Fund Description

The fund, under normal circumstances, invests at least 80% of net assets (plus borrowings) in below-investment-grade debt securities and derivatives or other instruments with similar economic characteristics, commonly called junk bonds, principally focusing on issues rated B- or above at purchase or, if unrated, deemed comparable by the Adviser using the lowest rating when multiple apply. It may invest in preferred and convertible securities, municipal securities, REITs, other investment companies (including ETFs), mortgage- and asset-backed securities (including CMOs, CLOs and CDOs) of any rating, and loans (15% limit). Up to 25% may be foreign (15% emerging markets) and up to 15% illiquid, including Rule 144A. It may hold zero-coupon and payment-in-kind securities and uses swaps, options, futures contracts and forward foreign currency contracts to hedge or adjust exposure to interest rates, manage currency exposure, and gain or reduce exposure to an asset class or a particular issue. Security selection combines bottom-up credit analysis, relative-value review, and top-down sector and macro trends, with risk controls through position limits and industry diversification, and may trade actively. ESG considerations may be included when financially material.