The
following
is
a
reconciliation
of
assets
for
which
Level
3
inputs
were
used
in
determining
fair
value:
The
FVC
continues
to
evaluate
any
information
that
could
cause
an
adjustment
to
the
fair
value
for
these
investments,
such
as
market
news,
the
progress
of
judicial
and
regulatory
proceedings,
and
subadviser
recommendations.
The
following
is
a
summary
of
the
Fund’s
derivative
instruments
categorized
by
risk
exposure
as
of
January
31,
2024.
Please
see
below
for
information
on
the
Fund’s
policy
regarding
the
objectives
and
strategies
for
using
options,
swap
contracts, forward
foreign
currency
contracts, and financial
futures
contracts.
(a)
Options
The
Fund
purchased
and/or
wrote
options
on
futures
contracts,
single
stocks,
ETFs,
and/or
indexes.
Such
option
investments
are
utilized
to
manage
currency
exposures
and/or
hedge
against
movements
in
the
values
of
the
foreign
currencies
in
which
the
portfolio
securities
are
denominated,
to
gain
exposure
to
and/or
hedge
against
changes
in
interest
rates
and
equity
movements,
to
capitalize
on
the
return-generating
features
of
selling
options
(short
volatility)
while
simultaneously
benefiting
from
the
risk-control
attributes
associated
with
buying
options
(long
volatility),
and/or
to
generate
consistent
outperformance,
as
applicable,
to
meet
the
Fund's
stated
investment
strategies
as
shown
in
the
Fund's
Prospectus.
The
purchase
of
put
options
serves
as
a
short
hedge
and
the
purchase
of
call
options
serves
as
a
long
hedge.
Writing
put
options
serves
as
a
limited
long
hedge
because
increases
in
the
value
of
the
hedged
investment
would
be
offset
to
the
extent
of
the
premium
received
for
writing
the
option.
However,
if
the
security
depreciates
to
a
price
lower
than
the
strike
price
of
the
put
option,
it
can
be
expected
that
the
put
option
will
be
exercised,
and
the
Fund
will
be
obligated
to
purchase
the
security
at
more
than
its
market
value.
The
Fund
segregates
liquid
assets
to
cover
its
obligations
under
its
option
contracts.
Writing
call
options
serves
as
a
limited
short
hedge
because
declines
in
the
value
of
the
hedged
investment
would
be
offset
to
the
extent
of
the
premium
received
for
writing
the
option.
However,
if
the
security
appreciates
to
a
price
higher
than
the
exercise
price
of
the
call
option,
it
can
be
expected
that
the
call
option
will
be
exercised,
and
a
Fund
will
be
obligated
to
sell
the
security
at
less
than
its
market
value
or
will
be
obligated
to
purchase
the
security
at
a
price
greater
than
that
at
which
the
security
must
be
sold
under
the
option.
When the
Fund
writes
an
option,
an
amount
equal
to
the
premium
received
is
recorded
as
a
liability
and
subsequently
marked-
to-market
to
reflect
the
current
value
of
the
option
written.
Premiums
received
from
writing
options
which
expire
unexercised
are
treated
as
realized
gains.
Premiums
received
from
writing
options
which
are
exercised
or
closed
are
added
to
the
proceeds
from
or
offset
against
amounts
paid
on
the
underlying
transaction
to
determine
the
realized
gain
or
loss
on
such
underlying
transaction.
When the
Fund
writes
an
option,
it
has
no
control
over
whether
the
option
will
be
exercised,
and
as
a
result
bears
the
risk
of
an
unfavorable
change
in
the
price
of
the
instrument
underlying
the
written
option.
Writing
options
entails
the
risk
that the
Fund
may
not
be
able
to
enter
into
a
closing
transaction
because
of
an
illiquid
market.
Options
traded
on
an
exchange
are
valued
at
the
settlement
price
provided
by
an
independent
pricing
service
as
approved
by
the
Board.
If
a
settlement
price
is
not
available,
such
options
are
valued
at
the
last
quoted
sale
price,
if
available,
and
otherwise
at
the
average
bid/ask
price.
Exchange
traded
options
are
generally
categorized
as
Level
1
investments
within
the
hierarchy.
Options
traded
in
the
over-the-counter
(“OTC”)
market,
and
which
are
not
quoted
by
NASDAQ,
are
valued
at
the
last
quoted
bid
price,
and
are
generally
categorized
as
Level
2
investments
within
the
hierarchy.
The
value
of
an
option
position
reflects,
among
other
things,
the
implied
price
volatility
of
the
underlying
investment,
the
current
market
value
of
the
underlying
investment,
the
time
remaining
until
expiration
of
the
option,
the
relationship
of
the
strike
price
to
the
market
price
of
the
underlying
investment,
and
general
market
conditions.
Options
that
expire
unexercised
have
no
value.
American-style
options
can
be
exercised
at
any
time
prior
to
the
expiration
date
of
the
option.
European-style
options
can
only
be
exercised
at
expiration
of
the
option.
Common
Stocks
Swap
Total
Balance
as
of
10/31/2023
$
3,639
$
286,975
$
290,614
Accrued
Accretion/(Amortization)
—
—
—
Realized
Gains
(Losses)
—
(15,723)
(15,723)
Purchases
—
—
—
Sales
—
15,723
15,723
Change
in
Unrealized
Appreciation/Depreciation
594
(183,769)
(183,175)
Transfers
into
Level
3
—
—
—
Transfers
out
of
Level
3
—
—
—
Balance
as
of
1/31/2024
$
4,233
$
103,206
$
107,439
Change
in
Unrealized
Appreciation/Depreciation
for
Investments
Still
Held
as
of
1/31/2024
$
594
$
(152,027)
$
(151,433)