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Investment in the Portfolio entails certain risks. Investment returns and principal value of the Portfolio will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Some of the principal risks of investing in the Portfolio include:
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Investing primarily in fixed-income securities that mature on or before the Portfolio’s maturity date of 31 December 2025
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Investing at least 90% of the Portfolio's assets in US dollar-denominated fixed-income securities issued by corporate, sovereign and other governmental issuers in developed markets
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Investing a significant percentage of the portfolio in investment grade fixed-income securities issued in the U.S
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The Portfolio will not invest more than 20% of its net assets in one sector, nor will it invest directly in emerging markets
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Investing primarily in fixed-income securities that mature on or before the Portfolio’s maturity date of 31 December 2025
Portfolio Management Team
Investment Risks to Consider
These and other risks are described in the Portfolio's prospectus
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Default risk: The issuers of certain bonds or other debt securities could become unable to make payments on their debt.
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Allocation risk: The risk that the allocation of investments between growth and value companies may have a more significant effect on the Portfolio’s Net Asset Value (NAV) when one of these strategies is not performing as well as the other. In addition, the transaction costs of rebalancing the investments may, over time, be significant.
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Corporate debt obligations risk: The risk that a particular issuer may not fulfill its payment and other obligations. In addition, an issuer may experience adverse changes to its financial position or a decrease in its credit rating resulting in increased debt obligation price volatility and negative liquidity. There may also be a higher risk of default.
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Credit risk: The risk that issuers or counterparties may not be able to meet interest payments or repay the capital borrowed. A default by the issuer may impact the value of the Portfolio
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Currency risk: Investments may be denominated in one or more currencies which are different from the Portfolio’s base currency. Currency movements in the investments may significantly affect the net asset value of the Portfolio.
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Emerging-markets risk: Where the Portfolio invests in emerging markets, these assets are generally smaller and more sensitive to economic and political factors, and may be less easily traded, which could cause a loss to the Portfolio.
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Focused portfolio risk: Investing in a limited number of issuers, industries, sectors or countries may subject the Portfolio to greater volatility than one invested in a larger or more diverse array of securities.
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Interest-rate risk: As interest rates rise, bond prices fall and vice versa; long-term securities tend to rise and fall more than short-term securities.
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Leverage risk: The Fund implements a high use of leverage which may reach 400% of the total NAV of the Fund. Leverage presents opportunities for increasing both returns and losses because any event which affects the value of an investment is magnified to the extent leverage is employed.
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Market risk: Prices and yields of many securities can change frequently, sometimes with significant volatility, and can fall, based on a wide variety of factors, for example government policy or change in technology. he effects of market risk can be immediate or gradual, short-term or long-term, or narrow or broad.
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Sovereign debt obligations risk: The risk that government issued debt obligations will be exposed to direct or indirect consequences of political, social and economic changes in various countries. Political changes or the economic status of a country may impact the willingness or ability of a government to honour its payment obligations.