Investment Objective
The investment objective of the Fund is to generate income with low interest rate risk and with moderate risk of principal loss. The
Fund aims to achieve this strategy through exposure on a leveraged basis to the performance of an actively managed portfolio
principally comprised of adjustable rate senior secured loans (the “Floating Rate Portfolio”). The Floating Rate Portfolio will generally
be invested in U.S. dollar denominated assets. The annual rate of return is expected to be LIBOR plus 2-4%.
The Sub-Advisor
Churchill Pacific Asset Management LLC (formerly known as Centre Pacific, LLC) is an experienced syndicated loan and
high-yield manager, specializing in the management and administration of non-investment grade and structured products.
It currently has assets under management of approximately U.S. $3.5 billion.
Historical Default Rate of Senior Loan Portfolios Managed by the Sub-Advisor
Q1 2008
2007
2006
2005
2004
2003
2002
2001
Sub-Advisor—Floating Rate Portfolio Default Rate
0.13%
0.08%
0.04%
0.12%
0.00%
0.00%
1.26%
0.66%
Moody's Leveraged Loan Default Rate
1.51%
0.14%
0.62%
1.75%
1.63%
3.68%
5.75%
6.17%
Net Historical Performance
1-year
Month:
Apr-08
Mar-08
Feb-08
Jan-08
Dec-07
Nov-07
Oct-07
Sep-07
Aug-07
Jul-07
Jun-07
-26.83%
Return:
14.14%
-2.15%
-13.04%
-12.63%
-0.31%
-6.25%
1.82%
5.02%
-1.27%
-12.97%
-0.48%
Universe of Senior Loans by Industry
Comparative Return Performance
**The Merrill Lynch U.S. Domestic Master Index is a broad-based measure of the total rate of return performance of
the U.S. investment grade bond markets. The Index is a capitalization weighted aggregation of outstanding U.S.
treasury, agency and supranational, mortgage pass-through, and investment grade corporate bonds meeting specified
selection criteria.
Note: The underlying data has been obtained from sources considered to be reliable but its accuracy and completeness cannot be assured. This evaluation is for informational purposes only and is not intended to be an offer,
solicitation, or recommendation with respect to the purchase or sale of any security or a recommendation of the services supplied by any money management organization. Past performance is not a guarantee of future results.
* The Annual Return represents the gross yield of the model portfolio for the stated Sub-Advisor.
