Fund Description

The fund invests, under normal circumstances, at least 80% of its investable assets in bonds of corporations with varying maturities; for purposes of this policy, bonds include all fixed income securities other than preferred stock, and corporations include all private issuers. Portfolio effective duration is generally less than three years. It may invest in mortgage-related and asset-backed securities, including CDOs and CLOs, and in U.S. government and government-related securities. Up to 20% may be in below investment-grade or comparable unrated debt and up to 35% in dollar-denominated Yankee obligations. Derivatives may manage duration and interest-rate risk, hedge losses, and try to improve returns; selection uses credit research, market/economic analysis, and proprietary models and risk systems.