0001096012
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407123Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230512162Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407124Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230512163Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20251214222Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230512164Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20231013190Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407126Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20231013191Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407127Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407129Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407101Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230512165Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407130Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20261105233Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20231013185Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230410160Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407103Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230714182Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20231013186Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230512166Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20261105234Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407152Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407131Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407153Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407133Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407106Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407107Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407135Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230512167Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407109Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230512168Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230714183Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407112Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20261105235Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230512170Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230512171Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407114Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20231013187Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230512178Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230512172Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407117Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230512174Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407158Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407149Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407159Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:bench20230407150Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
abf:C000282586Member
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
oef:RiskLoseMoneyMember
2025-12-31
2025-12-31
0001096012
abf:Dabsimhighincomeetffyepro_2862Member
abf:S000111301Member
oef:RiskNotInsuredDepositoryInstitutionMember
2025-12-31
2025-12-31
iso4217:USD
pure
2025-12-31
false
0001096012
485BPOS
N-1A
AMERICAN BEACON SELECT FUNDS
Investment Objectives
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund’s investment objectives are to seek high current income and, secondarily, capital appreciation.</span></div>
Fees and Expenses of the Fund
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>You may pay other fees, such as brokerage </b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below</b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">.</span></div>
Annual Fund Operating Expenses (Expenses that you pay each year as a percentage of the value of your investment)
0.0059
0.0059
Other Expenses are based on estimated expenses for the current fiscal year.
Example
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">$10,000 in the Fund for the time periods indicated and then </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">hold or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">redeem all of your shares at the end of those periods. The Example also assumes that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">based on these assumptions, whether you redeem or hold your shares, your costs would be:</span></div>
<div>
<table cellspacing="0" style="width:100%;cellspacing:0;padding-bottom:2pt;padding-top:0pt;margin-left:0pt;">
<tr style="height:1px;">
<td style="height:1px;width:82%"></td>
<td style="height:1px;width:9%"></td>
<td style="height:1px;width:9%"></td>
</tr>
<tr>
<td colspan="1" style="background-color:#0027BA;;vertical-align:bottom">
<div style="background-color:#0027BA;padding-left:4pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"></div>
</td>
<td colspan="1" style="background-color:#0027BA;;vertical-align:bottom">
<div style="background-color:#0027BA;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:7.02pt;color:#FFFFFF;;"><b>1
Year</b></span></div>
</td>
<td colspan="1" style="background-color:#0027BA;;vertical-align:bottom">
<div style="background-color:#0027BA;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:7.02pt;color:#FFFFFF;;"><b>3 Years</b></span></div>
</td>
</tr>
<tr>
<td colspan="1" style="border-bottom:1pt solid #6E85DD;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:1pt;padding-bottom:0;align:left;text-align:left;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:0pt;margin-bottom:0;"> </div>
</td>
<td colspan="1" style="border-bottom:1pt solid #6E85DD;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:3pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:1pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$60</span></div>
</td>
<td colspan="1" style="border-bottom:1pt solid #6E85DD;vertical-align:bottom">
<div style="background-color:#FFFFFF;padding-left:2pt;padding-top:3pt;padding-bottom:0;align:center;text-align:center;padding-right:2pt;font-family:Arial, Helvetica, sans-serif;font-size:10pt;margin-top:1pt;margin-bottom:0;"><span style="font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;">$189</span></div>
</td>
</tr>
</table></div>
60
189
Portfolio Turnover
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Fund operating expenses or in the Example, affect the Fund’s performance. The Fund’s portfolio turnover rate for the Fund’s most recent fiscal year is not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">provided because the Fund had not commenced operations prior to the date of this Prospectus.</span></div>
Principal Investment Strategies
