PRINCIPAL INVESTMENT STRATEGIES:
Please refer to the section entitled
“Key Terms” below for additional information on highlighted terms.
The Fund pursues its investment objective by making a combination of
investments (i) directly in an actively managed fixed-income portfolio, and (ii) indirectly through its wholly-owned subsidiary (the “Subsidiary”) in
trading companies
that employ the
managed futures
program
of Campbell & Company, Inc. (“Campbell”), a commodity trading adviser (“CTA”) registered with the U.S. Commodity Futures Trading Commission and/or derivative instruments such as swap agreements that
provide exposure to Campbell’s
managed futures program
(the “Campbell Program”).
The Campbell Program seeks to generate
attractive risk-adjusted returns across a broad range of market conditions through systematic investments in a diversified portfolio that may include swaps, futures and forward contracts in various global assets, including global interest rates,
stock indices, currencies and commodities. The Campbell Program seeks to invest in a variety of assets and markets in and outside of the United States including emerging countries. The Campbell Program consists of trend following and other
quantitative strategies that aim for low correlation to traditional asset classes such as equities and fixed income and are diversified by investment style, information source, investment holding period and instrument.
Campbell’s investment philosophy is driven by a belief that markets are broadly efficient but trends emerge and remain due to shifts in supply, demand, and
other economic factors. Asset mispricing can occur as a result of instability and uncertainty in markets, strongly-held opinions by market participants, or an unreliable flow of market information. Campbell seeks to systematically identify price
trends and to develop
macro
and
fundamental
themes that exploit asset mispricing.
The Campbell Program uses quantitative modeling to
develop and maintain
systematic trading
strategies driven by scientific analysis of
technical
,
macro
, and
econometric
data across global financial and commodity markets. The Campbell Program is designed to analyze market
data to identify trends and relationships occurring within and across markets and asset classes globally. Once identified, these trends and relationships are converted into mathematical models that can be historically tested. Once a model is
developed and thoroughly tested, it undergoes a rigorous peer review process to evaluate strength of theory and robustness. Model assumptions and other criteria are also analyzed, including tail risk, broad level risk factor exposures, market
diversification, correlation, and volatility as well as transaction costs. New models must demonstrate efficacy on a stand-alone basis while complimenting the existing portfolio.
|
•
|
|
Derivative Instruments:
As a principal investment strategy, the Fund or the Subsidiary will either (i) invest in one or more
trading companies that use a variety of derivative instruments including swap agreements, exchange-traded futures and option contracts and forward contracts to gain exposure to a wide variety of global markets for currencies, interest rates, stock
market indices, energy resources, metals and agricultural products and to hedge price risk that provide exposure to the Campbell Program, (ii) enter into swap agreements to gain exposure to the Campbell
|
S2
|
|
Program, or (iii) invest in some combination of (i) and (ii). In general, a derivative contract typically involves leverage, i.e., it provides exposure to potential gain or loss from a
change in the level of the market price of a security, currency or commodity (or a basket or index) in a notional amount that exceeds the amount of cash or assets required to establish or maintain the derivative contract.
|
|
•
|
|
Fixed-Income Securities:
The Fund will also invest in fixed income securities in order to seek income, for liquidity purposes, and
to serve as margin or collateral for the derivatives positions of the Fund or the Subsidiary to the extent necessary. The Fund may invest in a variety of investment grade fixed income securities, including, without limitation, corporate bonds and
other corporate debt securities and securities issued by the U.S. government or its agencies and instrumentalities. The Fund also may seek to obtain market exposure to fixed income securities by entering into a series of purchase and sale contracts.
The Fund defines investment grade securities as those that are rated, at the time of purchase, as BBB- or higher by Standard & Poor’s Rating Group or another nationally recognized statistical rating organization. The Fund may invest in
fixed income securities of any duration. The Fund may also invest, to the extent permitted by the 1940 Act and rules under it, in money market funds or other investment companies (such as exchange traded funds) whose assets are comprised primarily
of fixed income securities or that seek to track the composition and/or performance of specific fixed income indexes. The Fund may invest in foreign fixed income securities, or it may invest in other investment companies that invest in foreign fixed
income securities. As such, investors should be aware of the particular risks associated with international fixed income securities.
