ABOUT RISK
NA3146506
Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.
An issuer may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer’s credit rating.
Derivatives may be more volatile and less liquid than traditional investments and are subject to market, interest rate, credit, leverage, counterparty and management risks. An investment in a derivative could lose more than the cash amount invested.
Although money market funds (MMFs) generally seek to preserve the value of your investment at $1.00 per share, the Fund may lose money by investing in such funds. Sponsors of MMFs have no legal obligation to provide financial support to the MMF. A MMFs credit quality can change rapidly in certain markets, and the default of a single holding could have an adverse impact on the MMF’s share price. MMF share prices can be negatively affected during periods of high redemptions, illiquid markets and/or significant market volatility.
If the seller of a repurchase agreement defaults on its obligation or declares bankruptcy, delays in selling the securities underlying the repurchase agreement may be experienced, resulting in losses.
The Fund’s yield will vary as the short-term securities in its portfolio mature or are sold and the proceeds are reinvested in other securities. Additionally, inflation may outpace and diminish investment returns over time.
Obligations issued by US Government agencies and instrumentalities may receive varying levels of support from the government, which could affect the fund’s ability to recover should they default.
The risks of investing in securities of foreign issuers, including emerging market issuers, can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
Issuers of sovereign debt or the governmental authorities that control repayment may be unable or unwilling to repay principal or interest when due, and the Fund may have limited recourse in the event of default. Without debt holder approval, some governmental debtors may be able to reschedule or restructure their debt payments or declare moratoria on payments.
The Fund may hold illiquid securities that it may be unable to sell at the preferred time or price and could lose its entire investment in such securities.
The Fund is concentrated in the financial services sector and may be susceptible to adverse economic or regulatory occurrences affecting the sector. Financial services companies are subject to extensive government regulation and are disproportionately affected by unstable interest rates, volatility in financial markets, domestic and foreign monetary policy and industry regulation changes, which could adversely affect such companies. Financial services companies may be vulnerable to unstable economic conditions due to concentrated portfolios.
The investment techniques and risk analysis used by the portfolio managers may not produce the desired results.
The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the Fund.
Drawdown is the loss from a peak to a trough of a portfolio, before a new peak is attained.
The Conservative Income Fund is not a money market fund.
As with any comparisons, investors should be aware of the material differences between products. Differences include, but are not limited to, objectives, cost and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal return, tax features and management style. Investors should talk with their financial professional regarding their situation before investing.
Class Y shares and Class R6 shares are only available for certain investors. Please see the prospectus for more information.
Duration measures a bond's or fixed income portfolio's price sensitivity to interest rate changes.
