Common use of Repurchase Agreements Clause in Contracts

Repurchase Agreements. The Fund may invest in securities pursuant to repurchase agreements. Repurchase agreements may be entered into only with a member bank of the Federal Reserve System or primary dealer or an affiliate thereof, in U.S. Government securities or an affiliate thereof. A repurchase agreement is a contractual agreement whereby the seller of securities agrees to repurchase the same security at a specified price on a future date agreed upon by the parties. The agreed-upon repurchase price determines the yield during the Fund's holding period. The risk to the Fund is limited to the ability of the issuer to pay the agreed-upon repurchase price on the delivery date; however, although the value of the underlying collateral at the time the transaction is entered into always equals or exceeds the agreed-upon repurchase price, if the value of the collateral declines there is a risk of loss of both principal and interest. In the event of default, the collateral may be sold but the Fund might incur a loss if the value of the collateral declines, and might incur disposition costs or experience delays in connection with liquidating the collateral. In addition, if bankruptcy proceedings are commenced with respect to the seller of the security, realization upon the collateral by the Fund may be delayed or limited. In general, for federal income tax purposes, repurchase agreements are treated as collateralized loans secured by the securities "sold." Therefore, amounts earned under such agreements will not be considered tax exempt interest. The treatment of purchase and sales contracts is less certain. The Fund may make short sales of securities. A short sale is a transaction in which the Fund sells a security it does not own in anticipation that the market price of that security will decline. The Fund may make short sales both as a form of hedging to offset potential declines in long positions in similar securities and in order to seek to enhance return. When the Fund makes a short sale, it must borrow the security sold short and deliver collateral to the broker-dealer through which it made the short sale to cover its obligation to deliver the security upon conclusion of the sale. The Fund may have to pay a fee to borrow particular securities and is often obligated to pay over any payments received on such borrowed securities. The Fund's obligation to replace the borrowed security will be secured by collateral deposited with the broker-dealer, usually cash or liquid securities similar to those borrowed. The Fund also will be required to segregate similar collateral with its custodian to the extent, if any, necessary so that the value of both collateral amounts in the aggregate is at all times equal to at least 100% of the current market value of the security sold short. Depending on arrangements made with the broker-dealer from which it borrowed the security regarding payment over any payments received by the Fund on such security, the Fund may not receive any payments (including interest) on its collateral deposited with such broker-dealer. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will incur a loss. Conversely, if the price declines, the Fund will realize a gain. Any gain will be decreased, and any loss increased, by the transaction costs described above. Although the Fund's gain is limited to the price at which it sold the security short, its potential loss is theoretically unlimited. The Fund also may make short sales "against the box." These transactions will involve either short sales of securities retained in the Fund's portfolio or securities which it has the right to acquire without the payment of further consideration The Fund may invest in other investment companies whose investment objectives and policies are consistent with those of the Fund. In accordance with the 1940 Act, the Fund may invest up to 10% of its total assets in securities of other investment companies. In addition, under the 1940 Act the Fund may not own more than 3% of the total outstanding voting stock of any investment company and not more than 5% of the value of the Fund's total assets may be invested in securities of any investment company. The Fund has received an exemptive order from the Commission permitting it to invest in affiliated registered money market funds and in an affiliated private investment company without regard to such limitations, provided however, that in all cases the Fund's aggregate investment of cash in shares of such investment companies shall not exceed 25% of the Fund's total assets at any time. If the Fund acquires shares in investment companies, stockholders would bear both their proportionate share of expenses in the Fund (including management and advisory fees) and, indirectly, the expenses of such investment companies (including management and advisory fees).

Repurchase Agreements. The Fund may invest in securities pursuant to repurchase agreements. Repurchase agreements may be entered into only with a member bank of the Federal Reserve System or primary dealer or an affiliate thereof, in U.S. Government securities or an affiliate thereof. A repurchase agreement is a contractual agreement whereby the seller of securities agrees to repurchase the same security at a specified price on a future date agreed upon by the parties. The agreed-upon repurchase price determines the yield during the Fund's holding period. The risk to the Fund is limited to the ability of the issuer to pay the agreed-upon repurchase price on the delivery date; however, although the value of the underlying collateral at the time the transaction is entered into always equals or exceeds the agreed-upon repurchase price, if the value of the collateral declines there is a risk of loss of both principal and interest. In the event of default, the collateral may be sold but the Fund might incur a loss if the value of the collateral declines, and might incur disposition costs or experience delays in connection with liquidating the collateral. In addition, if bankruptcy proceedings are commenced with respect to the seller of the security, realization upon the collateral by the Fund may be delayed or limited. In general, for federal income tax purposes, repurchase agreements are treated as collateralized loans secured by the securities "sold." Therefore, amounts earned under such agreements will not be considered tax exempt interest. The treatment of purchase and sales contracts is less certain. The Fund may make short sales following are fundamental investment restrictions of securities. A short sale is a transaction in which the Fund sells and may not be changed without the approval of the holders of a security it does not own in anticipation that majority of the market price Fund's outstanding Common Shares and outstanding Preferred Shares, voting together as a single class, and a majority of that security will declinethe outstanding Preferred Shares, voting as a separate class (which for this purpose and under the 1940 Act means the lesser of (i) 67% of the shares of each class of capital stock represented at a meeting at which more than 50% of the outstanding shares of each class of capital stock are represented or (ii) more than 50% of the outstanding shares of each class of capital stock). The Fund may make short sales both as a form of hedging to offset potential declines in long positions in similar securities and in order to seek to enhance return. When the Fund makes a short sale, it must borrow the security sold short and deliver collateral to the broker-dealer through which it made the short sale to cover its obligation to deliver the security upon conclusion of the sale. The Fund may have to pay a fee to borrow particular securities and is often obligated to pay over any payments received on such borrowed securities. The Fund's obligation to replace the borrowed security will be secured by collateral deposited with the broker-dealer, usually cash or liquid securities similar to those borrowed. The Fund also will be required to segregate similar collateral with its custodian to the extent, if any, necessary so that the value of both collateral amounts in the aggregate is at all times equal to at least 100% of the current market value of the security sold short. Depending on arrangements made with the broker-dealer from which it borrowed the security regarding payment over any payments received by the Fund on such security, the Fund may not receive any payments (including interest) on its collateral deposited with such broker-dealer. