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SIERRA FUNDS
PROXY STATEMENTS AND ISSUES
SUMMARY OF PROXY(IES) PROPOSALS:
o To elect a new Board of Trustees for:
1. Sierra Trust Funds (STF)
2. Sierra Asset Management (SAM) Portfolios
3. Sierra Prime Income Fund (SPIF)
4. Sierra Variable Trust (SVT)
o To approve the replacement of Sierra Investment Advisors by Composite as
the overall investment advisor for all Funds.
o To retain the current sub-advisors (portfolio managers) for:
1. STF & SVT Emerging Growth Fund (Janus)
2. STF & SVT Growth Fund (Janus)
3. STF & SVT International Growth Fund (Warburg Pincus)
4. STF California Municipal Fund (Van Kampen)
5. STF Florida Insured Municipal Fund (Van Kampen)
6. STF California Insured Intermediate Municipal Fund (Van Kampen)
7. Sierra Prime Income Fund (Van Kampen)
o To give Composite day-to-day management authority over:
1. California Money Fund 10. SAM Portfolios
2. Short Term High Quality Bond Fund 11. Sierra Variable Trust
3. California Municipal Fund
4. Florida Insured Municipal Fund
5. California Insured Intermediate Municipal Fund
6. Growth Fund
7. Emerging Growth Fund
8. International Growth Fund
9. Target Maturity 2002 Fund
o To authorize the Board of Trustees of STF and SVT to make future changes in
sub-advisors (portfolio managers) without obtaining shareholder approval,
in order to avoid costly shareholder solicitation expenses.
o To approve the merger of the following Sierra Trust Funds into the
substantially similar Composite Funds: Note: MAILING TO SHAREHOLDERS OF
THESE FUNDS ONLY.
1. U.S. Government Money Fund
2. Global Money Fund
3. U.S. Government Fund
4. Corporate Income Fund
5. National Municipal Fund
FOR BROKER/DEALER USE ONLY.
NOT FOR WRITTEN OR VERBAL COMMUNICATION TO THE PUBLIC.
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6. Growth and Income Fund
o To approve the merger of the Short Term Global Government Fund INTO the
Short Term High Quality Bond Fund in both the Sierra Trust and the Sierra
Variable Trust. Note: MAILING TO STGG FUND SHAREHOLDERS ONLY.
FOR BROKER/DEALER USE ONLY.
NOT FOR WRITTEN OR VERBAL COMMUNICATION TO THE PUBLIC.
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ADDITIONAL COMMENTS ON PROPOSALS:
o The proposed adviser and sub-advisor/portfolio management changes apply to
all existing classes of the Sierra Funds: A shares, B shares, S shares ,
and/or I shares.
o As the new investment adviser, Composite's responsibilities include: 1)
supervising the investments of each Fund; 2) determining what portion of
the assets will be invested or held in cash; and 3) periodically
determining what securities will be purchased, retained, or sold by each
Fund. This will relate to the following Sierra Trust Funds:
1. California Money Fund (currently Alliance - to be replaced by Composite)
2. Short Term High Quality Bond Fund (currently Scudder - to be replaced by
Composite)
3. Target Maturity 2002 Fund (currently BlackRock - to be
replaced by Composite)
4. Sierra Asset Management Portfolios (currently Sierra Advisors - to be
replaced by Composite)
o Composite will retain Janus, Warburg Pincus, and Van Kampen--firms already
responsible for the day-to-day management of the following Sierra Trust
Funds--and will have general oversight responsibilities for formulating the
Funds' investment policies, analyzing economic trends affecting the Funds,
and directing and evaluating the investment services provided by these
sub-advisors:
1. California Municipal Fund (Van Kampen)
2. Florida Insured Municipal Fund (Van Kampen)
3. California Insured Intermediate Municipal Fund (Van Kampen)
4. Growth Fund (Janus)
5. Emerging Growth Fund (Janus)
6. International Growth Fund (Warburg Pincus)
7. Prime Income Fund (Van Kampen)
o Included in the proposed adviser/sub-advisor changes are new agreements for
managing the non-merged Sierra Trust Funds, SAM Portfolios, Sierra Variable
Trust Funds, and Sierra Prime Income Fund. The proposed agreements would:
1. Maintain or decrease total annual shareholder expenses
2. Allow the adviser to change sub-advisors (within six Funds) with shorter
notice (60 days rather than the current 90 days) and do so without the
usual lengthy and costly process of soliciting/obtaining shareholder
approvals
3. Maintain the basic one-year term limits for sub-advisor agreements
4. Delete state-imposed shareholder expense limits which have been
superseded by federal law
FOR BROKER/DEALER USE ONLY.
