There is no assurance that a mutual fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that the market values of securities owned by the fund will decline and that the value of fund shares may therefore be less than what you paid for them. Accordingly, you can lose money investing in this fund. Please be aware that this fund may be subject to certain additional risks. Fixed-income securities. Subject to credit and interest-rate risk. Credit risk refers to the ability of an issuer to make timely payments of interest and principal. Interest-rate risk refers to fluctuations in the value of a fixed-income security resulting from changes in the general level of interest rates. In a declining interest-rate environment, the portfolio may generate less income. In a rising interest-rate environment, bond prices fall. Interest rates (call). More bonds may be called by the issuer, which may decrease the overall income potential of the portfolio. Mortgage-backed securities. Faster or slower prepayments than expected on underlying mortgage loans can dramatically alter the yield-to-maturity of a mortgage-backed security and prepayment risk includes the possibility that the fund may invest the proceeds at generally lower interest rates. Extension risk. Extension risk includes the possibility that if interest rates rise, borrowers may prepay mortgages more slowly than originally expected, which may reduce the market value of mortgage-related securities and lengthen their duration. Credit quality. Investments in securities rated below investment grade (commonly known as "junk bonds") present greater risk of loss to principal and interest than investments in higher-quality securities. Foreign securities. The fund may invest in foreign securities; should it do so, the portfolio may be subject to additional currency, political, economic, and market risks. Derivative instruments. Derivatives can be illiquid, may disproportionately increase losses and may have a potentially large negative impact on the fund's performance. Please see the fund's prospectus for additional information.
