Stock Investing With Partial Downside Protection

The Covered Call and Equity Income Fund seeks to provide consistent total return and, secondarily, to provide a high level of income and gains from option premiums.

The Covered Call and Equity Income Fund invests, under normal conditions, primarily in common stocks of large-and mid-capitalization issuers that are, in the view of the funds' investment adviser, selling at a reasonable price in relation to their long-term earnings growth rates.  

The fund will seek to generate current earnings from option premiums by writing (selling) covered call options on a substantial portion of its portfolio securities.  The fund seeks to produce a high level of current income and current gains generated from option writing premiums and, to a lesser extent, from dividends.

Under normal market conditions, the fund will invest at least 80% of its net assets in common stocks, with at least 65% of those in large capitalization issuers.  The fund may invest the remainder of its common stock investments in companies whose market capitalization is considered to be "mid-cap".

The fund will employ a strategy of writing covered call options on a substantial portion of the common stocks in the fund's portfolio, and may, to a lesser extent, pursue an option strategy that includes the writing of both put and call options.