Fund Description

The fund invests at least 80% of its assets in currencies of, or fixed income instruments denominated in the currencies of, emerging market countries and in short-term investments, and its investments in currencies or fixed income instruments, including short-term investments, may be represented by forwards or derivatives such as options, futures contracts or swap agreements. It may hedge non-U.S. currency exposure and invest remaining assets in other fixed income instruments from U.S. or non-U.S. issuers. Country and currency exposure reflects factors such as interest rates, inflation, exchange rates, policies, and legal and political developments. Average duration is expected not to exceed two years and short-term average maturity three years. The fund may invest in both investment-grade securities and high yield securities (junk bonds), subject to a maximum of 15% of its total assets in securities rated below B, and may invest, without limitation, in derivative instruments such as options, futures contracts or swap agreements, as well as mortgage- or asset-backed securities, when-issued or forward transactions, short sales, REITs, dollar rolls, and up to 10% in preferred securities.