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will incur a loss. Conversely, if the price declines, the Fund will realize a gain. Any gain will be decreased, and any loss increased, by the transaction costs described above. Although the Fund's gain is limited to the price at which it sold the security short, its potential loss is theoretically unlimited. The Fund also may make short sales "against the box." These transactions will involve either short sales of securities retained in the Fund's portfolio or securities which it has the right to acquire without the payment of further consideration The Fund may invest in other investment companies whose investment objectives and policies are consistent with those of the Fund. In accordance with the 1940 Act, the Fund may invest up to 10% of its total assets in securities of other investment companies. In addition, under the 1940 Act the Fund may not own more than 3% of the total outstanding voting stock of any investment company and not more than 5% of the value of the Fund's total assets may be invested in securities of any investment company. The Fund has received an exemptive order from the Commission permitting it to invest in affiliated registered money market funds and in an affiliated private investment company without regard to such limitations, provided however, that in all cases the Fund's aggregate investment of cash in shares of such investment companies shall not exceed 25% of the Fund's total assets at any time. If the Fund acquires shares in investment companies, stockholders would bear both their proportionate share of expenses in the Fund (including management and advisory fees) and, indirectly, the expenses of such investment companies (including management and advisory fees).not:

Repurchase Agreements. The Fund may invest in securities pursuant to repurchase agreements. Repurchase agreements may be entered into only with a member bank of the Federal Reserve System or primary dealer or an affiliate thereof, in U.S. Government securities or an affiliate thereof. A repurchase agreement is a contractual involves the sale of securities to the Joint Account or Individual Portfolio, and the concurrent agreement whereby by the seller of securities agrees to repurchase the same security at securities within a specified price on a future date period of time at an agreed upon by the parties. The agreed-upon repurchase price determines price, thereby establishing the yield which accrues during the Fund's holding period. The risk yield established for the repurchase agreement is determined by current short-term rates and may be more or less than the interest rate on the underlying securities. The Joint Account or Individual Portfolio will obtain actual title to and take possession either physically or constructively of the Fund securities which are the subject of the repurchase agreement. It is the Program’s policy to enter into repurchase agreements only with dealers in United States Government securities which are recognized as “primary dealers” by the Federal Reserve System, or with commercial banks having assets in excess of $1 billion. Securities purchased by the Program for the Joint Account or any Individual Portfolio, subject to repurchase agreements, are limited to the ability obligations of the issuer United States Government and agencies of the United States described under “Authorized Investments” above, but may have maturities longer than one year. At the time a repurchase agreement is made, the underlying securities will always have a market value at least equal to their initial purchase price. If an agreement is in effect for more than one day, the Program’s Investment Administrator is responsible for monitoring the value of the underlying securities and, in the event their market value drops below the value of the initial purchase price plus the accrued yield, the counter-party is required to provide additional securities or money. All securities underlying repurchase agreements are required to be delivered to the Program’s Custodian or to such other custodians agreed to by the Custodian and the Investment Administrator. The Investment Administrator shall not take possession of or act as custodian for any assets of the Program but shall direct delivery thereof to the Custodian (or to such other custodian agreed to by the Custodian and the Investment Administrator). At the expiration of each repurchase agreement, which, in the case of an Individual Portfolio, may not exceed 30 days from the date of the repurchase agreement, the Custodian receives payment of the principal and interest earned under the agreement as a condition for the transfer of the underlying securities to the other party. If the other party fails to pay the agreed-agreed upon repurchase price on the delivery expiration date; however, although the risks to the Joint Account Participants or to an Individual Portfolio Participant in such event may include any decline in the value of the underlying collateral at securities to an amount which is less than the time the transaction is entered into always equals or exceeds the agreed-upon repurchase price, if the value any costs of the collateral declines there is a risk disposing of loss of both principal and interest. In the event of default, the collateral may be sold but the Fund might incur a loss if the value of the collateral declines, and might incur disposition costs or experience delays in connection with liquidating the collateral. In addition, if bankruptcy proceedings are commenced with respect to the seller of the security, realization upon the collateral by the Fund may be delayed or limited. In general, for federal income tax purposes, repurchase agreements are treated as collateralized loans secured by the securities "sold." Therefore, amounts earned under such agreements will not be considered tax exempt interest. The treatment of purchase and sales contracts is less certain. The Fund may make short sales of securities. A short sale is a transaction in which the Fund sells a security it does not own in anticipation that the market price of that security will decline. The Fund may make short sales both as a form of hedging to offset potential declines in long positions in similar securities and in order to seek to enhance return. When the Fund makes a short sale, it must borrow the security sold short and deliver collateral to the broker-dealer through which it made the short sale to cover its obligation to deliver the security upon conclusion of the sale. The Fund may have to pay a fee to borrow particular securities and is often obligated to pay over any payments received on such borrowed securities. The Fund's obligation to replace the borrowed security will be secured by collateral deposited with the broker-dealer, usually cash or liquid securities similar to those borrowed. The Fund also will be required to segregate similar collateral with its custodian to the extent, if any, necessary so that the value of both collateral amounts in the aggregate is at all times equal to at least 100% of the current market value of the security sold short. Depending on arrangements made with the broker-dealer from which it borrowed the security regarding payment over any payments received by the Fund on such security, the Fund may not receive any payments (including interest) on its collateral deposited with such broker-dealer. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will incur a loss. Conversely, if the price declines, the Fund will realize a gain. Any gain will be decreased, and any loss increased, by the transaction costs described above. Although the Fund's gain is limited to the price at which it sold the security short, its potential loss is theoretically unlimited. The Fund also may make short sales "against the boxfrom any delay in foreclosing on such securities." These transactions will involve either short sales of securities retained in the Fund's portfolio or securities which it has the right to acquire without the payment of further consideration The Fund may invest in other investment companies whose investment objectives and policies are consistent with those of the Fund. In accordance with the 1940 Act, the Fund may invest up to 10% of its total assets in securities of other investment companies. In addition, under the 1940 Act the Fund may not own more than 3% of the total outstanding voting stock of any investment company and not more than 5% of the value of the Fund's total assets may be invested in securities of any investment company. The Fund has received an exemptive order from the Commission permitting it to invest in affiliated registered money market funds and in an affiliated private investment company without regard to such limitations, provided however, that in all cases the Fund's aggregate investment of cash in shares of such investment companies shall not exceed 25% of the Fund's total assets at any time. If the Fund acquires shares in investment companies, stockholders would bear both their proportionate share of expenses in the Fund (including management and advisory fees) and, indirectly, the expenses of such investment companies (including management and advisory fees).

