Fund Goal and Approach
The fund seeks to maximize total return, consisting of capital appreciation and current income. Accordingly, the fund will invest at least 80% of its net assets in GNMA certificates, which are guaranteed as to timely payment of principal and interest by the Government National Mortgage Association. The fund may invest the remaining 20% of its assets in other mortgage-related securities, including those issued by government-related organizations, residential and commercial mortgage-backed securities, and collateralized mortgage obligations. The fund can invest in privately issued mortgage-backed securities with a 'BBB' or higher credit quality, but currently intends to invest in only those securities with an 'A' or higher credit quality.
Bond Risk: Bonds are subject generally to interest rate, credit, liquidity, call and market risks, to varying degrees. Generally, all other factors being equal, bond prices are inversely related to interest-rate changes and rate increases can cause price declines.
GNMA Risk: Ginnie Maes and other securities backed by the full faith and credit of the United States are guaranteed only as to the timely payment of interest and principal when held to maturity. The market prices for such securities are not guaranteed and will fluctuate. Privately issued mortgage-related securities also are subject to credit risks associated with the underlying mortgage properties. These securities may be more volatile and less liquid than more traditional, government-backed debt securities.
Investors should consider the investment objectives, risks, charges, and expenses of the fund carefully before investing. Download a prospectus, or a summary prospectus, if available, that contains this and other information about the fund, and read it carefully before investing.