LGOVs active manager uses a top-down analysis of market fundamentals, followed by a bottom-up analysis of sub-sectors, to construct the portfolio of long-term government bonds with a weighted average effective duration of eight or more years. The fund includes Treasurys, agency MBS, TBAs, and other securities backed by the full faith and credit of the US government. Like most active funds, LGOV may invest up to 20% of its portfolio in out-of-mandate securities, potentially including sub-investment-grade or unrated debt. In addition, the fund can hold short positions for up to 30% of its portfolio value.