- Potential stability of bonds can help balance the volatility of stocks.
- Provides greater income potential than short-term bond funds.
- Diversified; seeks to help protect principal.
The fund's objective is high current income without undue risk to principal. Normally, at least 80% of the Fund's assets will be invested in a broad range of debt securities with a dollar-weighted average portfolio maturity between three to 10 years. Up to 65% of the Fund's assets may be invested in corporate bonds. The debt securities in which the fund may investment include, among others, obligations of U.S., state, and local governments, their agencies and instrumentalities; mortgage- and asset-backed securities; corporate debt securities; repurchase agreements; and other securities believed to have debt-like characteristics. The fund will investment primarily in investment-grade securities, but also may invest up to 10% of its net assets in below-investment-grade securities, which are sometimes referred to as high-yield or "junk" bonds. This 80% policy may be changed upon at least 60 days' written notice to shareholders.