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  • Invesco Trust Company
    Financial Professional
    Alternatives | Risk-Balanced

    Invesco Active Multi-Sector Credit Trust - Class II

    Class II

    Class II

    • Class II
    Select a Fund

    Select a Fund

    • Diversified Return Intermediate Trust - Class C
    • IBEW-NECA Stable Value Trust - Basic Class
    • IBEW-NECA Stable Value Trust - Premier Class
    • Invesco 500 Index Trust - Class C
    • Invesco Active Multi-Sector Credit Trust - Class II
    • Invesco American Franchise Trust - Class C
    • Invesco Balanced-Risk Allocation Trust - Class C
    • Invesco Balanced-Risk Commodity Trust - Class C
    • Invesco Core Plus Fixed Income Trust - Class C
    • Invesco Core Plus Fixed Income Trust - Class I
    • Invesco Diversified Dividend Trust - Class C
    • Invesco Diversified Dividend Trust - Class I
    • Invesco Emerging Markets Equity Trust - Class A
    • Invesco Emerging Markets Equity Trust - Class I
    • Invesco Emerging Markets Equity Trust - Class T
    • Invesco Emerging Markets Equity Trust - Class V
    • Invesco Emerging Markets Equity Trust - Class VI
    • Invesco Emerging Markets Innovators Trust - Class T
    • Invesco Equity Global Real Estate Securities Trust - Class C
    • Invesco Equity Real Estate Securities Trust - Class C
    • Invesco Global Asset Allocation Strategy Trust - Class C
    • Invesco Global Diversified Real Assets Trust - Class I
    • Invesco Global Equity Trust - Class T2
    • Invesco Global Equity Trust- Class A
    • Invesco Global Infrastructure Trust
    • Invesco Global Real Estate Income Trust - Class C
    • Invesco Global Targeted Returns Trust - Class C
    • Invesco Growth and Income Trust - Class I
    • Invesco Intermediate Bond Trust - Class C
    • Invesco International Growth Trust - Class C
    • Invesco International Growth Trust - Class I
    • Invesco International Select Equity Trust - Class F
    • Invesco International Small-Mid Cap Trust - Class T2
    • Invesco Macro Allocation Strategy Trust - Class C
    • Invesco Mid Cap Growth Trust - Class C
    • Invesco OFI International Growth Trust - Class A
    • Invesco OFI International Growth Trust - Class T
    • Invesco OFI International Growth Trust - Class T4
    • Invesco OFI International Growth Trust - Class T5
    • Invesco OFI International Growth Trust - Tier 2
    • Invesco Senior Loan Trust - Class A
    • Invesco Short Duration Inflation Protected Trust - Class C
    • Invesco Small Cap Index Plus Strategy Trust - Class C
    • Invesco Stable Value Trust - Class A1
    • Invesco Stable Value Trust - Class B1
    • Invesco Stable Value Trust - Class C
    • Invesco Stable Value Trust - Class I
    • Invesco Stable Value Trust - Class II
    • Invesco Stable Value Trust - Class III
    • Invesco Stable Value Trust - Class IV
    • Invesco U.S. Quantitative Small Value Trust - Class C
    • UBC Russell 3000 Index Trust - Class C

    Investment Objective

    A multi-credit allocation strategy designed to deliver returns approaching those of the high yield bond market, while targeting a lower risk profile and lower correlation to equities than those of high yield.

    Investor Profile

    The Fund may be appropriate for investors seeking actively managed, diversified exposure to investment grade and non-investment grade debt.

    Fund Style

    Fund management

    Fund trustee & investment manager
    The trustee and investment manager for the Fund is Invesco Trust Company, a Texas trust company (the "Trustee").

    Fund sub-advisor
    The investment sub-adviser for the Fund is Invesco Advisers, Inc. Information concerning the Sub-Adviser can be found in its Form ADV filed with the Securities and Exchange Commission ("SEC"), available at www.sec.gov.

