Fund Description

The fund invests, under normal circumstances, at least 80% of assets in debt securities and other investments rated below investment grade at purchase (Ba1 or lower by Moody's, BB+ or lower by S&P, or comparable quality if unrated). Holdings may include corporate bonds, mortgage- and asset-backed securities, zero-coupon, payment-in-kind, and convertible bonds. It may invest in loans and corporate bonds issued in connection with highly leveraged transactions such as mergers, leveraged buyouts, recapitalizations, and acquisitions, and in loans of any maturity and credit quality. It may invest in common and preferred stocks and warrants; typically, not more than 20% of assets will be invested in these types. Up to 35% may be in foreign and Yankee securities. It may use derivatives and currency transactions for hedging, positioning, liquidity, income, and allocation. Credit and yield are emphasized; securities may be in default.