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund seeks to maximize current income by investing in a diversified portfolio of debt securities that are generally rated below investment grade (such as </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Ba or lower by Moody’s Investors Service, Inc. or BB or lower by S&P Global Ratings or Fitch, Inc.) or, if unrated, are deemed to be below investment grade by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">the Fund’s sub-advisor, Strategic Income Management, LLC (“SiM”). These types of securities are commonly referred to as “high yield” or having “junk” </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">status. The Fund has no limitation on investments in unrated securities.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The instruments in which the Fund may invest include: (1) corporate bonds, including debentures; (2) bank loans, including </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">loans that may be “covenant-lite” </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">based on the types of lender protections and borrower obligations in the loan agreements; and (3) convertible securities, including convertible preferred and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">contingent convertible securities. The Fund may also invest in</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">securitized instruments, including commercial and residential mortgage-backed securities that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">are not issued by U.S. government agencies, asset-backed securities, collateralized mortgage obligations, and mortgage pass-through instruments</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">, some of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">which may provide exposure to subprime mortgages</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund may also</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> invest in income-oriented equity securities, including: (1) common and preferred stock; (2) income trusts, including real estate investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">trusts (“REITs”); (3) business development companies (“BDCs”); (4) master limited partnerships (“MLPs”); and (5) exchange-traded funds (“ETFs”) that have </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">similar principal investment strategies as the Fund.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">In selecting investments for the Fund, SiM uses an approach that combines different aspects of top-down and bottom-up analysis. As part of its top-down </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">analysis, SiM utilizes a core philosophy to identify positive long-term trends. SiM then invests in sectors, industries and companies that will benefit from these </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">trends. Concurrent with this core philosophy, SiM seeks to take advantage of market volatility by analyzing and potentially investing in sectors, industries and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">companies undergoing changes in dynamics that have not been fully recognized by the market. Market volatility continually provides opportunities to capture </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">value from these types of situations. Once potential investment opportunities are identified, SiM utilizes bottom-up research to assess the fundamental </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">strengths and weaknesses of each individual company and to identify the best risk/reward security for inclusion in the portfolio.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> The Fund may have a focused </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">portfolio of fewer holdings than other diversified funds and typically invests in 40 to 80 holdings.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">SiM may reduce or sell the Fund’s investments for a variety of reasons, including if, in SiM’s opinion, an instrument’s value becomes fully recognized or if there </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">is a reassessment of the fundamental attributes of the instrument or its issuer.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund may hold instruments issued by distressed issuers, which have the possibility of going through bankruptcy proceedings, reorganizations, financial </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">restructurings, or otherwise experiencing financial hardship. The Fund may also invest in higher-quality investment-grade obligations, including those of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">U.S. Government and its agencies and instrumentalities, among other issuers, if SiM determines that they offer better relative value than investing in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">below-investment-grade obligations.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund may invest in derivative instruments that provide exposure to, or are a substitute for, investing directly in the reference instruments, and the Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may use derivatives to decrease (i.e., hedge) or increase the Fund’s exposure to principal risks associated with the Fund’s investments, including currency risk </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">and interest rate risk. These derivative instruments include non-U.S. currency futures contracts and U.S. Treasury futures contracts.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund may invest in securities of foreign (or “non-U.S.”) issuers, including those in developed, emerging and frontier markets. The Fund may have </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">exposure to non-U.S. currencies, including developed and emerging market currencies, for investment or hedging purposes, by purchasing or selling non-U.S. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">currency futures contracts. The Fund may make direct investments in non-U.S. currencies and in securities denominated in non-U.S. currencies. Investments in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">currencies and currency hedging are established to extract value or reduce risk.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund may have significant exposure to issuers located in, or with economic ties to, Europe and Latin America. However, as the geographic composition of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">the Fund’s portfolio changes over time, the Fund’s exposure to Europe and Latin America may decline, and the Fund’s exposure to other countries or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">geographic areas may increase.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund has no limitations regarding the maturities of the instruments it can hold, and such instruments may be callable. Investments may be fixed rate, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">variable rate or floating rate, and the Fund may hold instruments that pay scheduled coupon payments “in-kind”, or in additional principal, rather than cash. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Securities in the Fund may be non-registered and may be restricted or limited in their ability to be traded.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund may invest cash balances in other investment companies, including a government money market fund advised by the Manager, with respect to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">which the Manager also receives a management fee.</span></div>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">There is no assurance that the Fund will achieve its investment objectives, and you could lose part or all of your investment in the Fund. </span>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Allocation Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The allocations among strategies, asset classes and market exposures may be less than optimal and may adversely affect the Fund’s performance. There can be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">no assurance, particularly during periods of market disruption and stress, that judgments about allocations will be correct. The Fund’s allocations may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">invested in strategies, asset classes and market exposures during a period when such strategies, asset classes and market exposures underperform.