Tender option bonds are trusts created by depositing a bond then issuing two security types: a "floating" rate security, and an "inverse floater" security. The inverse floater is held by a closed-end fund, and creates exposure to the entire bond's return with a cash investment of less than the bond's value. This effectively multiplies the bond’s return within the fund portfolio, whether that return is negative or positive.

* Hypothetical example for illustration purposes only. Example does not include fund expenses.

• Often more efficient to gain currency exposure through derivative instruments than by direct investments.
• A forward contract is a binding agreement between two parties to purchase or sell a given currency at a certain exchange rate at a pre-determined date in the future.
• An NDF, a non-deliverable forward, is a forward contract settled on a net basis. It enables counterparties to gain exposure to the movement of a particular currency over a pre-determined period of time. The net basis settlement allows exposure to currency movements in amounts greater than the actual investment.