Repurchase Agreements. The Fund may invest in securities pursuant to repurchase agreements. Repurchase agreements may be entered into only with a member bank of the Federal Reserve System or primary dealer or an affiliate thereof, in U.S. Government securities or an affiliate thereof. A repurchase agreement is a contractual agreement whereby the seller of securities agrees to repurchase the same security at a specified price on a future date agreed upon by the parties. The agreed-upon repurchase price determines the yield during the Fund's ’s holding period. The risk to the Fund is limited to the ability of the issuer to pay the agreed-upon repurchase price on the delivery date; however, although the value of the underlying collateral at the time the transaction is entered into always equals or exceeds the agreed-upon repurchase price, if the value of the collateral declines there is a risk of loss of both principal and interest. The Investment Adviser monitors the value of the collateral at the time the action is entered into and at all times during the term of the repurchase agreement. The Investment Adviser does so in an effort to determine that the value of the collateral always equals or exceeds the agreed-upon repurchase price to be paid to the Fund. In the event of default, the collateral may be sold but the Fund might incur a loss if the value of the collateral declines, and might incur disposition costs or experience delays in connection with liquidating the collateral. In addition, if bankruptcy proceedings are commenced with respect to the seller of the security, realization upon the collateral by the Fund may be delayed or limited. In general, for federal income tax purposes, repurchase agreements are treated as collateralized loans secured by the securities "“sold." ” Therefore, amounts earned under such agreements will not be considered tax exempt interest. The treatment of purchase and sales contracts is less certain. The Fund may make short sales following are fundamental investment restrictions of securities. A short sale is a transaction in which the Fund sells and may not be changed without the approval of the holders of a security it does not own in anticipation that majority of the market price Fund’s outstanding Common Shares and outstanding Preferred Shares, voting together as a single class, and a majority of that security will declinethe outstanding Preferred Shares, voting as a separate class (which for this purpose and under the 1940 Act means the lesser of (i) 67% of the shares of each class of capital stock represented at a meeting at which more than 50% of the outstanding shares of each class of capital stock are represented or (ii) more than 50% of the outstanding shares of each class of capital stock). The Fund may make short sales both as a form of hedging to offset potential declines in long positions in similar securities and in order to seek to enhance return. When the Fund makes a short sale, it must borrow the security sold short and deliver collateral to the broker-dealer through which it made the short sale to cover its obligation to deliver the security upon conclusion of the sale. The Fund may have to pay a fee to borrow particular securities and is often obligated to pay over any payments received on such borrowed securities. The Fund's obligation to replace the borrowed security will be secured by collateral deposited with the broker-dealer, usually cash or liquid securities similar to those borrowed. The Fund also will be required to segregate similar collateral with its custodian to the extent, if any, necessary so that the value of both collateral amounts in the aggregate is at all times equal to at least 100% of the current market value of the security sold short. Depending on arrangements made with the broker-dealer from which it borrowed the security regarding payment over any payments received by the Fund on such security, the Fund may not receive any payments (including interest) on its collateral deposited with such broker-dealer. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will incur a loss. Conversely, if the price declines, the Fund will realize a gain. Any gain will be decreased, and any loss increased, by the transaction costs described above. Although the Fund's gain is limited to the price at which it sold the security short, its potential loss is theoretically unlimited. The Fund also may make short sales "against the box." These transactions will involve either short sales of securities retained in the Fund's portfolio or securities which it has the right to acquire without the payment of further consideration The Fund may invest in other investment companies whose investment objectives and policies are consistent with those of the Fund. In accordance with the 1940 Act, the Fund may invest up to 10% of its total assets in securities of other investment companies. In addition, under the 1940 Act the Fund may not own more than 3% of the total outstanding voting stock of any investment company and not more than 5% of the value of the Fund's total assets may be invested in securities of any investment company. The Fund has received an exemptive order from the Commission permitting it to invest in affiliated registered money market funds and in an affiliated private investment company without regard to such limitations, provided however, that in all cases the Fund's aggregate investment of cash in shares of such investment companies shall not exceed 25% of the Fund's total assets at any time. If the Fund acquires shares in investment companies, stockholders would bear both their proportionate share of expenses in the Fund (including management and advisory fees) and, indirectly, the expenses of such investment companies (including management and advisory fees).not:

Repurchase Agreements. The Fund may invest in Those broker/dealers approved for repurchase agreement transactions shall be limited to broker/dealers for which a securities pursuant to repurchase agreementslending line has been approved by the U.S. Bank Financial Services Division. Repurchase agreements may also be entered into only executed with a member bank any approved bank. The following requirements shall apply to all repurchase agreement transactions: 1. The sum of the Federal Reserve System or primary dealer or an affiliate thereof, in U.S. Government securities or an affiliate thereof. A repurchase agreement is a contractual agreement whereby the seller of securities agrees to repurchase the same security at a specified price on a future date agreed upon by the parties. The agreed-upon repurchase price determines the yield during the Fund's holding period. The risk to the Fund is limited to the ability of the issuer to pay the agreed-upon repurchase price on the delivery date; however, although the value of the underlying collateral at the time the transaction is entered into always equals or exceeds the agreed-upon repurchase price, if the value dollar amount of the collateral declines for the securities on loan and the dollar amount of any funds invested in repurchase agreements at any one time with a particular broker/dealer shall not exceed the approved securities lending line. 2. U.S. Bank on behalf of Participant will use a standard form or repurchase agreement such as the Public Securities Associates ("PSA") model repurchase agreement, or another form of agreement which contains comparable provisions, when entering into repurchase agreements. 3. U.S. Bank shall perfect the security interest of the Participant in the collateral underlying the repurchase agreement, so that to the maximum extent permitted by law, the Participant's interest will be protected if there is a risk default by the other party to the repurchase agreement. 4. Repurchase agreements entered into by U.S. Bank on behalf of loss of both principal and interest. In the event of defaultParticipant shall be adequately collateralized, i.e., the collateral may be sold but the Fund might incur a loss if the value amount of the collateral declines, and might incur disposition costs or experience delays in connection with liquidating required at inception of a repurchase agreement transaction shall be equal to at least 102% of the collateralprincipal amount of the transaction. In addition, if bankruptcy proceedings are commenced with respect to the seller of the security, realization upon the collateral by the Fund may be delayed or limited. In general, for federal income tax purposes, repurchase agreements are treated as collateralized loans secured by the securities "sold." Therefore, amounts earned under such agreements will not be considered tax exempt interest. The treatment of purchase and sales contracts is less certain. The Fund may make short sales of securities. A short sale is a transaction in which the Fund sells a security it does not own in anticipation that the market price of that security will decline. The Fund may make short sales both as a form of hedging to offset potential declines in long positions in similar securities and in order to seek to enhance return. When the Fund makes a short sale, it must borrow the security sold short and deliver collateral to the broker-dealer through which it made the short sale to cover its obligation to deliver the security upon conclusion of the sale. The Fund may have to pay a fee to borrow particular securities and is often obligated to pay over any payments received on such borrowed securities. The Fund's obligation to replace the borrowed security will be secured by collateral deposited with the broker-dealer, usually cash or liquid securities similar to those borrowed. The Fund also will be required to segregate similar collateral with its custodian to the extent, if any, necessary so that the value of both collateral amounts in the aggregate is at all times equal to at least 100% of the current market value of the security sold short. Depending on arrangements made with securities held as collateral shall be marked to the market daily during the entire term of the transaction and the repurchase agreement shall provide that additional collateral will be required from the broker-/dealer from which it borrowed the security regarding payment over any payments received by the Fund on such security, the Fund may not receive any payments (including interest) on its collateral deposited with such broker-dealer. