--CybersecurityRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zC4Bc3E8tQ6i" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cybersecurity Risk. Cybersecurity refers to the combination of technologies, processes and procedures established to protect information technology systems and data from unauthorized access, attack or damage. The Fund and its affiliates and third-party service providers are subject to cybersecurity risks. Cybersecurity risks have significantly increased in recent years and the Fund could suffer such losses in the future. The Fund’s and its affiliates’ and third-party service providers’ computer systems, software, and networks may be vulnerable to unauthorized access, computer viruses or other malicious code, and other events that could have a security impact. If one or more of such events occur, this potentially could jeopardize confidential and other information, including nonpublic personal information and sensitive business data, processed and stored in, and transmitted through, computer systems and networks, or otherwise cause interruptions or malfunctions in the Fund’s operations or the operations of their respective affiliates and third-party service providers. This could result in significant losses, reputational damage, litigation, regulatory fines or penalties, or otherwise adversely affect the Fund’s business, financial condition or results of operations. Privacy and information security laws and regulation changes, and compliance with those changes, may result in cost increases due to system changes and the development of new administrative processes. In addition, the Fund may be required to expend significant additional resources to modify the Fund’s protective measures and to investigate and remediate vulnerabilities or other exposures arising from operational and security risks. Risks Related to the Fund’s Investments <p id="xdx_841_ecef--RiskTextBlock_hcef--RiskAxis__custom--UseOfLeverageByTheFundMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zinoTDrnNXk7" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Use of Leverage by the Fund. Although the Fund has the option to borrow, there are significant risks that may be assumed in connection with such borrowings. Investors in the Fund should consider the various risks of financial leverage, including, without limitation, the matters described below. There is no assurance that a leveraging strategy would be successful. Financial leverage involves risks and special considerations for shareholders including: (i) the likelihood of greater volatility of NAV of the shares than a comparable portfolio without leverage; (ii) the risk that fluctuations in interest rates on borrowings and short-term debt that the Fund must pay will reduce the return to the shareholders; (iii) the effect of financial leverage in a market experiencing rising interest rates, which would likely cause a greater decline in the NAV of the shares than if the Fund were not leveraged; and (iv) the potential for an increase in operating costs, which may reduce the Fund’s total return. In the event that the Fund would be required to sell assets at a loss, including in order to redeem or pay off any borrowing, such a sale would reduce the Fund’s NAV and may make it difficult for the NAV to recover. The Fund nevertheless may continue to use financial leverage if the Adviser expects that the benefits to the shareholders of maintaining the leveraged position likely would outweigh a resulting reduction in the current return. Certain types of borrowings by the Fund would result in the Fund being subject to covenants in credit agreements relating to asset coverage and Fund composition requirements that are more stringent than those currently imposed on the Fund by the 1940 Act. In addition, borrowings by the Fund may be made on a secured basis. The Custodian will then either segregate the assets securing the Fund’s borrowings for the benefit of the Fund’s lenders or arrangements will be made with a suitable sub-custodian. If the assets used to secure a borrowing decrease in value, the Fund may be required to pledge additional collateral to the lender in the form of cash or securities to avoid liquidation of those assets. In the event of a default, the lenders will have the right, through the Custodian, to redeem the Fund’s investments in underlying Investment Funds without consideration of whether doing so would be in the best interests of the Fund’s shareholders. The rights of any lenders to the Fund to receive payments of interest on and repayments of principal of borrowings will be senior to the rights of the Fund’s shareholders, and the terms of the Fund’s borrowings may contain provisions that limit certain activities of the Fund and could result in precluding the purchase of instruments that the Fund would otherwise purchase. The use of financial leverage involves financial risk and would increase the exposure of the Fund’s investment returns to adverse economic factors such as rising interest rates, downturns in the economy or deterioration in the condition of the investments. There would be a risk that operating cash flow available to the Fund would be insufficient to meet required payments and a risk that it would not be possible to refinance existing indebtedness or that the terms of such refinancing would not be as favorable as the terms of existing indebtedness. Borrowings by the Fund may be secured by any or all of the assets of the Fund, with the consequences that the Fund may lose more than its equity stake in any one investment, and may lose all of its capital. <p id="xdx_844_ecef--RiskTextBlock_hcef--RiskAxis__custom--InvestmentsInBankLoansAndParticipationsMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zFv0Let2jw6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Investments in Bank Loans and Participations. The special risks associated with investing in bank loans and participations include: (i) the possible invalidation of an investment transaction as a fraudulent conveyance under relevant creditors’ rights laws; (ii) environmental liabilities that may arise with respect to collateral securing the obligations; (iii) adverse consequences resulting from participating in such instruments with other institutions with lower credit quality; (iv) limitations on the ability of the Fund to directly enforce any of their respective rights with respect to participations; and (v) generation of income that is subject to U.S. federal income taxation as income effectively connected with a U.S. trade or business. The Fund will attempt to balance the magnitude of these risks against the potential investment gain prior to entering into each such investment. Successful claims by third parties arising from these and other risks, absent bad faith, may be borne by the Funds. Bank loans do not presently have the liquidity of conventional debt securities and are often subject to restrictions on resale. Due to the illiquidity of bank loans, the Fund may not be able to dispose of its investments in bank loans in a timely fashion and at a fair price, which could adversely affect the performance of the Fund. With respect to bank loans acquired as participations by the Fund, because the holder of a participation generally has no contractual relationship with a borrower, the Fund will have to rely upon a third party to pursue appropriate remedies against a borrower in the event of a default. As a result, the Fund may be subject to delays, expenses and risks that are greater than those that would be involved if the Fund could enforce its rights directly against a borrower or through the agent. Furthermore, a borrower of a bank loan, in some cases, may prepay the bank loan. Prepayments could adversely affect the Fund’s interest income to the extent that the Fund is unable to reinvest promptly payments in bank loans or otherwise or if such prepayments were made during a period of declining interest rates. <p id="xdx_84A_ecef--RiskTextBlock_hcef--RiskAxis__custom--AssetBackedSecuritieMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zutbDdkSKI56" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Asset-backed securities. Asset-backed securities often involve risks that are different from risks associated with other types of debt instruments. For instance, asset-backed securities may be particularly sensitive to changes in prevailing interest rates. In addition, the underlying assets may be subject to prepayments that shorten the securities’ weighted average maturity and may lower their return. Similarly, ABS may be subject to defaults that result in the loss of principal and/or a downgrade of credit rating reducing the market value of the investment. Delinquencies and defaults are likely to increase during periods of economic decline or distress, but also occur during periods of economic growth. Asset-backed securities are also subject to risks associated with their structure and the nature of the assets underlying the security and the servicing of those assets. Payment of interest and repayment of principal on asset-backed securities is largely dependent upon the cash flows generated by the assets backing the securities and, in certain cases, supported by letters of credit, surety bonds or other credit enhancements. The values of asset-backed securities may be substantially dependent on the servicing of the underlying asset pools, and are therefore subject to risks associated with the negligence by, or defalcation of, their servicers. Furthermore, debtors may be entitled to the protection of a number of state and federal consumer credit laws with respect to the assets underlying these securities, which may give the debtor the right to avoid or reduce payment. In addition, due to their often complicated structures, various asset-backed securities may be difficult to value and may constitute illiquid investments. If many borrowers on the underlying loans or other obligations default, losses could exceed the credit enhancement level and result in losses to investors in asset-backed securities. An investment in subordinated (residual) classes of asset-backed securities (sometimes referred to as “equity”) is typically considered to be an illiquid and highly speculative investment, as losses on the underlying assets are first absorbed by the subordinated classes. The risks associated with an investment in such subordinated classes of asset-backed securities include credit risk and liquidity risk. <p id="xdx_840_ecef--RiskTextBlock_hcef--RiskAxis__custom--MortgageBackedSecuritieMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zfBXnQsZpRU3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mortgage-backed securities. The investment characteristics of mortgage-backed securities differ from traditional debt securities. Among the major differences are that interest and principal payments are made more frequently, usually monthly, and that the principal may be prepaid at any time because the underlying loans or other assets generally may be prepaid at any time. The frequency at which prepayments (including voluntary prepayments by the obligors and liquidations due to default and foreclosures) occur on loans underlying mortgage-backed securities will be affected by a variety of factors including the prevailing level of interest rates as well as the availability of mortgage credit, the relative economic vitality of the area in which the related properties are located, the servicing of the mortgage loans, possible changes in tax laws, other opportunities for investment, homeowner mobility and other economic, social, geographic, demographic and legal factors. In general, any factors that increase the attractiveness of selling a mortgaged property or refinancing a mortgage loan, enhance a borrower’s ability to sell or refinance or increase the likelihood of default under a mortgage loan, would be expected to cause the rate of prepayment in respect of a pool of mortgage loans to