The Fund seeks to achieve its investment objectives by investing primarily in a diverse portfolio of mortgage-backed securities (MBS), consisting primarily of non-agency residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS). The Fund intends to invest in MBS directly, and indirectly through a separate investment in a public-private investment fund formed in connection with the Legacy Securities Public-Private Investment Program (PPIP) established by the U.S. Department of the Treasury. Under normal circumstances, the Fund will invest at least 80% of its Managed Assets in MBS directly, and indirectly by investing in a private feeder fund which invests substantially all of its assets, alongside the Treasury, in a master fund that has been organized to invest directly in MBS and other assets eligible for purchase under PPIP. The Fund also may invest up to 20% of its Managed Assets directly in other permitted investments as described in this prospectus. Based upon current market conditions, the Fund anticipates it will have initial portfolio allocations of approximately 80% to 100% of Managed Assets in RMBS, 0% to 10% of Managed Assets in CMBS, and 0% to 10% of Managed Assets in other permitted investments. It is expected that these allocations will change over the life of the Fund. The Fund is not limited in its ability to invest in below investment grade or illiquid securities.