Fiscal Year End
|| Long Government
The fund seeks the highest level of income consistent with maximum credit protection.
The fund invests at least 85% 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 vary between 15 and 20 years, but may range from 10 to 30 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.
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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. Long-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 short- and intermediate-term bond funds, but the level of risk associated with long-term bonds is greater.