The Fund seeks to achieve its investment objective by investing at least 80 percent of its assets (exclusive of collateral held from securities lending) in securities included in its underlying index. The Index measures the performance of preferred stock and other hybrid instruments (Preferred Securities) issued in the U.S. and denominated in USD. The Index is created from a starting universe of the FTSE US Preferred and Hybrids Index (the Reference Index) and filters out instruments that have a yield to worst of less than minus 5 percent, subject to a 2.5 percent buffer (i.e., for securities in the Reference Index the previous month, they are only screened out of the Index if the yield to worst is less than minus 7.5 percent). An instruments yield to worst is a measure of the lowest possible yield that can be received on a bond with an early retirement provision.