Fund Description

The fund invests in bonds of varying maturities, normally keeping portfolio duration within +/-50% of the Bloomberg US Government/Credit Index's effective duration. Under normal circumstances, it invests at least 80% of net assets (plus borrowings) in investment grade fixed income, including U.S. government, mortgage- and asset-backed bonds, bonds of U.S. and foreign private issuers and foreign government bonds (including bonds issued by supranational and quasi-governmental entities), foreign currency exchange-related securities, municipals, bank loans, structured notes, repurchase agreements, and money market instruments; it may also hold preferred and convertible securities. It may invest to a limited extent in below-investment-grade bonds, use when-issued, delayed delivery, TBA and roll transactions, and may, but is not required to, use derivatives for risk management purposes (including hedging), to obtain or adjust exposure to certain markets, to establish net short positions, and to adjust portfolio duration; trading may be frequent. It employs a manager-of-managers structure; the main strategies of the subadvisors include a relative value-focused strategy, an opportunistic fixed income strategy, and a strategy that seeks a diversified portfolio of fixed income instruments.