The various types of alternative investments are wide ranging-but can involve:

• Hedge funds and funds of hedge funds3	• Private real estate4
• Private capital (debt/equity)1,3	• Managed Futures6

Additionally, you may be familiar with other non-traditional investments such as:

• Alternative mutual funds2	• Real estate investment trusts
• Venture capital1,3 (see private capital)	• Master limited partnerships (MLPs)5

Keep in mind that alternative investments carry specific investor qualifications⁷ which can include high income and net-worth requirements as well as relatively high investment minimums and are available to pre-qualified investors only.

RISK CONSIDERATIONS

¹Alternative Investments: Alternative investments, such as hedge funds, funds of hedge funds, managed futures, private capital, real assets and real estate funds, are not appropriate for all investors. They are speculative, highly illiquid, and are designed for long-term investment, and not as trading vehicle. These funds carry specific investor qualifications which can include high income and net-worth requirements as well as relatively high investment minimums. The high expenses associated with alternative investments must be offset by trading profits and other income which may not be realized. Unlike mutual funds, alternative investments are not subject to some of the regulations designed to protect investors and are not required to provide the same level of disclosure as would be received from a mutual fund. They trade in diverse complex strategies that are affected in different ways and at different times by changing market conditions. Strategies may, at times, be out of market favor for considerable periods with adverse consequences for the fund and the investor. An investment in these funds involve the risks inherent in an investment in securities and can include losses associated with speculative investment practices, including hedging and leveraging through derivatives, such as futures, options, swaps, short selling, investments in non-U.S. securities, “junk” bonds and illiquid.

²Liquid alternative mutual funds are subject to market and investment specific risks and are not appropriate for all investors. They generally have higher costs and employ more aggressive techniques not generally employed by traditional stock and bond mutual funds. There is no guarantee an alternative investment strategy will be successful and not incur loss for the fund. All investing involves risk including the possible loss of principal. Leveraged funds are subject to significant risks and are designed to be short-term trading vehicles and not intended for buy-and-hold investing. Investors who do not understand such risks, or do not intend to manage their investments on a daily basis should not purchase these funds.3 Hedge funds trade in diverse complex strategies that are affected in different ways and at different times by changing market conditions. Strategies may, at times, be out of market favor for considerable periods which can result in adverse consequences for the investor and the fund. There is no guarantee any hedging strategy will be successful or not incur loss. Hedge fund strategies, such as Equity Hedge, Event Driven, Macro and Relative Value, may expose investors to the risks associated with the use of short selling, leverage, derivatives and arbitrage methodologies. Short sales involve leverage and theoretically unlimited loss potential since the market price of securities sold short may continuously increase. The use of leverage in a portfolio varies by strategy. Leverage can significantly increase return potential but create greater risk of loss. Derivatives generally have implied leverage which can magnify volatility and may entail other risks such as market, interest rate, credit, counterparty and management risks. Arbitrage strategies expose a fund to the risk that the anticipated arbitrage opportunities will not develop as anticipated, resulting in potentially reduced returns or losses to the fund.

⁴Core investments in real estate are considered less risky and are characterized as having lower risk and lower return potential. There is no guarantee any investment strategy will be successful under all market conditions. The value of any property may decline as a result of a downturn in the property market, and economic and market conditions. The value-added strategy seeks to add value by making enhancements to properties. These properties may have operational issues and usually require additional leverage to acquire. There is no guarantee value appreciation will be achieved and the operating company may be forced to sell properties at a lower price than anticipated. An opportunistic investment style bears the highest level of risk among real estate strategies as it typically involve a significant amount of “value creation” through the development of under performing properties in less competitive markets or other properties with unsustainable capital structures. Although these investments have the potential to generate income, there is no guarantee they will do so over their investment time periods. In addition, private real estate is considered illiquid, there is no assurance a secondary market will exist and there may be restrictions on transferring interests. Since the opportunistic properties have little to no cash flows at time of acquisition, higher leverage is often employed and sponsors may be subject to less favorable debt terms and higher interest rates than more stabilized properties. All investments may be negatively impacted by varied economic and market condition which may be unpredictable.

There are risks particular to investments in commercial real estate securities as well as in direct real estate investments, including, without limitation, changes in property values or revenues due to oversupply, changes in tax laws and interest rates, environmental issues and declining rents. No assurance can be given that the investment objectives described herein will be achieved and investment results may vary substantially on a quarterly, annual or other periodic basis. The funds engage in leveraging and other speculative investment practices that may increase the risk of investment loss. The funds may invest in derivative instruments, which may be more volatile and less liquid, increasing the risk of loss when compared to traditional securities.

⁵Closed-End Funds are actively managed and can employ a number of investment strategies in pursuit of the fund’s objectives. Some strategies may increase the overall risk of the fund and there is no assurance that any investment strategy will be successful or that the fund will achieve its intended objective. Closed-end funds are subject to different risks, volatility, fees and expenses. Many closed-end funds can leverage their assets to enhance yields. Leverage is a speculative technique that exposes a portfolio to increased risk of loss, may cause fluctuations in the market value of the fund’s portfolio which could have a disproportionately large effect on the fund’s NAV or cause the NAV of the fund generally to decline faster than it would otherwise. The use of leverage and other risk factors are more fully described in each closed-end fund’s prospectus under the heading “Risk Factors.”

Closed-end funds that invest primarily in Master Limited Partnerships (MLPs) may be subject to additional risks not associated with other closed-end funds. These risks may include but are not limited to the following: an MLP’s ability to access external capital and identify attractive acquisitions, concentration risk, commodity price risk, liquidity of underlying securities, partnership structure risk , regulatory risk , sensitivity to rising interest rates , tax risk , and extreme weather risk.

⁶Futures trading, which is speculative and volatile and involves a high degree of risk, is only appropriate for the risk capital portion of a portfolio.

Managed futures are an alternative investment strategy which aims to profit from trading in financial futures, commodity futures and foreign exchange markets. They generally invest globally in long/short positions in commodities, equities, fixed income and currencies in an effort to participate in both rising and failing markets. A fund’s use of futures contracts involve the risk that the futures contract may not track the market value of the underlying commodity. Trading in futures contracts on physical commodities including trading on the index components can be extremely volatile. Short sales involve leverage and theoretically unlimited loss potential since the market price of securities sold short may continuously increase. The use of leverage in a portfolio varies by strategy. Leverage can significantly increase return potential but create greater risk of loss. Derivatives generally have implied leverage which can magnify volatility and may entail other risks such as market, interest rate, credit, counterparty and management risks. Counterparty risk is the risk that the other party to the agreement will default at some time during the life of the contract.

⁷

	Individual	Entity
Qualified purchaser	$5 million in investible assets	$25 million in investible assets
Qualified eligible purchaser	$2 million in investible assets	$5 million in assets
Qualified client	$2.2 million in net worth	$5 million in assets
Accredited investor	$1 million in net worth*	$5 million in assets

*excludes equity in primary residence, or earns an individual annual income of at least $200,000, or a joint annual income of at least $300,000 for the past two calendar years, with the reasonable expectation that the income will continue in the current calendar year.