    Fund Benchmark
    Broad Based Benchmark – Bloomberg Barclays Multiverse Index (the "Index"). Secondary benchmark composed of the following:

    • 40% Barclays Global Credit USD Hedged
    • 15% Barclays EM Hard Currency USD Hedged
    • 30% S&P Leveraged Loan Index
    • 15% Barclays Global High Yield USD Hedged

    as of {{performance.asOfDate | date : 'MM/dd/yyyy'}}


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    *Since Inception performance is as of the first full month the fund was open. Gross performance has been calculated before the deduction of investment management and client service fees, but after the deduction of all other expenses applicable to the unit class. Net performance has been calculated after the deduction of all fees and expenses applicable to the unit class. Total return assumes reinvestment of dividends and capital gains for the periods indicated. Past performance is no guarantee of future results. Investment return and principal value will vary and you may have a gain or loss when you sell shares. Returns less that one year are cumulative; all others are annualized.

    The Bloomberg Barclays Multiverse Index provides a broad based measure of the global fixed income bond market. An investment cannot be made directly in an index.

    Price History

    From   to
    No history records found for this date range

    Important information

    Current and prospective participating trusts are strongly encouraged to review the complete terms of the Declaration of Trust for additional details regarding the Fund and its operations. Further information regarding the Fund, including performance and portfolio holdings, can be found at www.InvescoTrustCompany.com.
    The Fund is not guaranteed by Invesco, its subsidiaries or affiliates, including Invesco Advisers, Inc. The Fund is not insured by the FDIC or the Federal Reserve Bank, nor guaranteed by any governmental agency.

     Principal Risks of Investing

    All investments in financial instruments risk the loss of capital. No guarantee or representation is made that a fund’s program will be successful. In this section, references to the “Fund” include the Fund and each Sector Sleeve. The Fund has investment programs that will involve, without limitation, risks associated with limited diversification, leverage, interest rates, currencies, volatility, tracking risks in hedged positions, security borrowing risks in short sales, credit deterioration or default risks, systems risks and other risks inherent in the fund’s activities. Certain investment techniques of a fund can, in certain circumstances, maximize the impact of adverse market moves to which a fund may be subject. In addition, the Fund’s investment in securities may be materially affected by conditions in the financial markets and overall economic conditions occurring globally and in particular countries or markets where the fund invests its assets.

    Risk Management. The Trustee and/or the Sub-Adviser is generally responsible for the risk management decisions made by the Fund. The Fund seeks to reduce exposure to risks when events and circumstances warrant. However, there will be circumstances when the Trustee and/or the Sub-Adviser determines that exposure to certain risks is appropriate, based on the possible rewards of the related investment(s).

    The Fund will continue to refine its risk management techniques, strategies and assessment methods. The risk management techniques and strategies are, however, not designed to and cannot fully mitigate the risk exposure of the Fund in all economic or market environments, or against all types of risk, including risks that the Fund might not identify or anticipate. Additionally, it may not be possible to hedge for certain risks. The risk management techniques and strategies may not accurately quantify such risk exposure and could limit its ability to manage risks or the ability of the Fund to achieve positive, risk-adjusted returns. In addition, regardless of the techniques and strategies employed by the Fund, losses can be significantly greater than the historical measures predict. Also, information used to manage risks may not be accurate, complete or current, and such information may be misinterpreted. The approach to managing those risks also could prove insufficient, exposing the Fund to material unanticipated losses.

    Limited Diversification. The Fund generally seeks to diversify its investments. However, the Fund’s portfolio could become significantly concentrated in any one issuer, industry, sector, strategy, country or geographic region, and such concentration of risk may increase the losses suffered by the Fund. In addition, it is possible that the Fund may select investments that are concentrated in a limited number or types of financial instruments. This limited diversity could expose the Fund to losses disproportionate to market movements in general if there are disproportionately greater adverse price movements in those financial instruments.

    Industry Concentration. To the extent the Fund invests in securities issued or guaranteed by companies in the banking and financial services industries, the Fund’s performance will depend on the overall condition of those industries. Financial services companies are highly dependent on the supply of short-term financing. The value of securities of issuers in the banking and financial services industry can be sensitive to changes in government regulation and interest rates and to economic downturns in the United States and abroad.

    Geographic Concentration. From time to time, the Fund may invest a substantial amount of its assets in securities of issuers located in a single country or a limited number of countries. If the Fund focuses its investments in this manner, it assumes the risk that economic, political and social conditions in those countries will have a significant impact on its investment performance. The Fund’s investment performance may also be more volatile if it focuses its investments in certain countries, especially emerging markets countries.

