Select Covered Call Strategy

Investment Philosophy and Objectives
The objective of the Select Covered Call Strategy is to deliver attractive current returns and capital appreciation while emphasizing capital preservation. The strategy entails purchasing equities that the Management Company believes exhibit good growth prospects and underlying value, and then selling ("writing") call options on at least 80% of those equities. The premiums received on these options serve to cushion some of the downside potential inherent in an equity investment.

Process
In evaluating candidates for purchase, the Management Company will look for, among other criteria, conservative P/E and P.E.G. ratios, market capitalization, and debt levels. Analysis of both issue-specific and global macro factors will play strong roles in the selection process, as will an issue's trading level versus recent trading trends within that company and its industry. Calls for writing will be selected on the basis of maximizing overall return for the portfolio and while minimizing the variance of those returns.

THE STATEMENTS OF THE INVESTMENT OBJECTIVES OF THE PRODUCTS ARE STATEMENTS OF OBJECTIVES ONLY. THEY ARE NOT PROJECTIONS OF EXPECTED PERFORMANCE NOR GUARANTEES OF ANTICIPATED INVESTMENT RESULTS. ACTUAL PERFORMANCE AND RESULTS MAY VARY SUBSTANTIALLY FROM THE STATED OBJECTIVES.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. AN INVESTMENT IN THIS PRODUCT INVOLVES SIGNIFICANT RISK, INCLUDING THE POTENTIAL RISK OF LOSS OF A SUBSTANTIAL PORTION (OR ALL) OF THE AMOUNT INVESTED.