The fund seeks maximum preservation of capital and liquidity and, consistent with these goals, the highest possible current income.
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, and repurchase agreements on such securities. The remainder is invested in other securities backed by the full faith and credit of the U.S. government. The fund will not purchase any security with a maturity of more than 13 months, and its weighted average maturity will not exceed 90 days.
The fund may be appropriate for you if the stability and accessibility of your investment are more important to you than the opportunity for higher income or total return. It can be used in both regular and tax-deferred accounts, such as IRAs. An investment in the fund should help you meet your individual investment goals for principal stability, liquidity, and income, but it should not represent your complete investment program.
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The fund should have little or no credit risk because it invests only in securities backed by the federal government, the most creditworthy issuer of fixed-income instruments, and other investments involving such securities. (Credit risk is the chance that a fund's holdings will have their credit ratings downgraded or that their issuers will default, that is, fail to make scheduled interest and principal payments.) There is little risk of principal loss because the fund is managed to maintain a constant $1.00 share price. However, price stability is not guaranteed, and there is no assurance that the fund will avoid principal losses if interest rates rise sharply in an unusually short period.
The fund offers a way to receive monthly income through investments with the highest credit quality, as well as stability of principal and liquidity.
An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.