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.
Investors who seek to enhance the performance of their fixed-income portfolios and are willing to take on the special risks associated with high-yield bonds and foreign securities. Appropriate for both regular and tax-deferred accounts, such as IRAs.
Click on the risk/reward spectrum below to view the funds in that category
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.
* Funds are placed in general risk/return categories based on their 10-year standard deviation
(as of December 2015) or, for newer funds, the standard deviation of the types of securities
in which they invest. There is no assurance past trends will continue.
See Glossary for additional details on all data elements.
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