|
|
•
|
|
Subsidiary:
Investments in the Subsidiary, which has the same investment objective as the Fund, are intended to provide the Fund
with indirect exposure to futures contracts and commodities in a manner consistent with the limitations and requirements of the Internal Revenue Code of 1986, as amended (the “Code”) that apply to the Fund, which limit the amount of income
the Fund may receive from certain sources. Applicable federal tax requirements generally limit the degree to which the Fund may invest in the Subsidiary to an amount not exceeding 25% of its total assets. To the extent they are applicable to the
investment activities of the Subsidiary, the Subsidiary will be subject to the same investment restrictions and limitations, and follow the same compliance policies and procedures, as the Fund.
|
KEY TERMS
Econometric
analysis is the use of statistical tools and data to describe and test certain economic relationships such
as asset prices.
Fundamental
analysis is the study of basic, underlying factors that will affect the
supply and demand of an investment. For example, with respect to commodity futures, fundamental analysis may look at crop reports, weather patterns, economic reports and other fundamental data to determine whether to buy or sell the futures
contract.
Macro
analysis generally analyzes economic, political or financial trends to seek returns and
invests across a particular, or a number of, geographic regions.
A
Managed Futures Program
generally is a
trading program that a CTA uses to guide its investments in futures, forwards, options or spot contracts. Each of these investments may be tied to a particular asset class: commodities, equities, fixed income or foreign currencies. A managed futures
program may use one or a combination of trading strategies, including those described below.
Systematic
Trading
is a trading strategy that employs computer-driven, mathematical models to identify when to buy or sell an instrument according to rules determined before a trade is made, generally, with little or no human intervention once a
mathematical formula has been entered.
Technical analysis
is a method of evaluating an investment
opportunity by using charts or computer programs to identify patterns in market data, such as price change, rates of change, and changes in volume of trading, open interest and other statistical indicators, in order to project the direction that a
market or the price of an investment will move. Technical analysis does not take into account fundamental market factors, such as supply and demand.
A
Trading Company
is a pooled investment vehicle organized as a limited liability company and operated as a commodity pool.
A
Trend Following
strategy generally seeks to identify the general direction of one or more global
market segments (either up or down) using indicators such as current market prices and moving average prices, and buy or sell investments based on the assessment of these trade signals as determined before a trade is made. Trend-following generally
focuses on the direction an investment or global market segment already has gone and not on the direction it may go.
The Fund’s return will be
derived principally from changes in the value of securities held in the Fund’s portfolio (including its investment in the Subsidiary), and the Fund’s assets will consist principally of securities. The Fund is non-diversified, which means
that it can invest a greater percentage of its assets in any one issuer than a diversified fund. The Adviser may engage in frequent buying and selling of portfolio holdings to achieve the Fund’s investment objective.
Principal Investment Risks:
As with all mutual funds, there is the risk that you could lose money
through your investment in the Fund. In general, the Fund’s investment strategies involve greater risks than the strategies used by a typical mutual fund. Many factors affect the Fund’s net asset value and performance.
The following describes some of the risks the Fund may bear through direct investments in securities and derivatives as well as indirectly through its investment in
the Subsidiary.
|
•
|
|
Campbell Program Strategy Risk.
The profitability of any Fund investment in the Campbell Program depends primarily on the ability
of Campbell to anticipate price movements in the relevant markets and underlying derivative instruments and futures contracts. Such price movements are influenced by, among other things:
|
|
|
•
|
|
changes in interest rates;
|
|
|
•
|
|
governmental, agricultural, trade, fiscal, monetary and exchange control programs and policies;
|
|
|
•
|
|
weather and climate conditions;
|
S3
|
|
•
|
|
natural disasters, such as hurricanes;
|
|
|
•
|
|
changing supply and demand relationships;
|
|
|
•
|
|
changes in balances of payments and trade;
|
|
|
•
|
|
U.S. and international rates of inflation and deflation;
|
|
|
•
|
|
currency devaluations and revaluations;
|
|
|
•
|
|
U.S. and international political and economic events; and
|
|
|
•
|
|
changes in philosophies and emotions of various market participants.
|
The Campbell Program may not take all of these factors into account. In addition, the Fund will indirectly bear the expenses, including management fees, incentive fees and transaction fees, associated with the
Campbell Program through reduced returns.