accelerate. Particular investments may experience outright losses, as in the case of an interest only security in an environment of faster actual or anticipated prepayments. Also, particular investment may underperform relative to hedges that a portfolio manager may have constructed for these investments, resulting in a loss. In contrast, any factors having an opposite effect would be expected to cause the rate of prepayment of a pool of mortgage loans to slow. The rate of prepayment on a pool of mortgage loans is likely to be affected by prevailing market interest rates for mortgage loans of a comparable type, term and risk level. When the prevailing market interest rate is below a mortgage coupon, a borrower generally has an increased incentive to refinance its mortgage loan. Even in the case of adjustable rate mortgage loans, as prevailing market interest rates decline, and without regard to whether the mortgage rates on such loans decline in a manner consistent therewith, the related borrowers may have an increased incentive to refinance for purposes of either (i) converting to a fixed rate loan and thereby “locking in” such rate or (ii) taking advantage of a different index, margin or rate cap or floor on another adjustable rate mortgage loan. Therefore, as prevailing market interest rates decline, prepayment speeds would be expected to accelerate. An investment in subordinated classes of mortgage-backed securities (sometimes referred to as “equity” or “b-piece”) is typically considered to be an illiquid and highly speculative investment, as losses on the underlying assets are first absorbed by the subordinated classes. The risks associated with an investment in such subordinated classes of asset-backed securities include credit risk and liquidity risk. In the case of a mortgage-backed security related to multifamily or commercial loans, prevailing market interest rates, the outlook for market interest rates and economic conditions generally may cause some borrowers to refinance or sell their properties in order to realize their equity therein, lower their financing costs, to meet cash flow needs or to make other investments. In addition, some borrowers may be motivated by U.S. federal and state tax laws (which are subject to change) to sell their properties prior to the exhaustion of tax depreciation benefits. <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top">○</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Residential Mortgage-Backed Securities. RMBS are mortgage-backed securities that may be secured by interests in a single residential mortgage loan or a pool of mortgage loans secured by residential property. RMBS may be senior, subordinate, interest-only, principal-only, investment-grade, non-investment grade or unrated. The Fund may acquire RMBS from private originators as well as from other mortgage loan investors, including savings and loan associations, mortgage bankers, commercial banks, finance companies and investment banks. The credit quality of any RMBS issue depends primarily on the credit quality of the underlying mortgage loans. Each of these types of RMBS may</td> </tr> </table> be impacted differently by changes in the behavior of the underlying borrower. For example, an acceleration of prepayment rates may adversely affect the performance of senior or subordinate RMBS purchased at premium to par or interest-only RMBS, while positively impacting those positions purchased at a discount to par or principal-only RMBS. Prepayment, delinquency, default, and foreclosure rates may affect the performance of RMBS. Factors in the underlying mortgages such as the FICO score of the borrower, the loan to value of the loan, the change in the borrower’s home price, and other various factors may influence the likelihood of prepayment, delinquency, default, and/or foreclosure. As such, the Fund’s investment in RMBS is more sensitive to economic factors that impact the value of residential real estate, the borrower’s ability to repay their mortgage, and the broad availability of consumer credit. At any one time, a portfolio of mortgage-backed securities may be backed by residential mortgage loans with disproportionately large aggregate principal amounts secured by properties in only a few states or regions. As a result, the residential mortgage loans may be more susceptible to geographic risks relating to such areas, such as adverse economic conditions, adverse events affecting industries located in such areas and natural hazards affecting such areas, than would be the case for a pool of mortgage loans having more diverse property locations. <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top">○</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Commercial Mortgage-Backed Securities. CMBS are fixed income instruments that are secured by mortgage loans on commercial real property. CMBS typically take the form of multi-class debt or pass-through certificates secured by mortgage loans on commercial properties. They generally are structured to provide protection to investors in senior tranches against potential losses on the underlying mortgage loans. Such protection generally is provided by causing holders of subordinated classes of securities (“Subordinated CMBS”) to take the first loss in the event of defaults on the underlying commercial mortgage loans. Other protection, which may benefit all of the classes or particular classes, may include issuer guarantees, reserve funds, additional Subordinated CMBS, cross-collateralization and over-collateralization. The Fund may invest in CMBS or Subordinated CMBS.</td> </tr> </table> Mortgage loans on commercial properties underlying mortgage-backed securities often are structured so that a substantial portion of the loan principal is not amortized over the loan term but is payable at maturity and repayment of the loan principal thus often depends upon the future availability of real estate financing from the existing or an alternative lender and/or upon the current value and salability of the real estate. Therefore, the unavailability of real estate financing may lead to default. Most commercial mortgage loans underlying mortgage-backed securities are effectively nonrecourse obligations of the borrower, meaning that there is no recourse against the borrower’s assets other than the collateral. If borrowers are not able or willing to refinance or dispose of encumbered property to pay the principal and interest owed on such mortgage loans, payments on the subordinated classes of the related mortgage-backed securities are likely to be adversely affected. The ultimate extent of the loss, if any, to the subordinated classes of mortgage-backed securities may only be determined after a negotiated discounted settlement, restructuring or sale of the mortgage note, or the foreclosure (or deed in lieu of foreclosure) of the mortgage encumbering the property and subsequent liquidation of the property. Especially in the case of a mortgage-backed security related to commercial mortgage loans, the rate of principal payments on the loans in the related pool will also be affected by the nature and extent of any restrictions on prepayments that are set forth in the mortgage loans, and the extent to which such provisions may be enforced. Such restrictions may include a prohibition on prepayments for specified periods of time and/or requirements that principal prepayments be accompanied by the payment of prepayment penalties or be subject to yield maintenance premiums. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--ResidentialLoansAndMortgagesRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zYcrWI3LLLjj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Residential Loans and Mortgages Risk. In addition to interest rate, default and other risks of fixed income securities, investments in whole loans and debt instruments backed by residential loans or mortgages (or pools of loans or mortgages) carry additional risks, including the possibility that the quality of the collateral may decline in value and the potential for the liquidity of residential loans and mortgages to vary over time. These risks are greater for subprime residential and mortgage loans. Because they do not trade in a liquid market, residential loans can typically only be sold to a limited universe of institutional investors and may be difficult for the Fund to value. In addition, in the event that a loan is foreclosed on, the Fund could become the owner (in whole or in part) of any collateral, which may include, among other things, real estate or other real or personal property, and the Fund would bear the costs and liabilities of owning, holding or disposing of such property. <p id="xdx_84F_ecef--RiskTextBlock_hcef--RiskAxis__custom--DistressedAndDefaultedInvestmentsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zoR7Jm1Jd6D" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Distressed and Defaulted Investments Risk. Investments in obligations of financially distressed obligors involve substantial risks. These obligations may present a substantial risk of default or may be in default at the time of investment. The Fund may incur additional expenses to the extent it is required to seek recovery upon a default in the payment of principal or interest on its portfolio holdings. To the extent the Fund invests in mortgage loans that are in default, the Fund may not be able to repossess and sell the underlying properties in a timely manner. The resulting time delay could reduce the value of the investment in the defaulted mortgage loans. In any reorganization or liquidation proceeding relating to an obligor, the Fund may lose its entire investment or may be required to accept cash or securities with a value less than its original investment. Among the risks inherent in investments in a troubled obligor is the fact that it frequently may be difficult to obtain information as to the obligor’s true financial condition. The Adviser’s judgment about the credit quality of an obligor and the relative value and liquidity of its investments may prove to be wrong. <p id="xdx_845_ecef--RiskTextBlock_hcef--RiskAxis__custom--USGovernmentObligationsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zDuZDDuf0JGb" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">U.S. Government Obligations Risk. U.S. Treasury obligations are backed by the “full faith and credit” of the U.S. government and generally have negligible credit risk. Securities issued or guaranteed by federal agencies or authorities and U.S. government-sponsored instrumentalities or enterprises may or may not be backed by the full faith and credit of the U.S. government. The Fund may be subject to such risk to the extent it invests in securities issued or guaranteed by federal agencies or authorities and U.S. government-sponsored instrumentalities or enterprises. <p id="xdx_846_ecef--RiskTextBlock_hcef--RiskAxis__custom--CollateralizedLoanObligationsCLOsAndCollateralizedDebtObligationsCDOsMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zzHlvPWOrVxh" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Collateralized Loan Obligations (“CLOs”) and Collateralized Debt Obligations (“CDOs”). The Fund’s investments may include CDOs and/or CLOs which are subject to the following risks: (i) distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) CDOs and/or CLOs typically will have no significant underlying assets other than their underlying senior secured debt obligations or loans and payments on the CDOs and/or CLOs are and will be payable solely from the cash flows from such senior secured debt obligations and/or loans; (iv) the complex structure of the CDOs and/or CLOs and their interests may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results; (v) CDOs and/or CLOs are typically highly levered, and therefore the CDO and/or CLO interests that the Fund may invest in are subject to a higher risk of total loss; (vi) investments in CDOs and/or CLOs may be riskier and less transparent to us and our Shareholders than direct investments in the underlying companies; (vii) the potential for interruption and deferral of cash flow to our investments in the equity and junior debt tranches of CDOs and/or CLOs; (viii) interests in CDOs and/or CLOs may be illiquid; (ix) investments in foreign CDOs and/or CLOs may involve significant risks in addition to the risks inherent in U.S. CDOs and/or CLOs; (x) we may invest with collateral managers that have no or limited performance or operating history; (xi) the inability of a CDO or CLO collateral manager to reinvest the proceeds of any prepayments may adversely affect us; (xii) the loans underlying the CDOs and/or CLOS may be sold and replaced resulting in a loss to us; (xiii) we may not have direct rights against the underlying borrowers or obligors comprising the CDOs and/or CLOs’ investments or the entities that sponsored the CDOs and/or CLOs; and (xiv) investments in equity and junior debt tranches of CDOs and/or CLOs will likely be subordinate to the other debt tranches of such CDOs and/or CLOs, and are subject to a higher degree of risk of total loss. