The Fund allocates its investments principally among the following four sectors of the fixed income securities markets: the U.S. Investment Grade Sector, the U.S. High-Yield Sector, the International Developed Markets Sector, and the Emerging Markets Sector. Under normal circumstances, the Fund will invest at least 80% of its net assets in fixed income securities (the 80% policy). We will determine how much of the Fund to allocate to each of the four sectors, based on our evaluation of economic and market conditions and our assessment of the returns and potential for appreciation that can be achieved from investments in each of the four sectors. We will periodically reallocate the Fund's assets, as deemed necessary.
In unusual market conditions, in order to meet redemption requests, for temporary defensive purposes, and pending investment, the Fund may hold a substantial portion of its assets in cash or short-term fixed income obligations. The Fund may also use a wide range of hedging instruments, including options, futures contracts, and options on futures contracts subject to certain limitations.
The Fund's investments in emerging markets will, in the aggregate, be limited to no more than 15% of the Fund's total assets. The Manager will limit non-U.S. dollar denominated securities to no more than 50% of net assets, but total non-U.S. dollar currency exposure will be limited, in aggregate, to no more than 25% of net assets.
The Fund's 80% policy described above may be changed without shareholder approval. However, shareholders will be given notice at least 60 days prior to any such change.
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