Strategy. The Fund invests under normal circumstances at least 80% of its net assets (plus any borrowings for investment purposes) in fixed income securities. The Funds fixed income securities may include: Domestic government debt obligations, including U.S. government securities; Domestic corporate debt obligations; Mortgage-related securities; Asset-backed securities; and Municipal securities. The following discussion and factors relate to the fixed income securities listed above. The Fund invests primarily in investment-grade fixed income securities rated at the time of purchase by at least one major rating agency. Investment-grade fixed income securities carry a rating of at least BBB- from Standard & Poors or Fitch or Baa3 from Moodys. The Fund will typically invest in securities with a duration ranging from 0 to 30 … Show more… The Fund invests under normal circumstances at least 80% of its net assets (plus any borrowings for investment purposes) in fixed income securities. The Funds fixed income securities may include: Domestic government debt obligations, including U.S. government securities; Domestic corporate debt obligations; Mortgage-related securities; Asset-backed securities; and Municipal securities. The following discussion and factors relate to the fixed income securities listed above. The Fund invests primarily in investment-grade fixed income securities rated at the time of purchase by at least one major rating agency. Investment-grade fixed income securities carry a rating of at least BBB- from Standard & Poors or Fitch or Baa3 from Moodys. The Fund will typically invest in securities with a duration ranging from 0 to 30 years and all maturities. The Funds portfolio weighted average effective duration will typically range between +/- 10% of the duration of the Bloomberg U.S. Aggregate Bond Index (the Benchmark). Duration is a measure used to determine the sensitivity of a securitys price to changes in interest rates. The longer a securitys duration, the more sensitive it will be to changes in interest rates. The Fund may invest up to 20% of its net assets in below investment grade debt obligations (commonly referred to as high yield or junk bonds). High yield bonds are high-risk debt securities rated below investment grade (that is, securities rated below BBB- by Standard & Poors or Fitch or below Baa3 by Moodys or, if unrated, determined to be of comparable quality by the Funds Advisor). In selecting portfolio securities, the Advisor analyzes various factors for each security, including individual credit factors, trading patterns, potential revenue growth, an issuers financial metrics, volatility, and geographic location. After purchase, a debt obligation may cease to be rated or may have its rating reduced below the minimum rating required by the Fund for purchase. In such cases, the Advisor will consider whether to continue to hold the debt obligation. The Fund may hold debt obligations with a D or similar credit rating indicating at least a partial payment default. The Fund will invest in non-agency, investment grade, asset-backed securities, and investment grade mortgage-backed securities. The Funds asset-backed securities will be collateralized by consumer and business receivables. In managing the Funds assets, the portfolio managers use a combination of bottom-up security selection and sector allocation analysis, considering various fundamental and technical factors, and a top-down analysis of macroeconomic and interest rate environments. The Advisor generally will sell a debt obligation when, on a relative-value basis and in the Advisors opinion, it will no longer help the Fund attain its objective. Show less