Fund Description

The fund normally invests at least 80% of net assets (plus any borrowings for investment purposes) in U.S. bonds and securities represented in its benchmark, the Bloomberg U.S. Aggregate Bond Index, with certain derivatives counted toward this policy. Holdings normally include U.S. government and agency obligations, mortgage- and asset-backed securities, corporate bonds, and U.S. dollar-denominated securities of foreign issuers. It seeks total returns after expenses that match or incrementally exceed the index using quantitative models, may overweight or underweight sectors, may use interest rate futures and TBA transactions to adjust duration and gain exposure to investment-grade bonds, may use dollar roll transactions in an effort to obtain underlying mortgage-backed securities on more preferable terms or to enhance returns, and may invest in credit default swap indexes (CDX) to manage credit risk or take a position on a basket of credit entities.