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Why does Short-Term Treasury Portfolio invest only in U.S. Treasury securities?

April 26, 2017invest portfolio securities short-term Treasury

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Why does Short-Term Treasury Portfolio invest only in U.S. Treasury securities?

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Because U.S. Treasury securities are backed by the full-faith-and-credit of the U.S. government, which is consistent with the fund’s aim to seek a relatively safe investment strategy. This guarantee applies only to the securities in which the portfolio invests, not the portfolio’s share price, which my fluctuate.