Strategy. Under normal circumstances, the fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in bonds (bonds include any debt instrument). Under normal market conditions, the fund invests at least 75% of its net assets (plus any borrowings for investment purposes) in investment grade short duration debt securities and up to 25% in short duration high yield debt securities. Investment grade securities are those rated in the Baa3 or higher categories by Moodys Investors Service, Inc. (Moodys), or in the BBB- or higher categories by Standard & Poors Ratings Services, a division of McGraw Hill Companies, Inc. (S&P), or Fitch Ratings Ltd. (Fitch) or, if unrated, determined to be of comparable credit quality by … Show more… Under normal circumstances, the fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in bonds (bonds include any debt instrument). Under normal market conditions, the fund invests at least 75% of its net assets (plus any borrowings for investment purposes) in investment grade short duration debt securities and up to 25% in short duration high yield debt securities. Investment grade securities are those rated in the Baa3 or higher categories by Moodys Investors Service, Inc. (Moodys), or in the BBB- or higher categories by Standard & Poors Ratings Services, a division of McGraw Hill Companies, Inc. (S&P), or Fitch Ratings Ltd. (Fitch) or, if unrated, determined to be of comparable credit quality by the funds sub-adviser. High yield debt securities, commonly referred to as junk bonds or below investment grade securities, are securities rated below investment grade by at least one of Moodys, S&P or Fitch or, if unrated, determined to be of comparable credit quality by the funds sub-adviser. Under normal market conditions, the fund sub-adviser expects to primarily invest in investment grade short duration fixed income securities. The types of debt securities in which the fund primarily invests include, but will not be limited to, U.S. dollar denominated short duration investment grade bonds and high yield corporate bonds. The fund may invest up to 20% of its assets in U.S. dollar denominated securities of issuers based outside of the U.S., including issuers in emerging markets. Under normal circumstances, the fund will normally target an average portfolio effective duration, as estimated by the funds sub-adviser, of less than three years. Duration is a measure of the underlying portfolios prices sensitivity to changes in prevailing interest rates. The longer a securitys duration, the more sensitive its price will be to changes in interest rates. For example, the approximate percentage decrease in the price of a security with a three-year duration would be 3% in response to a 1% increase in interest rates. The funds sub-adviser normally expects to focus the funds investments to maintain investment grade status and the high yield allocation to maintain a higher credit quality tier of the overall high yield bond market. In pursuing the funds investment objective, the funds sub-adviser seeks to identify securities of companies with stable or improving cash flows and proven and established business models in an effort to manage the amount of credit, interest rate, liquidity and other risks, presented by these securities. The sub-adviser utilizes a disciplined value, bottom-up approach to the fixed income market, with emphasis on building the portfolio through individual security selection. The philosophy is implemented by assessing the credit profiles of specific issuers through extensive credit research. The team searches out companies that it believes will experience stable or improving credit profiles. Securities are identified for inclusion through an analysis of historical and relative yield spread relationships. Security characteristics such as credit quality, structure, maturity, and liquidity are also examined. Sector diversification and duration parameters are defined to limit market, sector and credit risk. The fund will primarily own corporate bonds of U.S. domiciled companies, but can also own securities of the U.S. Government and government-sponsored enterprises, mortgage-backed securities, asset-backed securities, loans, and high yield bonds and corporate bonds of non-U.S. domiciled companies. When the sub-adviser believes that current market, economic, political or other conditions are unsuitable and would impair the pursuit of the funds investment objective, the fund may invest up to 100% of its assets in cash or cash equivalents, including but not limited to obligations of the U.S. Government, exchange-traded fund (ETF) shares, money market fund shares, commercial paper, repurchase agreements, certificates of deposit and/or bankers acceptances, as well as other interest bearing or discount obligations. When the fund takes a temporary defensive position, it may not achieve its investment objective. Show less