Fund Description

Invests, under normal circumstances, at least 80% of assets in a diversified portfolio of fixed income instruments of varying maturities, including bonds and other debt securities issued by U.S. and non-U.S. public- or private-sector entities, which may be represented by forwards or derivatives such as options, futures or swaps. It primarily holds investment grade debt, but may invest up to 20% in high yield securities rated B or higher (or equivalent, or comparable quality if unrated). It may invest up to 30% in foreign currency-denominated securities, up to 25% tied to emerging markets, and normally limits net foreign currency exposure to 20%. The average portfolio duration of the fund normally varies within two years (plus or minus) of its benchmark. Average maturity is expected to exceed ten years. It may invest, without limitation, in derivatives, mortgage- or asset-backed securities, preferreds, when-issued trades, and short sales, and may use buy backs or dollar rolls. The total return sought consists of income earned on the fund's investments, plus capital appreciation, if any, which generally arises from decreases in interest rates, foreign currency appreciation, or improving credit fundamentals for a particular sector or security.