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The fund operates as a fund-of-funds, focusing on allocating its assets among various mutual funds (referred to as "underlying funds"), which themselves invest in a diverse portfolio of securities. This strategy aims to diversify investments across different asset classes to minimize risk and maximize potential returns. The fund targets both growth of capital, through investments in stocks, and generation of current income, via bonds and U.S. government-issued securities. This blend of investment objectives is designed to appeal to investors looking for a mix of growth and income opportunities in their portfolios.
These are investments made in underlying funds that focus on purchasing stocks or equities. The primary goal here is to invest in companies that have the potential for significant growth in the future, thereby increasing the value of the fund's investment over time.
Income-generating investments are those made in underlying funds that purchase bonds and U.S. government-issued securities. These investments are designed to provide regular income to investors through interest payments. Bonds and similar securities are generally considered lower risk than stocks, making this an attractive option for investors seeking steady income with more conservative investment profiles.