DELISTED - The fund seeks to gain long and short exposure to the global fixed income markets by investing in debt instruments and a broad range of derivatives related to debt instruments or markets. The fund holds long positions through the purchase and sale of debt instruments and related derivatives. The fund gains short exposure to markets, sectors or instruments mainly through the use of derivatives.The fund is managed using an absolute return approach, which means that its portfolio is not managed relative to a securities index. The fund seeks to generate positive total returns over the course of different market environments. Total return is a combination of current income and capital appreciation.The fund selects investments based on the investment adviser's macroeconomic, market and investment-specific views. The fund employs multiple investment strategies designed to generate incremental return from active management (alpha) that is not generally correlated with the performance of the broad financial markets. As a counterbalance to its active investment exposures, the fund maintains a significant portion of its assets in high quality, short-term debt instruments.Normally, the fund invests at least 80% of its net assets (plus the amount of borrowings, if any, for investment purposes) in debt instruments. Derivative instruments that provide exposure to debt instruments or have similar economic characteristics may be used to satisfy the fund's 80% policy.Debt instruments may include securities of U.S. and non-U.S. corporate and other non-governmental entities, securities of U.S. and non-U.S. governmental entities (including government agencies and instrumentalities), securities issued by supranational organizations, cash, cash equivalents and other short-term holdings, mortgage-related or mortgage-backed securities (including "sub-prime" mortgages) and synthetic collateralized debt obligations, asset-backed securities, secured and unsecured floating rate, variable and fixed rate loans and other instruments, convertible securities, preferred securities, TIPS and other inflation-linked debt securities, subordinated debt securities, event-linked bonds and other insurance-linked securities, and securities of funds that invest primarily in debt securities. The fund has the flexibility to invest in a broad range of issuers and segments of the debt securities market. The fund may invest in securities of issuers in any market capitalization range, industry or market sector.Also, the fund may invest up to 20% of its net assets in debt securities rated below investment grade (known as "junk bonds") or, if unrated, of equivalent credit quality as determined by the fund's adviser. The fund's investments in debt securities rated below investment grade may include securities that are in default.The fund's investments may have fixed or variable principal payments and all types of interest rate payment and reset terms, including fixed rate, adjustable rate, floating rate, zero coupon, contingent, deferred, payment in kind and auction rate features. The fund's investments may include instruments that allow for balloon payments or negative amortization payments.The fund invests in securities with a broad range of maturities and maintains an average portfolio maturity that varies based upon the judgment of the fund's adviser. The maturity of a fixed income security is a measure of the time remaining until final payment on the security is due.The fund seeks to eliminate any significant sensitivity to interest rate changes, typically measured by duration, under normal circumstances. Under certain market conditions, such as in periods of significant volatility in interest rates and spreads, the fund's duration may be between negative three years and positive three years. Duration seeks to measure the price sensitivity of a fixed income security to changes in interest rates. Unlike maturity, duration takes into account interest payments that occur throughout the course of holding the bond. The longer a portfolio's duration, the more sensitive it will be to changes in interest rates. A portfolio with negative duration may increase in value when interest rates rise, and generally incurs a loss when interest rates and yields fall. For example, if the fund has a positive three year duration, then, all other things being equal, the fund will decrease in value by three percent if interest rates rise one percent, and increase in value by three percent if interest rates fall by one percent. In contrast, if the fund has a negative three year duration, then, all other things being equal, the fund will increase in value by three percent if interest rates rise one percent and decrease in value by three percent if interest rates fall one percent. The assumptions that are made about a security's features and options when calculating duration may prove to be incorrect. Duration is calculated by the fund's adviser, is not an exact measurement and may not reliably predict the fund's or a particular security's price sensitivity to changes in yield or interest rates.The fund may invest without limit in non-U.S. securities. The fund may invest in both developed and emerging markets without limit. In addition to investing in securities denominated in non-U.S. currencies, the fund may hold non-U.S. currencies and purchase and sell forward currency exchange contracts in non-U.S. currencies.The fund may gain long and short exposure to individual sectors, markets, currencies or securities by investing in a variety of derivative instruments, including: credit default, index, credit default index, interest rate, inflation rate, cross currency and total return swaps and options on swaps ("swaptions"); options; forward contracts; futures contracts and options on futures contracts; and credit-linked notes. The fund uses derivatives for a variety of purposes, including: in an attempt to hedge against adverse changes in the market price of securities, interest rates or currency exchange rates; as a substitute for purchasing or selling securities; as a means of adjusting the fund's portfolio duration or other portfolio characteristics; to attempt to increase the fund's return as a non-hedging strategy that may be considered speculative; to manage portfolio characteristics; and as a cash flow management technique. The fund may invest in derivative instruments to the full extent permitted by applicable legal and regulatory requirements.The fund may engage in short sales for hedging purposes or to attempt to increase the fund's return as a non-hedging strategy that may be considered speculative. A short sale is a transaction in which the fund sells an instrument it does not own in anticipation of a decline in the market value of the instrument, and then borrows the instrument to make delivery to the buyer. As noted above, the fund generally will implement short positions through swaps, futures and other derivative instruments. The fund also may make short sales "against the box" without limitation. In a short sale "against the box", at the time of the sale, the fund owns or has the immediate and unconditional right to acquire the identical security at no additional cost. Short selling may result in greater risk because losses are potentially unlimited.As part of its investment strategies, the fund may engage in active and frequent trading of portfolio securities.The fund may hold cash or other short-term investments. As a result of the fund's use of derivatives, the fund may hold significant amounts of short-term investments.The adviser allocates the fund's assets among various investments and alternative investment strategies based on strategic positioning and tactical considerations, taking into account both broad economic and market factors and issuer specific factors. In selecting investments and strategies, the adviser considers their relative return potential in view of their expected relative risk, including potential volatility (the variability of returns from one period to the next) and drawdown risk (the risk of significant loss, measured from peak value) among other risks. The goal of this process is to identify a combination of investments and strategies with the potential to provide total return consistent with the fund's overall risk/return profile. The adviser generally seeks to invest in those securities or instruments it perceives to be undervalued. Investments typically are sold - and derivatives-based strategies unwound - when the adviser's overall assessment of market and economic conditions changes or the assessments of the attributes of investments change. In assessing the appropriate duration of the fund's portfolio, the adviser considers a variety of factors that are expected to influence economic activity and interest rates.The alternative strategies employed by the fund are designed to isolate sources of return associated with specific investment opportunities which are not generally correlated with directional, market-oriented return. Investment opportunities may relate, for example, to the credit quality of individual issuers or sectors (e.g., investment grade versus high yield), capital or investment structures relating to issuers or sectors, the structure (yield curve) or direction of prevailing interest rates, the movement of global currency exchange rates, the relative strength of countries and currencies, and the expected price convergence of different instruments. Alternative strategies often entail two or more simultaneous derivatives positions (one long and one short) structured in an effort to reduce some risks while isolating a potential source of return.The fund is not diversified, which means that it can invest a higher percentage of its assets in the securities of any one or more issuers than a diversified fund.
