Fund Description

The fund normally invests at least 80% of net assets in U.S. dollar-denominated debt, including obligations of the U.S. government and other public sector entities, asset-backed and mortgage-backed obligations of U.S. and foreign issuers, and corporate debt of U.S. and foreign issuers. It invests primarily in investment-grade debt, but may invest up to 20% in non-investment-grade, may buy unrated debt deemed comparable by the advisor, and may hold "D" rated securities. Duration is managed to be substantially equal to its Bloomberg U.S. Universal Index benchmark, with a dollar-weighted average effective maturity normally more than five but less than 10 years. The advisor attempts to diversify the fund's portfolio by holding debt obligations of many different issuers and choosing issuers in a variety of sectors, and attempts to exceed the fund's benchmark through yield curve positioning, sector allocation, and security selection. It may invest in foreign debt and money market instruments.