The successful use of forward and futures contracts draws upon Campbell’s skill and
experience with respect to such instruments and are subject to special risk considerations. The primary risks associated with the use of futures contracts are:
|
|
•
|
|
Futures and forward contracts have a high degree of price variability and are subject to occasional rapid and substantial changes;
|
|
|
•
|
|
the imperfect correlation between the change in market value of the instruments held by a trading company and the price of the forward or futures contracts and
the market value of the underlying instrument of reference assets with respect to such contracts;
|
|
|
•
|
|
possible lack of a liquid secondary market for a forward or futures contract and the resulting inability to close a forward or futures contract when desired;
|
|
|
•
|
|
possible market disruption or other extraordinary events, including but not limited to, governmental intervention;
|
|
|
•
|
|
losses caused by unanticipated market movements, which are potentially unlimited;
|
|
|
•
|
|
Campbell’s inability to predict correctly the direction of securities prices, interest rates, currency exchange rates and other economic factors;
|
|
|
•
|
|
the possibility that the counterparty will default in the performance of its obligations; and
|
|
|
•
|
|
if the Fund or any trading company has insufficient cash, it may either have to sell securities from its portfolio to meet daily variation margin requirements
with respect to its derivative instruments or close certain positions at a time when it may be disadvantageous to do so.
|
The use of futures contracts, forward contracts and derivative instruments will have the economic effect of financial leverage. Financial leverage
magnifies exposure to the swings in prices of an asset class underlying an investment and results in increased volatility, which means the Campbell Program (and indirectly the Fund through its investment exposure to the Campbell Program) will have
the potential for greater losses, as well as the potential for greater gains, than if the Campbell Program did not employ leverage in its investment activity. Leveraging tends to magnify, sometimes significantly, the effect of any increase or
decrease in the Campbell Program’s exposure to an asset class and may cause the value of the trading company’s securities or related derivatives instruments to be volatile. Accordingly, the Fund’s NAV may be volatile because of its
investment exposure to the Campbell Program.
There is no assurance that the Fund’s investment in a derivative instrument or trading
company with leveraged exposure to certain investments and markets will enable the Fund to achieve its investment objective.
|
•
|
|
Commodities Risk.
Exposure to the commodities markets (including financial futures markets) may subject the Fund through its
investment in the Subsidiary to greater volatility than investments in traditional securities. Prices of commodities and related contracts may fluctuate significantly over short periods for a variety of reasons, including changes in interest rates,
supply and demand relationships and balances of payments and trade; weather and natural disasters; and governmental, agricultural, trade, fiscal, monetary and exchange control programs and policies. The commodity markets are subject to temporary
distortions and other disruptions. U.S. futures exchanges and some foreign exchanges have regulations that limit the amount of fluctuation in futures contract prices which may occur during a single business day. Limit prices have the effect of
precluding trading in a particular contract or forcing the liquidation of contracts at disadvantageous times or prices.
|
|
•
|
|
Derivatives Risk.
Derivatives include instruments and contracts that are based on, and are valued in relation to, one or more
underlying securities, financial benchmarks or indices, such as futures, options, swap agreements and forward contracts. Derivatives typically have economic leverage inherent in their terms. Such leverage will magnify any losses. See
“Leverage/Volatility Risk” below. The primary types of derivatives in which the Fund, its Subsidiary or a trading company invest in are swap agreements, futures contracts and forward contracts. Futures contracts, forward contracts and swap
agreements can be highly volatile, illiquid and difficult to value, and changes in the value of such instruments held directly or indirectly by the Fund may not correlate with the underlying instrument or reference assets, or the Fund’s other
investments. Although the value of futures contracts, forward contracts and swap agreements depend largely upon price movements in the underlying instrument or reference asset, there are additional risks associated with futures contracts, forward
contracts and swap agreements that are possibly greater than the risks associated with investing directly in the underlying instruments or reference assets, including illiquidity risk, leveraging risk and counterparty credit risk. A small position
in futures contracts, forward contracts or swap agreements could have a potentially large impact on the Fund’s performance. Trading restrictions or limitations may be imposed by an exchange, and government regulations may restrict trading in
swap agreements, futures contracts and options and forward contracts.
|
|
•
|
|
Fixed-Income Risk.