    General Economic and Market Conditions. The success of each of the Fund’s activities will be affected by general economic and market conditions, such as interest rates, availability of credit, inflation rates, economic uncertainty, changes in laws and regulations (including government responses to financial crises and laws relating to taxation of each of the investments), trade barriers, currency exchange controls, and national and international political circumstances (including wars, terrorist acts or security operations). These factors may affect the level and volatility of the prices of securities, commodities or other financial instruments and the liquidity of the investments. Volatility or illiquidity could impair the Fund’s profitability or result in losses. The Fund may maintain substantial trading positions that can be adversely affected by the level of volatility in the financial markets; the larger the positions, the greater the potential for loss.

    Credit Risk. The issuers of instruments in which the Fund invests may be unable to meet interest and/or principal payments. This risk is increased to the extent the Fund invests in non-investment grade or high yield bonds. An issuer’s securities may decrease in value if its financial strength weakens, which may reduce its credit rating and possibly its ability to meet its contractual obligations.

    Systemic Risk. Credit risk may also arise through a default by one of several large institutions that are dependent on one another to meet their liquidity or operational needs, so that a default by one institution causes a series of defaults by the other institutions. This is sometimes referred to as a “systemic risk” and may adversely affect financial intermediaries, such as clearing agencies, clearing houses, banks, securities firms and exchanges, with which the Fund will interact with respect to hedging activities.

    Interest Rate Risk. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise; conversely, bond prices generally rise as interest rates fall. Specific bonds differ in their sensitivity to changes in interest rates depending on their individual characteristics. One measure of this sensitivity is called Duration. The longer the Duration of a particular bond, the greater its price sensitivity is to interest rates. Similarly, a longer Duration portfolio of securities has greater price sensitivity. Falling interest rates may also prompt some issuers to refinance existing debt, which could affect the Fund’s performance..

    Creation of a Leveraged Position Through Certain Investments. The Fund may make investments or utilize instruments which have the effect of creating a leveraged position. For example, leverage exists when a Fund purchases or sells an instrument or enters into a transaction without investing cash in an amount equal to the full economic exposure of the instrument or transaction and the Fund could lose more than it invested. Such instruments may include, among others, written options and Derivatives, and transactions may include the use of when-issued, delayed delivery or forward commitment transactions. The Fund may seek to mitigate leverage risk by segregating or earmarking liquid assets or otherwise cover transactions that may give rise to such risk. To the extent that the Fund is not able to close out a leveraged position because of market illiquidity, the Fund’s liquidity may be impaired to the extent that it has a substantial portion of liquid assets segregated or earmarked to cover obligations and may liquidate portfolio positions when it may not be advantageous to do so. Leveraging may cause the Fund to be more volatile because it may exaggerate the effect of any increase or decrease in the value of the Fund’s portfolio securities. There can be no assurance that the Fund’s leverage mitigation strategy will be successful.

    Trading of Derivative Contracts. The Fund may invest in certain Derivatives, including Swap Contracts, Futures Contracts, options, Credit Default Swaps and Forward Contracts. The performance of Derivatives is tied to the performance of an underlying currency, security, index or other instrument. In addition to risks relating to their underlying instruments, the use of Derivatives may include other, possibly greater, risks. Risks associated with the use of Derivatives may include counterparty, leverage, correlation, liquidity, tax, market, interest rate and management risks. Derivatives may also be more difficult to purchase, sell or value than other investments. Derivatives held as part of the Fund’s investment program may have the economic effect of financial leverage by creating additional investment exposure, as well as the potential for greater gain or loss. The Fund may lose more than the cash amount invested on investments in Derivatives.

    Liquidity Risk. A security is considered to be illiquid if the Fund is unable to sell such security at a fair price within a reasonable amount of time. A security may be deemed illiquid due to a lack of trading volume in the security or if the security is privately placed and not traded in any public market or is otherwise restricted from trading. The Fund may be unable to sell illiquid securities at the time or price it desires and could lose its entire investment in such securities. Further, certain restricted securities require special registration, liabilities and costs, and could pose valuation difficulties. Loans and securities with reduced liquidity involve greater risk than securities with more liquid markets. Market quotations for such loans and securities may vary over time, and if the credit quality of a loan unexpectedly declines, secondary trading of the loan or security may decline for a period of time. In the event the Fund voluntarily or involuntarily liquidates portfolio assets during periods of infrequent trading, it may not receive full value for those assets.