NOT FOR WRITTEN OR VERBAL COMMUNICATION TO THE PUBLIC.
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BOARD OF TRUSTEES RECOMMENDATION AND RATIONALE
o The Board of Trustees has a fiduciary responsibility to represent the best
interests of Sierra shareholders. Based on a thorough review and with the
assistance of expert investment counsel, THE BOARD UNANIMOUSLY RECOMMENDS
SHAREHOLDERS VOTE "FOR" EACH PROPOSAL ON THE ENCLOSED PROXY(IES).
o Past performance is not necessarily an indicator of future results;
likewise, the effects of management changes on future performance of the
Funds cannot be predicted with certainty. However, the investment strategy
and discipline will continue, as will the focus on producing competitive
long-term returns for shareholders.
o At current asset levels and capital flows, annual fund shareholder expenses
would either remain the same or decline (at least through 1998), according
to best estimates and the terms of the proposed management agreements with
the newly proposed advisor and sub-advisor management structures.
o Sierra shareholders will continue to receive account statements and regular
fund communications. These include SAM reallocation letters, year-end
consolidated 1099s with comprehensive tax guide, annual and semi-annual
reports, as well as annual prospectus updates.
FOR BROKER/DEALER USE ONLY.
NOT FOR WRITTEN OR VERBAL COMMUNICATION TO THE PUBLIC.
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Q & A
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SPECIAL MEETING OF SHAREHOLDERS TO BE HELD DECEMBER 23, 1997
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THIS PROXY IS ONLY RELEVANT TO THE COMPOSITE/SIERRA FUNDS RESTRUCTURING
WHO IS COMPOSITE?
1. WHAT IS COMPOSITE'S BACKGROUND AND EXPERIENCE IN MANAGING MUTUAL FUNDS?
Dating from 1939, the Composite Group of Funds is one of the oldest mutual
fund families in the country. All its funds are managed by Composite Research
& Management Co., a subsidiary of Washington Mutual, Inc. since 1976.
Composite benefits from many years of experience and expertise, and several
of its funds have received high rankings in their categories by Lipper
Analytical Services.
2. WHERE IS COMPOSITE LOCATED?
The administrative and support offices of the Composite Group of Funds are
headquartered in Spokane, WA. The funds are managed by Composite Research &
Management Co., which is based in Seattle, WA.
Composite Group of Funds Composite Research & Management Co.
601 West Main Avenue, #300 1201 Third Avenue, #1400
Spokane, WA 99201 Seattle, WA 98101
3. HOW CAN I OBTAIN ADDITIONAL INFORMATION ABOUT COMPOSITE?
By calling 1-800-543-8072
COMPOSITE AS NEW INVESTMENT ADVISOR:
1. WHAT WOULD BE COMPOSITE'S ROLE AS THE INVESTMENT ADVISOR?
As with Sierra Advisors, Composite Research & Management Co. will have the
same general oversight responsibilities for formulating the Sierra Trust
Funds' investment policies, analyzing economic trends affecting the Funds and
directing and evaluating the investment services provided by the
sub-advisors. Composite will ensure the funds are managed within their
respective guidelines and according to overall corporate policies.
Additionally, Composite will have
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* Meeting to be held at the Corporate Offices of Sierra Fund Administration,
9301 Corbin Avenue, Suite 333 Northridge, California 91324, at 11:00 a.m. PST.
FOR BROKER/DEALER USE ONLY.
NOT FOR WRITTEN OR VERBAL COMMUNICATION TO THE PUBLIC.
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investment discretion for the Short Term High Quality Bond Fund, Target
Maturity 2002 Fund, and the California Money Fund, as well as the merged
Funds and relevant SVT Funds (for which there will not be sub-advisors).
2. HOW WILL THE CHANGE FROM SIERRA ADVISORS TO COMPOSITE AFFECT THE PERFORMANCE
OF THE FUNDS?
Composite has a long and successful track record in portfolio management. The
investment strategy and discipline will continue, as will the focus on
producing competitive long-term returns for shareholders. However, past
performance is not necessarily an indicator of future results.
3. HOW WILL THE CHANGE AFFECT EXPENSES?
Many shareholders will experience some reductions in annual operating
expenses at least through 1998. No shareholders will see their expenses
increase (see Exhibit I).
