Fund Description

The fund, under normal circumstances, invests at least 80% of net assets (plus borrowings) in investment grade fixed income securities, including U.S. dollar-denominated corporate obligations; securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities; U.S. and foreign issuer dollar-denominated bonds; private placements; Rule 144A securities; and mortgage- and other asset-backed securities, including collateralized bond and loan obligations. It may invest in below investment grade debt (normally 10% or less), including defaulted securities and bank loans; non-U.S. dollar-denominated securities (up to 15% of total assets) and, under normal market conditions, seeks to hedge substantially all of its exposure to non-U.S. currencies; emerging market-related debt; other funds/ETFs; and derivatives that may create leverage. Barings or BIIL intends for the fund's portfolio dollar-weighted average duration generally to match (within 10%) the average duration of the Bloomberg U.S. Aggregate 1-3 Year Bond Index; turnover may be high.