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--ValuationOfPrivateInvestmentsMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zj4ubaiuwVHj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Valuation of Private Investments. Some of the Fund’s investments are not publicly traded, and the Fund may consider information provided by the trustee, servicer, and other third party services provides with respect to each private investment to determine the estimated value of the Fund’s investment therein. The valuation as of a specific date may vary from the actual sale price that may be obtained if such investment were sold to a third party. To determine the estimated value of the Fund’s investment in private investments, the Fund considers, among other things, information provided by the private investments, including monthly or quarterly unaudited financial statements, which if inaccurate could adversely affect the Fund’s ability to value accurately the Fund’s investment. <p id="xdx_846_ecef--RiskTextBlock_hcef--RiskAxis__custom--FixedIncomeRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zpmSTUcIWW5k" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fixed Income Risk. The value of investments in fixed income securities will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities. In general, the market price of debt securities with longer maturities will increase or decrease more in response to changes in interest rates than shorter-term securities. Other risk factors include credit risk (the debtor may default) and prepayment risk (the debtor may pay its obligation early, reducing the amount of interest payments). These risks could affect the value of a particular investment, possibly causing the Fund’s share price and total return to be reduced and fluctuate more than other types of investments. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--HighYieldAndUnratedSecuritiesRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zlwSkvcM6svf" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">High Yield and Unrated Securities Risk. These securities are speculative investments that carry greater risks and are more susceptible to real or perceived adverse economic and competitive industry conditions than higher quality securities. High yield securities offer the potential for higher return, but also involve greater risk than bonds of higher quality, including an increased possibility that the security’s issuer, obligor or guarantor may not be able to make its payments of interest and principal (credit quality risk). If that happens, the value of the security may decrease. An economic downturn or period of rising interest rates (interest rate risk) could adversely affect the market for these securities and reduce the Fund’s ability to sell its securities (liquidity risk). Such securities also may be subject to resale restrictions. The lack of a liquid market for these securities could decrease the Fund’s share price. The risks associated with unrated securities can be similar to the risks of below investment grade securities. In addition, the determination of credit quality for an unrated security is based largely on the credit analysis performed by the Adviser, and not on rating agency evaluation. This analysis may be difficult to perform because information about these securities may not be in the public domain, and the issuers may not subject to reporting requirements under federal securities laws. <p id="xdx_84F_ecef--RiskTextBlock_hcef--RiskAxis__custom--InterestsRateRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zAUln0jeRFM1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Interest Rate Risk. The fixed-income instruments in which the Fund may invest are subject to the risk that market values of such securities will decline as interest rates increase. These changes in interest rates have a more pronounced effect on securities with longer durations. Typically, the impact of changes in interest rates on the market value of an instrument will be more pronounced for fixed-rate instruments, such as most mortgage bonds, than it will for floating rate instruments. Fluctuations in the value of portfolio securities will not affect interest income on existing portfolio securities but will be reflected in the Fund’s NAV. After a period of historically low interest rates, the Federal Reserve has raised certain benchmark interest rates. It cannot be predicted with certainty when, or how, these policies will change, but actions by the Federal Reserve and other central bankers may have a significant effect on interest rates and on the U.S. and world economies generally. Market volatility, rising interest rates, uncertainty around interest rates and/or unfavorable economic conditions could adversely affect our business. Fixed-income instruments that bear floating rate coupons may experience less price volatility related to changes in interest rates than those instruments that have a fixed-rate coupon. Floating rate instruments may experience changes in price related to interest rates based on the length of time between reset periods and the relative movement of the reference rate for the security versus the change in broader interest rate markets. Additionally, changes in interest rates may adversely impact the underlying borrower’s ability to repay as interest costs may rise sharply during periods of rising rates. As such, floating-rate securities may experience a larger change in credit risk than fixed-rate securities which may have an adverse impact on their price relative to fixed-rate securities. <p id="xdx_84E_ecef--RiskTextBlock_hcef--RiskAxis__custom--InflationDeflationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_ztopc2Jgom7j" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inflation/Deflation Risk Inflation risk is the risk that the value of certain assets or income from the Fund’s investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the real value of the Fund and its distributions can decline. In addition, during any periods of rising inflation, the Fund’s operating costs and the borrowing costs associated with the Fund’s use of leverage would likely increase, which would tend to further reduce returns to shareholders. Deflation risk is the risk that prices throughout the economy decline over time—the opposite of inflation. Deflation may have an adverse effect on the creditworthiness of issuers and may make issuer defaults more likely, which may result in a decline in the value of the Fund’s portfolio. These risks may be heightened in the current economic environment due to recent monetary policy measures, tariffs and other trade policies, and shifts in interest rate trends. <p id="xdx_84E_ecef--RiskTextBlock_hcef--RiskAxis__custom--DerivativesRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zMePtMW5WIN6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Derivatives Risk. The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Derivatives are subject to a number of risks, such as liquidity risk (which may be heightened for highly-customized derivatives), interest rate risk, market risk, credit risk, leveraging risk, counterparty risk, tax risk, and management risk, as well as risks arising from changes in applicable requirements. They also involve the risk of mispricing, the risk of unfavorable or ambiguous documentation and the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. The Fund’s use of derivatives may increase or accelerate the amount of taxes payable by common shareholders. <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: right; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: left; vertical-align: top">●</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Swaps Risk. The Fund’s use of swaps involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments and exposes the Fund to the risks associated with derivative instruments described above. In a standard “swap” transaction, two parties agree to exchange the returns, differentials in rates of return or some other amount earned or realized on the “notional amount” of predetermined investments or instruments, which may be adjusted for an interest factor. Swaps can involve greater risks than direct investment in securities, because swaps may be leveraged and subject to counterparty risk (e.g., the risk of a counterparty’s defaulting on the obligation or bankruptcy), credit risk and pricing risk (i.e., swaps may be difficult to value). Swaps are also subject to non-correlation risk because they may not be perfect substitutes for the instruments they are intended to hedge or replace. Swaps may also be considered illiquid. It may not be possible for the Fund to liquidate a swap position at an advantageous time or price, which may result in significant losses.</td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top">●</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Futures Risk. The Fund’s use of futures involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. These risks include (i) leverage risk (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the futures contract may not correlate perfectly with the underlying index. Investments in futures involve leverage, which means a small percentage of assets invested in futures can have a disproportionately large impact on the Fund. This risk could cause the Fund to lose more than the principal amount invested. Futures contracts may become mispriced or improperly valued when compared to the adviser’s expectation and may not produce the desired investment results. Additionally, changes in the value of futures contracts may not track or correlate perfectly with the underlying index because of temporary, or even long-term, supply and demand imbalances and because futures do not pay dividends unlike the stocks upon which they are based.</td> </tr> </table> Risks Associated with Debt Financing <p id="xdx_841_ecef--RiskTextBlock_hcef--RiskAxis__custom--LeveragingRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_z77ldmaDMv15" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Leveraging Risk. The use of leverage, such as borrowing money to purchase securities, by the Fund will magnify the Fund’s gains or losses. The use of leverage short positions in futures contracts will also magnify the Fund’s gains or losses. Generally, the use of leverage also will cause the Fund to have higher expenses (especially interest related dividend expenses) than those of funds that do not use such techniques. In addition, a lender to the Fund may terminate or refuse to renew any credit facility. If the Fund is unable to access additional credit, it may be forced to sell investments at inopportune times, which may further depress the returns on the Fund. The Fund may borrow no more than 33 1/3% of the value of the Fund’s total assets, including the value of the assets purchased with the proceeds of its indebtedness, if any. