High-quality, investment-grade international bonds may offer higher yields than U.S. Treasury securities or investment-grade bonds in exchange for greater risk.
International fixed-income securities offer attractive diversification benefits relative to an all-U.S. bond portfolio.
International investments are generally more volatile than domestic investments.
Because the fund is normally heavily exposed to foreign currencies and does not attempt to hedge the impact of these currencies on the dollar, changes in currency exchange rates are likely to have a significant effect on the fund’s performance.
Suitable for an investor with a long-term horizon seeking the above-average total return potential from international bonds.
For investors seeking diversification relative to an all domestic fixed-income portfolio.