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Asset-Backed Securities Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Investments in asset-backed securities are influenced by factors affecting the assets underlying the securities, including the broader market sector and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">individual markets, such as the auto markets. These securities may be more sensitive to changes in interest rates than other types of debt securities. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Investments in asset-backed securities also are subject to risks of fixed-income securities, which include, but are not limited to, credit risk, interest rate risk, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">prepayment and extension risk, callable securities risk, valuation risk, liquidity risk, and restricted securities risk. A decline in the credit quality of the issuers of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">asset-backed securities or instability in the markets for such securities may affect the value and liquidity of such securities, which could result in losses to the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Fund. These securities are also subject to the risk of default on the underlying assets, particularly during periods of market downturn, and an unexpectedly </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">high rate of defaults on the underlying assets will adversely affect the security’s value.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Asset Selection Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Assets selected for the Fund may not perform to expectations. This could result in the Fund’s underperformance compared to other funds with similar </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investment objectives.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Callable Securities Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund may invest in fixed-income securities with call features. A call feature allows the issuer of the security to redeem or call the security prior to its stated </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">maturity date. In periods of falling interest rates, issuers may be more likely to call in securities that are paying higher coupon rates than prevailing interest </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">rates. In the event of a call, the Fund would lose the income that would have been earned to maturity on that security, and the proceeds received by the Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may be invested in securities paying lower coupon rates and may not benefit from any increase in value that might otherwise result from declining interest </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">rates.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Confidential Information Access Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">In managing the Fund or other client assets, the Manager or sub-advisor may be in possession of material non-public information about the issuers of certain </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investments, including, without limit, loans, high yield bonds and related investments being considered for acquisition by the Fund or held in the Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">portfolio. Because of prohibitions on trading in securities of issuers while in possession of such information, the Fund might be unable to enter into a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">transaction in a security of that issuer when it would otherwise be advantageous to do so. In such circumstances, the Fund may be disadvantaged in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">comparison to other investors, including with respect to the price the Fund pays or receives when it buys or sells an investment. Pursuant to applicable policies </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">and procedures, the Manager or sub-advisor may, but is not required to, seek to avoid receipt of confidential information from the issuer so as to avoid </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">possible restrictions on its ability to purchase and sell investments on behalf of the Fund.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Convertible Securities Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The value of a convertible security</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">, including a convertible preferred security,</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> typically increases or decreases with the price of the underlying common stock. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">In general, a convertible security is subject to the market risks of stocks when the underlying stock’s price is high relative to the conversion price and is subject </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">to the market risks of debt securities when the underlying stock’s price is low relative to the conversion price. The general market risks of debt securities that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">are common to convertible securities include, but are not limited to, interest rate risk and credit risk. Many convertible securities have credit ratings that are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">below investment grade and are subject to the same risks as an investment in below investment grade debt securities </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">(commonly </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">referred to as having </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">“junk” status</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">). Lower-rated debt securities may fluctuate more widely in price and yield than investment grade debt securities and may fall in price during </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">times when the economy is weak or is expected to become weak. Convertible securities are subject to the risk that the credit standing of the issuer may have </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">an effect on the convertible security‘s investment value. Convertible securities are sensitive to movement in interest rates.