obligations, which, in turn, would increase prepayment risk. The Fund is subject to
the risk that the income generated by its investments may not keep pace with inflation. Actions by governments and central banking
authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities
to raise interest rates. Such actions may negatively affect the value of debt instruments held by the Fund, resulting in a negative impact on the Fund’s performance and NAV. Any interest rate increases could cause the value of the Fund’s investments in debt instruments to decrease. Rising interest rates may prompt redemptions from the Fund, which may force
the Fund to sell investments at a time when it is not advantageous to do so, which could result in losses.
Liquidity risk is the risk associated with any event, circumstance, or characteristic
of an investment or market that negatively impacts the Fund’s ability to sell, or realize the proceeds from the sale of, an investment at a desirable time or price. Liquidity risk may arise because of, for example, a lack of marketability of the investment,
which means that when seeking to sell its portfolio investments, the Fund could find that selling is more difficult than anticipated,
especially during times of high market volatility. Market participants attempting to sell the same or a similar instrument
at the same time as the Fund could exacerbate the Fund’s exposure to liquidity risk. The Fund may have to accept a lower selling price for the holding, sell other liquid or more liquid investments that it might otherwise prefer to hold (thereby increasing the proportion of the Fund’s investments in less liquid or illiquid securities), or forego another more appealing
investment opportunity. The liquidity of Fund investments may change significantly over time and certain investments that were
liquid when purchased by the Fund may later become illiquid, particularly in times of overall economic distress. Changing
regulatory, market or other conditions or environments (for example, the interest rate or credit environments) may also adversely
affect the liquidity and the price of the Fund’s investments. Judgment plays a larger role in valuing illiquid or less liquid investments as compared to valuing liquid or more liquid investments. Price volatility may be higher for illiquid or
less liquid investments as a result of, for example, the relatively less frequent pricing of such securities (as compared to liquid
or more liquid investments). Generally, the less liquid the market at the time the Fund sells a portfolio investment, the
greater the risk of loss or decline of value to the Fund. Overall market liquidity and other factors can lead to an increase in redemptions,
which may negatively impact Fund performance and NAV, including, for example, if the Fund is forced to sell investments
in a down market.
The Fund may incur losses due to declines in the value of one or more securities in
which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things,
political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition,
turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many
issuers, which could adversely affect the Fund’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and financial markets are
increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact
issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely
interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As
a result, local, regional or global events such as terrorism, war, other conflicts, natural disasters, disease/virus outbreaks
and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
Mortgage- and other asset-backed securities risk
The value of any mortgage-backed and other asset-backed securities including collateralized
debt obligations, if any, held by the Fund may be affected by, among other things, changes or perceived changes in:
interest rates; factors concerning the interests in and structure of the issuer or the originator of the mortgages or other
assets; the creditworthiness of the entities that provide any supporting letters of credit, surety bonds or other credit enhancements; or the market’s assessment of the quality of underlying assets. Payment of principal and interest on some mortgage-backed
securities (but not the market value of the securities themselves) may be guaranteed by the full faith and credit of a
particular U.S. Government agency, authority, enterprise or instrumentality, and some, but not all, are also insured or guaranteed
by the U.S. Government. Mortgage-backed securities issued by non-governmental issuers (such as commercial banks, savings
and loan institutions, private mortgage insurance companies, mortgage bankers and other secondary market issuers)
may entail greater risk than obligations guaranteed by the U.S. Government. Mortgage- and other asset-backed securities
are subject to liquidity risk and