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--CreditRisksMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_z10uUe0SxqDg" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Credit Risk. There is a risk that debt issuers will not make payments, resulting in losses to the Fund. In addition, the credit quality of securities may be lowered if an issuer’s financial condition changes. Lower credit quality may lead to greater volatility in the price of a security and in shares of the Fund. Lower credit quality also may affect liquidity and make it difficult to sell the security. Default, or the market’s perception that an issuer is likely to default, could reduce the value and liquidity of securities, thereby reducing the value of your investment in Fund shares. In addition, default may cause the Fund to incur expenses in seeking recovery of principal or interest on its portfolio holdings. Possible Risk of Conflicts <p id="xdx_84C_ecef--RiskTextBlock_hcef--RiskAxis__custom--AllocationOfInvestmentOpportunitiesRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zySowehc6Ap7" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Allocation of Investment Opportunities Risk. The Adviser, directly or through its affiliates, may manage or advise multiple investment vehicles or accounts that have investment objectives that are similar to the Fund and that may seek to make investments or sell investments in the same securities or other instruments, sectors or strategies as the Fund. This may create potential conflicts, particularly in circumstances where the availability of such investment opportunities is limited or where the liquidity of such investment opportunities is limited. The results of the Fund’s investment activities may differ significantly from the results achieved by such other managed investment vehicles or accounts. It is possible that one or more of such vehicles or accounts will achieve investment results that are substantially more or less favorable than the results achieved by the Fund. <p id="xdx_847_ecef--RiskTextBlock_hcef--RiskAxis__custom--MinimalCapitalizationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zUO6Sw11TOK8" style="font: 10pt Times New Roman, Times, Serif; margin: 0;text-align: justify">Minimal Capitalization Risk. There is a risk that the amount of capital actually raised by the Fund through the offering of its shares may be insufficient to achieve profitability or allow the Fund to realize its investment objective. An inability to raise additional capital may adversely affect the Fund’s financial condition, liquidity and results of operations, as well as its compliance with regulatory requirements. <p id="xdx_847_ecef--RiskTextBlock_hcef--RiskAxis__custom--LimitedOperatingHistoryMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zy7zRiU1AuL1" style="font: 10pt Times New Roman, Times, Serif; margin: 0;text-align: justify">Limited Operating History. The Fund is a closed-end investment company with a limited history of operations. The Fund may not be able to achieve its investment objective, including as a result of inopportune market or economic conditions. <p id="xdx_847_ecef--RiskTextBlock_hcef--RiskAxis__custom--AllocationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zVDFoQBZGTg3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Allocation Risk. The ability of the Fund to achieve its investment objective depends, in part, on the ability of the Adviser to allocate effectively the Fund’s assets among the various asset classes in which the Fund invests. There can be no assurance that the actual allocations will be effective in achieving the Fund’s investment objective or delivering positive returns. <p id="xdx_84D_ecef--RiskTextBlock_hcef--RiskAxis__custom--IssuerAndNonDiversificationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_z63MPmchLYRg" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Issuer and Non-Diversification Risk. Specific securities can perform differently from the market as a whole for reasons related to the issuer, such as adherence to credit underwriting standards, servicing practices, and market perception of issuer quality. The Fund’s performance may be more sensitive to any single economic, business, political or regulatory occurrence than the value of shares of a diversified investment company because as a non-diversified fund, the Fund may invest more than 5% of its total assets in the securities of one or more issuers. <p id="xdx_843_ecef--RiskTextBlock_hcef--RiskAxis__custom--LiquidityRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zjCgMKYULL6k" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Liquidity Risk. The Fund is a closed-end investment company structured as an “interval fund” and designed for long-term investors. Unlike many closed-end investment companies, the Fund’s shares are not listed on any securities exchange and are not publicly traded. There currently is no secondary market for the shares and the Adviser does not expect that a secondary market will develop. Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no less than 5% of the Fund’s shares outstanding at NAV. There is no guarantee that shareholders will be able to sell all of the shares they desire in a quarterly repurchase offer. The Fund’s investments are also subject to liquidity risk. Liquidity risk exists when particular investments of the Fund would be difficult to purchase or sell, possibly preventing the Fund from selling such illiquid securities at an advantageous time or price, or possibly requiring the Fund to dispose of other investments at unfavorable times or prices in order to satisfy its obligations. Funds with principal investment strategies that involve securities of companies with smaller market capitalizations, derivatives or securities with substantial market and/or credit risk tend to have the greatest exposure to liquidity risk. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--ManagementRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zqmgrPFvAfc1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management Risk. The NAV of the Fund changes daily based on the performance of the securities in which it invests. The Adviser’s judgment about the attractiveness, value and potential appreciation of a particular security in which the Fund invests may prove to be incorrect and may not produce the desired results. <p id="xdx_846_ecef--RiskTextBlock_hcef--RiskAxis__custom--ChangesInTradeNegotiationsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zfD4dR1ySitf" style="font: 10pt Times New Roman, Times, Serif; margin: 0;text-align: justify">Changes in Trade Negotiations Risk. In recent years, the U.S. government has indicated its intent to alter its approach to international trade policy and in some cases to renegotiate, or potentially terminate, certain existing bilateral or multi-lateral trade agreements and treaties with foreign countries, and has made proposals and taken actions related thereto. Tariffs on imported goods could further increase costs, decrease margins, reduce the competitiveness of products and services offered by current and future issuers, obligors, or guarantors of the Fund’s portfolio securities and adversely affect the revenues and profitability of such companies whose businesses rely on goods imported from such impacted jurisdictions. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--HighlyVolatileMarketsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zcq1ugb6Cl58" style="font: 10pt Times New Roman, Times, Serif;margin-top: 0pt; margin-bottom: 0pt; text-align: justify">Highly Volatile Markets Risk. The prices of instruments in which the Fund may invest are influenced by numerous factors, including interest rates, currency rates, default rates, governmental policies and political and economic events (both domestic and global). Moreover, political or economic crises, or other events may occur that can be highly disruptive to the markets in which the Fund may invest. In addition, governments from time to time intervene (directly and by regulation), which intervention may adversely affect the performance of the Fund and its investment activities. The Fund is also subject to the risk of a temporary or permanent failure of the exchanges and other markets on which its investments may trade. Sustained market turmoil and periods of heightened market volatility make it more difficult to produce positive trading results, and there can be no assurance that the Fund’s strategies will be successful in such markets. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--LegislationAndRegulatoryRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zeOPOsVH1kf2" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">Legislation and Regulatory Risk. New or amended regulations may be imposed by the Commodity Futures Trading Commission (the “CFTC”), the SEC, the Federal Reserve, the European Union (the “EU”) or other financial regulators, other governmental or intergovernmental regulatory authorities or self-regulatory organizations that supervise the financial markets, and could adversely affect the Fund. In particular, the CFTC and the SEC are empowered to promulgate a variety of new rules pursuant to financial reform legislation in the United States. The Fund also may be adversely affected by changes in the enforcement or interpretation of statutes and rules by these regulatory authorities or self-regulatory organizations. <p id="xdx_840_ecef--RiskTextBlock_hcef--RiskAxis__custom--MarketDisruptionsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_z7Hb8ahSUc9a" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">Market Disruptions Risk. The Fund may incur major losses in the event of market disruptions and other extraordinary events in which historical pricing relationships become materially distorted. The risk of loss from pricing distortions is compounded by the fact that in disrupted markets many positions become illiquid, making it difficult or impossible to close out positions against which the markets are moving. Market disruptions caused by unexpected political, military and terrorist events may from time to time cause dramatic losses for the Fund and such events can result in otherwise historically low-risk strategies performing with unprecedented volatility and risk. <p id="xdx_84B_ecef--RiskTextBlock_hcef--RiskAxis__custom--USDebtCeilingAndBudgetDeficitRisksMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zoo8At3iHxVh" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify">U.S. Debt Ceiling and Budget Deficit Risks. U.S. debt ceiling and budget deficit concerns have increased the possibility of additional credit-rating downgrades and economic slowdowns, or a recession in the United States. Although U.S. lawmakers have historically passed legislation to raise the federal debt ceiling on multiple occasions, ratings agencies have lowered or threatened to lower the long-term sovereign credit rating on the United States. The impact of a U.S. default on its obligations or any further downgrades to the U.S. government’s sovereign credit rating or its perceived creditworthiness could adversely affect the U.S. and global financial markets and economic conditions. In addition, disagreement over the federal budget has caused the U.S. federal government to shut down for periods of time. Continued adverse political and economic conditions could have a material adverse effect on the Fund’s business, financial condition and results of operations. <p id="xdx_842_ecef--RiskTextBlock_hcef--RiskAxis__custom--FailureOfFinancialInstitutionsAndSustainedFinancialMarketIlliquidityMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zUXGYcWNJcCi" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Failure of Financial Institutions and Sustained Financial Market Illiquidity. The failure of certain financial institutions, namely banks, may