Strategy And Objective

The S&P 500 Fund (the Fund) seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Funds current benchmark is the S&P 500 Index (the underlying index). The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps and swaps on exchange-traded funds("ETFs"), futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Swap agreements and futures and options contracts enable the Fund to pursue its objective without investing directly in the securities included in the underlying index, or in the same proportion that those securities are represented in the underlying index.Certain of the Funds derivatives investments may be traded in the over-the-counter (OTC) market. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivative sand other instruments whose performance is expected to correspond to that of the underlying index.