Fund Description

The fund typically invests at least 90% of total assets in U.S. Treasury securities and repurchase agreements collateralized by such securities. The sub-adviser adjusts portfolio average maturity and effective duration based on assessments of multi-year national and international economic trends, using long-term Treasuries and Treasury STRIPS when conditions suggest lower inflation and declining interest rates, and using Treasury bills or notes, TIPS, and floating rate notes (under five years) when conditions suggest rising inflation and increasing rates. Duration may range from under one year to 25 years, with maturities up to the longest available Treasuries. Longer maturities can increase interest-rate sensitivity and share-price volatility. Turnover may vary widely, potentially increasing transaction costs and taxable gains, and may involve selling securities before maturity to increase income and/or adjust duration.