US Treasure Bond and Government Bond Funds

These funds invest in securities issued by the United States Treasury or agencies 
of the U.S. Government. Funds that invest exclusively in U.S. Treasury obligations 
are known as U.S. Treasury bond funds. Funds that invest in other U.S. Government 
securities in addition to U.S. Treasury securities are called U.S. Government bond 
funds.

These securities are obligations of the U.S. Treasury and Government and are
considered to be of unparalleled credit quality. Even these funds, however, are
subject to interest rate risk, such that their net asset values will fluctuate
commensurate with their maturity levels. Some funds may vary their maturity
levels depending on the investment adviser's outlook for interest rates; other
funds confine their investments to a particular maturity level.
