Impact Fixed Income

Global Impact Credit

Material Risks – The following risks are materially relevant to the portfolio: 

Credit - Credit risk arises when an issuer’s financial health deteriorates and/or it fails to fulfill its financial obligations to the portfolio. Derivatives - Derivatives may be used to create leverage which could expose the portfolio to higher volatility and/or losses that are significantly greater than the cost of the derivative. Hedging - Hedging measures involve costs and may work imperfectly, may not be feasible at times, or may fail completely. Interest Rate - Interest rate risk is the potential for losses in fixed-income investments as a result of unexpected changes in interest rates. Geographic Concentration - Geographic concentration risk may result in performance being more strongly affected by any social, political, economic, environmental or market conditions affecting those countries or regions in which the portfolio’s assets are concentrated. Contingent Convertible Bonds - Contingent Convertible Bonds may be subject to additional risks linked to: capital structure inversion, trigger levels, coupon cancellations, call extensions, yield/valuation, conversions, write downs, industry concentration and liquidity, among others. Default - Default risk may occur if the issuers of certain bonds become unable or unwilling to make payments on their bonds. Emerging Markets - Emerging markets are less established than developed markets and therefore involve higher risks. High Yield Bond - High yield debt securities are generally subject to greater risk of issuer debt restructuring or default, higher liquidity risk and greater sensitivity to market conditions. Security Liquidity - Any security could become hard to value or to sell at a desired time and price. Asset-backed securities and mortgage-backed securities - Asset-Backed Securities (ABS) and Mortgage-Backed Securities (MBS) may be subject to greater liquidity, credit, default and interest rate risk compared to other bonds. Distressed and Defaulted Debt - Distressed or defaulted debt securities may bear substantially higher degree of risks linked to recovery, liquidity and valuation.

General Portfolio Risks:

Conflicts of Interest – The investment manager’s obligations to a portfolio may potentially conflict with its obligations to other investment portfolios it manages. Counterparty – An entity with which the portfolio transacts may not meet its obligations to the portfolio. Custody – In the event that the depositary and/or custodian becomes insolvent or otherwise fails, there may be a risk of loss or delay in return of certain portfolio’s assets. Cybersecurity – The portfolio may be subject to operational and information security risks resulting from breaches in cybersecurity of the digital information systems of the portfolio or its third party service providers. Investment Portfolio – Investing in portfolios involves certain risks an investor would not face if investing in markets directly. Inflation – Inflation may erode the value of the portfolio and its investments in real terms. Market – Market risk may subject the portfolio to experience losses caused by unexpected changes in a wide variety of factors. Market Liquidity – In extreme market conditions it may be difficult to sell the portfolio’s securities and it may not be possible to redeem shares at short notice. Operational – Operational failures could lead to disruptions of portfolio operations or financial losses. Sustainability – An environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment and performance of the portfolio.

Global Impact Short Duration Bond