Fund Description

The fund invests at least 80% of its assets in mortgage-backed securities issued by private issuers, U.S. government-sponsored entities, and U.S. government agencies. These securities represent participations in, or are collateralized by and payable from, mortgage loans secured by real property, and may or may not be backed by the full faith and credit of the U.S. government. It may invest in stripped mortgage-backed and other stripped securities, across any maturity or duration, with fixed, floating or variable rates, and may enter into dollar rolls. It will not invest more than 25% of its assets in mortgage-backed securities that are not issued or guaranteed by, or comprised of mortgage-backed securities issued or guaranteed by, a U.S. government agency or U.S. government-sponsored entity. The fund focuses on investment-grade securities, but may invest up to 20% in below-investment-grade holdings. It may use derivatives, including options, swaps, interest rate swaps, futures and other synthetic instruments, for exposure, hedging or to adjust portfolio characteristics such as duration; such instruments are included in the 80% policy.