The loans in which the fund may invest are typicallynoninvestment-grade and involve a greater risk of default on interest andprincipal payments and

The loans in which the fund may invest are typicallynoninvestment-grade and involve a greater risk of default on interest andprincipal payments and of price changes due to the changes in the credit qualityof the issuer. The prices of securities held by the fund may decline in response to marketrisks. Reinvestment risk is the risk that a bond’s cash flows will be reinvested at aninterest rate below that of the original bond. The fund may invest in mortgage- and asset-backed securities.

These securitiesare subject to prepayment or call risk, which is the risk that payments from theborrower may be received earlier or later than expected due to changes in therate at which the underlying loans are prepaid. Nondiversification increases the risk that the value of the fund`s shares mayvary more widely, and the fund may be subject to greater investment and creditrisk than if it invested more broadly. A majority of the fund’s assets are likely to be invested in loans andsecurities that are less liquid than those rated on national exchanges. Investing in developing countries can add additional risk, such as high rates ofinflation or sharply devalued currencies against the U.S dollar.

Transactioncosts are often higher, and there may be delays in settlement procedures. The fund may use enhanced investment techniques such as derivatives. Theprincipal risk of derivatives is that the fluctuations in their values may notcorrelate perfectly with the overall securities markets. Derivatives are subjectto counterparty risk – the risk that the other party will not complete thetransaction with the fund. The fund may invest in obligations issued by agencies and instrumentalities ofthe U.S. government that may vary in the level of support they receive from theU.S government The U.S. government may choose not to provide financial supportto U.S.-government-sponsored agencies or instrumentalities if it is not legallyobligated to do so.