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will incur a loss. Conversely, or bank if the price declines, the Fund will realize a gain. Any gain will be decreased, and any loss increased, by the transaction costs described above. Although the Fund's gain is limited to the price at which it sold the security short, its potential loss is theoretically unlimited. The Fund also may make short sales "against the box." These transactions will involve either short sales of securities retained in the Fund's portfolio or securities which it has the right to acquire without the payment of further consideration The Fund may invest in other investment companies whose investment objectives and policies are consistent with those of the Fund. In accordance with the 1940 Act, the Fund may invest up to 10% of its total assets in securities of other investment companies. In addition, under the 1940 Act the Fund may not own more than 3% of the total outstanding voting stock of any investment company and not more than 5% of the market value of the Fund's total assets may be invested in securities of any investment company. The Fund has received an exemptive order from falls below the Commission permitting it excess collateral percentage agreed to invest in affiliated registered money market funds and in an affiliated private investment company without regard to such limitations, provided however, that in all cases at the Fund's aggregate investment of cash in shares of such investment companies shall not exceed 25% inception of the Fundrepurchase agreement. 5. Repurchase agreements safe kept with the seller on a "Hold-in-Custody" basis, rather than delivered to U.S. Bank or its agent, shall be required to be on par for repayment with the seller's total assets at any timesenior unsecured debt which must be on the U.S. Bancorp Piper Jaffray Asset Management approved list. If Dixxxxxxxxxxxxx requirements for transactions of this nature shall be controlled by the Fund acquires shares requirements in investment companies, stockholders would bear both their proportionate share of expenses in the Fund (including management and advisory fees) and, indirectly, the expenses of such investment companies (including management and advisory fees)unsecured debt.

Repurchase Agreements. The Securities held by the Fund may invest in securities pursuant be subject to repurchase agreements. Repurchase agreements may be entered into only with Under the terms of a repurchase agreement, the Fund would acquire securities from member bank banks of the Federal Reserve System or primary dealer or an affiliate thereofand registered broker-dealers which the Adviser deems creditworthy under guidelines approved by the Fund's Board of Trustees, in U.S. Government securities or an affiliate thereof. A repurchase subject to the seller's agreement is a contractual agreement whereby the seller of securities agrees to repurchase the same security such securities at a specified price on a future date agreed upon by the parties. The mutually agreed-upon date and price. The repurchase price determines would generally equal the yield during the Fund's holding period. The risk to the Fund is limited to the ability of the issuer to pay the agreed-upon repurchase price on the delivery date; however, although the value of the underlying collateral at the time the transaction is entered into always equals or exceeds the agreed-upon repurchase price, if the value of the collateral declines there is a risk of loss of both principal and interest. In the event of default, the collateral may be sold but the Fund might incur a loss if the value of the collateral declines, and might incur disposition costs or experience delays in connection with liquidating the collateral. In addition, if bankruptcy proceedings are commenced with respect to the seller of the security, realization upon the collateral paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be delayed more or limited. In general, for federal income tax purposes, repurchase agreements are treated as collateralized loans secured by less than the securities "sold." Therefore, amounts earned under such agreements will not be considered tax exempt interest. The treatment of purchase and sales contracts is less certain. The Fund may make short sales of securities. A short sale is a transaction in which rate on the Fund sells a security it does not own in anticipation that the market price of that security will decline. The Fund may make short sales both as a form of hedging to offset potential declines in long positions in similar securities and in order to seek to enhance return. When the Fund makes a short sale, it must borrow the security sold short and deliver collateral to the broker-dealer through which it made the short sale to cover its obligation to deliver the security upon conclusion of the sale. The Fund may have to pay a fee to borrow particular securities and is often obligated to pay over any payments received on such borrowed underlying portfolio securities. The Fund's obligation to replace the borrowed security will be secured by collateral deposited with the broker-dealer, usually cash or liquid securities similar to those borrowed. The Fund also seller under a repurchase agreement will be required to segregate similar collateral with its custodian to the extent, if any, necessary so that maintain at all times the value of both collateral amounts in held pursuant to the aggregate is agreement at all times equal not less than the repurchase price (including accrued interest). If the seller were to at least 100% default on its repurchase obligation or become insolvent, the Fund would suffer a loss to the extent that the proceeds from a sale of the current market value underlying portfolio securities were less than the repurchase price under the agreement, or to the extent that the disposition of the security sold short. Depending on arrangements made with the broker-dealer from which it borrowed the security regarding payment over any payments received such securities by the Fund on such securitywere delayed pending court action. Additionally, there is no controlling legal precedent confirming that the Fund may not receive any payments (including interest) on would be entitled, as against a claim by such seller or its collateral deposited with such broker-dealer. If receiver or trustee in bankruptcy, to retain the price underlying securities, although the Board of Trustees of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will incur a loss. Conversely, if the price declines, the Fund will realize a gain. Any gain will be decreased, and any loss increased, by the transaction costs described above. Although the Fund's gain is limited to the price at which it sold the security short, its potential loss is theoretically unlimited. The Fund also may make short sales "against the box." These transactions will involve either short sales of securities retained in the Fund's portfolio or securities which it has the right to acquire without the payment of further consideration The Fund may invest in other investment companies whose investment objectives and policies are consistent with those of the Fund. In accordance with the 1940 Act, the Fund may invest up to 10% of its total assets in securities of other investment companies. In additionbelieves that, under the 1940 Act the Fund may not own more than 3% of the total outstanding voting stock of any investment company and not more than 5% of the value regular procedures normally in effect for custody of the Fund's total assets may securities subject to repurchase agreements and under federal laws, a court of competent jurisdiction would rule in favor of the Fund if presented with the question. Securities subject to repurchase agreements will be invested in securities of any investment company. The Fund has received an exemptive order from the Commission permitting it to invest in affiliated registered money market funds and in an affiliated private investment company without regard to such limitations, provided however, that in all cases held by the Fund's aggregate investment of cash custodian or another qualified custodian or in shares of such investment companies shall not exceed 25% of the Fund's total assets at any timeFederal Reserve/Treasury book-entry system. If Repurchase agreements are considered to be loans by the Fund acquires shares in investment companies, stockholders would bear both their proportionate share of expenses in under the Fund (including management and advisory fees) and, indirectly, the expenses of such investment companies (including management and advisory fees)1940 Act.