MERGER OF SHORT TERM GLOBAL GOVERNMENT FUND INTO SHORT TERM HIGH QUALITY BOND
FUND:
1. WHY IS THE SHORT TERM GLOBAL GOVERNMENT FUND BEING MERGED INTO THE SHORT TERM
HIGH QUALITY BOND FUND?
Both Funds are similar in that they seek to provide investors a high level of
current income and stability of principal. In addition, the combination of
Fund assets should result in increased efficiencies in the management of
costs and expenses.
The Short Term High Quality Bond Fund invests in a diversified portfolio of
investment-grade U.S. Government, corporate debt, and mortgage-backed
securities, with average maturities between one and three years. These types
of investments are used to seek a high level of current income and a high
degree of principal stability. The short maturity and high quality bonds are
intended to significantly reduce price volatility. The domestic holdings
avoid both the currency risks and political, economic, and credit risks of
foreign investing. Although some risks of foreign investing can be averted by
currency hedging, these techniques involve costs and may not always produce
sufficient net benefits for investors. We believe that, given current global
economic conditions, the Short Term High Quality Bond Fund should provide
greater benefit to shareholders and should provide competitive returns from
its high quality, low volatility domestic holdings.
2. HOW DO PAST RETURNS FROM THESE TWO FUNDS COMPARE?
In 1997, the Short Term High Quality Bond Fund has generated higher overall
returns than the Short Term Global Government Fund. In addition, the yield of
the Short Term High Quality Bond Fund has been very competitive relative to
the Short Term Global Government Fund. Although some of the longer-term
results favor the Short Term Global Government Fund, we believe the risks
associated with international investing outweigh the marginal gains in
returns for this investment objective. However, past performance is not
necessarily an indicator of future results.
FOR BROKER/DEALER USE ONLY.
NOT FOR WRITTEN OR VERBAL COMMUNICATION TO THE PUBLIC.
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MERGER OF CERTAIN SIERRA FUNDS INTO SIMILAR COMPOSITE FUNDS
1. WHICH SIERRA FUNDS ARE BEING MERGED INTO SIMILAR COMPOSITE FUNDS?
SIERRA FUNDS EXCHANGING FROM COMPOSITE FUNDS EXCHANGED INTO
Global Money Fund Composite Money Market Fund
U.S. Government Money Fund Composite Money Market Fund
U.S. Government Fund Composite U.S. Government Securities Fund
Corporate Income Fund Composite Income Fund
National Municipal Fund Composite Tax-Exempt Bond Fund
Growth and Income Fund Composite Growth & Income Fund
2. WHY ARE THESE SIERRA FUNDS BEING MERGED INTO FUNDS IN THE COMPOSITE FAMILY,
WHILE OTHER SIERRA FUNDS ARE REMAINING UNDER THE CURRENT STRUCTURE?
Where investment objectives and policies and portfolio holdings are
substantially similar, funds are being merged together to decrease
transaction costs, to avoid shareholder confusion, duplicate efforts and
expense, and to streamline portfolio management decision making. The
remaining Sierra funds will continue to be available to provide increased
diversification opportunities for shareholders.
3. HOW WILL THESE CHANGES AFFECT HOW THE FUNDS ARE MANAGED?
Although fund portfolio managers may change, the basic investment objectives
and limitations of the surviving Funds will remain similar.
4. HOW DO THE COMPOSITE FUNDS COMPARE WITH THEIR SIMILAR SIERRA FUNDS IN
PERFORMANCE, RISK, ETC.?
The Composite Funds are generally a good match for the respective Sierra
Funds (see Exhibit II). The two fund groups share compatible objectives,
policies, holdings, and management styles. Differences in past performance
generally favor the Composite Funds, but, as we all know, past performance
does not predict future results.
CONTINUATION OF CERTAIN SIERRA FUNDS' STRUCTURE UNDER CURRENT SUB-ADVISORS:
1. WILL ANY OF THE SIERRA TRUST FUNDS RETAIN THEIR CURRENT PORTFOLIO MANAGEMENT
STRUCTURE AND CURRENT SUB-ADVISORS?
Yes. The following funds will retain their current portfolio sub advisors:
o Growth Fund (Janus)
o Emerging Growth Fund (Janus)
o International Growth Fund (Warburg)
o California Municipal Fund (Van Kampen)
o Florida Insured Municipal Fund (Van Kampen)
o California Insured Intermediate Municipal Fund (Van Kampen)
FOR BROKER/DEALER USE ONLY.
