Fund Description

The fund invests at least 80% of net assets (including borrowings for investment purposes) in mortgage-related securities. Mortgage-related securities include those issued or guaranteed by the U.S. Government, its agencies, authorities or instrumentalities, those issued by non-U.S. governments, and residential and commercial mortgage-backed securities issued by non-governmental entities. Under normal circumstances, it invests at least 60% in U.S. Government Securities and at least 80% in investment-grade securities; up to 20% may be below investment grade. It may hold IO/PO strips, other asset-backed securities, and debt of any maturity; use Rule 144A securities; trade frequently; and use derivatives (futures, swaps, swaptions), which may result in leverage, and it may hold cash, money market instruments, other high-quality short-term investments, or other liquid assets to meet segregation obligations related to derivatives.