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Contingent Convertible Securities (“CoCos”) Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The prices of contingent convertible securities (“CoCos”) may be significantly more volatile during times of market turmoil. CoCos are subordinated debt, and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">the Fund’s claims will generally be junior to the claims of other creditors if the issuer liquidates or dissolves. Interest payments on CoCos could be canceled by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">the issuer or a regulator. If the issuer converts the CoCo to an equity security, the Fund would lose interest payments and potentially all income, and the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Fund’s investment would be even further subordinated. The issuer could alternatively write down the principal due on the CoCos. The write-down of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">security’s par value may occur automatically and would not entitle holders to institute bankruptcy proceedings against the issuer. In addition, an automatic </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">write-down could result in a reduced income rate if the dividend or interest payment associated with the security is based on the security’s par value, or even a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">complete loss on investment with no chance of recovery even if the issuer remains in existence. CoCos carry the general risks applicable to other fixed income </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investments, including interest rate risk, credit risk, market risk and liquidity risk.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Counterparty Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund is subject to the risk that a party or participant to a transaction, such as a broker or a derivative counterparty, will be unwilling or unable to satisfy its </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">obligation to make timely principal, interest or settlement payments or to otherwise honor its obligations to the Fund.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>“Covenant-Lite” Obligations Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Certain investments, such as loans in which the Fund may invest directly or have exposure to through its investments in structured securities, may be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">“covenant-lite.” Covenant-lite obligations contain fewer maintenance covenants than other obligations, or no maintenance covenants at all, and may not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">include terms which allow the lender to monitor the financial performance of the borrower and declare a default if certain criteria are breached. The Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">exposure to losses on such investments may be increased, especially during a downturn in the credit cycle.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Credit Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund is subject to the risk that the issuer, guarantor or insurer of an obligation, or the counterparty to a transaction, may fail, or become less able or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">unwilling, to make timely payment of interest or principal or otherwise honor its obligations or default completely. Changes in the actual or perceived </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">creditworthiness of an issuer, or a downgrade or default affecting any of the Fund’s securities, could affect the Fund’s performance. Generally, the longer the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">maturity and the lower the credit quality of a security, the more sensitive it is to credit risk.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Currency Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund may have exposure to foreign currencies. Foreign currencies may fluctuate significantly over short periods of time, may be affected unpredictably by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">intervention, or the failure to intervene, of the U.S. or foreign governments or central banks, and may be affected by currency controls or political </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">developments in the U.S. or abroad. Foreign currencies may also decline in value relative to the U.S. dollar and other currencies and thereby affect the Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investments.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Cybersecurity and Operational Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Operational risks arising from, among other problems, human errors, systems and technology disruptions or failures, or cybersecurity incidents may negatively </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">impact the Fund, its service providers and third-party fund distribution platforms, including the ability of shareholders to transact in the Fund’s shares, and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">result in financial losses. Cybersecurity incidents may allow an unauthorized party to gain access to Fund assets, shareholder data, or proprietary information, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">or cause the Fund or its service providers, as well as securities trading venues and their service providers, to suffer data corruption or lose operational </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">functionality. Cybersecurity incidents can result from deliberate attacks or unintentional events. It is not possible for the Fund or its service providers to identify </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">all of the operational risks that may affect the Fund or to develop processes and controls to completely eliminate or mitigate their occurrence or effects. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Fund cannot control the cybersecurity and operational plans and systems of its service providers, its counterparties or the issuers of securities in which the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Fund invests. The issuers of the Fund’s investments are likely to be dependent on computers for their operations and require ready access to their data and the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">internet to conduct their business. Thus, cybersecurity incidents could also affect issuers of the Fund’s investments, leading to significant loss of value.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Debentures Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Debentures are unsecured debt securities. The holder of a debenture is protected only by the general creditworthiness of the issuer. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund may invest in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">both corporate and government debentures. </span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Derivatives Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Derivatives may involve significant risk. The use of derivative instruments may expose the Fund to additional risks that it would not be subject to if it invested </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">directly in the securities or other instruments underlying those derivatives, including the high degree of leverage often embedded in such instruments, and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">potential material and prolonged deviations between the theoretical value and realizable value of a derivative. The use of derivatives may also increase any </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">adverse effects resulting from the underperformance of strategies, asset classes and market exposures to which the Fund has allocated its assets. Derivatives </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may at times be highly illiquid, and the Fund may not be able to close out or sell a derivative at a particular time or at an anticipated