The fund seeks a high level of income consistent with maximum credit protection and moderate fluctuation in principal.
The fund invests at least 80% of its net assets in U.S Treasury securities, which are backed by the full faith and credit of the federal government. The remainder is invested in other securities backed by the full faith and credit of the U.S. government. The portfolio’s weighted average maturity is expected to range between three and ten years.
The fund may be appropriate if you seek an attractive level of income and are willing to accept the risk of a loss of principal when interest rates rise. It can be used in both regular and tax-deferred accounts, such as IRAs. An investment in the fund should not represent your complete investment program.
Click on the risk/reward spectrum below to view the funds in that category
The fund should have minimal credit risk because it invests only in securities backed by the federal government and other investments involving such securities. The primary source of risk is the possibility of rising interest rates, which generally cause bond prices, and a bond fund's share price, to fall. Longer-term bonds are subject to the greatest price swings because the longer the maturity, the greater the price decline when rates rise and the greater the price increase when rates fall.
The fund offers a way to receive monthly income through investments with the highest credit quality. It should provide higher income than money market and short-term bond funds, but the level of risk associated with intermediate-term bonds is greater.
* 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.