    Investing in ETFs. The Fund may invest in ETFs. When investing in an ETF, the underlying equity is an ETF, and although the trading characteristics and valuations of such underlying equity will usually mirror the characteristics and valuations of the securities in which such ETF invests, its value may not completely track the value of such securities. The value of the underlying equity will reflect transaction costs and fees that the securities in which that ETF invests do not have. In addition, although the underlying equity may be currently listed for trading on an exchange, there is no assurance that an active trading market will continue for such underlying equity or that there will be liquidity in the trading market. Further, such underlying equity is designed and intended to track the level of a specific index (an “underlying index”), but various factors, including fees and other transaction costs, may prevent the underlying equity from correlating exactly with changes in the level of such underlying index. Accordingly, the performance of the underlying equity may not be equal to the performance of its underlying index.

    The net asset value of an ETF may fluctuate with changes in the market value of such ETF’s securities holdings. The market prices of the underlying equity may fluctuate in accordance with changes in net asset value and supply and demand on the applicable stock exchanges. In addition, the market price of the underlying equity may differ from its net asset value per share; the underlying equity may trade at, above or below its net asset value per share.

    Currency Exchange Exposure and Currency Hedging. The Fund’s assets generally will be denominated in the currency of the jurisdiction in which the assets are located. Consequently, the return realized by investors whose functional currency is not the currency of the jurisdiction in which the assets are located may be adversely affected by movements in currency exchange rates, in addition to the performance of the investment itself. Furthermore, the Fund may incur costs in connection with conversion between various currencies. The Fund will conduct their currency exchange transactions either on a spot (i.e., cash) basis at the spot rate prevailing in the currency exchange market or through entering into forward or options contracts to purchase or sell currencies. A significant portion of the Fund’s investments may be in assets denominated in U.S. Dollars. Due to current market conditions, including conditions in the credit markets, as well as current levels of U.S. government and consumer savings debt, there is risk that the U.S. Dollar could depreciate significantly leading potentially to material adverse economic consequences for the U.S. economy (and therefore for Fund investments). In addition, governments from time to time intervene, directly and/or by regulation, in the currency markets, with the specific effect, or intention, of influencing prices which, together with other factors, cause all of such markets to move rapidly in the same direction. The effect of such intervention is often heightened by a group of governments acting in concert.

    Hedging Transactions. The Fund may from time to time purchase or sell forwards, swaps or options on currencies, securities and indices. It is the intention of the Fund to engage in such transactions as a way to mitigate risk associated with its investments; however, it is generally impossible to fully hedge an investment given the uncertainty as to the amount and timing of projected cash flows and investment returns, if any, on the Fund’s investments. This may lead to losses on both the Fund’s investments and the related transaction. Hedging against a decline in the value of the Fund’s investments may not eliminate fluctuations in the values of the Fund’s investments or prevent losses if the value of such investments decline, but instead establish counterbalancing investment positions designed to gain from those same developments, thus offsetting the decline in the Fund’s investments’ value. Such hedging transactions may also limit the opportunity for gain if the value of the hedged investments should increase. Moreover, it may not be possible for the Fund to hedge against a change in the value of its investment at a price sufficient to protect the Fund’s assets from the decline in value anticipated as a result of such change. In addition, it may not be possible to hedge against certain risks at all.

    In the event that any amount is owed by the Fund under a hedging transaction, including in connection with a margin call, the Fund may be required to liquidate assets to the extent necessary to satisfy such amounts.

    Ongoing Investigations into LIBOR. The Fund is expected to invest in instruments with respect to which interest payments are based on LIBOR. Regulators and law enforcement agencies from a number of governments, including entities in the U.S., Japan, Canada and the United Kingdom, are conducting civil and criminal investigations into whether the banks that contribute to the British Bankers’ Association (“BBA”) in connection with the calculation of the daily LIBOR may have been under-reporting or otherwise manipulating or attempting to manipulate LIBOR. Several financial institutions have reached settlements with the U.S. Commodity Futures Trading Commission (“CFTC), the U.S. Department of Justice Fraud Section and the United Kingdom Financial Services Authority in connection with investigations by such authorities into submissions made by such financial institutions to the bodies that set LIBOR and other interbank offered rates. In such settlements, such financial institutions admitted to submitting rates to the BBA that were lower than the actual rates at which such financial institutions could borrow funds from other banks. Actions by the BBA, regulators or law-enforcement agencies may affect LIBOR (and/or the determination thereof) in unknown ways, including, among other ways, by changing the methodology of setting LIBOR. In 2014, the administration of LIBOR was transferred from the BBA to Intercontinental Exchange.