Repurchase Agreements. The Fund may invest in securities pursuant to enter into repurchase agreements. Repurchase agreements may be entered into only with a member bank of the Federal Reserve System or primary dealer or an affiliate thereof, in U.S. Government securities which the Fund purchases a security from a bank or an affiliate thereof. A repurchase agreement is a contractual agreement whereby broker-dealer and the seller of securities bank or broker-dealer agrees to repurchase the same security at the Fund’s cost plus interest within a specified time. If the party agreeing to repurchase should default, the Fund will seek to sell the securities it holds. This could involve transaction costs or delays in addition to a loss on the securities if their value should fall below their repurchase price. Repurchase agreements maturing in more than seven days are considered to be illiquid securities. See “Principal Risks of the Fund—Repurchase Agreements Risk.” The Fund may purchase securities that it is eligible to purchase on a when-issued basis, may purchase and sell such securities for delayed delivery and may make contracts to purchase such securities for a fixed price on at a future date agreed upon by the partiesbeyond normal settlement time (forward commitments). The agreedWhen-upon repurchase price determines the yield during the Fund's holding period. The risk to the Fund is limited to the ability of the issuer to pay the agreed-upon repurchase price on the issued transactions, delayed delivery date; however, although the value of the underlying collateral at the time the transaction is entered into always equals or exceeds the agreed-upon repurchase price, if the value of the collateral declines there is purchases and forward commitments involve a risk of loss of both principal and interest. In the event of default, the collateral may be sold but the Fund might incur a loss if the value of the collateral declinessecurities declines prior to the settlement date. This risk is in addition to the risk that the Fund’s other assets will decline in value. Therefore, these transactions may result in a form of leverage and might incur disposition costs increase the Fund’s overall investment exposure. Typically, no income accrues on securities the Fund has committed to purchase prior to the time delivery of the securities is made, although the Fund may earn income on securities it has segregated to cover these positions. When the Fund has sold a security on a when-issued, delayed delivery or experience delays forward commitment basis, the Fund does not participate in connection with liquidating the collateral. In addition, if bankruptcy proceedings are commenced future gains or losses with respect to the seller of security. If the other party to a transaction fails to pay for the securities, the Fund could suffer a loss. Additionally, when selling a security on a when-issued, delayed delivery or forward commitment basis without owning the security, realization upon the collateral by the Fund may be delayed or limited. In general, for federal income tax purposes, repurchase agreements are treated as collateralized loans secured by will incur a loss if the securities "sold." Therefore, amounts earned under security’s price appreciates in value such agreements will not be considered tax exempt interest. The treatment of purchase and sales contracts that the security’s price is less certain. The Fund may make short sales of securitiesabove the agreed- upon price on the settlement date. A short sale is a transaction in which the Fund sells a security or other instrument that it does not own in anticipation that the market price of that security will decline. The Fund may make use short sales both as a form for investment purposes or for hedging and risk management purposes. The Fund may also take short positions with respect to the performance of hedging to offset potential declines in long positions in similar securities securities, indexes, interest rates, currencies and in order to seek to enhance returnother assets or markets through the use of derivative or forward instruments. When the Fund makes engages in a short salesale of a security, it must borrow the security sold short and deliver collateral it to the broker-dealer through which it made the short sale to cover its obligation to deliver the security upon conclusion of the salecounterparty. The Fund may have to pay a fee to borrow particular securities and is would often be obligated to pay over any payments received on such borrowed securities. The Fund's ’s obligation to replace the borrowed security will be secured by collateral deposited with the broker-dealer, usually cash or liquid securities similar to those borrowedFund’s custodian in the name of the lender. The Fund also will be required to segregate similar collateral with its custodian to the extent, if any, necessary so that the value of both collateral amounts in the aggregate is at all times equal to at least 100% of the current market value of the security sold short. Depending on arrangements made with the broker-dealer from which it borrowed the security regarding payment over any payments received by the Fund on such security, the Fund may not receive any payments (including interest) on its collateral deposited with such brokercollateral. Short sales expose the Fund to the risk that it will be required to cover its short position at a time when the securities have appreciated in value, thus resulting in a loss to the Fund. The Fund may engage in so-dealercalled “naked” short sales when it does not own or have the immediate right to acquire the security sold short at no additional cost, in which case the Fund’s losses theoretically could be unlimited. If the price of the security sold short increases between the time of the short sale and the time that the Fund replaces the borrowed security, the Fund will incur a loss. Conversely; conversely, if the price declines, the Fund will realize a gain. Any gain will be decreased, and any loss increased, by the transaction costs described above. Although The successful use of short selling may be adversely affected by imperfect correlation between movements in the price of the security sold short and securities being hedged if the short sale is being used for hedging purposes. See “Principal Risks of the Fund's gain is limited —Derivatives” and “Principal Risks of the Fund—Short Sales Risk.” See also “Principal Risks of the Fund— Leverage Risk” and “Principal Risks of the Fund—Segregation and Coverage Risk.” The Fund may engage in short selling to the price at which it sold extent permitted by the security short1940 Act rules and interpretations thereunder and other federal securities laws. To the extent the Fund engages in short selling in foreign (non-U.S.) jurisdictions, its potential loss is theoretically unlimitedthe Fund will do so subject to the laws and regulations of such jurisdiction. The Fund also may make short sales "against the box." These transactions will involve either short sales of securities retained in the Fund's portfolio execute its strategy by investing through one or securities which it has more subsidiaries. The Fund reserves the right to acquire without establish subsidiaries through which the payment of further consideration The Fund may execute its strategy. PIMCO has applied for exemptive relief from the SEC that, if granted, would permit the Fund to, among other things, co-invest in with certain other investment companies whose investment objectives persons, including certain affiliates of PIMCO and policies are consistent with those certain public or private funds managed by PIMCO and its affiliates, subject to certain terms and conditions. However, there is no assurance that such relief will be granted. For the purpose of the Fund. In accordance with the 1940 Actachieving income, the Fund may invest up lend its portfolio securities to 10% brokers, dealers or other financial institutions provided a number of its total assets conditions are satisfied, including that the loan is fully collateralized. See “Investment Objectives and Policies—Loans of Portfolio Securities” in securities the Statement of other investment companiesAdditional