Alternative Investment Opportunities Through a Slowing Economy

MBS are also sensitive to interest rate changes which can negatively impact the market value of the security. During times of heightened volatility, MBS can experience greater levels of illiquidity and larger price movements. Price volatility may also occur from other factors including, but not limited to, prepayments, future prepayment expectations, credit concerns, underlying collateral performance and technical changes in the market. Sustainable / Sustainability: In environmental science, the quality of not being harmful to the environment or depleting natural resources, and thereby supporting long-term ecological balance. Sustainability presumes that resources are finite and should be used conservatively and wisely with a view to long-termpriorities and consequences of the ways in which resources are used. Within context of sustainable development, operating practices that meet the needs of present users without compromising the ability of future generations to meet their own needs, particularly with regard to use andwaste of natural resources. UNESCO assigns four dimensions to sustainable development - society, environment, culture and economy. Sustainability Risk: Risk of 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 an investment. The financial position of the investments in the portfolios managed by a portfoliomanager may deteriorate due to the environmental, or social, or governance risks these investments are exposed to, which in turn may impact the market value of investments. ESG (“Environmental, Social and Governance”) within an investment context, is an umbrella term for investment approaches that seek to incorporate environmental, social and governance considerations in security selection and investment management, with the aim of achieving a more sustainable, responsible and/or ethical investment outcome. Alternative investments referenced in this report are speculative and entail significant risks that can include losses due to leveraging or other speculative investment practices, lack of liquidity, volatility of returns, restrictionson transferring interests in the fund, potential lack of diversification, absence of information regarding valuations and pricing, complex tax structures and delays in tax reporting, less regulation and higher fees than mutual fundsand advisor risk. An investment in alternative investments can be highly illiquid, is speculative and not suitable for all investors. Investing in alternative investments is for experienced and sophisticated investors who are willing to bear the high economic risks associated with such an investment. Investors should carefully review and consider potential risks before investing. Certain of these risks may include: • loss of all or a substantial portion of the investment due to leveraging, short-selling, or other speculative practices; • lack of liquidity in that there may be no secondary market for the fund and none is expected to develop; • volatility of returns; • restrictions on transferring interests in the fund; • potential lack of diversification and resulting higher risk due to concentration of trading authority when a single advisor is utilized; • absence of information regarding valuations and pricing; • complex tax structures and delays in tax reporting; • less regulation and higher fees than mutual funds; and • manager risk. Individual funds will have specific risks related to their investment programs that will vary from fund to fund. Asset allocation does not assure a profit or protect against a loss in declining financial markets. The indexes are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. Index returns do not include any expenses, fees or sales charges, which would lower performance. Past performance is no guarantee of future results. International investing entails greater risk, as well as greater potential rewards compared to US investing. These risks includepolitical and economicuncertainties of foreign countries as well as the risk of currency fluctuations. These risks are magnified in countries with emerging markets, since these countries may have relatively unstable governments and less established markets and economics. Investing in smaller companies involves greater risks not associated with investing in more established companies, such as business risk, significant stock price fluctuationsand illiquidity. Factors affecting commodities generally, index components composed of futures contracts on nickel or copper, which are industrial metals, may be subject to a number of additional factors specific to industrial metals that might cause price volatility. These include changes in the level of industrial activity using industrial metals (including the availability of substitutes such as manmade or synthetic substitutes); disruptions in the supply chain, frommining to storage to smelting or refining; adjustments to inventory; variations in production costs, including storage, labor and energycosts; costs associated with regulatorycompliance, including environmental regulations; and changes in industrial, government and consumer demand, both in individual consuming nationsand internationally. Index components concentrated in futures contracts on agricultural products, including grains, may be subject to a number of additional factors specific to agricultural products that might cause price volatility. These include weather conditions, including floods, drought and freezing conditions; changes in government policies; planting decisions; and changes in demand for agricultural products, bothwith end users and as inputs into various industries. The information contained herein is not intended to bean exhaustive discussion of the strategies or concepts mentioned herein or tax or legal advice. Readers interested in the strategies or concepts should consult their tax, legal, or other advisors, as appropriate. Diversification does not guarantee a profit or protect against loss. Different asset classes present different risks. COUNTRY DISCLOSURES Citibank, N.A., Hong Kong / Singapore organized under the laws of U.S.A. with limited liability. 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Disclosures WEALTH OUTLOOK 2023 | MID-YEAR EDITION │ ALTERNATIVE INVESTMENTS | 37