    Additional investigations and antitrust lawsuits remain ongoing and there can be no assurance that there will not be additional admissions or findings of rate-setting manipulation or antitrust violations or that future manipulation of LIBOR or other similar interbank offered rates will not occur. Any such additional admission or finding of manipulation could decrease the confidence of issuers or obligors in LIBOR and could lead such borrowers to look for alternative, non LIBOR based types of financing, such as fixed rate instruments or floating rate instruments based on non LIBOR indices. An increase in alternative types of financing at the expense of LIBOR based instruments could make it more difficult for the Fund to sell LIBOR based instruments or to source additional investments.

    Mortgage-Backed Securities. The Fund may invest in CMBS backed or collateralized by mortgage loans secured by commercial or multifamily properties or other certificated interests in such loans (“Underlying CMBS Assets”). Underlying CMBS Assets may be secured by one or more of the following income producing property types: office properties, retail properties (such as shopping malls), multifamily properties (including manufactured housing), hotel properties, industrial properties, self-storage and warehouse properties, nursing homes and senior living centers. Consequently, CMBS will be affected by payments, defaults, delinquencies, extensions and losses on Underlying CMBS Assets and, as a result, are dependent on the performance of commercial real estate loans.

    The Fund may also invest in RMBS backed or collateralized by mortgage loans secured by residential real estate (single or multi-family properties). RMBS may be backed by loans to prime, midprime and subprime borrowers (indicating the degree to which a borrower is expected to repay a loan), by home equity loans or installment sales contracts or high loan to value loans, and by other certificated interests in such loans.

    Mortgage-Backed Securities (residential and commercial) represent interests in “pools” of mortgages held in trust. Although CMBS generally experience less prepayment than RMBS, Mortgage-Backed Securities, like traditional fixed-income securities, are subject to credit, interest rate, prepayment and extension risks.

    Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain Mortgage-Backed Securities. These securities also are subject to the risk of default on the underlying mortgage or assets, particularly during periods of economic downturn. Certain Mortgage-Backed Securities are issued in several classes with different levels of yield and credit protection. The Fund’s investments in Mortgage-Backed Securities with several classes may be in the lower classes that have greater risks than the higher classes, including greater interest rate, credit and prepayment risks.

    Mortgage-Backed Securities may be either pass-through securities or collateralized mortgage obligations (“CMOs”). Pass-through securities represent a right to receive principal and interest payments collected on a pool of mortgages, which are passed through to security holders. CMOs are created by dividing the principal and interest payments collected on a pool of mortgages into several revenue streams (tranches) with different priority rights to portions of the underlying mortgage payments. Certain CMO tranches may represent a right to receive interest only (“IOs”), principal only (“POs”) or an amount that remains after floating-rate tranches are paid (an “Inverse Floater”). These securities are frequently referred to as “mortgage derivatives” and may be extremely sensitive to changes in interest rates. Interest rates on Inverse Floaters, for example, vary inversely with a short-term floating rate (which may be reset periodically). Interest rates on Inverse Floaters will decrease when short-term rates increase, and will increase when short-term rates decrease. These securities have the effect of providing a degree of investment leverage. In response to changes in market interest rates or other market conditions, the value of an Inverse Floater may increase or decrease at a multiple of the increase or decrease in the value of the underlying securities. If the Fund invests in CMO tranches (including CMO tranches issued by government agencies) and interest rates move in a manner not anticipated by the Fund’s portfolio management team, it is possible that the Fund could lose all or substantially all of its investment.

    Certain Mortgage-Backed Securities in which the Fund may invest may also provide a degree of investment leverage, which could cause the Fund to lose all or substantially all of its investment.

    U.S. Government Mortgage-Related Securities Risk. There are a number of important differences among the agencies and instrumentalities of the U.S. government that issue mortgage-related securities and among the securities that they issue. Mortgage-related securities guaranteed by the Government National Mortgage Association (“GNMA”) are guaranteed as to the timely payment of principal and interest by GNMA and such guarantee is backed by the full faith and credit of the United States. GNMA securities also are supported by the right of GNMA to borrow funds from the U.S. Treasury to make payments under its guarantee. Mortgage-related securities issued by the Federal National Mortgage Association (“FNMA”) or the Federal Home Loan Mortgage Corporation (“FHLMC”) are solely the obligations of FNMA or FHLMC, as the case may be, and are not backed by or entitled to the full faith and credit of the United States but are supported by the right of the issuer to borrow from the United States Treasury.