increase the possibility of a sustained deterioration of financial market liquidity, or illiquidity at clearing, cash management and/or custodial financial institutions. The failure of a bank (or banks) with which the Fund and/or the Fund’s underlying investments have a commercial relationship could adversely affect, among other things, the Fund and/or the Fund’s underlying investments’ ability to pursue key strategic initiatives, including by affecting the Fund’s ability to borrow from financial institutions on favorable terms. <p id="xdx_845_ecef--RiskTextBlock_hcef--RiskAxis__custom--CorrelationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zDP3GJfqczKj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Correlation Risk. The Fund seeks to produce returns that are less correlated to the broader financial markets over time. Although the prices of equity securities and fixed income securities, as well as other asset classes, often rise and fall at different times so that a fall in the price of one may be offset by a rise in the price of the other, in down markets the prices of these securities and asset classes can also fall in tandem. Because the Fund allocates its investments among different asset classes, the Fund is subject to correlation risk. <p id="xdx_849_ecef--RiskTextBlock_hcef--RiskAxis__custom--RepurchasePolicyRisksMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zd7DM3KItSsg" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Repurchase Policy Risks. Quarterly repurchases by the Fund of its shares typically will be funded from available cash or sales of portfolio securities. However, payment for repurchased shares may require the Fund to liquidate portfolio holdings earlier than the Adviser otherwise would liquidate such holdings, potentially resulting in losses, and may increase the Fund’s portfolio turnover. The Adviser may take measures to attempt to avoid or minimize such potential losses and turnover, and instead of liquidating portfolio holdings, may borrow money to finance repurchases of shares. If the Fund borrows to finance repurchases, interest on any such borrowing will negatively affect shareholders who do not tender their shares in a repurchase offer by increasing the Fund’s expenses and reducing any net investment income. To the extent the Fund finances repurchase proceeds by selling investments, the Fund may hold a larger proportion of its net assets in less liquid securities. Also, the sale of securities to fund repurchases could reduce the market price of those securities, which in turn would reduce the Fund’s NAV. Repurchase of shares will tend to reduce the amount of outstanding shares and, depending upon the Fund’s investment performance, its net assets. A reduction in the Fund’s net assets may increase the Fund’s expense ratio, to the extent that additional shares are not sold. In addition, the repurchase of shares by the Fund may be a taxable event to shareholders. If shareholders tender for repurchase more than the Repurchase Offer Amount for a given repurchase offer, the Fund will repurchase the shares on a pro rata basis, so shareholders may not be able to tender as many shares as they would like during any quarterly repurchase offer. <p id="xdx_847_ecef--RiskTextBlock_hcef--RiskAxis__custom--DistributionPolicyRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_z4Wqzl6H7YH9" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Distribution Policy Risk. The Fund’s distribution policy is to make monthly distributions to shareholders. All or a portion of a distribution may consist solely of a return of capital (i.e. from your original investment) and not a return of net profit. Shareholders should not assume that the source of a distribution from the Fund is net profit. Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares. <p id="xdx_84F_ecef--RiskTextBlock_hcef--RiskAxis__custom--TaxRisksMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zIMfN0TgpXnj" style="font: 10pt Times New Roman, Times, Serif; margin: 0;text-align: justify">Tax Risks. The repurchase of shares by the Fund may be a taxable event to shareholders. The Fund’s distribution policy to make monthly distributions to shareholders may consist of a return of capital. A return of capital distribution generally will not be taxable but will reduce the shareholder’s cost basis and result in a higher capital gain or lower capital loss when those shares on which the distribution was received are sold. Once a shareholder’s cost basis is reduced to zero, further distributions will be treated as capital gain, if the shareholder holds shares of the Fund as capital assets. <p id="xdx_840_ecef--RiskTextBlock_hcef--RiskAxis__custom--CybersecurityRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zC4Bc3E8tQ6i" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cybersecurity Risk. Cybersecurity refers to the combination of technologies, processes and procedures established to protect information technology systems and data from unauthorized access, attack or damage. The Fund and its affiliates and third-party service providers are subject to cybersecurity risks. Cybersecurity risks have significantly increased in recent years and the Fund could suffer such losses in the future. The Fund’s and its affiliates’ and third-party service providers’ computer systems, software, and networks may be vulnerable to unauthorized access, computer viruses or other malicious code, and other events that could have a security impact. If one or more of such events occur, this potentially could jeopardize confidential and other information, including nonpublic personal information and sensitive business data, processed and stored in, and transmitted through, computer systems and networks, or otherwise cause interruptions or malfunctions in the Fund’s operations or the operations of their respective affiliates and third-party service providers. This could result in significant losses, reputational damage, litigation, regulatory fines or penalties, or otherwise adversely affect the Fund’s business, financial condition or results of operations. Privacy and information security laws and regulation changes, and compliance with those changes, may result in cost increases due to system changes and the development of new administrative processes. In addition, the Fund may be required to expend significant additional resources to modify the Fund’s protective measures and to investigate and remediate vulnerabilities or other exposures arising from operational and security risks. Risks Related to the Fund’s Investments <p id="xdx_841_ecef--RiskTextBlock_hcef--RiskAxis__custom--UseOfLeverageByTheFundMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zinoTDrnNXk7" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Use of Leverage by the Fund. Although the Fund has the option to borrow, there are significant risks that may be assumed in connection with such borrowings. Investors in the Fund should consider the various risks of financial leverage, including, without limitation, the matters described below. There is no assurance that a leveraging strategy would be successful. Financial leverage involves risks and special considerations for shareholders including: (i) the likelihood of greater volatility of NAV of the shares than a comparable portfolio without leverage; (ii) the risk that fluctuations in interest rates on borrowings and short-term debt that the Fund must pay will reduce the return to the shareholders; (iii) the effect of financial leverage in a market experiencing rising interest rates, which would likely cause a greater decline in the NAV of the shares than if the Fund were not leveraged; and (iv) the potential for an increase in operating costs, which may reduce the Fund’s total return. In the event that the Fund would be required to sell assets at a loss, including in order to redeem or pay off any borrowing, such a sale would reduce the Fund’s NAV and may make it difficult for the NAV to recover. The Fund nevertheless may continue to use financial leverage if the Adviser expects that the benefits to the shareholders of maintaining the leveraged position likely would outweigh a resulting reduction in the current return. Certain types of borrowings by the Fund would result in the Fund being subject to covenants in credit agreements relating to asset coverage and Fund composition requirements that are more stringent than those currently imposed on the Fund by the 1940 Act. In addition, borrowings by the Fund may be made on a secured basis. The Custodian will then either segregate the assets securing the Fund’s borrowings for the benefit of the Fund’s lenders or arrangements will be made with a suitable sub-custodian. If the assets used to secure a borrowing decrease in value, the Fund may be required to pledge additional collateral to the lender in the form of cash or securities to avoid liquidation of those assets. In the event of a default, the lenders will have the right, through the Custodian, to redeem the Fund’s investments in underlying Investment Funds without consideration of whether doing so would be in the best interests of the Fund’s shareholders. The rights of any lenders to the Fund to receive payments of interest on and repayments of principal of borrowings will be senior to the rights of the Fund’s shareholders, and the terms of the Fund’s borrowings may contain provisions that limit certain activities of the Fund and could result in precluding the purchase of instruments that the Fund would otherwise purchase. The use of financial leverage involves financial risk and would increase the exposure of the Fund’s investment returns to adverse economic factors such as rising interest rates, downturns in the economy or deterioration in the condition of the investments. There would be a risk that operating cash flow available to the Fund would be insufficient to meet required payments and a risk that it would not be possible to refinance existing indebtedness or that the terms of such refinancing would not be as favorable as the terms of existing indebtedness. Borrowings by the Fund may be secured by any or all of the assets of the Fund, with the consequences that the Fund may lose more than its equity stake in any one investment, and may lose all of its capital. <p id="xdx_844_ecef--RiskTextBlock_hcef--RiskAxis__custom--InvestmentsInBankLoansAndParticipationsMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zFv0Let2jw6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Investments in Bank Loans and Participations. The special risks associated with investing in bank loans and participations include: (i) the possible invalidation of an investment transaction as a fraudulent conveyance under relevant creditors’ rights laws; (ii) environmental liabilities that may arise with respect to collateral securing the obligations; (iii) adverse consequences resulting from participating in such instruments with other institutions with lower credit quality; (iv) limitations on the ability of the Fund to directly enforce any of their respective rights with respect to participations; and (v) generation of income that is subject to U.S. federal income taxation as income effectively connected with a U.S. trade or business. The Fund will attempt to balance the magnitude of these risks against the potential investment gain prior to entering into each such investment. Successful claims by third parties arising from these and other risks, absent bad faith, may be borne by the Funds. Bank loans do not presently have the liquidity of conventional debt securities and are often subject to restrictions on resale. Due to the illiquidity of bank loans, the Fund may not be able to dispose of its investments in bank loans in a timely fashion and at a fair price, which could adversely affect the performance of the Fund. With respect to bank loans acquired as participations by the Fund, because the holder of a participation generally has no contractual