Fund Description

The fund was incepted in March 1992 and is managed by Managers Funds. The fund seeks to provide investors with a total return in excess of the total return of the major market indices for mortgage-backed securities. The fund seeks to achieve its objective by matching the duration, or interest-rate risk, of a portfolio that invests exclusively in mortgage-backed securities, as weighted in the major market indices for mortgage-backed securities. These indices currently include the Salomon Brothers Mortgage Index and the Lehman Brothers Mortgage Index. Under normal circumstances, the fund invests at least 70% of its total assets in U.S. Government Securities, which are primarily mortgage-backed securities issued by the U.S. Government, its agencies and instrumentalities. Dividends, if any, are declared and paid monthly. Capital gains, if any, are declared and paid in December.