Significantly greater income potential than U.S. Treasury securities or investment- grade sovereign bonds—potentially compensating investors for taking higher risk.
Effective portfolio diversification relative to an all-U.S. bond portfolio based on calculated risk analysis.
International investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as specific country, regional, and economic developments. These risks are generally greater for investments in emerging markets.
To the extent the funds use futures, swaps, and other derivatives, they are exposed to additional volatility and potential losses.
For investors seeking high levels of current income and capital appreciation.
For investors seeking diversification relative to an all-U.S. fixed-income portfolio.