Strategy. The Core Bond Fund normally invests at least 80% of its assets in bonds and maintains an average portfolio duration that is within 20% of the duration of the benchmark. For the purposes of this strategy, bonds include the following: obligations issued or guaranteed by the U.S. Government or a foreign government or their agencies, instrumentalities or political subdivisions; mortgage-backed securities, including agency mortgage pass-through securities and commercial mortgage-backed securities; mortgage to-be-announced (TBA) securities; debt obligations of U.S. or foreign issuers; municipal securities; and asset-backed securities. The Funds investments in derivatives will be counted toward the Funds 80% policy to the extent that they provide investment exposure to the securities included within that policy or to one or more market … Show more… The Core Bond Fund normally invests at least 80% of its assets in bonds and maintains an average portfolio duration that is within 20% of the duration of the benchmark. For the purposes of this strategy, bonds include the following: obligations issued or guaranteed by the U.S. Government or a foreign government or their agencies, instrumentalities or political subdivisions; mortgage-backed securities, including agency mortgage pass-through securities and commercial mortgage-backed securities; mortgage to-be-announced (TBA) securities; debt obligations of U.S. or foreign issuers; municipal securities; and asset-backed securities. The Funds investments in derivatives will be counted toward the Funds 80% policy to the extent that they provide investment exposure to the securities included within that policy or to one or more market risk factors associated with such securities. As of December 31, 2025, the average duration of the benchmark, the Bloomberg U.S. Aggregate Bond Index, was 5.79 years, as calculated by BlackRock. The Core Bond Fund may invest up to 25% of its assets in assets of foreign issuers, of which 10% (as a percentage of the Funds assets) may be invested in emerging markets issuers. Up to 10% of the Core Bond Funds assets may be exposed to non-US currency risk. A bond of a foreign issuer, including an emerging market issuer, will not count toward the 10% limit on non-US currency exposure if the bond is either (i) US dollar-denominated or (ii) non-US dollar-denominated, but hedged back to US dollars. The Core Bond Fund only buys securities that are rated investment grade at the time of purchase by at least one major rating agency or determined by the Core Bond Funds management team to be of similar quality. Split rated bonds will be considered to have the higher credit rating. The management team evaluates sectors of the bond market and individual securities within these sectors. The management team selects bonds from several sectors including: U.S. Treasuries and agency securities, commercial and residential mortgage-backed securities, collateralized mortgage obligations (CMOs), asset-backed securities and corporate bonds. The Core Bond Fund may buy or sell options or futures on a security or an index of securities, or enter into credit default swaps and interest rate or foreign currency transactions, including swaps (collectively, commonly known as derivatives). The Core Bond Fund may use derivative instruments to hedge its investments or to seek to enhance returns. The Core Bond Fund may seek to obtain market exposure to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other investment techniques (such as reverse repurchase agreements and mortgage dollar rolls). The Core Bond Fund may engage in active and frequent trading of portfolio securities to achieve its principal investment strategies. Show less