Fund Description

The fund seeks investments that increase in value while paying interest and other income. It generally invests in global developed market sovereign, corporate, mortgage-related, and asset-backed debt, and may also invest in emerging market sovereign, quasi-sovereign, and corporate issuers. It normally invests at least 65% of total assets in income-producing debt securities and, under normal circumstances, invests at least 40% of its investable assets in non-U.S. dollar denominated securities; this exposure may be lower if conditions are not favorable, but not lower than 30% of its investable assets. It may hold up to 35% in speculative or unrated debt, invest across durations, and use derivatives to manage duration and currency exposure, hedge losses, and try to improve returns. The subadviser uses top-down and bottom-up research with quantitative models, emphasizing country and currency selection.