Opportunities on the Horizon: Investing Through a Slowing Economy

| WEALTH OUTLOOK 2023 | MID-YEAR EDITION | 72 GLOSSARY ASSET CLASSDEFINITIONS: Cash is represented by US 3-month Government Bond TR, measuring the US dollar-denominated active 3-Month, fixed-rate, nominal debt issues by the US Treasury. Commodities asset class contains the index composites —GSCI Precious Metals Index, GSCI Energy Index, GSCI Industrial Metals Index, and GSCI Agricultural Index — measuring investment performance in different markets, namely precious metals (e.g., gold, silver), energy commodity (e.g., oil, coal), industrial metals (e.g., copper, iron ore), and agricultural commodity (i.e., soy, coffee) respectively. Reuters/Jeffries CRB Spot Price Index, the TR/CC CRB Excess Return Index, an arithmetic average of commodity futures prices with monthly rebalancing, is used for supplemental historical data. Direct Private Investments or Direct Investments imply the purchase or acquisition of a stake or controlling interest in a business, asset or special purpose vehicle/ instrument by means other than the purchase of shares. EmergingMarkets (EM) Hard Currency Fixed Income is represented by the FTSE Emerging Market Sovereign Bond Index (ESBI), covering hard currency emerging market sovereign debt. Global DevelopedMarket Corporate Fixed Income is composed of Bloomberg Barclays indices capturing investment debt from seven different local currency markets. The composite includes investment grade rated corporate bonds from the developed-market issuers. Global DevelopedMarket Equity is composed of MSCI indices capturing large-, mid- and small-cap representation across 23 individual developed-market countries, as weighted by the market capitalization of these countries. The composite covers approximately 95% of the free float-adjusted market capitalization in each country. Global Developed Investment Grade Fixed Income is composed of Bloomberg Barclays indices capturing investment-grade debt from twenty different local currency markets. The composite includes fixed- rate treasury, government-related, and investment grade rated corporate and securitized bonds from the developed market issuers. Local market indices for US, UK and Japan are used for supplemental historical data. Global EmergingMarket Fixed Income is composed of Bloomberg Barclays indices measuring performance of fixed-rate local currency emerging markets government debt for 19 different markets across Latin America, EMEA and Asia regions. iBoxx ABF China Govt. Bond, the Markit iBoxx ABF Index comprising local currency debt from China, is used for supplemental historical data. Ibbotson High Yield Index , a broad high yield index including bonds across the maturity spectrum, within the BB-B rated credit quality spectrum, included in the below-investment-grade universe, is used for supplemental historical data. Hedge Funds are composed of investment managers employing different investment styles as characterized by different subcategories – HFRI Equity Long/Short: Positions both long and short in primarily equity and equity derivative securities; HFRI Credit: Positions in corporate fixed income securities; HFRI Event Driven: Positions in companies currently or prospectively involved in a wide variety of corporate transactions; HFRI Relative Value: Positions based on a valuation discrepancy between multiple securities; HFRI Multi Strategy: Positions based on realization of a spread between related yield instruments; HFRI Macro: Positions based on movements in underlying economic variables and their impact on different markets; Barclays Trader CTA Index: The composite performance of established programs (Commodity Trading Advisors) with more than four years of performance history. High Yield Bank Loans are debt financing obligations issued by a bank or other financial institution to a company or individual that holds legal claim to the borrower’s assets in the event of a corporate bankruptcy. These loans are usually secured by a company’s assets, and often pay a high coupon due to a company’s poor (noninvestment grade) credit worthiness. High Yield Fixed Income is composed of Bloomberg Barclays indices measuring the non-investment grade, fixed-rate corporate bonds denominated in US dollars, British pounds and euros. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below, excluding emerging market debt. Private Credit is debt financing provided by non-bank lenders such as hedge funds, private debt funds, business development companies (BDCs) and specialty finance companies. Private credit can take on various forms, including direct loans, mezzanine financing or private debt funds. Small- and medium-sized companies most commonly take on private credit. Private Equity is an alternative investment class which at its most basic form is the capital or ownership of shares not publicly traded or listed on a stock exchange. Its characteristics are often driven by those for Developed Market Small Cap Equities, adjusted for illiquidity, sector concentration, and greater leverage. Real Estate Investment Trust or REIT is a corporate entity that either has bulk or all its asset base, income and investments related to real estate. In the US under Security and Exchange Commission (SEC) guidelines, for an entity to qualify as an REIT, at least 90% of its taxable annual income to shareholders in the form of dividends must be from real estate. While typically REITs are publicly traded, not all are, as Public Non-Listed REITs (PNLRs) can register with SEC as REITs, but do not trade on major stock exchanges.