    Convertible Securities. The Fund may invest in convertible securities from time to time. The market value of a convertible security performs like that of a regular debt security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition, convertible securities are subject to the risk that the issuer will not be able to pay interest or dividends when due, and their market value may change based on changes in the issuer’s credit rating or the market’s perception of the issuer’s creditworthiness. Since it derives a portion of its value from the common stock into which it may be converted, a convertible security is also subject to the same types of market and issuer risks that apply to the underlying common stock.

    Below Investment Grade Securities. The Fund may trade Below Investment Grade Securities and preferred securities which are rated in the lower rating categories by the various credit rating agencies (or in comparable non-rated securities) and may be subject to greater risk of loss of principal and interest than higher rated securities. These investments are generally considered to be speculative based on the issuer’s ability to pay interest and repay principal. They are also generally considered to be subject to greater risk than securities with higher ratings in the event of deterioration in general economic conditions. Because lower rated securities are perceived to be risky, the yields and prices of such securities may tend to fluctuate more than those for higher rated securities. The market for lower rated securities is thinner and less active than that for higher rated securities, which can adversely affect the prices at which these securities can be sold. In addition, adverse publicity and investor perceptions about lower rated securities, whether or not based on fundamental analysis, could contribute to a decrease in the value and liquidity of such lower rated securities.

    Investing in Subordinated Securities. The Fund may invest in subordinated securities which involve greater credit risk of default than the senior classes of the issues or series. Certain subordinated securities (including the equity or subordinated debt components of collateralized loan obligations and collateralized bond obligations) absorb all losses from default before any other class of securities is at risk, particularly if such securities have been issued with little or no credit enhancement or equity. Subordinated securities therefore possess some of the attributes typically associated with equity investments.

    Collateralized Loan Obligations. The Fund may invest in various tranches of collateralized loan obligations (including tranches that are subordinate to other tranches). In addition to the normal interest rate, default and other risks of fixed income securities, collateralized loan obligations carry additional risks, including the possibility that distributions from collateral securities will not be adequate to make interest or other payments and the quality of the collateral may decline in value or default.

    Defaulted Securities Risk. The Fund may invest in securities where the issuer has defaulted on the payment of interest and/or principal. Defaulted securities are speculative and involve substantial risks. Generally, the Fund will invest in defaulted securities when the portfolio managers believe they offer significant potential for higher returns or can be exchanged for other securities that offer this potential. There can be no assurance that the Fund will achieve these returns or that the issuer will make an exchange offer. The Fund will generally not receive interest payments on defaulted securities and may incur costs to protect its investment. In addition, defaulted securities involve the substantial risk that principal will not be repaid. Defaulted securities and any securities received in an exchange for such securities may be subject to restrictions on resale.

    Issues Relating to Underlying Collateral. The Fund may invest in debt securities that bear interest at a floating rate that resets periodically. The terms of the senior secured Floating Rate Loans and debt securities in which the Fund typically invests require that collateral be maintained to support payment of the obligations. However, the value of the collateral may decline after the Fund invests. There is also a risk that the value of the collateral may not be sufficient to cover the amount owed to the Fund. In addition, collateral securing a loan may be found invalid, may be used to pay other outstanding obligations of the borrower under applicable law or may be difficult to sell. In the event that a borrower defaults, the Fund’s access to the collateral may be limited by bankruptcy or other insolvency laws. There is also the risk that the collateral may be difficult to liquidate, or that a majority of the collateral may be illiquid. As a result, the Fund may not receive payments to which it is entitled.

    Call Risk. If interest rates fall, it is possible that issuers of debt securities with high interest rates will prepay or call their securities before their maturity dates. In this event, the proceeds from the called securities would likely be reinvested by the Fund in securities bearing the new, lower interest rates, resulting in a possible decline in the Fund’s income and distributions to investors.

    Preferred Securities Risk. The Fund may invest in preferred securities. There are special risks associated with investing in preferred securities. Preferred securities may include provisions that permit the issuer, in its discretion, to defer or omit distributions for a certain period of time. If the Fund owns a security that is deferring or omitting its distributions, the Fund may be required to report the distribution on its tax returns, even though it may not have received this income. Further, preferred securities may lose substantial value due to the omission or deferment of dividend payments.

