Fund Description

The fund seeks to pursue its investment objective by investing primarily in securities issued by the U.S. government and its agencies or instrumentalities. Under normal circumstances, it primarily invests in GNMA-issued mortgage-backed obligations and CMOs with an average effective maturity of 2 to 10 years, and in obligations issued or guaranteed by the U.S. government or its agencies or instrumentalities with a dollar-weighted average maturity normally less than 5 years. The goal of the fund's strategy is to provide high, reliable income by investing in securities backed 100% by the full faith and credit of the U.S. government, and portfolio construction consists of three factor-driven layers: top-down macro-economic, mid-level relative value, and bottom-up borrower characteristics. Its sell discipline is driven by actual borrower prepayments, and it may trade on a when-issued, to-be-announced, or delayed delivery basis.