About: Under normal circumstances, the Fund will invest at least 80% of its Managed Assets in MBS, consisting primarily of non-agency RMBS and CMBS, directly and indirectly by investing in the Feeder PPIP Fund. MBS include, but are not limited to, the following: U.S. agency mortgage-backed pass-through securities issued by the Government National Mortgage Association (GNMA), the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC), and other federal agencies, or issues guaranteed by them; delegated underwriting and servicing bonds, including pools of multi-family housing loans issued by FNMA and FHLMC; non-agency RMBS; non-dollar RMBS; CMBS and CMOs, including interest only (IO), principal only (PO) and other mortgage securities backed by U.S. agency or non-agency pass-through securities; mortgage-related asset-backed securities (ABS), such as home equity loan-backed (HEQ) securities; MBS credit default swaps (including on the CMBX, TRX and ABX indices) and other derivative instruments related to MBS; and repurchase agreements supported by agency MBS. The Fund also may invest up to 20% of its Managed Assets in other permitted investments, including cash and cash equivalents, UST securities, non-mortgage related ABS, inverse floating rate securities, municipal securities, interest rate futures, interest rate swaps and swaptions, non-MBS credit default swaps (including on the CDX index), and other synthetic mortgage-related exposure, including equity investments in mortgage REITs, as permitted by the Investment Company Act of 1940, as amended (the 1940 Act). The Fund also may invest in any newly developed mortgage-related derivatives that may hereafter become available for mortgage investing.
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