#Financial instruments of destruction full

The views and opinions and/or analysis expressed are those of the author or the investment team as of the date of preparation of this material and are subject to change at any time without notice due to market or economic conditions and may not necessarily come to pass. A minimum asset level is required.įor important information about the investment managers, please refer to Form ADV Part 2. Please consider the investment objectives, risks and fees of the Strategy carefully before investing. Separate accounts managed according to the particular Strategy may include securities that may not necessarily track the performance of a particular index. There is no guarantee that any investment strategy will work under all market conditions, and each investor should evaluate their ability to invest for the long-term, especially during periods of downturn in the market.Ī separately managed account may not be appropriate for all investors. Restricted and illiquid securities may be more difficult to sell and value than publicly traded securities (liquidity risk). They also may be subject to counterparty, liquidity, valuation, correlation and market risks. Derivative instruments may disproportionately increase losses and have a significant impact on performance. Sovereign debt securities are subject to default risk. The risks of investing emerging market countries are greater than risks associated with investments in foreign developed countries.

Foreign securities are subject to currency, political, economic and market risks. Public bank loans are subject to liquidity risk and the credit risks of lower-rated securities. High-yield securities (“junk bonds”) are lower-rated securities that may have a higher degree of credit and liquidity risk. It is possible that these issuers will not have the funds to meet their payment obligations in the future.

#Financial instruments of destruction full

government securities purchased by the Strategy, such as those issued by Fannie Mae and Freddie Mac, are not backed by the full faith and credit of the U.S. They are also subject to credit, market and interest rate risks. Mortgage- and asset-backed securities are sensitive to early prepayment risk and a higher risk of default, and may be hard to value and difficult to sell (liquidity risk). Longer-term securities may be more sensitive to interest rate changes. In a declining interest-rate environment, the portfolio may generate less income. In a rising interest-rate environment, bond prices may fall and may result in periods of volatility and increased portfolio redemptions.

Fixed income securities are subject to the ability of an issuer to make timely principal and interest payments (credit risk), changes in interest rates (interest-rate risk), the creditworthiness of the issuer and general market liquidity (market risk). Please be aware that this portfolio may be subject to certain additional risks. Accordingly, you can lose money investing in this portfolio. It is difficult to predict the timing, duration, and potential adverse effects (e.g. natural disasters, health crises, terrorism, conflicts and social unrest) that affect markets, countries, companies or governments. Market values can change daily due to economic and other events (e.g. Portfolios are subject to market risk, which is the possibility that the market values of securities owned by the portfolio will decline and that the value of portfolio shares may therefore be less than what you paid for them. There is no assurance that a portfolio will achieve its investment objective. Diversification does not eliminate risk of loss.