The investment seeks a favorable long-term total return, primarily through high current income.
The fund invests at least 80% of its assets in bonds. For these purposes, bonds include fixed-income securities of all types. Its portfolio is divided into two segments. The first segment, which makes up at least 70% of the fund's assets, is invested primarily in a broad range of investment-grade bonds and fixed-income securities. The second segment, which will not exceed 30% of the fund's assets, is invested in fixed-income securities and bonds with special features in an effort to improve the fund's total return.
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.