Fund Description

The fund seeks total returns, after expenses, that match or incrementally exceed the Bloomberg U.S. 4-10 Year Treasury Bond Index. It normally invests at least 80% of net assets (plus borrowings) in Index securities and at least 80% in U.S. Treasury securities backed by the full faith and credit of the U.S. government, with certain derivatives counted toward the 80% policy. It may hold Treasury bills, notes, and bonds (including STRIPS) and TIPS, and, consistent with the index, holdings normally include intermediate-term U.S. Treasury bonds, although the fund may invest in other securities backed by the full faith and credit of the U.S. government (including, but not limited to, TIPS and securities issued by GNMA and other government agencies) and certain corporate debt securities guaranteed by U.S. government agencies. Weighted average maturity is expected to range from three to ten years. The adviser uses quantitative models and security selection to maintain Index-like traits while making modest tilts, and may use futures, options, and swaps to manage duration, exposure, and cash flows.