Market Risk. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Assets in the Fund’s portfolio may underperform due to inflation (or expectations for inflation), interest rates, global demand for particular products or resources, natural disasters, climate change and climate-related events, pandemics, epidemics, terrorism, regulatory events and governmental or quasi-governmental actions. The occurrence of global events similar to those in recent years may result in market volatility and may have long term effects on both the U.S. and global financial markets.

Bond Risk. Bond investments are subject to a variety of risks including interest rate risk, call risk, liquidity risk, credit risk, and default risk. These risks could affect the value of a particular investment by the Fund, possibly causing the Fund’s share price and total return to be reduced and fluctuate more than other types of investments.

Interest Rate Risk. The value of the Fund’s investment in debt securities will fall when interest rates rise. The effect of increased interest rates is more pronounced for any intermediate-term or longer-term debt securities. Current conditions may result in a rise in interest rates, which in turn may result in a decline in the value of the debt securities held by the Fund.

Call Risk. An issuer is more likely to exercise its call right when prevailing interest rates are lower than the security’s coupon, which limits the Fund’s ability to earn the security’s stated coupon over its full term and may force the Fund to reinvest the proceeds at lower prevailing rates. If a security is expected to be called, but the issuer exercises its right to repay principal on a fixed rate security later than expected, the Fund’s ability to reinvest at higher interest rates will be delayed.

Liquidity Risk. A particular investment of the Fund may be difficult to sell, possibly preventing the Fund from selling such illiquid securities at an advantageous time or price, or possibly requiring the adviser to dispose of other investments at unfavorable times or prices in order to manage the Fund’s portfolio.

Credit Risk. The Fund could lose money if the issuer or guarantor of a debt security goes bankrupt or is unable or unwilling to make interest payments and/or repay principal. The value of a debt security may decline if there are concerns about an issuer’s ability or willingness to make interest and or principal payments. Changes in an issuer’s financial strength or in an issuer’s or debt security’s credit rating may also affect a security’s value and thus have an impact on Fund performance.

Default Risk. If an issuer or guarantor defaults, loss on the Fund’s investment may be severe or converted to equity. The Fund may have little legal recourse against a defaulting foreign issuer. Non-U.S. banks (such as Canadian and European institutions) may be subject to statutory “bail-in” or resolution regimes under which, upon a regulatory determination of non-viability, the principal amount of the debt may be written down (including to zero) or converted into equity of the issuer or an affiliate.

Foreign Issuer Risk. Because the Fund’s investments may include debt issued by a foreign entity, the Fund is subject to risks beyond those associated with investing in domestic securities. Foreign companies are generally not subject to the same regulatory requirements of U.S. companies thereby resulting in less publicly available information about these companies. In addition, foreign accounting, auditing and financial reporting standards generally differ from those applicable to U.S. companies.

Non-Diversification Risk. The Fund’s portfolio may focus on a limited number of investments and will be subject to the potential for greater volatility than a diversified fund.

Options Risk. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the reference instrument, interest rates, anticipated volatility. The effective use of options depends on the Fund’s ability to terminate option positions at times deemed desirable. There may be an imperfect correlation between the movement in values of options and their reference instrument and the secondary market for certain options may be illiquid.

Futures Risk. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the target instrument of the Fund and the price of the futures contract; possible lack of a liquid secondary market; and investments in futures contracts involves leverage, which means a small percentage of assets in futures can have a disproportionately large impact on the Fund.

Cash Create and Redeem Transaction Risk. At certain times, the Fund may effect its creations and redemptions primarily for cash, rather than in-kind instruments. The Fund may be required to sell or unwind portfolio investments to obtain the cash needed to distribute redemption proceeds. This may cause the Fund to recognize a capital gain that it might not have recognized if it had made a redemption in kind. As a result, the Fund may pay out higher annual capital gain distributions than if the in-kind redemption process was used. The use of cash creations and redemptions also may cause the Fund’s shares to trade in the market at wider bid-ask spreads or greater premiums or discounts to the Fund’s NAV. Further, effecting purchases and redemptions primarily in cash may cause the Fund to incur additional costs, such as portfolio transaction costs. These costs can decrease the Fund’s NAV.