Fiscal Year End
|| Intermediate Government
The fund seeks high current income consistent with high overall credit quality and moderate price fluctuation.
Invests at least 80% of assets in securities that are backed by the full faith and credit of the U.S. government, primarily GNMA mortgage-backed securities, and investments linked to these securities.
Generally conservative investors who seek high current income consistent with the highest credit quality and can accept fluctuations in share price as interest rates and mortgage prepayments rise and fall. Appropriate for both regular and tax-deferred accounts, such as IRAs and Keoghs.
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The GNMA Fund can be an attractive option for income investors who are willing to tolerate some price volatility. Unlike corporate bond funds, the GNMA Fund has negligible credit risk since it invests only in securities guaranteed by the U.S. government. Mortgage-backed bonds offer higher income than Treasuries without any decrease in credit quality.
Yield and share price will vary with interest rate changes. Investors should note that if interest rates rise significantly from current levels, bond fund total returns will decline and may even turn negative in the short term. The fund is also susceptible to prepayment risk, which occurs when homeowners pay off their loans early. Your investment in the fund is not insured or guaranteed by the U.S. government.