Strategy. Under normal circumstances, we invest: at least 80% of the Funds net assets in income-producing debt securities; up to 25% of the Funds total assets in U.S. dollar-denominated debt securities of foreign issuers; and up to 15% of the Funds total assets in below investment-grade debt securities. We invest principally in income-producing debt securities. Our portfolio holdings may include U.S. Government obligations, corporate debt securities, bank loans and mortgage- and asset-backed debt securities. These securities may have fixed, floating or variable rates. We may invest in investment-grade and below investment-grade debt securities (often called high-yield securities or junk bonds), as well as in debt securities of both domestic and foreign issuers. As part of our below investment-grade debt securities investment … Show more… Under normal circumstances, we invest: at least 80% of the Funds net assets in income-producing debt securities; up to 25% of the Funds total assets in U.S. dollar-denominated debt securities of foreign issuers; and up to 15% of the Funds total assets in below investment-grade debt securities. We invest principally in income-producing debt securities. Our portfolio holdings may include U.S. Government obligations, corporate debt securities, bank loans and mortgage- and asset-backed debt securities. These securities may have fixed, floating or variable rates. We may invest in investment-grade and below investment-grade debt securities (often called high-yield securities or junk bonds), as well as in debt securities of both domestic and 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 use futures for duration and yield curve management. While we may purchase securities of any maturity or duration, under normal circumstances, we expect the Funds dollar-weighted average effective maturity to be 1.5 years or less and the Funds dollar-weighted average effective duration to be 1 year 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 select 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