relationship with a borrower, the Fund will have to rely upon a third party to pursue appropriate remedies against a borrower in the event of a default. As a result, the Fund may be subject to delays, expenses and risks that are greater than those that would be involved if the Fund could enforce its rights directly against a borrower or through the agent. Furthermore, a borrower of a bank loan, in some cases, may prepay the bank loan. Prepayments could adversely affect the Fund’s interest income to the extent that the Fund is unable to reinvest promptly payments in bank loans or otherwise or if such prepayments were made during a period of declining interest rates. <p id="xdx_84A_ecef--RiskTextBlock_hcef--RiskAxis__custom--AssetBackedSecuritieMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zutbDdkSKI56" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Asset-backed securities. Asset-backed securities often involve risks that are different from risks associated with other types of debt instruments. For instance, asset-backed securities may be particularly sensitive to changes in prevailing interest rates. In addition, the underlying assets may be subject to prepayments that shorten the securities’ weighted average maturity and may lower their return. Similarly, ABS may be subject to defaults that result in the loss of principal and/or a downgrade of credit rating reducing the market value of the investment. Delinquencies and defaults are likely to increase during periods of economic decline or distress, but also occur during periods of economic growth. Asset-backed securities are also subject to risks associated with their structure and the nature of the assets underlying the security and the servicing of those assets. Payment of interest and repayment of principal on asset-backed securities is largely dependent upon the cash flows generated by the assets backing the securities and, in certain cases, supported by letters of credit, surety bonds or other credit enhancements. The values of asset-backed securities may be substantially dependent on the servicing of the underlying asset pools, and are therefore subject to risks associated with the negligence by, or defalcation of, their servicers. Furthermore, debtors may be entitled to the protection of a number of state and federal consumer credit laws with respect to the assets underlying these securities, which may give the debtor the right to avoid or reduce payment. In addition, due to their often complicated structures, various asset-backed securities may be difficult to value and may constitute illiquid investments. If many borrowers on the underlying loans or other obligations default, losses could exceed the credit enhancement level and result in losses to investors in asset-backed securities. An investment in subordinated (residual) classes of asset-backed securities (sometimes referred to as “equity”) is typically considered to be an illiquid and highly speculative investment, as losses on the underlying assets are first absorbed by the subordinated classes. The risks associated with an investment in such subordinated classes of asset-backed securities include credit risk and liquidity risk. <p id="xdx_840_ecef--RiskTextBlock_hcef--RiskAxis__custom--MortgageBackedSecuritieMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zfBXnQsZpRU3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mortgage-backed securities. The investment characteristics of mortgage-backed securities differ from traditional debt securities. Among the major differences are that interest and principal payments are made more frequently, usually monthly, and that the principal may be prepaid at any time because the underlying loans or other assets generally may be prepaid at any time. The frequency at which prepayments (including voluntary prepayments by the obligors and liquidations due to default and foreclosures) occur on loans underlying mortgage-backed securities will be affected by a variety of factors including the prevailing level of interest rates as well as the availability of mortgage credit, the relative economic vitality of the area in which the related properties are located, the servicing of the mortgage loans, possible changes in tax laws, other opportunities for investment, homeowner mobility and other economic, social, geographic, demographic and legal factors. In general, any factors that increase the attractiveness of selling a mortgaged property or refinancing a mortgage loan, enhance a borrower’s ability to sell or refinance or increase the likelihood of default under a mortgage loan, would be expected to cause the rate of prepayment in respect of a pool of mortgage loans to accelerate. Particular investments may experience outright losses, as in the case of an interest only security in an environment of faster actual or anticipated prepayments. Also, particular investment may underperform relative to hedges that a portfolio manager may have constructed for these investments, resulting in a loss. In contrast, any factors having an opposite effect would be expected to cause the rate of prepayment of a pool of mortgage loans to slow. The rate of prepayment on a pool of mortgage loans is likely to be affected by prevailing market interest rates for mortgage loans of a comparable type, term and risk level. When the prevailing market interest rate is below a mortgage coupon, a borrower generally has an increased incentive to refinance its mortgage loan. Even in the case of adjustable rate mortgage loans, as prevailing market interest rates decline, and without regard to whether the mortgage rates on such loans decline in a manner consistent therewith, the related borrowers may have an increased incentive to refinance for purposes of either (i) converting to a fixed rate loan and thereby “locking in” such rate or (ii) taking advantage of a different index, margin or rate cap or floor on another adjustable rate mortgage loan. Therefore, as prevailing market interest rates decline, prepayment speeds would be expected to accelerate. An investment in subordinated classes of mortgage-backed securities (sometimes referred to as “equity” or “b-piece”) is typically considered to be an illiquid and highly speculative investment, as losses on the underlying assets are first absorbed by the subordinated classes. The risks associated with an investment in such subordinated classes of asset-backed securities include credit risk and liquidity risk. In the case of a mortgage-backed security related to multifamily or commercial loans, prevailing market interest rates, the outlook for market interest rates and economic conditions generally may cause some borrowers to refinance or sell their properties in order to realize their equity therein, lower their financing costs, to meet cash flow needs or to make other investments. In addition, some borrowers may be motivated by U.S. federal and state tax laws (which are subject to change) to sell their properties prior to the exhaustion of tax depreciation benefits. <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top">○</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Residential Mortgage-Backed Securities. RMBS are mortgage-backed securities that may be secured by interests in a single residential mortgage loan or a pool of mortgage loans secured by residential property. RMBS may be senior, subordinate, interest-only, principal-only, investment-grade, non-investment grade or unrated. The Fund may acquire RMBS from private originators as well as from other mortgage loan investors, including savings and loan associations, mortgage bankers, commercial banks, finance companies and investment banks. The credit quality of any RMBS issue depends primarily on the credit quality of the underlying mortgage loans. Each of these types of RMBS may</td> </tr> </table> be impacted differently by changes in the behavior of the underlying borrower. For example, an acceleration of prepayment rates may adversely affect the performance of senior or subordinate RMBS purchased at premium to par or interest-only RMBS, while positively impacting those positions purchased at a discount to par or principal-only RMBS. Prepayment, delinquency, default, and foreclosure rates may affect the performance of RMBS. Factors in the underlying mortgages such as the FICO score of the borrower, the loan to value of the loan, the change in the borrower’s home price, and other various factors may influence the likelihood of prepayment, delinquency, default, and/or foreclosure. As such, the Fund’s investment in RMBS is more sensitive to economic factors that impact the value of residential real estate, the borrower’s ability to repay their mortgage, and the broad availability of consumer credit. At any one time, a portfolio of mortgage-backed securities may be backed by residential mortgage loans with disproportionately large aggregate principal amounts secured by properties in only a few states or regions. As a result, the residential mortgage loans may be more susceptible to geographic risks relating to such areas, such as adverse economic conditions, adverse events affecting industries located in such areas and natural hazards affecting such areas, than would be the case for a pool of mortgage loans having more diverse property locations. <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top">○</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Commercial Mortgage-Backed Securities. CMBS are fixed income instruments that are secured by mortgage loans on commercial real property. CMBS typically take the form of multi-class debt or pass-through certificates secured by mortgage loans on commercial properties. They generally are structured to provide protection to investors in senior tranches against potential losses on the underlying mortgage loans. Such protection generally is provided by causing holders of subordinated classes of securities (“Subordinated CMBS”) to take the first loss in the event of defaults on the underlying commercial mortgage loans. Other protection, which may benefit all of the classes or particular classes, may include issuer guarantees, reserve funds, additional Subordinated CMBS, cross-collateralization and over-collateralization. The Fund may invest in CMBS or Subordinated CMBS.</td> </tr> </table> Mortgage loans on commercial properties underlying mortgage-backed securities often are structured so that a substantial portion of the loan principal is not amortized over the loan term but is payable at maturity and repayment of the loan principal thus often depends upon the future availability of real estate financing from the existing or an alternative lender and/or upon the current value and salability of the real estate. Therefore, the unavailability of real estate financing may lead to default. Most commercial mortgage loans underlying mortgage-backed securities are effectively nonrecourse obligations of the borrower, meaning that there is no recourse against the borrower’s assets other than the collateral. If borrowers are not able or willing to refinance or dispose of encumbered property to pay the principal and interest owed on such mortgage loans, payments on the subordinated classes of the related mortgage-backed securities are likely to be adversely affected. The ultimate extent of the loss, if any, to the subordinated classes of mortgage-backed securities may only be determined after a negotiated discounted settlement, restructuring or sale of the mortgage note, or the foreclosure (or deed in lieu of foreclosure) of the mortgage encumbering the property and subsequent liquidation of the property. Especially in the case of a mortgage-backed security related to commercial mortgage loans, the rate of principal payments on the loans in the related pool will also be affected by the nature and extent of any restrictions on prepayments that are set forth in the mortgage loans, and the extent to which such provisions may be enforced. Such restrictions may include a prohibition on prepayments for specified periods of time and/or requirements that principal prepayments be accompanied by the payment of prepayment penalties or be subject to yield maintenance premiums. