The fund seeks to provide investors with high income along with the potential for some capital appreciation.
The fund uses an asset allocation strategy to build a broadly diversified portfolio of domestic and foreign debt instruments, including government and corporate bonds, mortgage-backed, commercial mortgage-backed and asset-backed securities, along with preferred stocks. The fund can invest up to 65% of assets in noninvestment-grade (high-yield) securities and up to 50% in non-U.S. dollar denominated foreign securities, including those from emerging market countries. There are no maturity restrictions, but the portfolio's weighted average maturity is expected to be between four and 15 years.
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The fund's flexible approach lets it seek out opportunities for high income in many places, domestic and overseas, including both high-yield and foreign securities. The portfolio will include a large number of different bonds across various market sectors to reduce the impact of any single holding on the fund's performance. Since the fund has a fairly long average maturity, it offers higher yield potential than money market or shorter-term bond funds but with more volatility.
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. High-yield bonds carry greater default risk than higher-rated bonds along with greater liquidity risk. To the extent the fund holds foreign bonds, it will be subject to special risks, including potentially adverse political and economic developments overseas, greater volatility, lower liquidity, and the possibility that foreign currencies will decline against the dollar. The fund's investments in emerging markets are subject to the risk of abrupt and severe price declines.
* Annually we evaluate the standard deviation of each US mutual fund listed and its resulting placement within specific risk/return categories.
Methodology: If a fund is at least 5 year old, it is generally placed in risk/return categories based on the standard deviation of its performance for the longest period of its calendar year returns;
the longest time period used for analysis is 10 years (regardless of the fund's inception). If a fund is less than 5 years old, we generally use the fund's primary benchmark disclosed in its prospectus as a proxy and follow the same process of using 10-year standard deviation of the benchmark,
or longest time period available. The firm at its sole discretion may show a fund in a higher risk category based on qualitative or other factors that may differ from this methodology.
See Glossary for additional details on all data elements.
The mutual funds referred to in this website are offered and sold only to persons residing in the United States and are offered by prospectus only. The prospectuses include investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. Download a prospectus.