Fund Description

Incepted in November 1998, the fund is managed by J.P. Morgan Fleming Asset Management (USA). The fund seeks a high level of income. The fund invests primarily in a diversified portfolio of securities denominated in U.S. dollars. The investments are primarily in the following market sectors: investment-grade debt securities issued by U.S. issuers, including the U.S. government, its agencies and authorities and U.S. companies, emerging market countries, high yield securities, which are below investment grade (junk bonds) of U.S. issuers (these include lower-rated convertible securities, which generally pay interest or dividends and which can be converted into common or preferred stock). Under normal circumstances, the fund invests between 25% and 40% of its assets in each of the three sectors. However, the fund may invest only up to 30% of its total assets in issuers located in emerging market countries. There is no limit on investment in securities issued by the U.S. government or its agencies or authorities. The fund's investments in foreign debt securities may include obligations issued by international organizations like the World Bank. They may also include Brady Bonds, which are bonds issued under a program which enables debtor nations to restructure the debt that they owe foreign commercial banks, and other debt issued by emerging market governments as part of restructuring plans. Although the fund intends to buy principally U.S. dollar-denominated securities, some of the fund's foreign securities may be denominated and traded in other currencies. The fund may borrow up to 10% of its total assets to buy additional securities. This is called 'leveraging.' The fund can borrow money from banks and through reverse repurchase agreements or dollar rolls. The fund declares dividends monthly. The fund makes net capital gains distributions, if any, once a year.