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--ResidentialLoansAndMortgagesRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zYcrWI3LLLjj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Residential Loans and Mortgages Risk. In addition to interest rate, default and other risks of fixed income securities, investments in whole loans and debt instruments backed by residential loans or mortgages (or pools of loans or mortgages) carry additional risks, including the possibility that the quality of the collateral may decline in value and the potential for the liquidity of residential loans and mortgages to vary over time. These risks are greater for subprime residential and mortgage loans. Because they do not trade in a liquid market, residential loans can typically only be sold to a limited universe of institutional investors and may be difficult for the Fund to value. In addition, in the event that a loan is foreclosed on, the Fund could become the owner (in whole or in part) of any collateral, which may include, among other things, real estate or other real or personal property, and the Fund would bear the costs and liabilities of owning, holding or disposing of such property. <p id="xdx_84F_ecef--RiskTextBlock_hcef--RiskAxis__custom--DistressedAndDefaultedInvestmentsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zoR7Jm1Jd6D" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Distressed and Defaulted Investments Risk. Investments in obligations of financially distressed obligors involve substantial risks. These obligations may present a substantial risk of default or may be in default at the time of investment. The Fund may incur additional expenses to the extent it is required to seek recovery upon a default in the payment of principal or interest on its portfolio holdings. To the extent the Fund invests in mortgage loans that are in default, the Fund may not be able to repossess and sell the underlying properties in a timely manner. The resulting time delay could reduce the value of the investment in the defaulted mortgage loans. In any reorganization or liquidation proceeding relating to an obligor, the Fund may lose its entire investment or may be required to accept cash or securities with a value less than its original investment. Among the risks inherent in investments in a troubled obligor is the fact that it frequently may be difficult to obtain information as to the obligor’s true financial condition. The Adviser’s judgment about the credit quality of an obligor and the relative value and liquidity of its investments may prove to be wrong. <p id="xdx_845_ecef--RiskTextBlock_hcef--RiskAxis__custom--USGovernmentObligationsRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zDuZDDuf0JGb" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">U.S. Government Obligations Risk. U.S. Treasury obligations are backed by the “full faith and credit” of the U.S. government and generally have negligible credit risk. Securities issued or guaranteed by federal agencies or authorities and U.S. government-sponsored instrumentalities or enterprises may or may not be backed by the full faith and credit of the U.S. government. The Fund may be subject to such risk to the extent it invests in securities issued or guaranteed by federal agencies or authorities and U.S. government-sponsored instrumentalities or enterprises. <p id="xdx_846_ecef--RiskTextBlock_hcef--RiskAxis__custom--CollateralizedLoanObligationsCLOsAndCollateralizedDebtObligationsCDOsMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zzHlvPWOrVxh" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Collateralized Loan Obligations (“CLOs”) and Collateralized Debt Obligations (“CDOs”). The Fund’s investments may include CDOs and/or CLOs which are subject to the following risks: (i) distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) CDOs and/or CLOs typically will have no significant underlying assets other than their underlying senior secured debt obligations or loans and payments on the CDOs and/or CLOs are and will be payable solely from the cash flows from such senior secured debt obligations and/or loans; (iv) the complex structure of the CDOs and/or CLOs and their interests may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results; (v) CDOs and/or CLOs are typically highly levered, and therefore the CDO and/or CLO interests that the Fund may invest in are subject to a higher risk of total loss; (vi) investments in CDOs and/or CLOs may be riskier and less transparent to us and our Shareholders than direct investments in the underlying companies; (vii) the potential for interruption and deferral of cash flow to our investments in the equity and junior debt tranches of CDOs and/or CLOs; (viii) interests in CDOs and/or CLOs may be illiquid; (ix) investments in foreign CDOs and/or CLOs may involve significant risks in addition to the risks inherent in U.S. CDOs and/or CLOs; (x) we may invest with collateral managers that have no or limited performance or operating history; (xi) the inability of a CDO or CLO collateral manager to reinvest the proceeds of any prepayments may adversely affect us; (xii) the loans underlying the CDOs and/or CLOS may be sold and replaced resulting in a loss to us; (xiii) we may not have direct rights against the underlying borrowers or obligors comprising the CDOs and/or CLOs’ investments or the entities that sponsored the CDOs and/or CLOs; and (xiv) investments in equity and junior debt tranches of CDOs and/or CLOs will likely be subordinate to the other debt tranches of such CDOs and/or CLOs, and are subject to a higher degree of risk of total loss. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--ValuationOfPrivateInvestmentsMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zj4ubaiuwVHj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Valuation of Private Investments. Some of the Fund’s investments are not publicly traded, and the Fund may consider information provided by the trustee, servicer, and other third party services provides with respect to each private investment to determine the estimated value of the Fund’s investment therein. The valuation as of a specific date may vary from the actual sale price that may be obtained if such investment were sold to a third party. To determine the estimated value of the Fund’s investment in private investments, the Fund considers, among other things, information provided by the private investments, including monthly or quarterly unaudited financial statements, which if inaccurate could adversely affect the Fund’s ability to value accurately the Fund’s investment. <p id="xdx_846_ecef--RiskTextBlock_hcef--RiskAxis__custom--FixedIncomeRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zpmSTUcIWW5k" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fixed Income Risk. The value of investments in fixed income securities will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities. In general, the market price of debt securities with longer maturities will increase or decrease more in response to changes in interest rates than shorter-term securities. Other risk factors include credit risk (the debtor may default) and prepayment risk (the debtor may pay its obligation early, reducing the amount of interest payments). These risks could affect the value of a particular investment, possibly causing the Fund’s share price and total return to be reduced and fluctuate more than other types of investments. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--HighYieldAndUnratedSecuritiesRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zlwSkvcM6svf" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">High Yield and Unrated Securities Risk. These securities are speculative investments that carry greater risks and are more susceptible to real or perceived adverse economic and competitive industry conditions than higher quality securities. High yield securities offer the potential for higher return, but also involve greater risk than bonds of higher quality, including an increased possibility that the security’s issuer, obligor or guarantor may not be able to make its payments of interest and principal (credit quality risk). If that happens, the value of the security may decrease. An economic downturn or period of rising interest rates (interest rate risk) could adversely affect the market for these securities and reduce the Fund’s ability to sell its securities (liquidity risk). Such securities also may be subject to resale restrictions. The lack of a liquid market for these securities could decrease the Fund’s share price. The risks associated with unrated securities can be similar to the risks of below investment grade securities. In addition, the determination of credit quality for an unrated security is based largely on the credit analysis performed by the Adviser, and not on rating agency evaluation. This analysis may be difficult to perform because information about these securities may not be in the public domain, and the issuers may not subject to reporting requirements under federal securities laws. <p id="xdx_84F_ecef--RiskTextBlock_hcef--RiskAxis__custom--InterestsRateRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zAUln0jeRFM1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Interest Rate Risk. The fixed-income instruments in which the Fund may invest are subject to the risk that market values of such securities will decline as interest rates increase. These changes in interest rates have a more pronounced effect on securities with longer durations. Typically, the impact of changes in interest rates on the market value of an instrument will be more pronounced for fixed-rate instruments, such as most mortgage bonds, than it will for floating rate instruments. Fluctuations in the value of portfolio securities will not affect interest income on existing portfolio securities but will be reflected in the Fund’s NAV. After a period of historically low interest rates, the Federal Reserve has raised certain benchmark interest rates. It cannot be predicted with certainty when, or how, these policies will change, but actions by the Federal Reserve and other central bankers may have a significant effect on interest rates and on the U.S. and world economies generally. Market volatility, rising interest rates, uncertainty around interest rates and/or unfavorable economic conditions could adversely affect our business. Fixed-income instruments that bear floating rate coupons may experience less price volatility related to changes in interest rates than those instruments that have a fixed-rate coupon. Floating rate instruments may experience changes in price related to interest rates based on the length of time between reset periods and the relative movement of the reference rate for the security versus the change in broader interest rate markets. Additionally, changes in interest rates may adversely impact the underlying borrower’s ability to repay as interest costs may rise sharply during periods of rising rates. As such, floating-rate securities may experience a larger change in credit risk than fixed-rate securities which may have an adverse impact on their price relative to fixed-rate securities. <p id="xdx_84E_ecef--RiskTextBlock_hcef--RiskAxis__custom--InflationDeflationRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_ztopc2Jgom7j" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inflation/Deflation Risk Inflation risk is the risk that the value of certain assets or income from the Fund’s investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the real value of the Fund and its distributions can decline. In addition, during any periods of rising inflation, the Fund’s operating costs and the borrowing costs associated with the