- Diversified portfolio composed mainly of investment-grade fixed income securities, such as corporate bonds, mortgage-backed and asset-backed securities, and obligations of the U.S. government and its agencies.
- Employs a disciplined fundamental value approach to investing in bonds. Each investment decision carefully weighs potential risks to capital while seeking attractive yields.
- Seeks to add value through strategic yield-curve positioning, thoughtful asset allocations, and a research-intensive approach to company and security selection.
- Our deep and experienced research team consists of 39 seasoned investment professionals, including portfolio managers, traders, credit analysts, and quantitative risk-management specialists.
To seek a high level of current income and capital appreciation without undue risk to principal.
|AUM (as of 3/31/13)
|Minimum Investment in IRA
|Minimum Subsequent Investment
|Maximum Sales Load
|Distribution (12b-1) Fees*
|Total Annual Fund Operating Expenses*1
|Fee Waiver/Expense Reimbursement*1
|Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement*1
|* As reported in the May 1, 2013 Prospectus.|
As with all mutual funds, the value of an investment in the Fund could decline, so you could lose money. Bond funds are subject to interest rate risk, credit risk and prepayment risk. When interest rates rise, bond prices generally fall, and when interest rates fall, bond prices generally rise. Currently, interest rates are at relatively low levels. Please keep in mind that in this kind of environment, the risk that bond prices may fall when interest rates rise is potentially greater. The values of mortgage-backed securities depend on the credit quality and adequacy of the underlying assets or collateral and may be highly volatile. Derivative transactions can create leverage and may be highly volatile. It is possible that a derivative transaction will result in a loss greater than the principal amount invested and the Fund may not be able to close out a derivative transaction at a favorable time or price.
1 An expense limitation with respect to the Fund's Total Annual Fund Operating Expenses is imposed pursuant to a written agreement to limit the Total Annual Fund Operating Expenses (excluding expenses indirectly incurred by the Fund through investments in pooled investment vehicles, interest, taxes, investment-related expenses (e.g., brokerage commissions), and extraordinary expenses) to 0.85% for Class A shares, 1.60% for Class C shares, and 1.25% for Class K shares. This expense limitation will continue through April 30, 2014, and cannot be terminated by RS Investments prior to that date.