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-advisor adjusts average maturity and effective duration based on its assessment of multi-year national and international economic trends. It may invest in long-term U.S. Treasury bonds, including U.S. Treasury Strips (zero coupon Treasury securities), when it determines that economic conditions suggest lower inflation and the multi-year trend is toward decreasing interest rates, or invest in U.S. Treasury bills or notes, Treasury Inflation-Protected Securities (TIPS), and Floating Rate Notes (FRNs) (maturities less than five years) when it determines that economic conditions suggest rising inflation and the multi-year trend is toward increasing interest rates. Over the course of a business cycle, under normal market conditions, the effective duration is expected to vary from less than a year to a maximum of 25 years, with maturities ranging from less than a year to the longest Treasury bonds available. Portfolio turnover may vary substantially and may involve selling securities before maturity to increase income and/or change duration.