Fund Description

The fund normally invests at least 80% of net assets (plus any borrowings for investment purposes) in bonds, counting applicable derivatives toward this policy. It seeks to enhance income and achieve some capital growth by shifting among U.S. and foreign government and agency obligations, corporate bonds, U.S. dollar and non-U.S. dollar debt, mortgage- and asset-backed securities, bank loans, convertibles, and preferred stocks. Under normal conditions it invests at least 40% of net assets in non-U.S. securities (at least 30% if foreign markets are not deemed favorable), may hold non-U.S. currencies, and has no limit on U.S. dollar-denominated foreign debt. Up to 65% may be below investment grade or unrated, with the below investment-grade portion potentially including (within stated limits) U.S. dollar-denominated emerging market debt, non-U.S. dollar-denominated emerging market debt, bank loans, and convertible securities and preferred stocks. The fund may use futures, forwards, swaps, credit default swaps and credit default swap indexes (CDX), and options for exposure or hedging.