    Investing in High Yield Bonds. The Fund will seek to invest primarily in high yield bonds. Compared to higher quality debt securities, high yield bonds (commonly referred to as Junk Bonds) involve a greater risk of default or price changes due to changes in the credit quality of the issuer because they are generally unsecured and may be subordinated to other creditors’ claims. The values of Junk Bonds often fluctuate more in response to company, political, regulatory or economic developments than higher quality bonds. Their values can decline significantly over short periods of time or during periods of economic difficulty when the bonds could be difficult to value or sell at a fair price. Credit ratings on Junk Bonds do not necessarily reflect their actual market value.

    “Qualified Institutional Buyer” Representation. In order to make certain investments, the Fund generally will be required to represent that it is a “qualified institutional buyer” as defined under Rule 144A of the Securities Act (“QIB”). If at any time the Fund cannot make the QIB representation, its ability to make investments may be restricted and allocations to it would be effected.

    Emerging Markets Strategy Risk. The Fund will seek to invest primarily in securities issued by foreign companies and governments in emerging markets. The prices of securities issued by foreign companies and governments located in emerging markets countries may be impacted by certain factors more than those in countries with mature economies. For example, emerging markets countries may experience higher rates of inflation or sharply devalue their currencies against the U.S. Dollar, thereby causing the value of investments issued by the government or companies located in those countries to decline. Governments in emerging markets may be relatively less stable. The introduction of capital controls, withholding taxes, nationalization of private assets, expropriation, social unrest, or war may result in adverse volatility in the prices of securities or currencies. Other factors may include additional transaction costs, delays in settlement procedures, and lack of timely information.

    Sovereign Debt Risk. The Fund may invest in foreign sovereign debt obligations. Investments in foreign sovereign debt obligations involve certain risks in addition to those relating to foreign securities or debt securities generally. The issuer of the debt or the governmental authorities that control the repayment of the debt may be unable or unwilling to repay principal or interest when due in accordance with the terms of such debt, and the Fund may have limited recourse in the event of a default against the defaulting government. A sovereign debtor’s willingness or ability to repay principal and pay interest in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its foreign currency reserves, the availability of sufficient foreign exchange, the relative size of the debt burden, the sovereign debtor’s policy toward its principal international lenders and local political constraints. Certain issuers of sovereign debt may be dependent on disbursements from foreign governments, multinational agencies and other entities to reduce principal and interest arrearages on their debt. Without the approval of debt holders, some governmental debtors have in the past been able to reschedule or restructure their debt payments or declare moratoria on payments.

    No Registration Under U.S. Federal or State Securities Laws. The Fund will not be registered with the SEC as an investment company under the Investment Company Act of 1940 (the “Investment Company Act”) in reliance upon an exemption from the Investment Company Act; therefore, the provisions of the Investment Company Act applicable to registered investment companies (i.e., mutual funds) are not applicable to the Fund. Units of the Fund are exempt from registration under U.S. federal securities laws and, accordingly, this Fund Description does not contain information that would otherwise be included if registration were required. Similar reliance has been placed on exemptions from securities registration and qualification requirements under applicable state securities laws. No assurance can be given that the offering currently qualifies or will continue to qualify under one or more exemptions due to, among other things, the manner of distribution, the existence of similar offerings in the past or in the future, or the retroactive change of any securities laws or regulation.

    No Registration with the CFTC. Since the Fund may purchase, sell or trade exchangetraded futures contracts, options thereon, and other Commodity Interests, the Fund may be viewed as subject to regulation as a commodity pool under the U.S. Commodity Exchange Act and the rules of the CFTC. However, pursuant to CFTC Rule 4.5, the Trustee is exempt from having to register as a commodity pool operator with respect to the Fund. The Trustee has filed an exemption notice to effect the exemption and will comply with the requirements thereof. As a result, the Trustee, unlike a registered commodity pool operator, is not required to deliver a disclosure document and a certified annual report to Fund participating trusts. Nevertheless, all participating trusts will receive a copy of the Declaration of Trust as well as an annual report for the Fund. The investment sub-adviser, a registered commodity trading advisor under CFTC regulation, will provide commodity interest trading advice to the Fund as if it were exempt from registration as a commodity trading advisor with respect to the Fund pursuant to CFTC Regulation 4.14(a)(8)(i)(B).