Fixed income securities are subject to credit risk and interest rate risk. Credit risk, as described more fully
below, refers to the possibility that the issuer of a debt security will be unable to make interest payments or repay principal when it becomes due. Interest rate risk refers to fluctuations in the value of a debt security resulting from changes in
the general level of interest rates. Prices of fixed income securities tend to move inversely with changes in interest rates. Typically, a rise in rates will adversely affect fixed income security prices and, accordingly, the Fund’s returns and
share price. In addition, the Fund may be subject to “call” risk, which is the risk that during a period of falling interest rates the issuer may redeem a security by repaying it early (which may reduce the Fund’s income if the
proceeds are reinvested at lower interest rates), and “extension” risk, which occurs during a rising interest rate environment because certain obligations will be paid off by an issuer more slowly than anticipated (causing the value of
those securities held by the Fund to fall).
|
S4
|
•
|
|
Counterparty Risk.
Many of the derivative contracts entered into by the Fund, the Subsidiary or a trading company will be privately
negotiated in the over-the-counter market. These contracts also involve exposure to credit risk, since contract performance depends in part on the financial condition of the counterparty. If a privately negotiated over-the-counter contract calls for
payments by the Fund, the Subsidiary or a trading company, the Fund, the Subsidiary or trading company must be prepared to make such payments when due. In addition, if a counterparty’s creditworthiness declines, the Fund, the Subsidiary or a
trading company may not receive payments owed under the contract, or such payments may be delayed under such circumstances and the value of agreements with such counterparty can be expected to decline, potentially resulting in losses by the Fund.
|
|
•
|
|
Credit Risk.
Credit risk refers to the possibility that the issuer of the security will not be able to make principal and interest
payments when due. Changes in an issuer’s credit rating or the market’s perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. Securities rated in the four highest categories
by the rating agencies are considered investment grade but they may also have some speculative characteristics. Investment grade ratings do not guarantee that bonds will not lose value or default.
|
|
•
|
|
Currency Risk.
The Fund’s exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in
value relative to the U.S. Dollar, or, in the case of short positions, that the U.S. Dollar will decline in value relative to the currency that the Fund is short. Currency rates in foreign countries may fluctuate significantly over short
periods of time for any number of reasons, including changes in interest rates and the imposition of currency controls or other political developments in the U.S. or abroad.
|
|
•
|
|
Emerging Market Risk.
The Fund intends to have exposure to emerging markets. Emerging markets are riskier than more developed
markets because they tend to develop unevenly and may never fully develop. Investments in emerging markets may be considered speculative. Emerging markets are more likely to experience hyperinflation and currency devaluations, which adversely affect
returns to U.S. investors. In addition, many emerging financial markets have far lower trading volumes and less liquidity than developed markets.
|
|
•
|
|
Foreign Market Risk.
As a general rule, there is less legal and regulatory protection for investors in foreign markets than that
available domestically. Additionally, trading on foreign exchanges is subject to the risks presented by exchange controls, expropriation, increased tax burdens and exposure to local economic declines and political instability. Some foreign
derivative markets are so-called principals’ markets in which performance is the responsibility only of the individual counterparty with whom the trader has entered into a commodity interest transaction and not of the exchange or clearing
corporation. International trading activities are subject to foreign exchange risk.
|
|
•
|
|
General Market Risk.
The Fund’s net asset value (“NAV”) and investment return will fluctuate based upon changes in
the value of its portfolio securities. You could lose money on your investment in the Fund, or the Fund could underperform other investments.
|
|
•
|
|
Government Intervention and Regulatory Changes
. The recent instability in financial markets has led the government to take a number
of unprecedented actions designed to support certain financial institutions and segments of the financial markets that are exposed to extreme volatility and in some cases lack of liquidity. For example, the Dodd-Frank Wall Street Reform and Consumer
Protection Act (the “Dodd-Frank Act”) (which was passed into law in July 2010) significantly revises and expands the rulemaking, supervisory and enforcement authority of federal bank, securities and commodities regulators. It is unclear
how these regulators will exercise these revised and expanded powers and whether they will undertake rulemaking, supervisory or enforcement actions that would adversely affect the Fund or investments made by the Fund. There can be no assurance that
future regulatory actions authorized by the Dodd-Frank Act will not adversely impact the Fund. Major changes resulting from the Dodd-Frank Act or other legislative or regulatory actions could materially affect the profitability of the Fund or the
value of investments made by the Fund or force the Fund to revise its investment strategy or divest certain of its investments. Any of these developments could expose the Fund to additional costs, taxes, liabilities, enforcement actions and
reputational risk.