price. Certain derivatives </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may be difficult to value, and valuation may be more difficult in times of market turmoil. Derivatives may also be more volatile than other types of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investments. Derivative investments can increase portfolio turnover and transaction costs. Derivatives also are subject to counterparty risk</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> and credit risk</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">. As a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">result, the Fund may not recover its investment or may only obtain a limited recovery, and any recovery may be delayed. Not all derivative transactions require </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">a counterparty to post collateral, which may expose the Fund to greater losses in the event of a default by a counterparty. Derivatives transactions requiring </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">the Fund to post collateral may expose the Fund to greater losses in the event of a default by a counterparty. There may be imperfect correlation between the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">behavior of a derivative and that of the reference instrument underlying the derivative. An abrupt change in the price of a reference instrument could render a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">derivative worthless. Derivatives may involve risks different from, and possibly greater than, the risks associated with investing directly in the reference </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">instrument. The Fund may buy or sell derivatives not traded on an exchange, which may be subject to heightened counterparty, liquidity and valuation risks. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Suitable derivatives may not be available in all circumstances, and there can be no assurance that the Fund will use derivatives to reduce exposure to other </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">risks when that might have been beneficial. Ongoing changes to the regulation of derivatives and changes in the regulation of funds using derivative </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">instruments could limit the Fund’s ability to pursue its investment strategies. New regulation of derivatives may make them more costly, or may otherwise </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">adversely affect their liquidity, value or performance. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">In addition, the Fund’s investments in derivatives are subject to the following risks:</span></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Futures Contracts Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Futures contracts are derivative instruments pursuant to a contract where the parties agree to a fixed price for an agreed amount of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">securities or other underlying assets at an agreed date. The use of such derivative instruments may expose the Fund to additional risks, such as liquidity risk </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">and counterparty risk, that it would not be subject to if it invested directly in the securities underlying those derivatives. There can be no assurance that any </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">strategy used will succeed. There may at times be an imperfect correlation between the movement in the prices of futures contracts and the value of their </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">underlying instruments or indexes. There also can be no assurance that, at all times, a liquid market will exist for offsetting a futures contract that the Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">has previously bought or sold, and this may result in the inability to close a futures contract when desired. Futures contracts may experience potentially </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">dramatic price changes, which will increase the volatility of the Fund and may involve a small investment of cash (the amount of initial and variation margin) </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">relative to the magnitude of the risk assumed (the potential increase or decrease in the price of the futures contract). The Fund may invest in the following </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">types of futures contracts:</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:2pt;padding-right:2%;padding-left:2%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:96%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;margin-left:16pt;margin-left:0pt;"><i>Foreign Currency Futures Contracts Risk.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Foreign currency futures contracts expose the Fund to risks associated with fluctuations in the value of foreign </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">currencies.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:2pt;padding-right:2%;padding-left:2%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:96%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;margin-left:16pt;margin-left:0pt;"><i>Treasury Futures Contracts Risk.</i></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Treasury futures contracts expose the</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Fund to price fluctuations resulting from changes in interest rates and to potential </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">losses if interest rates do not move as expected.</span></div>
</td>
</tr>
</table></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Distressed Securities Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund may invest in debt securities of financially stressed or distressed issuers. These investments are speculative, may be illiquid and volatile, and carry </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">significant uncertainty as to if, when, and at what value they will be resolved through liquidation, reorganization, or otherwise. Issuers of such securities may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">default on their obligations or enter into bankruptcy. The Fund may lose its entire investment or receive cash or securities worth substantially less than its </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">original investment, potentially after a lengthy workout or bankruptcy process.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Dividend Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">An issuer of stock held by the Fund may choose not to declare a dividend or the dividend rate might not remain at current levels or increase over time. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Dividend paying stocks might not experience the same level of earnings growth or capital appreciation as non-dividend paying stocks. Securities that pay </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">dividends may be sensitive to changes in interest rates and, as interest rates rise or fall, the prices of such securities may fall.