The trust seeks to provide current income and, as a secondary objective, the potential for capital appreciation.
Under normal circumstances, the trust will invest at least 80% of the value of its assets in a combination of common shares of closed-end investment companies (“Closed-End Funds”) that invest substantially all of their assets in various income-oriented securities of different asset classes and shares of an exchange-traded fund (“ETF”) that invests substantially all of its assets in short-term U.S. Treasury bonds. The sponsor selects certain Closed-End Funds for the trust that hold limited duration securities.
The asset classes in which the Closed-End Funds invest may include, but are not limited to:
• government bonds;
• mortgage-backed bonds;
• convertible bonds;
• preferred securities;
• corporate bonds;
• senior loans;
• high yield securities or “junk” bonds; and
• international bonds, including bonds from issuers located in emerging markets.