|
In addition, the Dodd-Frank Act established a new regulatory structure for derivatives. If
more restrictive position limits are imposed on investors in the commodity futures and other derivative markets, the Campbell Program or other managed futures programs in which trading companies invest, and as a result, the Fund, may be adversely
affected. Similarly, changes in the regulation of foreign currency-related trading arising from the Dodd-Frank Act may make such trading more expensive for the Fund, and otherwise limit the Fund’s ability to engage in such trading, which could
adversely affect the Fund.
In 2012, the CFTC adopted certain rule amendments that significantly affected the exemptions from CFTC
regulations that were available to the Fund and its Subsidiary. Effective January 1, 2013, the Fund and its Subsidiary are subject to CFTC regulations because of these changes. At the time of the CFTC’s adoption of the rule amendments,
Equinox was (and continues to be) registered as a commodity pool operator and, accordingly, is subject to CFTC regulations. The on-going compliance implications of these amendments are not yet fully effective and their scope of application is still
uncertain. CFTC-mandated disclosure, reporting and recordkeeping obligations will apply with respect to the Fund once the CFTC proposal that seeks to “harmonize” these obligations with overlapping SEC regulations is finalized. The effects
of these regulatory changes could increase Fund expenses, reduce investment returns or limit the Fund’s ability to implement its investment strategy.
|
•
|
|
High Indirect Fees and Expenses.
Your cost of investing in the Fund may be higher than the cost of investing in other mutual funds
that invest directly in the types of instruments traded by the Campbell Program. In addition to the Fund’s direct fees and expenses, you will indirectly bear fees and expenses paid by the Subsidiary and by a trading company, including
management fees and performance-based fees associated with the Campbell Program, commodity brokerage commissions and operating expenses. Further, any investment in the Campbell Program is expected to be subject to management and performance-based
fees. Management fees typically are based on the leveraged account size or the “notional exposure” of the Fund to the Campbell Program and not the actual cash invested.
|
|
•
|
|
Leverage/Volatility Risk
. The use of leverage by the Fund (or trading companies in which the Fund invests) will cause the value of
the Fund’s shares to be more volatile than if the Fund did not employ leverage. This is because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s portfolio securities or other investments.
Relatively small market movements may result in large changes in the value of a leveraged investment. The potential loss on such leveraged investments may be substantial relative to the initial investment therein. Furthermore, derivative instruments
and futures contracts are highly volatile and are subject to occasional rapid and substantial fluctuations. Consequently, you could lose all or substantially all of your investment in the Fund should the Fund’s (or the relevant trading
companies’) trading positions suddenly turn unprofitable.
|
The Fund’s NAV is expected over short-term periods
to be volatile because of the significant use of direct and indirect investments that have a leveraging effect. Volatility is a statistical measurement of the magnitude of up and down asset price fluctuations over time. Rapid and dramatic price
swings will result in high volatility. The Fund’s returns are expected to be volatile; however, the actual or realized volatility level for longer or shorter periods may be materially higher or lower depending on market conditions and investors
may suffer a significant and possibly a complete loss on their investment in the Fund.
S5
|
•
|
|
Liquidity Risk.
The Fund is subject to liquidity risk primarily due to its investments in derivatives. Investments in illiquid
securities or derivative instruments involve the risk that the Fund may be unable to sell the security or derivative instrument or sell it at a reasonable price.
|
|
•
|
|
Management Risk.
The Adviser’s judgments about the attractiveness, value and potential positive or negative performance of the
Campbell Program or any particular security or derivative in which the Fund invests or sells short may prove to be inaccurate and may not produce the desired results.
|
|
•
|
|
Non-Diversification Risk.
The Fund is a non-diversified investment company, which means that more of the Fund’s assets may be
invested in the securities of a single issuer than could be invested in the securities of a single issuer by a diversified investment company. The Fund has a greater potential to realize losses upon the occurrence of adverse events affecting a
particular issuer.
|
|
•
|
|
OTC Trading Risk.
