| NASDAQ Exchange | United States Country |
The fund is designed for investors looking to diversify their portfolio through investments in a mix of investment grade bonds and fixed income securities. By allocating at least 80% of its assets towards investment-grade bonds or securities, the fund aims for stability and consistent returns. It leverages both long and short positions in these securities to manage risk and optimize returns. In a strategic move to enhance potential gains, the fund permits up to 20% investment in high-yield bonds, also known as junk bonds, which carry higher risk but offer the possibility of higher returns. This cautious yet flexible approach allows the fund to adapt to various market conditions while striving to maintain a strong investment grade focus.
The core focus of the fund is on investment grade bonds, which are deemed to have a lower risk of default compared to non-investment grade bonds. These bonds are rated as investment grade by at least one recognized statistical rating organization at the time of purchase, ensuring a level of safety and consistency in the fund's portfolio.
As part of its investment strategy, the fund invests in a variety of fixed income securities. These may include government and corporate bonds, which provide regular income payments to investors. The inclusion of fixed income securities aims to contribute to the fund's overall yield and stability, complementing its investment in bonds.
For investors seeking higher returns, the fund offers exposure to high yield bonds, also known as junk bonds. These are bonds rated below investment grade and, therefore, carry a higher risk of default. However, they offer the potential for higher yields, making them an attractive option for up to 20% of the fund's portfolio. This allows the fund to dabble in higher-risk, higher-reward investments while primarily maintaining a focus on investment grade securities.