Fund Description

The fund normally invests at least 80% of net assets (plus borrowings for investment purposes) in income-producing corporate securities, counting applicable derivatives toward this policy. Holdings mainly consist of investment-grade bonds, with flexibility to buy some high-yield bonds. It may also invest in convertibles, preferred stock, mortgage- and asset-backed securities (including mortgage-related derivatives), and U.S. Treasury and agency securities. Up to 10% of total assets may be in non-U.S. dollar debt (including emerging markets), with no limit on U.S. dollar foreign securities. At least 85% of net assets must be investment grade; up to 15% may be below investment grade, subject to limits on lower-rated bonds. The fund may use derivatives such as credit default swaps and credit default swap indexes (CDX), total return swaps, interest rate futures, and swaptions for hedging and exposure management.