Fund’s use of leverage would likely increase, which would tend to further reduce returns to shareholders. Deflation risk is the risk that prices throughout the economy decline over time—the opposite of inflation. Deflation may have an adverse effect on the creditworthiness of issuers and may make issuer defaults more likely, which may result in a decline in the value of the Fund’s portfolio. These risks may be heightened in the current economic environment due to recent monetary policy measures, tariffs and other trade policies, and shifts in interest rate trends. <p id="xdx_84E_ecef--RiskTextBlock_hcef--RiskAxis__custom--DerivativesRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zMePtMW5WIN6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Derivatives Risk. The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Derivatives are subject to a number of risks, such as liquidity risk (which may be heightened for highly-customized derivatives), interest rate risk, market risk, credit risk, leveraging risk, counterparty risk, tax risk, and management risk, as well as risks arising from changes in applicable requirements. They also involve the risk of mispricing, the risk of unfavorable or ambiguous documentation and the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. The Fund’s use of derivatives may increase or accelerate the amount of taxes payable by common shareholders. <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: right; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: left; vertical-align: top">●</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Swaps Risk. The Fund’s use of swaps involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments and exposes the Fund to the risks associated with derivative instruments described above. In a standard “swap” transaction, two parties agree to exchange the returns, differentials in rates of return or some other amount earned or realized on the “notional amount” of predetermined investments or instruments, which may be adjusted for an interest factor. Swaps can involve greater risks than direct investment in securities, because swaps may be leveraged and subject to counterparty risk (e.g., the risk of a counterparty’s defaulting on the obligation or bankruptcy), credit risk and pricing risk (i.e., swaps may be difficult to value). Swaps are also subject to non-correlation risk because they may not be perfect substitutes for the instruments they are intended to hedge or replace. Swaps may also be considered illiquid. It may not be possible for the Fund to liquidate a swap position at an advantageous time or price, which may result in significant losses.</td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top"></td><td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify; vertical-align: top">●</td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">Futures Risk. The Fund’s use of futures involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. These risks include (i) leverage risk (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the futures contract may not correlate perfectly with the underlying index. Investments in futures involve leverage, which means a small percentage of assets invested in futures can have a disproportionately large impact on the Fund. This risk could cause the Fund to lose more than the principal amount invested. Futures contracts may become mispriced or improperly valued when compared to the adviser’s expectation and may not produce the desired investment results. Additionally, changes in the value of futures contracts may not track or correlate perfectly with the underlying index because of temporary, or even long-term, supply and demand imbalances and because futures do not pay dividends unlike the stocks upon which they are based.</td> </tr> </table> Risks Associated with Debt Financing <p id="xdx_841_ecef--RiskTextBlock_hcef--RiskAxis__custom--LeveragingRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_z77ldmaDMv15" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Leveraging Risk. The use of leverage, such as borrowing money to purchase securities, by the Fund will magnify the Fund’s gains or losses. The use of leverage short positions in futures contracts will also magnify the Fund’s gains or losses. Generally, the use of leverage also will cause the Fund to have higher expenses (especially interest related dividend expenses) than those of funds that do not use such techniques. In addition, a lender to the Fund may terminate or refuse to renew any credit facility. If the Fund is unable to access additional credit, it may be forced to sell investments at inopportune times, which may further depress the returns on the Fund. The Fund may borrow no more than 33 1/3% of the value of the Fund’s total assets, including the value of the assets purchased with the proceeds of its indebtedness, if any. <p id="xdx_848_ecef--RiskTextBlock_hcef--RiskAxis__custom--CreditRisksMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_z10uUe0SxqDg" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Credit Risk. There is a risk that debt issuers will not make payments, resulting in losses to the Fund. In addition, the credit quality of securities may be lowered if an issuer’s financial condition changes. Lower credit quality may lead to greater volatility in the price of a security and in shares of the Fund. Lower credit quality also may affect liquidity and make it difficult to sell the security. Default, or the market’s perception that an issuer is likely to default, could reduce the value and liquidity of securities, thereby reducing the value of your investment in Fund shares. In addition, default may cause the Fund to incur expenses in seeking recovery of principal or interest on its portfolio holdings. Possible Risk of Conflicts <p id="xdx_84C_ecef--RiskTextBlock_hcef--RiskAxis__custom--AllocationOfInvestmentOpportunitiesRiskMember__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zySowehc6Ap7" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Allocation of Investment Opportunities Risk. The Adviser, directly or through its affiliates, may manage or advise multiple investment vehicles or accounts that have investment objectives that are similar to the Fund and that may seek to make investments or sell investments in the same securities or other instruments, sectors or strategies as the Fund. This may create potential conflicts, particularly in circumstances where the availability of such investment opportunities is limited or where the liquidity of such investment opportunities is limited. The results of the Fund’s investment activities may differ significantly from the results achieved by such other managed investment vehicles or accounts. It is possible that one or more of such vehicles or accounts will achieve investment results that are substantially more or less favorable than the results achieved by the Fund. <table border="0" cellpadding="3" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif;width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 25%; background-color: #FFFFFF; text-align: center; vertical-align: bottom">Title of Class</td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 25%; background-color: #FFFFFF; text-align: center">Amount Authorized</td> <td id="xdx_488_ecef--OutstandingSecurityHeldShares_dn_zQWVXsWfcyO6" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 25%; background-color: #FFFFFF; text-align: center">Amount Held by Fund or for its Account</td> <td id="xdx_48B_ecef--OutstandingSecurityNotHeldShares_dn_zJopJY2771g" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 25%; background-color: #FFFFFF; text-align: center">Amount Outstanding Excluding Amount Held by Fund or for its Account</td> </tr> <tr id="xdx_415_20261028__20261028__us-gaap--StatementClassOfStockAxis__custom--ClassIMember_zmJdupUwvbg" style="font: 10pt Times New Roman, Times, Serif"> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: #FFFFFF; text-align: center">Class I Shares</td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #FFFFFF; text-align: center; vertical-align: bottom">Unlimited</td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #FFFFFF; text-align: center; vertical-align: bottom">None</td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #FFFFFF; text-align: center; vertical-align: bottom"> 3,092,459.96</td></tr> <tr id="xdx_419_20261028__20261028__us-gaap--StatementClassOfStockAxis__custom--ClassFMember_zUUDiYA1Eu6k" style="font: 10pt Times New Roman, Times, Serif"> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: #FFFFFF; text-align: center">Class F Shares</td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #FFFFFF; text-align: center; vertical-align: bottom">Unlimited</td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #FFFFFF; text-align: center; vertical-align: bottom">None</td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; background-color: #FFFFFF; text-align: center; vertical-align: bottom">None</td> </tr> </table> 0 3092459.96 0 0 The Adviser and the Fund have entered into an expense limitation and reimbursement agreement (the “Class I Expense Limitation Agreement”) under which the Adviser has agreed contractually to waive its fees and to pay or absorb the ordinary annual operating expenses of the Fund (exclusive of any taxes, interest, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, such as litigation or reorganization costs, but inclusive of organizational costs and offering costs), to the extent that they exceed 2.00% per annum of the Fund’s average daily net assets attributable to Class I shares (the “Class I Expense Limitation”). In consideration of the Adviser’s agreement to limit the Fund’s expenses, the Fund has agreed to repay the Adviser in the amount of any fees waived and Fund expenses paid or absorbed, subject to the limitations that: (1) the reimbursement for fees and expenses will be made only if payable not more than three years from the date in which they were incurred; and (2) the reimbursement may not be made if it would cause the lesser of the Class I Expense Limitation in place at the time of waiver or at the time of reimbursement to be exceeded. The Class I Expense Limitation Agreement will remain in effect at least until October 31, 2027, unless and until the Board approves its modification or termination. The Class I Expense Limitation Agreement may be terminated only by the Fund’s Board on 60 days’ written notice to the Adviser. See “Management of the Fund.” The Adviser and the Fund have entered into an expense limitation and reimbursement agreement (the “Class F Expense Limitation Agreement”) under which the Adviser has agreed contractually to waive its fees and to pay or absorb the ordinary annual operating expenses of the Fund (exclusive of any taxes, interest, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, such as litigation or reorganization costs, but inclusive of organizational costs and offering costs), to the extent that they exceed 1.50% per annum of the Fund’s average daily net assets attributable to Class F shares (the “Class F Expense Limitation”). In consideration of the Adviser’s agreement to limit the Fund’s expenses, the Fund has agreed to repay the Adviser in the amount of any fees waived and Fund expenses paid or absorbed, subject to the limitations that: (1) the reimbursement for fees and expenses will be made only if payable not more than three years from the date in which they were incurred; and (2) the reimbursement may not be made if it would cause the lesser of the Class F Expense Limitation in place at the time of waiver or at the time of reimbursement to be exceeded. The Class F Expense Limitation Agreement will remain in effect at least until October 31, 2027, unless and until the Board approves its modification or termination. The Class F Expense Limitation Agreement may be terminated only by the Fund’s Board on 60 days’ written notice to the Adviser. See “Management of the Fund.”