FUND FOR INCOMEInvestment Objective: <strong>The</strong> Fund seeks high current income.Fees and Expenses of the Fund: This table describes the fees and expenses that you may pay if youbuy and hold shares of the Fund. Investments in the Fund can only be made through a variableannuity contract or life insurance policy offered by a participating insurance company. This tabledoes not reflect the fees and expenses that are or may be imposed by a variable annuity contract orlife insurance policy for which the Fund is an investment option. For information regarding thosefees and expenses, please refer to the applicable variable annuity contract or life insurance policyprospectus. If those fees and expenses were included, the overall fees and expenses shown in thetable would be higher.Shareholder Fees (fees paid directly from your investment)Maximum sales charge (load) imposed on purchasesN/A(as a percentage of offering price)Maximum deferred sales charge (load) (as a percentage of the lower ofN/Apurchase price or redemption price)Annual Fund Operating Expenses (expenses that you pay each year as apercentage of the value of your investment)Management Fees 0.75%Distribution and Service (12b-1) FeesNoneOther Expenses 0.13%Total Annual Fund Operating Expenses 0.88%Example<strong>The</strong> Example is intended to help you compare the cost of investing in the Fund with the cost ofinvesting in other mutual funds. <strong>The</strong> Example assumes that you invest $10,000 in the Fund for thetime periods indicated and then redeem all of your shares at the end of those periods. <strong>The</strong> Examplealso assumes that your investment has a 5% return each year and that the Fund’s operating expensesremain the same. <strong>The</strong> table below does not include the fees or expenses that are or may beimposed by a variable annuity contract or life insurance policy for which the Fund is an investmentoption. If they were included, the expenses shown in the table below would be higher. Althoughyour actual costs may be higher or lower, based on these assumptions your costs would be:1 year 3 years 5 years 10 yearsFund For Income $90 $281 $488 $1,0848
Portfolio Turnover: <strong>The</strong> Fund paystransaction costs, such as commissions, whenit buys and sells securities (or “turns over” itsportfolio). A higher portfolio turnover mayindicate higher transaction costs. <strong>The</strong>se costs,which are not reflected in annual fundoperating expenses or in the example, affectthe Fund’s performance. During the mostrecent fiscal year, the Fund’s portfolioturnover rate was 56% of the average value ofits whole portfolio.Principal Investment Strategies: <strong>The</strong> Fundprimarily invests in high yield, belowinvestment grade corporate bonds (commonlyknown as “high yield” or “junk bonds”). Highyield bonds include both bonds that are ratedbelow Baa3 by Moody’s <strong>Investors</strong> Service, Inc.or below BBB- by Standard & Poor’s RatingsServices as well as unrated bonds that aredetermined by the Fund to be of equivalentquality. High yield bonds generally providehigher income than investment grade bonds tocompensate investors for their higher risk ofdefault (i.e., failure to make required interestor principal payments). <strong>The</strong> Fund may alsoinvest in other high yield debt securities, suchas assignments of syndicated bank loans.Although the Fund will consider ratingsassigned by ratings agencies in selecting highyield bonds, it relies principally on its ownresearch and investment analysis. <strong>The</strong> Fundmay sell a bond when it shows deterioratingfundamentals or it falls short of the portfoliomanager’s expectations. It may also decide tocontinue to hold a bond (or related securities)after its issuer defaults or is subject to abankruptcy.Principal Risks: You can lose money byinvesting in the Fund. Here are the principalrisks of investing in the Fund:High Yield Securities Risk. High yield bondsand other types of high yield debt securitieshave greater credit risk than higher qualitydebt securities because the companies thatissue them are not as financially strong ascompanies with investment grade ratings.High yield securities, commonly referred to as9junk bonds, are considered to be inherentlyspeculative due to the risk associated with theissuer’s continuing ability to make principaland interest payments. During times ofeconomic downturn, issuers of high yield debtsecurities may not have the ability to access thecredit markets to refinance their bonds ormeet other credit obligations.Credit Risk. This is the risk that an issuer ofbonds and other debt securities, includingsyndicated bank loans, will be unable to payinterest or principal when due.Market Risk. <strong>The</strong> prices of, and the incomegenerated by, the bonds held by the Fund maydecline in response to certain events, such asgeneral economic and market conditions,regional or global economic instability,interest rate fluctuations, and those eventsdirectly involving the issuers. <strong>The</strong> entire highyield bond market can experience sharp priceswings due to a variety of factors, includingchanges in economic forecasts, stock marketvolatility, large sustained sales of high yieldbonds by major investors, high-profile defaultsor the market’s psychology. Volatility in thehigh yield market is usually associated morewith stocks than bonds. Adverse marketevents may lead to increased redemptions,which could cause the Fund to experience aloss when selling securities to meetredemption requests by shareholders.Interest Rate Risk. In general, when interestrates rise, the market value of a debt securitydeclines, and when interest rates decline, themarket value of a debt security increases. <strong>The</strong>Fund may be subject to a greater risk of risinginterest rates during periods of historically lowinterest rates. Securities with longermaturities are generally more sensitive tointerest rate changes as are securities withhigher credit ratings.Liquidity Risk. High yield debt securities tendto be less liquid than higher quality debtsecurities, meaning that it may be difficult tosell high yield debt securities at a reasonableprice or at a particular time. Assignments ofsyndicated bank loans may be less liquid at