NOT FOR WRITTEN OR VERBAL COMMUNICATION TO THE PUBLIC.
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o Prime Income Fund (Van Kampen)
2. WHY ARE THESE FUNDS CONTINUING WITH THEIR CURRENT PORTFOLIO MANAGEMENT
STRUCTURE?
These funds are significantly different from the existing Composite Funds, so
their addition as separate funds will enable Composite and Sierra, as a newly
formed group of funds, to offer investors a comprehensive selection of funds
and greater opportunities to diversify their investments. In addition, the
sub-advisors currently managing these funds are highly experienced in
managing money in these asset classes and are expected to enhance the overall
portfolio management expertise of the combined group.
SIERRA ASSET MANAGEMENT (SAM) PORTFOLIOS:
1. HOW WILL THE PROPOSED ADVISORY AND SUB-ADVISOR/PORTFOLIO MANAGEMENT CHANGES
AFFECT THE SAM PORTFOLIOS?
The proposals to change the investment advisor and portfolio management for
the other classes of Sierra funds (A, B, and S) also apply to I shares; I
shares are the portfolio holdings of the SAM Portfolios. The asset management
and allocation decisions of the SAM Portfolios will continue to be directed
by Steve Scott in his role as portfolio manager. SAM Portfolios' management
will then have a greater number of Funds in which to invest. This should
provide a higher degree of diversification possibility to its asset
allocation shareholders.
SIERRA PRIME INCOME FUND
1. OTHER THAN THE PROPOSED NEW INVESTMENT ADVISOR AND NEW AGREEMENT WITH THE
CURRENT SUB-ADVISOR BEING RETAINED, WILL THERE BE ANY OTHER CHANGES INVOLVING
THE FUND?
No. The fund will retain its current investment objectives and policies; and
its expense ratio will not be affected by the proposed changes in advisory
arrangements.
PROXY PROCESS AND TIMING
1. SHOULD SHAREHOLDERS INDICATE THEIR CHOICES FOR EACH PROPOSAL?
Fund specific card(s) will be printed and mailed, thereby allowing
shareholders to vote only for those proposals relating to their fund holdings
AS OF OCTOBER 29, 1997.
2. IS THERE AN EASIER WAY FOR SHAREHOLDERS TO INDICATE APPROVAL FOR THE
APPLICABLE PROPOSALS?
Yes! Shareholders may: 1) sign and date the proxy card and return it in the
postage-paid envelope, 2) sign and fax both sides of the card to
1-212-269-2796, or 3) call 1-800-848-3374.
FOR BROKER/DEALER USE ONLY.
NOT FOR WRITTEN OR VERBAL COMMUNICATION TO THE PUBLIC.
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3. WHAT DOES A SHAREHOLDER'S SIGNATURE ON THE PROXY CARD MEAN?
By simply signing and dating the card and mailing it in the postage-paid
envelope, shareholders authorize the proxies to vote on the proposals on
their behalf; basically to approve the proposals as presented in the proxy
statement.
4. WHAT INFORMATION MAY INVESTMENT REPRESENTATIVES PROVIDE?
Legally, registered representatives cannot make recommendations about how
shareholders should vote; brokers may only encourage shareholders to read and
understand the proxy issues, obtain answers to any questions, indicate their
choices, sign and date the proxy card, and mail it as soon as possible.
5. WHY ARE THERE SO MANY PROPOSALS TO CONSIDER?
Actually, shareholders don't have to worry about all of them! In fact, they
may simply sign and date the proxy card and return it in the postage-paid
envelope to allow the trustees to vote for them, if they wish. The
pre-printed ballot will only allow shareholders to vote on the proposals
relating to the Funds they actually own, if the shareholders choose to vote
individually on the proposals.
6. IF SHAREHOLDERS WANT TO VOTE THEMSELVES, HOW DO THEY DETERMINE WHICH
PROPOSALS TO VOTE ON?
Shareholders should refer to their proxy statement(s) which lists the
proposals they are entitled to vote on.
7. FOR INVESTORS IN THE SAM STRATEGIES (NOT THE SAM PORTFOLIOS), WHICH PROPOSALS
ARE THEY ENTITLED TO VOTE ON?
SAM Strategy shareholders own fund shares of the Sierra Trust and the
proposals on which they are entitled to vote are based on actual fund
holdings/positions as of the record date.
