The investment objective of the fund is to provide an attractive level of current income and total return.
The fund invests in currencies and short-term debt of both developed market and emerging market countries and has the flexibility to short foreign currencies. It generally maintains a foreign currency orientation –maximum net exposure to the U.S. dollar is 35%. Under normal circumstances, at least 80% of the fund’s net assets are invested in U.S. and foreign government securities, forward currency contracts and other currency-related derivative investments. The fund may invest up to 20% in corporate, asset-backed or other types of non-government debt. The fund may employ effective leverage through forward currency contracts that provide investment exposure of up to 175% of the fund’s capital. The fund will maintain a weighted-average, leverage-adjusted duration of two years or less.
- Diversification potential of foreign currency exposure
- Total return potential from active currency management
- Attractive income potential from higher yielding foreign currencies and interest rate markets
- Potentially benefits from a structural decline of dollar
|Closing Share Price (As of 9/12/2014)||$10.97
|Closing NAV per Share (As of 9/12/2014)||$12.23
|Premium / Discount**||-10.30%
|Current Distribution Rate (Market price)††||7.11%
|Distribution Amount (Quarterly)†† ||$0.1950
|Distribution Type ||Managed Distribution
The Fund is designed as a long-term investment and not as a trading vehicle. The Fund is not intended to be a complete investment program. Investors should carefully review and consider the risks listed below before investing.
The possible loss of the entire principal amount that you invest.Shares of closed-end investment companies like the Fund frequently trade at a discount to their NAV. Your common shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.Each Fund’s use of leverage creates the possibility of higher volatility for the Fund’s per share NAV, market price, distributions and returns. There is no assurance that a Fund’s leveraging strategy will be successful.The Fund’s investment program and the tax treatment of Fund distributions may be affected by IRS interpretations of the Internal Revenue Code and future changes in tax laws and regulations, including changes resulting from the “sunset” provisions that may apply to the favorable tax treatment of tax-advantaged dividends. There can be no assurance as to the percentage of a Fund’s distributions that will qualify as tax-advantaged dividends.This is the risk that a security in a Fund's portfolio will fail to make dividend or interest payments when due.Investments in securities below investment grade quality
are predominantly speculative and subject to greater volatility and risk of default.Issuers may exercise their option to prepay principal
earlier than scheduled, forcing the Fund to reinvest in lower-yielding securities. Derivative securities, such as calls, puts, warrants, swaps and
forwards, carry risks different from, and possibly greater than, the risks associated with
the underlying investments.Fixed-income securities such as bonds, preferred, convertible and other debt securities will decline in value if market interest rates rise. If market interest rates decline, income earned from the Fund’s portfolio may be reinvested at rates below that of the original bond that generated the income.
To the extent that a Fund’s derivative investments are purchased or
sold in over-the-counter transactions, the Fund will be exposed to the risk that counterparties to these transactions will be unable to meet their obligations.Changes in exchange rates will affect the value of a Fund’s investments.Forward currency contracts are not standardized and
are substantially unregulated. Principals are not required to continue to make markets in
the securities or currencies they trade and these markets can experience periods of illiquidity, sometimes of significant duration. In addition, trading forward currency contracts
can have the effect of financial leverage by creating additional investment exposure. In interest rate swap transactions, there is a risk that yields will move in the direction opposite to the direction anticipated by the fund, which would cause the fund to make payments to its counterparty in the transaction that could adversely affect the fund's performance.Investments in non-U.S securities involve special risks not typically associated with domestic investments including currency risk and adverse political,
social and economic development. These risks often are magnified in emerging markets.
Potential distribution sources include net investment income, realized gains and/or return of capital. This Fund has adopted a Managed Distribution Policy, which is designed to provide attractive, regular distributions throughout the course of the year. Under this policy, the Fund seeks to maintain a stable regular distribution amount that, over the long term, matches the Fund’s total distributions paid to its total return. You should not draw any conclusions about a fund’s past or future investment performance from its current distribution rate. Each regular distribution will be composed of Fund earnings (net investment income) and profits (realized gains, if any), and may also include a non-taxable distribution of a portion of the Fund’s capital, which in turn consists of shareholders’ original investments plus any unrealized gains, life-to-date.
If a distribution includes anything other than net investment income, the fund provides a notice of the best estimate of its distribution sources at that time. These estimates may not match the final tax characterization (for the full year’s distributions) contained in shareholders’ 1099-DIV forms after the end of the year.
Fund data is updated daily, monthly, and quarterly, depending on the specific data point.
for the update schedule.
|Daily all funds:
||Market price, NAV, premium/discount, annualized distribution rates on market price and NAV
|Monthly all funds:
||Assets, leverage, expenses, total return performance, distribution amounts, earnings & UNII
|Monthly certain funds:
Municipal bond fund holdings and portfolio information
|Monthly certain funds, with 1-month lag:
Taxable fund holdings and portfolio information except JCE, NSL, JFR and JRO; and % AMT for municipal bond funds
|Quarterly certain funds:
JCE, NSL, JFR, and JRO holdings and portfolio information, tax characteristic estimates for distributions from funds paying quarterly distributions
|Quarterly all funds:
SEC filings (annual shareholder report, semi-annual shareholder report, or 10-Q filing)