Information for details. In addition, under the 1940 Act When the Fund may not own more than 3% of the total outstanding voting stock of any lends portfolio securities, its investment company and not more than 5% of performance will continue to reflect changes in the value of the Fund's total assets may be invested in securities of any investment companyloaned. The Fund has received an exemptive order will also receive a fee or interest on the collateral it receives from the Commission permitting it borrower. Securities lending involves the risk of loss of rights in the collateral or delay in recovery of the collateral if the borrower fails to invest return the security loaned or becomes insolvent, or the risk of loss due to the investment performance of the collateral. The Fund may pay lending fees to the party arranging the loan. The length of time the Fund has held a particular security is not generally a consideration in affiliated registered money investment decisions. A change in the securities held by the Fund is known as “portfolio turnover.” The Fund may engage in frequent and active trading of portfolio securities to achieve its investment objectives, particularly during periods of volatile market funds and in an affiliated private investment company without regard movements. High portfolio turnover (e.g., over 100%) generally involves correspondingly greater expenses to such limitations, provided however, that in all cases the Fund's aggregate investment , including brokerage commissions or dealer mark-ups and other transaction costs on the sale of cash securities and reinvestments in shares other securities. Sales of such investment companies shall not exceed 25% portfolio securities may also result in realization of taxable capital gains, including short-term capital gains (which are generally treated as ordinary income upon distribution in the form of dividends). The trading costs and tax effects associated with portfolio turnover may adversely affect the Fund's total assets at any time. If the Fund acquires shares in investment companies, stockholders would bear both their proportionate share of expenses in the Fund (including management and advisory fees) and, indirectly, the expenses of such investment companies (including management and advisory fees)’s performance.

Repurchase Agreements. The Where stated in Annex A, the Management Company on behalf of a Sub- Fund may invest enter into repurchase arrangements. Accordingly, the Sub-Fund will bear a risk of loss in securities pursuant the event that the other party to repurchase agreements. Repurchase agreements may be entered into only with a member bank the transaction defaults on its obligation and the Sub-Fund is delayed or prevented from exercising its rights to dispose of the Federal Reserve System or primary dealer or an affiliate thereofunderlying securities. The Sub-Fund will, in U.S. Government securities or an affiliate thereof. A repurchase agreement is a contractual agreement whereby the seller of securities agrees to repurchase the same security at a specified price on a future date agreed upon by the parties. The agreed-upon repurchase price determines the yield during the Fund's holding period. The risk particular, be subject to the Fund is limited to the ability risk of the issuer to pay the agreed-upon repurchase price on the delivery date; however, although a possible decline in the value of the underlying securities during the period in which the Sub-Fund seeks to assert its right to them, the risk of incurring expenses associated with asserting those rights and the risk of losing all or a part of the income from the agreement. Collateral Risk. Collateral or margin may be passed by the relevant Sub-Fund to a counterparty or broker in respect of OTC derivative transactions or Securities Financing Transactions. Assets deposited as collateral at or margin with brokers may not be held in segregated accounts by the time brokers and may therefore become available to the transaction creditors of such brokers in the event of their insolvency or bankruptcy. Where collateral is entered into always equals posted to a counterparty or exceeds broker by way of title transfer, the agreed-upon repurchase pricecollateral may be re- Total Return Swaps. In respect of Total Return Swaps, if the volatility or expectation of volatility of the reference asset(s) varies, the market value of the collateral declines financial instruments may be adversely affected. The relevant Sub-Fund will be subject to the credit risk of the counterparty to the swap, as well as that of the issuer of the reference obligation. If there is a risk of loss of both principal and interestdefault by the counterparty to a swap contract a Sub-Fund will be limited to contractual remedies pursuant to the agreements related to the transaction. In There is no assurance that swap contract counterparties will be able to meet their obligations pursuant to swap contracts or that, in the event of default, the collateral Sub-Fund will succeed in pursuing contractual remedies. A Sub-Fund thus assumes the risk that it may be sold but the Fund might incur a loss if the delayed in or prevented from obtaining payments owed to it pursuant to swap contracts. The value of the collateral declines, and might incur disposition costs or experience delays in connection with liquidating the collateral. In addition, if bankruptcy proceedings are commenced with respect index/reference asset underlying a Total Return Swap may differ to the seller of value attributable per Unit due to various factors such as the security, realization upon costs incurred in relation to the collateral Total Return Swap entered into by the Sub-Fund may be delayed or limited. In generalto gain such exposure, for federal income tax purposes, repurchase agreements are treated as collateralized loans secured fees charged by the securities "soldSub-Fund, differences in currency values and costs associated with hedged or unhedged Unit Classes." Therefore, amounts earned under such agreements will not be considered tax exempt interest. The treatment of purchase and sales contracts is less certain. The Fund may make short sales of securities. A short sale is a transaction in which the Fund sells a security it does not own in anticipation that the market price of that security will decline. The Fund may make short sales both as a form of hedging to offset potential declines in long positions in similar securities and in order to seek to enhance return. When the Fund makes a short sale, it must borrow the security sold short and deliver collateral to the broker-dealer through which it made the short sale to cover its obligation to deliver the security upon conclusion of the sale. The Fund may have to pay a fee to borrow particular securities and is often obligated to pay over any payments received on such borrowed securities. The Fund's obligation to replace the borrowed security will be secured by collateral deposited with the broker-dealer, usually cash or liquid securities similar to those borrowed. The Fund also will be required to segregate similar collateral with its custodian to the extent, if any, necessary so that the value of both collateral amounts in the aggregate is at all times equal to at least 100% of the current market value of the security sold short. Depending on arrangements made with the broker-dealer from which it borrowed the security regarding payment over any payments received by the Fund on such security, the Fund may not receive any payments (including interest) on its collateral deposited with such broker-dealer. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will incur a loss. Conversely, if the price declines, the Fund will realize a gain. Any gain will be decreased, and any loss increased, by the transaction costs described above. Although the Fund's gain is limited to the price at which it sold the security short, its potential loss is theoretically unlimited. The Fund also may make short sales "against the box." These transactions will involve either short sales of securities retained in the Fund's portfolio or securities which it has the right to acquire without the payment of further consideration The Fund may invest in other investment companies whose investment objectives and policies are consistent with those of the Fund. In accordance with the 1940 Act, the Fund may invest up to 10% of its total assets in securities of other investment companies. In addition, under the 1940 Act the Fund may not own more than 3% of the total outstanding voting stock of any investment company and not more than 5% of the value of the Fund's total assets may be invested in securities of any investment company. The Fund has received an exemptive order from the Commission permitting it to invest in affiliated registered money market funds and in an affiliated private investment company without regard to such limitations, provided however, that in all cases the Fund's aggregate investment of cash in shares of such investment companies shall not exceed 25% of the Fund's total assets at any time. If the Fund acquires shares in investment companies, stockholders would bear both their proportionate share of expenses in the Fund (including management and advisory fees) and, indirectly, the expenses of such investment companies (including management and advisory fees).

