The fund’s income level should generally be above that of a money market fund but less than that of a long-term bond fund.
The fund’s share price should fluctuate less than a longer-term bond fund.
All investments are subject to market risk, including the possible loss of principal.
Interest rates: A rise in interest rates typically causes the price of a fixed rate debt instrument to fall and its yield to rise. Conversely, a decline in interest rates typically causes the price of a fixed rate debt instrument to rise and the yield to fall.
High yield investing: Issuers of junk bonds are usually not as strong financially and are more likely to suffer an adverse change in financial condition that would result in the inability to meet a financial obligation.
International investing: Non-U.S. securities tend to be more volatile and have lower overall liquidity than investments in U.S. securities and may lose value because of adverse local, political, social, or economic developments overseas, or due to changes in the exchange rates between foreign currencies and the U.S. dollar.
Emerging markets: Investments in emerging market countries are subject to greater risk and overall volatility than investments in the U.S. and other developed markets.
Derivatives: Derivatives can be highly volatile, illiquid, and difficult to value, and changes in the value of a derivative may not properly correlate with changes in the value of the underlying asset, reference rate, or index.
See the prospectus for more detail on the fund's principal risks.
Investor Profile
For investors who seek higher income than money funds or similar investment vehicles provide and can accept modest share price fluctuation.
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