Fund Description

The fund invests, under normal circumstances, at least 80% of net assets (plus borrowings) in fixed-income securities and in derivatives and other instruments that have economic characteristics similar to such securities. It focuses primarily on investment grade corporate bonds, U.S. Treasury and agency securities, and mortgage- and asset-backed securities, including CMOs, CLOs and CDOs of any rating. It may invest up to 25% in foreign debt (including emerging markets), up to 20% of its net assets in currencies and securities, including foreign currency derivatives, denominated in currencies other than the U.S. dollar, and up to 20% in below investment grade bonds. It may hold illiquid and Rule 144A securities, municipals, zero coupon and payment-in-kind securities, use when-issued/delayed delivery and TBA transactions (including short TBA sales), and employ swaps, options, futures and FX forwards. It uses active duration and yield curve positioning, referencing the Bloomberg 1-3 Year Government/Credit Index, and will attempt to maintain a dollar-weighted average portfolio maturity and duration of less than three years, though due to events affecting the bond markets and interest rate changes the maturity and duration of the portfolio might not meet the target at all times.