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Emerging Markets Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">When investing in emerging markets, the risks of investing in foreign securities are heightened. Emerging markets are generally smaller, less developed, less </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">liquid and more volatile than the securities markets of the U.S. and other developed markets. There are also risks of: greater political or economic </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">uncertainties; an economy’s dependence on revenues from particular commodities or on international aid or development assistance; currency transfer </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">restrictions; a limited number of potential buyers for such securities resulting in increased volatility and limited liquidity for emerging market securities; trading </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">suspensions and other restrictions on investment; delays and disruptions in securities clearing and settlement procedures; and significant limitations on </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investor rights and recourse. The governments of emerging market countries may also be more unstable and more likely to impose capital controls, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, intervene in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">financial markets, and/or impose burdensome taxes that could adversely affect security prices. In addition, there may be less publicly available information </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">about issuers in emerging markets than would be available about issuers in more developed capital markets, and such issuers may not be subject to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">accounting, auditing, financial reporting and recordkeeping standards and requirements comparable to those to which U.S. companies are subject.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Equity Investments Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Equity securities represent ownership interests in companies and are subject to investment risk, issuer risk and market risk. In general, the values of stocks and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">other equity securities fluctuate, and sometimes widely fluctuate, in response to changes in a company’s financial condition as well as general market, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">economic and political conditions and other factors. The Fund may experience a significant or complete loss on its investment in an equity security. In </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">addition, stock prices may be particularly sensitive to rising interest rates, which increase borrowing costs and the costs of capital.</span></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Income Trust Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Securities of income trusts, which hold income producing assets and pass the income on to security holders, share many of the risks </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">inherent in stock ownership. Income trusts may also lack diversification and potential growth may be sacrificed because revenue is passed on to security </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">holders, rather than reinvested in the business. Income trusts are subject to credit risk, interest rate risk and dividend risk.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Master Limited Partnerships (“MLPs”) Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Investing in MLPs involves certain risks related to investing in the underlying assets of the MLPs and risks </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">associated with pooled investment vehicles. Investments held by MLPs may be relatively illiquid, limiting the MLPs’ ability to change their portfolios promptly </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">in response to changes in economic or other conditions. MLPs may have limited financial resources, their securities may trade infrequently and in limited </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">volume, they may be difficult to value, and they may be subject to more abrupt or erratic price movements than securities of larger or more broadly based </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">companies. Holders of units in MLPs have more limited rights to vote on matters affecting the partnership and may be required to sell their common units </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">at an undesirable time or price. The Fund’s investments in MLPs will be limited to no more than 25% of its assets in order for the Fund to meet the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">requirements necessary to qualify as a “regulated investment company” under the Internal Revenue Code of 1986, as amended (“Internal Revenue Code”).</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Real Estate Investment Trusts (“REITs”) Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Investments in REITs are subject to the risks associated with investing in the real estate industry, including, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">among other risks: adverse developments affecting the real estate industry; declines in real property values; changes in interest rates; defaults by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">mortgagors or other borrowers and tenants; lack of availability of mortgage funds or financing; extended vacancies of properties, especially during </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">economic downturns; casualty or condemnation losses; regulatory limitations on rents and operating expenses; and other governmental actions, such as </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">changes to tax laws, zoning regulations or environmental regulations. REITs also are dependent upon the skills of their managers and are subject to heavy </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">cash flow dependency or self-liquidation. Regardless of where a REIT is organized or traded, its performance may be affected significantly by events in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">region where its properties are located. REITs may not be diversified geographically or by property or tenant type. REITs typically incur fees that are separate </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">from those incurred by the Fund. Accordingly, the Fund’s investment in REITs will result in the layering of expenses such that shareholders will indirectly bear </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">a proportionate share of the REITs’ operating expenses, in addition to paying Fund expenses. The value of REIT common stock may decline when interest </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">rates rise. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Publicly traded REITs may typically trade in wider spreads depending on market conditions.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> REITs tend to be small- to mid-capitalization securities </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">and, as such, are subject to the risks of investing in small- to mid-capitalization securities. </span></div>
</td>
</tr>
