Fund Description

The fund invests at least 80% of its net assets in securities issued by the Government National Mortgage Association. These certificates represent interests in pools of mortgage loans and related cash flows, with timely payment of principal and interest guaranteed and backed by the full faith and credit of the U.S. government. It may also buy other U.S. government debt, including U.S. Treasury securities and securities issued or guaranteed by U.S. agencies and instrumentalities. To generate additional income, it may use when-issued and forward commitments, including mortgage dollar rolls, committing up to 35% of total assets, and may use derivatives such as options, futures, swaps, and mortgage- or asset-backed securities. When determining whether to sell a security, the portfolio managers consider, among other things, current and anticipated changes in interest rates, current valuation relative to alternatives in the market, and general market conditions. The fund may trade frequently, increasing transaction costs and capital gains distributions.