Repurchase Agreements. The Fund may invest in securities pursuant to repurchase agreements. Repurchase agreements may be entered into only with a member bank of the Federal Reserve System or a primary dealer or an affiliate thereof, in U.S. Government securities or an affiliate thereofsecurities. A repurchase agreement is a contractual agreement whereby the seller of securities agrees to repurchase the same security at a specified price on a future date agreed upon by the parties. The agreed-upon repurchase price determines the yield during the Fund's ’s holding period. Repurchase agreements are considered to be loans collateralized by the underlying security that is the subject of the repurchase contract. The risk to the Fund is limited to the ability of the issuer to pay the agreed-upon repurchase price on the delivery date; however, although the value of the underlying collateral at the time the transaction is entered into always equals or exceeds the agreed-upon repurchase price, if the value of the collateral declines there is a risk of loss of both principal and interest. In the event of default, the collateral may be sold but the Fund might incur a loss if the value of the collateral declines, and might incur disposition costs or experience delays in connection with liquidating the collateral. In addition, if bankruptcy proceedings are commenced with respect to the seller of the security, realization upon the collateral by the Fund may be delayed or limited. The Advisor will monitor the value of the collateral at the time the transaction is entered into and throughout the term of the repurchase agreement in an effort to determine that such value always equals or exceeds the agreed-upon repurchase price. In the event the value of the collateral declines below the repurchase price, the Advisor will demand additional collateral from the issuer to increase the value of the collateral to at least that of the repurchase price, including interest. In general, for federal income tax purposes, repurchase agreements are treated as collateralized loans secured by the securities "“sold." ” Therefore, amounts earned under such agreements will not be considered tax exempt interest. The treatment of purchase and sales contracts is less certain. Leverage The Fund may make short sales currently leverages its assets through the use of securities. A short sale is a transaction in which the Fund sells a security it does not own in anticipation that the market price of that security will declinepreferred shares and tender option bonds. The Fund may make short sales both as a form of hedging to offset potential declines in long positions in similar securities and in order to seek to enhance return. When the Fund makes a short sale, it must borrow the security sold short and deliver collateral to the broker-dealer through which it made the short sale to cover its obligation to deliver the security upon conclusion of the sale. The Fund may have to pay a fee currently does not intend to borrow particular securities and is often obligated to pay over any payments received on such borrowed money or issue debt securities. The Fund's obligation Although it has no present intention to replace the borrowed security will be secured by collateral deposited with the broker-dealer, usually cash or liquid securities similar to those borrowed. The Fund also will be required to segregate similar collateral with its custodian to the extent, if any, necessary so that the value of both collateral amounts in the aggregate is at all times equal to at least 100% of the current market value of the security sold short. Depending on arrangements made with the broker-dealer from which it borrowed the security regarding payment over any payments received by the Fund on such securitydo so, the Fund may not receive any payments (including interest) on its collateral deposited with such broker-dealer. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will incur a loss. Conversely, if the price declines, the Fund will realize a gain. Any gain will be decreased, and any loss increased, by the transaction costs described above. Although the Fund's gain is limited to the price at which it sold the security short, its potential loss is theoretically unlimited. The Fund also may make short sales "against the box." These transactions will involve either short sales of securities retained in the Fund's portfolio or securities which it has reserves the right to acquire without borrow money from banks or other financial institutions, or issue debt securities, in the payment future if it believes that market conditions would be conducive to the successful implementation of further consideration The Fund may invest a leveraging strategy through borrowing money or issuing debt securities or preferred shares. Any such leveraging will not be fully achieved until the proceeds resulting from the use of leverage have been invested in other investment companies whose investment objectives and policies are consistent accordance with those of the Fund’s investment objective and policies. In accordance with Under the 1940 Act, the Fund may invest up is not permitted to 10issue senior securities if, immediately after the issuance of such senior securities, the Fund would have an asset coverage ratio (as defined in the 0000 Xxx) of less than 300% with respect to senior securities representing indebtedness (i.e., for every dollar of its total assets in indebtedness outstanding, the Fund is required to have at least three dollars of assets) or less than 200% with respect to senior securities representing preferred shares (i.e., for every dollar of other investment companiespreferred shares outstanding, the Fund is required to have at least two dollars of assets). In addition, under the The 1940 Act also provides that the Fund may not own more declare distributions or purchase its stock (including through tender offers) if, immediately after doing so, it will have an asset coverage ratio of less than 3300% or 200%, as applicable. Under the 1940 Act, certain short-term borrowings (such as for cash management purposes) are not subject to these limitations if (i) repaid within 60 days, (ii) not extended or renewed and (iii) not in excess of 5% of the total outstanding voting stock of any investment company and not more than 5% of the value assets of the Fund's total assets may be invested in securities of any investment company. The Fund has received an exemptive order from the Commission permitting it to invest in affiliated registered money market funds and in an affiliated private investment company without regard to such limitations, provided however, that in all cases the Fund's aggregate investment of cash in shares of such investment companies shall not exceed 25% of the Fund's total assets at any time. If the Fund acquires shares in investment companies, stockholders would bear both their proportionate share of expenses in the Fund (including management and advisory fees) and, indirectly, the expenses of such investment companies (including management and advisory fees).

