Strategy. Under normal market conditions, the fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in obligations issued or guaranteed by the U.S. government and its agencies, authorities, or instrumentalities (U.S. government securities). There is no limit on the funds average maturity. U.S. government securities may be supported by: ? the full faith and credit of the U.S. government, such as U.S. Treasury bills, notes, and bonds, and Government National Mortgage Association Certificates. ? the right of the issuer to borrow from the U.S. Treasury, such as obligations of the Federal Home Loan Mortgage Corporation. ? the credit of the instrumentality, such as obligations of the Federal National Mortgage Association. The fund may invest up … Show more… Under normal market conditions, the fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in obligations issued or guaranteed by the U.S. government and its agencies, authorities, or instrumentalities (U.S. government securities). There is no limit on the funds average maturity. U.S. government securities may be supported by: ? the full faith and credit of the U.S. government, such as U.S. Treasury bills, notes, and bonds, and Government National Mortgage Association Certificates. ? the right of the issuer to borrow from the U.S. Treasury, such as obligations of the Federal Home Loan Mortgage Corporation. ? the credit of the instrumentality, such as obligations of the Federal National Mortgage Association. The fund may invest up to 10% of its total assets in below-investment-grade fixed-income securities (junk bonds) rated Ba and below by Moodys Investors Service, Inc. (Moodys) or BB and below by S&P Global Ratings (S&P) or Fitch Ratings, Inc. (Fitch Ratings) or comparable rating by any nationally recognized statistical rating organization (NRSRO). However, the fund may not invest in a fixed-income security rated lower than B by any two NRSROs. The fund may invest in higher-risk securities, including U.S. dollar-denominated foreign government securities and mortgage- and asset-backed securities, or certain supranational entities (such as the World Bank). Although the fund generally invests in foreign government securities rated within the four highest categories by an NRSRO, or their unrated equivalents, it may invest up to 10% of its assets in foreign government high-yield securities (junk bonds) rated as low as B and their unrated equivalents. The funds investment policies are based on credit ratings at the time of purchase. The manager considers interest-rate trends in determining which types of bonds to emphasize at a given time. The fund typically favors mortgage-backed securities when the manager anticipates that interest rates will be relatively stable and favors U.S. Treasuries at other times. Because high-yield bonds often respond to market movements differently than U.S. government bonds, the fund may use them to manage volatility. The fund may invest in derivatives. Derivatives, including futures contracts and options, may be used to reduce risk, obtain efficient market exposure, and/or enhance investment returns. The fund may trade securities actively. Show less