Wealth Outlook 2024 - Slow then grow

Disclosures 144 the possibility of early return of principal due to mortgage prepayments, which can reduce expected yield and result in reinvestment risk. Conversely, return of principal may be slower than initial prepayment speed assumptions, extending the average life of the security up to its listed maturity date (also referred to as extension risk). Additionally, the underlying collateral supporting non-Agency MBS may default on principal and interest payments. In certain cases, this could cause the income stream of the security to decline and result in loss of prin- cipal. Further, an insufficient level of credit support may result in a downgrade of a mortgage bond's credit rating and lead to a higher probability of principal loss and in- creased price volatility. Investments in subordinatedMBS involve greater credit risk of default than the senior class- es of the same issue. Default risk may be pronounced in cases where the MBS security is secured by, or evidencing an interest in, a relatively small or less diverse pool of un- derlying mortgage loans. 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 great- er levels of illiquidity and larger price movements. Price volatility may also occur from other factors including, but not limited to, prepayments, future prepayment expecta- tions, credit concerns, underlying collateral performance and technical changes in the market. 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 theremay be no secondarymar- ket 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 in- vestment programs that will vary from fund to fund. Asset allocationdoes not assure aprofit or protect against a loss in declining financial markets. The indices are unmanaged. An investor cannot invest di- rectly 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 include political and economic uncertain- ties 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 rela- tively unstable governments and less established mar- kets and economics. Investing in smaller companies involves greater risks not associated with investing in more established compa- nies, such as business risk, significant stock price fluctu- ations and illiquidity. Factors affecting commodities generally, index compo- nents 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 (includ- ing the availability of substitutes such as manmade or synthetic substitutes); disruptions in the supply chain, from mining to storage to smelting or refining; adjust- ments to inventory; variations in production costs, in- cluding storage, labor and energy costs; costs associated with regulatory compliance, including environmental reg- ulations; and changes in industrial, government and con- sumer demand, both in individual consuming nations and internationally. Index components concentrated in fu- tures contracts on agricultural products, including grains, may be subject to a number of additional factors specific Wealth Outlook 2024