The investment seeks to maximize capital appreciation and income.
Under normal circumstances, the fund invests in a portfolio of investment grade, U.S. fixed income securities of any maturity or duration. It also may invest up to 20% of its net assets in any combination of high yield bonds (also known as "junk bonds") and non-U.S. fixed income securities, including emerging market bonds. The fund will invest primarily in U.S. corporate, government, mortgage-backed and asset-backed fixed income securities and privately issued securities, but may also invest in U.S. Treasury interest rate futures, forward currency contracts and credit default swaps.
The investment seeks a high and stable rate of current income, consistent with long-term preservation of capital.
The fund invests in a diversified portfolio of high-quality bonds and other debt securities. Under normal circumstances, the fund will invest at least 80% of its total assets in (1) investment-grade debt securities and (2) cash equivalents. "Investment grade" means securities rated Baa3 or higher by Moody's Investors Service, or BBB- or higher by Standard & Poor's Ratings Group or Fitch Ratings, or equivalently rated by any nationally recognized statistical rating organization, or, if unrated, deemed to be of similar quality by Dodge & Cox.