Fund Description

The fund seeks income by primarily investing in a mix of other fixed income underlying funds. It normally diversifies across U.S. and international bond funds, including emerging market bond funds, and money market funds, and may invest in individual securities on a limited basis. Underlying funds and any individual securities may focus on high-quality and high-yield bonds, short- and long-term securities, mortgage- and asset-backed and other securitized instruments, inflation-linked securities, bank loans, and other income-producing instruments. The adviser actively allocates among funds and asset classes, periodically reviews and may sell holdings. It may use derivatives such as futures, forwards, and swaps for purposes such as exposure or hedging, and typically as a means of adjusting duration, managing exposure to interest rate changes, and managing overall credit risk exposure; it may also purchase or sell mortgage-backed securities through the TBA market (generally intending to take possession), may use dollar roll transactions to obtain more preferable terms or enhance returns, and expects to engage in short sales of TBA mortgages to potentially enhance returns or manage risk.