The Barclays Fixed Rate Mortgage-Backed Securities Index, a widely-used unmanaged index of mortgage-backed securities, is not available for direct investment. Unlike a mutual fund, the performance of an index assumes no taxes, transaction costs, management fees or other expenses.
An investment in the Fund is subject to interest rate risk, which is the possibility that a Fund's yield will decline due to falling interest rates and the potential for bond prices to fall as interest rates rise. High yielding, non-investment grade bonds present a greater risk of loss to principal and interest than investment grade securities. The value of debt securities may be affected by the ability of issuers to make principal and interest payments and even the possibility that the issuer will default completely. Although U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies and instrumentalities are backed by the U.S. Treasury. Obligations issued by other agencies (such as the Federal National Mortgage Association, the Federal Home Loan Mortgage Association and the Federal Home Loan Bank) are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the agency's own resources. No assurance can be given that the U.S. government will provide financial support to these agencies.
1 As of most recent quarter-end. The Morningstar Style Box reveals the Fund’s investment strategy. For fixed-income funds, the vertical axis shows the average credit quality of the bonds owned and the horizontal axis shows interest-rate sensitivity as measured by a bond’s duration (short, intermediate or long). Credit quality ratings are subject to change. For more complete information about how fixed income style boxes are categorized, please click here to view the Morningstar.com style box analysis.