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Investment Factsheet
PAGE 49 OF 50
Inv. Data as of 03/31/25.
STATEMENT OF ADDITIONAL DISCLOSURES: RISKS
Investing involves risk. Loss of principal is possible. An investment in a fund is not a bank deposit, and it is not insured or guaranteed by the Federal
Deposit Insurance Corporation (FDIC) or any other government agency. Each fund carries its own specific risks which depend on the types of
investments in the fund. Investors should review the fund’s prospectus carefully to understand the risks before investing.
In general, some of the risks associated with the Morningstar Categories shown in this report are as follows:
Allocation. Different methods of asset allocation are associated with varying degrees of risks. Conservative portfolios contain low risk
investments but may not earn any value over time. Moderate portfolios have a higher level of risk than conservative portfolios. Aggressive
portfolios mainly consist of equities, so their value tends to fluctuate widely.
Bonds. Bonds are subject to interest rate risk. As the prevailing level of bond interest rates rise, the value of bonds already held in a portfolio
decline. Portfolios that hold bonds are subject to declines and increases in value due to general changes in interest rates. Bonds are also subject
to prepayment risk, which is the chance that an issuer may exercise its right to prepay its security, if falling interest rates prompt the issuer to do
so. Forced to reinvest the unanticipated proceeds at lower interest rates, the fund would experience a decline in income and lose the opportunity
for additional price appreciation.
Foreign. Investments in foreign securities may be more volatile than investing solely in U.S. markets due to interest-rate, currency, exchange
rate, economic, and political risks. The value of these securities can change more rapidly and extremely than can the value of U.S. securities.
Foreign securities are subject to increased issuer risk because foreign issuers may not experience the same degree of regulation as U.S. issuers
do and are held to different reporting, accounting, and auditing standards. In addition, foreign securities are subject to increased costs because
there are generally higher commission rates on transactions, transfer taxes, higher custodial costs, and the potential for foreign tax charges on
dividend and interest payments. Many foreign markets are relatively small, and securities issued in less-developed countries face the risks of
nationalization, expropriation or confiscatory taxation, and adverse changes in investment or exchange control regulations, including suspension
of the ability to transfer currency from a country. Economic, political, social, or diplomatic developments can also negatively impact
performance.
Foreign Currencies. Foreign currencies are subject to the risks associated with such currencies and the changes in their values relative to the U.S.
dollar. Such risks include volatility in the price relationship between the U.S. dollar and foreign currencies. The value of foreign currencies relative
to the U.S. dollar can be affected by many factors, including national debt levels, trade deficits, international trade and foreign policies, changes
in trade and balance of payments, governmental fiscal and monetary policies, currency exchange rates and changes in supply and demand that
affect those rates, investment and trading activity of mutual funds, hedge funds and currency funds, exchange rate controls and government
intervention in currency markets, inflation rates, interest and deposit rates, market expectations about future inflation rates and interest rates,
and global and national economic, financial, political, regulatory, judicial, military and geographical events or developments. Prices of currencies
of less developed or emerging market nations tend to be more volatile than those of developed countries, given the greater political, regulatory,
economic, financial, military and social instability and uncertainty in less developed or emerging market nations.
Foreign Regions. Investments in securities from a particular country or region may be subject to the risk of adverse social, political, regulatory, or
economic events occurring in that country or region. Country- or region-specific risks also include the risk that adverse securities markets or
exchange rates may impact the value of securities from those areas.
High-Yield Bonds. Portfolios that invest in lower-rated debt securities (commonly referred as junk bonds) involve additional risks because of the
lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility, and increased risk of
default.
Large Cap Equities. Concentrating assets in large-capitalization stocks may subject the portfolio to the risk that those stocks underperform
other capitalizations or the market as a whole. Large-cap companies may be unable to respond as quickly as small- and mid-cap companies can
to new competitive pressures and may lack the growth potential of those securities. Historically, large-cap companies do not recover as quickly
as smaller companies do from market declines.
Money Market. An investment in a money market mutual fund is not insured or guaranteed by the FDIC or any other government agency.
Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money
market fund.
Real Estate. Real estate investments are subject to various risks that affect their values and the income they generate. Real estate investments
are affected by changes in the general economy, prevailing interest rates, local economic and market conditions, competition for tenants,
Please see important disclosures in the Statement of Additional Disclosures. © 2025, Broadridge Financial Solutions, Inc. All rights reserved. The analysis
and opinions generated by Broadridge and its affiliates do not constitute professional investment advice and are provided solely for informational purposes.