8. WHERE SHOULD SHAREHOLDERS CALL FOR ASSISTANCE WITH REGULAR FUND BUSINESS?
Service Representatives are, and will remain, available at (800) 222-5852.
9. WHEN AND WHERE WILL THE SHAREHOLDER MEETING BE HELD?
DATE: DECEMBER 23, 1997
TIME: 11:00 A.M. (PST)
LOCATION: SIERRA FUND ADMINISTRATION
9301 CORBIN AVENUE, SUITE 333
NORTHRIDGE, CALIFORNIA 91324.
FOR BROKER/DEALER USE ONLY.
NOT FOR WRITTEN OR VERBAL COMMUNICATION TO THE PUBLIC.
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10. IF SHAREHOLDERS ARE NOT PLANNING TO ATTEND, HOW MAY THEY SUBMIT THEIR VOTE?
By mail: Postage-paid envelope provided
By FAX: (212) 269-2796
By Telephone: (800) 848-3374
11. HOW IMPORTANT IS MY VOTE? HASN'T THE BOARD ALREADY APPROVED THE MERGER
TERMS?
Shareholder approval is required before the proposals can be implemented;
Board approval represents only the Board's views of the proposals and what
it recommends to shareholders. Without sufficient responses and approval by
shareholders, additional time-consuming and costly proxy solicitations would
be required. Please exercise your vote by returning the ballot card or proxy
card promptly.
FOR BROKER/DEALER USE ONLY.
NOT FOR WRITTEN OR VERBAL COMMUNICATION TO THE PUBLIC.
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EXHIBIT I
EXHIBIT I
EXHIBIT II
FOR BROKER/DEALER USE ONLY.
NOT FOR WRITTEN OR VERBAL COMMUNICATION TO THE PUBLIC.
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PERFORMANCE AND EXPENSE COMPARISON FOR MERGED FUNDS
PERFORMANCE ENDED SEPTEMBER 30, 1997
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SIERRA
FUND 1-YEAR 3-YEAR 5-YEAR INCEPT.
Composite U.S. Government Securities 9.99% 9.84% 6.09% 7.75% 7/25/89
Sierra U.S. Government 9.72% 8.17% 4.91% 6.84%
Sierra U.S. Government (w/ waivers) 10.16% 8.65% 5.35% 7.41%
Composite Income 12.08% 10.84% 7.40% 9.25% 7/18/90
Sierra Corporate Income 12.19% 10.89% 7.36% 8.86%
Sierra Corporate Income (w/ waivers) 12.62% 11.32% 7.66% 9.27%
Composite Tax-Exempt Bond 7.72% 8.18% 6.64% 7.49% 7/18/90
Sierra National Muni 8.79% 7.49% 6.43% 7.69%
Sierra National Muni (w/ waivers) 9.11% 7.84% 6.85% 8.32%
Composite Growth & Income 37.68% 27.17% 19.19% 14.21% 7/25/89
Sierra Growth & Income 40.71% 26.25% 19.14% 14.08%
Sierra Growth & Income (w/ waivers) 40.71% 26.25% 19.14% 14.08%
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Sources: Sierra Investment Advisors and Composite Research.
All results are for A shares, based on NAV, and annualized.
COMPOSITE EXPENSES TOTAL SIERRA EXPENSES SIERRA FUND EXPENSES
EXPENSE SUMMARY (A SHARES) PRO FORMA (GROSS, W/O WAIVERS) (NET, AFTER WAIVERS)
SIERRA FUND
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Global Money 0.78% 1.17% 0.85%
U.S. Government Money 0.78% 1.25% 0.85%
U.S. Government 0.97% 1.33% 1.00%
Corporate Income 1.10% 1.40% 1.20%
National Municipal 0.85% 1.24% 1.10%
Growth & Income 1.08% 1.50% 1.50% (no waivers)
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Sierra Expenses are current while Composite Pro Forma reflect the proposed
merged Funds.
For Broker/Dealer Use Only. Not for Verbal or Written Communication to Clients.
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COMPARISON OF SIERRA AND COMPOSITE FUNDS FOR PROPOSED MERGER
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MERGER OF SIERRA U.S. GOVERNMENT FUND INTO COMPOSITE U.S. GOVERNMENT SECURITIES
FUND
SUMMARY: Composite is more conservative in quality
and holdings, but Composite shareholders
will likely approve changes which result in
adding non-U.S. Government guaranteed bonds
such as Fannie Mae's, Freddie Mac's and
dollar rolls.