Repurchase Agreements. Under a repurchase agreement, the Fund “sells” securities or other obligations and agrees to repurchase them at a specified date and price. In a reverse repurchase transaction, the Fund “buys” securities issued from a broker-dealer or financial institution, subject to the obligation of the broker-dealer or financial institution to repurchase such securities at the price paid by the Fund, plus interest at a negotiated rate. The use of repurchase and reverse repurchase agreements by the Fund involves a variety of risks. For example, repurchase agreements may involve the risk that the market value of the securities or other obligations purchased with the proceeds of the repurchase agreement by the Fund may invest in decline below the price of the securities pursuant or other obligations the Fund has sold but is obligated to repurchase. If the buyer of securities or other obligations under a repurchase agreement files for bankruptcy or becomes insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to enforce the obligation of the Fund to repurchase agreements. Repurchase agreements may be entered into only with a member bank the securities or other obligations and the Fund’s use of the Federal Reserve System or primary dealer or an affiliate thereofproceeds of the repurchase agreement may effectively be restricted pending such decision. To the extent that, in U.S. Government the meantime, the value of the securities or an affiliate thereofother obligations that the Fund has purchased has decreased, the Fund could experience a loss. A Further, in relation to reverse repurchase agreement is a contractual agreement whereby agreements, if the seller of securities agrees to the Fund defaults on its obligation to repurchase the same security at underlying securities, as a specified price on result of its bankruptcy or otherwise, the Fund will seek to dispose of such securities, which action could involve costs or delays and the Fund may suffer a future date agreed upon by the parties. The agreed-upon repurchase price determines the yield during the Fund's holding period. The risk loss to the Fund extent that it is limited forced to liquidate its position in the ability of market, and proceeds from the issuer to pay the agreed-upon repurchase price on the delivery date; however, although the value sale of the underlying collateral at securities are less than the time repurchase price agreed to by the transaction is entered into always equals defaulting seller. If the seller becomes insolvent and subject to liquidation or exceeds reorganization under applicable bankruptcy or other laws, the agreed-upon repurchase price, if the value Fund’s ability to dispose of the collateral declines there is a risk of loss of both principal and interest. In the event of default, the collateral underlying securities may be sold but the Fund might incur restricted. It is possible, in a loss if the value of the collateral declinesbankruptcy or liquidation scenario, and might incur disposition costs or experience delays in connection with liquidating the collateral. In addition, if bankruptcy proceedings are commenced with respect to the seller of the security, realization upon the collateral by the Fund may be delayed or limited. In general, for federal income tax purposes, repurchase agreements are treated as collateralized loans secured by the securities "sold." Therefore, amounts earned under such agreements will not be considered tax exempt interest. The treatment of purchase and sales contracts is less certain. The Fund may make short sales of securities. A short sale is a transaction in which the Fund sells a security it does not own in anticipation that the market price of that security will decline. The Fund may make short sales both as a form of hedging to offset potential declines in long positions in similar securities and in order to seek to enhance return. When the Fund makes a short sale, it must borrow the security sold short and deliver collateral to the broker-dealer through which it made the short sale to cover its obligation to deliver the security upon conclusion of the sale. The Fund may have to pay a fee to borrow particular securities and is often obligated to pay over any payments received on such borrowed securities. The Fund's obligation to replace the borrowed security will be secured by collateral deposited with the broker-dealer, usually cash or liquid securities similar to those borrowed. The Fund also will be required to segregate similar collateral with its custodian to the extent, if any, necessary so that the value of both collateral amounts in the aggregate is at all times equal to at least 100% of the current market value of the security sold short. Depending on arrangements made with the broker-dealer from which it borrowed the security regarding payment over any payments received by the Fund on such security, the Fund may not receive any payments (including interest) on be able to substantiate its collateral deposited with such broker-dealer. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will incur a loss. Conversely, if the price declines, the Fund will realize a gain. Any gain will be decreased, and any loss increased, by the transaction costs described above. Although the Fund's gain is limited to the price at which it sold the security short, its potential loss is theoretically unlimited. The Fund also may make short sales "against the box." These transactions will involve either short sales of securities retained interest in the Fund's portfolio or securities which it has the right to acquire without the payment of further consideration The Fund may invest in other investment companies whose investment objectives and policies are consistent with those of the Fund. In accordance with the 1940 Act, the Fund may invest up to 10% of its total assets in securities of other investment companies. In addition, under the 1940 Act the Fund may not own more than 3% of the total outstanding voting stock of any investment company and not more than 5% of the value of the Fund's total assets may be invested in securities of any investment company. The Fund has received an exemptive order from the Commission permitting it to invest in affiliated registered money market funds and in an affiliated private investment company without regard to such limitations, provided however, that in all cases the Fund's aggregate investment of cash in shares of such investment companies shall not exceed 25% of the Fund's total assets at any time. If the Fund acquires shares in investment companies, stockholders would bear both their proportionate share of expenses in the Fund (including management and advisory fees) and, indirectly, the expenses of such investment companies (including management and advisory fees)underlying securities.