Certain of the derivatives in which the Fund may invest may be traded (and privately negotiated) in the
“over-the-counter” or “OTC” market. While the OTC derivatives market is the primary trading venue for many derivatives, it is largely unregulated. As a result and similar to other privately negotiated contracts, the Fund is
subject to counterparty credit risk with respect to such derivative contracts.
|
|
•
|
|
Performance Fees
. The performance-based fees indirectly paid to Campbell may create an incentive for Campbell to make investments
that are riskier or more speculative than those they might have made in the absence of such performance-based fees. In addition, because performance-based fees will generally be calculated on a basis that includes unrealized trading profits of the
Campbell Program, the fee may be greater than if it were based solely on realized gains. Positive performance of the Fund’s investments in the Campbell Program is expected to result in performance-based compensation being paid to Campbell,
which will be borne indirectly by the Fund, even if the Fund’s overall returns are negative. Further, because performance fees are frequently calculated on a quarterly basis (and, in some cases, upon a withdrawal of capital from a Trading
Company), it is possible that a CTA could earn a performance fee in a year in which its overall performance for the whole year was negative.
|
|
•
|
|
Portfolio Turnover Risk
. The Fund may frequently buy and sell portfolio securities and other assets to rebalance the Fund’s
exposure to various market sectors. Higher portfolio turnover may result in the Fund paying higher levels of transaction costs and generating greater tax liabilities for shareholders. Portfolio turnover risk may cause the Fund’s performance to
be less than you expect.
|
|
•
|
|
Regulatory risk
. Governments, agencies or other regulatory bodies may adopt or change laws or regulations that could adversely
affect the issuer, or market value, of an instrument held by the Fund, its Subsidiary or a trading company, or that could adversely impact the Fund’s performance.
|
|
•
|
|
Subsidiary Risk
. The Subsidiary will not be registered under the 1940 Act and, unless otherwise noted in this Prospectus, will not
be subject to all of the investor protections of the 1940 Act. Thus, the Fund, as an investor in the Subsidiary, will not have all of the protections offered to investors in registered investment companies. Changes in the laws of the United States
and/or the Cayman Islands, under which the Fund and Subsidiary, respectively, are organized, could result in the inability of the Fund and/or Subsidiary to operate as described in this Prospectus and could negatively affect the Fund and its
shareholders. For example, Cayman Islands law does not currently impose any income, corporate or capital gains tax, estate duty, inheritance tax, gift tax or withholding tax on the Subsidiary. If Cayman Islands law changes such that the Subsidiary
must pay Cayman Islands governmental authority taxes, Fund shareholders would likely suffer decreased investment returns.
|
Performance:
Because the Fund has not commenced operations prior to the date of this Prospectus, no performance information is
presented for the Fund at this time. In the future, performance information will be presented in this section of this Prospectus. Shareholder reports containing financial and performance information will be mailed to shareholders semi-annually.
Investment Adviser:
Equinox Fund Management, LLC
PORTFOLIO MANAGERS:
Richard Bornhoft, Chief Investment Officer of the Adviser, Ajay Dravid, Managing Director
of Portfolio Strategy for the Adviser and Rufus Rankin, Director of Portfolio Management for the Adviser, have been on the Fund’s portfolio management team since its inception. Sue Osborne and Afroz Qadeer, members of the Adviser’s
portfolio management team, each joined the Fund’s portfolio management team on April 1, 2013.
Purchase and Sale of Fund Shares:
Minimum Investment Requirements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase Amounts
|
|
Class A
|
|
|
Class I
|
|
|
Class P
|
|
|
Minimum initial investment
|
|
$
|
2,500
|
|
|
$
|
100,000
|
|
|
$
|
2,500
|
|
|
Minimum subsequent investment
|
|
$
|
500
|
|
|
|
No Minimum
|
|
|
|
No Minimum
|
|
You may purchase and redeem shares of the Fund on any day that the New York Stock Exchange is open. Redemptions requests may be made
in writing, by telephone, or through a financial intermediary and will be paid by check or wire transfer.
Tax
Information:
The Fund intends to make distributions that may be taxed as ordinary income or capital gains except when shares are held through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement
account. Shares that are held in a tax-deferred account may be taxed as ordinary income or capital gains once they are withdrawn from the tax-deferred account.
Payments to Broker-Dealers and Other Financial Intermediaries:
If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over
another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
S6