FUND: SIERRA U.S. GOVERNMENT FUND COMPOSITE U.S. GOVERNMENT SECURITIES FUND
INCEPTION DATE: 1989 1982
MONTHLY DISTRIBUTION: Fixed Variable
CHARACTERISTICS: Primarily mortgages (currently 70%) Primarily mortgages (currently 71%)
PORTFOLIO HOLDINGS: Minimum of 65% U.S. Government guaranteed Minimum of 80% U.S. Government guaranteed.
and agencies.
Maximum of 35% other debt, convertibles, Maximum of 20% repos and CMOs backed by
and preferred issues. U.S. Government guaranteed securities.
Maximum of 33% dollar rolls and reverse repos. 0%
Maximum of 15% derivatives 0%
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MERGER OF SIERRA CORPORATE INCOME FUND INTO COMPOSITE INCOME FUND
SUMMARY: The Funds have similar overall quality
(near A), but Composite barbells AAA and
below investment-grade holdings. Composite
shareholders may approve increasing "below
investment grade" allowable maximum to 35%
and adding interest rate futures, REITs,
and dollar rolls.
FUND: SIERRA CORPORATE INCOME FUND COMPOSITE INCOME FUND
INCEPTION DATE: 1990 1975
MONTHLY DISTRIBUTION: Fixed Variable
CHARACTERISTICS: Long-term maturity and duration Intermediate-term maturity and duration
(21.2 & 7.0 years). (11.1 & 6.2 yrs).
PORTFOLIO HOLDINGS: 100% investment grade Minimum of 80% investment grade, 20%
below investment grade.
Can include: foreign denominated corporates, Can include: U.S. dollar-denominated foreign
government and mortgage-backed, asset-backed, corporate issues, governments, mortgage-backed,
Common stock, preferred, variable rated debt, bank debt, and highest grade commercial paper.
dollar rolls, and derivatives. No derivatives.
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For Broker/Dealer Use Only. Not for Verbal or Written Communication to Clients.
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COMPARISON CONT.
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MERGER OF SIERRA NATIONAL MUNICIPAL FUND INTO COMPOSITE TAX-EXEMPT BOND FUND
SUMMARY: Sierra has slightly higher overall quality
but Composite is more conservative in
holdings due to holding solely municipal
issues (no derivatives). However, Composite
shareholders may approve increasing "below
investment grade" allowable maximum to 35%
and adding interest rate futures.
FUND: SIERRA NATIONAL MUNICIPAL FUND COMPOSITE TAX-EXEMPT BOND FUND
INCEPTION DATE: 1990 1976
MONTHLY DISTRIBUTION: Fixed Variable
CHARACTERISTICS: Long maturity and duration (18.8 & 8.0 yrs). More intermediate maturity and duration
(11.6 & 7.5 yrs).
PORTFOLIO HOLDINGS: Primarily investment grade. Minimum of 75% investment grade.
Maximum of 25% below investment grade.
Include: Floating and variable rate mortgage- Also can include: municipal funds and
backed issues, lease revenues, and reverse repos. U.S. Government guaranteed municipal notes.
Can invest in derivatives. No derivatives.
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MERGER OF SIERRA GROWTH AND INCOME FUND INTO COMPOSITE GROWTH & INCOME FUND
SUMMARY: Composite is more aggressive in holdings
and focuses more on growth rather than on
growth and income. Composite's overall
holdings are not intended to resemble or
parallel the S&P 500, while Sierra attempts
to stay relatively sector neutral in
relation to the S&P 500.
FUND: SIERRA GROWTH AND INCOME FUND COMPOSITE GROWTH & INCOME FUND
INCEPTION DATE: 1989 1949
OBJECTIVES: Long-term growth with current income Long-term growth with current income
PORTFOLIO HOLDINGS: 94% Large- and mid-cap issues. 90% Large- and mid-cap issues.
Can include: common stock, preferred, bonds, Maximum of 25% in U.S. Dollar denominated foreign
mortgage-backed, T-Bills, and CDs. stocks.
Maximum of 10% in ADRs. Maximum of 35% in below investment grade paper.
Money markets, short-term deposits and paper. Can invest in forwards and covered calls.
Can invest in derivatives. No derivatives.
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For Broker/Dealer Use Only. Not for Verbal or Written Communication to Clients.