Strategy. Under normal circumstances, we invest: at least 80% of the Funds net assets in debt securities; up to 25% of the Funds total assets in debt securities of foreign issuers; and up to 25% of the Funds total assets in below investment-grade debt securities. We invest principally in debt securities. We may invest in a variety of debt securities, including corporate, mortgage- and asset-backed securities, bank loans and U.S. Government obligations. These securities may have fixed, floating or variable rates. We invest in both investment-grade and below investment-grade debt securities (often called high yield securities or junk bonds) and may also invest in debt securities of foreign issuers. As part of our below investment-grade debt securities investment strategy, we will … Show more… Under normal circumstances, we invest: at least 80% of the Funds net assets in debt securities; up to 25% of the Funds total assets in debt securities of foreign issuers; and up to 25% of the Funds total assets in below investment-grade debt securities. We invest principally in debt securities. We may invest in a variety of debt securities, including corporate, mortgage- and asset-backed securities, bank loans and U.S. Government obligations. These securities may have fixed, floating or variable rates. We invest in both investment-grade and below investment-grade debt securities (often called high yield securities or junk bonds) and may also invest in debt securities of foreign issuers. As part of our below investment-grade debt securities investment strategy, we will generally invest in securities that are rated at least BB by Standard & Poors or Ba by Moodys, or an equivalent quality rating from another Nationally Recognized Statistical Ratings Organization, or are deemed by us to be of comparable quality. We may also invest in derivatives, such as futures, currency forwards, and credit default swap indices (CDX), for duration and yield curve management, to gain or hedge currency exposure, to control risk or to enhance return. While we may purchase securities of any maturity, under normal circumstances, we expect the Funds dollar-weighted average effective maturity to be three years or less. In addition, while we may purchase securities of any duration, under normal circumstances, we expect the Funds dollar-weighted average effective duration to be three years or less. Dollar-Weighted Average Effective Maturity is a measure of the average time until the final payment of principal and interest is due on fixed income securities in the Funds portfolio. Dollar-Weighted Average Effective Duration is an aggregate measure of the sensitivity of a funds fixed income portfolio securities to changes in interest rates. As a general matter, the price of a fixed income security with a longer effective duration will fluctuate more in response to changes in interest rates than the price of a fixed income security with a shorter effective duration. We employ a top-down macroeconomic outlook to determine the portfolios duration, yield curve positioning, credit quality and sector allocation. Macroeconomic factors considered may include, among others, the pace of economic growth, employment conditions, corporate profits, inflation, monetary and fiscal policy, as well as the influence of international economic and financial conditions. In combination with our top-down macroeconomic approach, we employ a bottom-up process of fundamental securities analysis to determine the specific securities for investment. Elements of this evaluation may include credit research, duration measurements, historical yield spread relationships, volatility trends, mortgage refinance rates, as well as other factors. We may sell a security due to changes in credit characteristics or outlook, as well as changes in portfolio strategy or cash flow needs. A security may also be sold and replaced with one that presents a better value or risk/reward profile. Show less