</table></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Exchange-Traded Funds (“ETFs”) Risk</b></span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> </span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">As an ETF, the Fund is subject to the following risks:</span></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Authorized Participants Concentration Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> The Fund has a limited number of financial institutions that may act as authorized participants (i.e., large </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">institutions that have entered into agreements with the distributor of the Fund’s shares and are authorized to transact in Creation Units (described below) </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">with the Fund) (“Authorized Participants”). Only an Authorized Participant may transact in Creation Units directly with the Fund, and none of those </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Authorized Participants is obligated to engage in creation and/or redemption transactions. To the extent they exit the business or are otherwise unable to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">proceed in creation and redemption transactions with the Fund and no other Authorized Participant is able to step forward to create or redeem shares, then </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">shares of the Fund may be more likely to trade at a premium or discount to net asset value (“NAV”) and possibly face trading halts or delisting. Authorized </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Participant concentration risk may be heightened for ETFs that invest in securities or instruments that have lower trading volumes.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Cash Transactions Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Like other ETFs, the Fund sells and redeems its shares primarily in large blocks called “Creation Units” and only to Authorized </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Participants. Unlike many other ETFs, however, the Fund expects to effect its creations and redemptions at least partially </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">or fully</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> for cash, rather than in-kind </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">securities. Thus, an investment in the Fund may be less tax-efficient than an investment in other ETFs as the Fund may recognize a capital gain that it could </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">have avoided by making redemptions in-kind. As a result, the Fund may pay out higher capital gains distributions than ETFs that redeem in-kind. Further, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">paying redemption proceeds in cash rather than through in-kind delivery of portfolio securities may require the Fund to dispose of or sell portfolio </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investments to obtain the cash needed to distribute redemption proceeds at an inopportune time.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Premium/Discount Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> There may be times when the market price of the Fund’s shares is more than its NAV (at a premium) or less than its NAV (at a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">discount). As a result, shareholders of the Fund may pay more than NAV when purchasing shares and receive less than NAV when selling Fund shares. This </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">risk is heightened in times of market volatility or periods of steep market declines. In such market conditions, market or stop loss orders to sell Fund shares </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may be executed at prices well below NAV.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Secondary Market Trading Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Investors buying or selling shares in the secondary market will normally pay brokerage commissions, which are often a fixed </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">amount and may be a significant proportional cost for investors buying or selling relatively small amounts of shares. In addition, such investors may incur </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">the cost of the “spread” also known as the bid-ask spread, which is the difference between what investors are willing to pay for Fund shares (the “bid” </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">price) and the price at which they are willing to sell Fund shares (the “ask” price). The bid-ask spread varies over time based on, among other things, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">trading volume, market liquidity and market volatility. Trading in Fund shares may be halted by the Exchange (as defined below) because of market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">conditions or other reasons. If a trading halt occurs, a shareholder may temporarily be unable to purchase or sell shares of the Fund. In addition, although </span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:1pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="color:#999999;;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:18pt;font-family:Arial, Helvetica, sans-serif;"></div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">the Fund’s shares are listed on the Exchange, there can be no assurance that an active trading market for shares will develop or be maintained or that the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Fund’s shares will continue to be listed. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Foreign securities held by the Fund may trade in a foreign market while the U.S. market is closed. Likewise, foreign </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">securities held by the Fund may change in value while the U.S. market is open but while the foreign market is closed. There may be differences between the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">closing price of a foreign security when the foreign market closes and the price of that same foreign security when the U.S. market closes, which could lead </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">to differences between the market price of the Fund’s shares and the Fund’s NAV.</span></div>
</td>
</tr>
</table></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Focused Holdings Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Because the Fund may have a focused portfolio of fewer companies than other diversified funds, the increase or decrease of the value of a single investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may have a greater impact on the Fund’s net asset value (“NAV”) and total return when compared to other diversified funds.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Foreign Investing Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Non-U.S. investments carry potential risks not associated with U.S. investments. Such risks may include, but are not limited to: (1) currency exchange rate </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">fluctuations, (2) political and financial instability, (3) less liquidity, (4) lack of uniform accounting, auditing, recordkeeping and financial reporting standards, (5) </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">greater volatility, (6) different government regulation and supervision of foreign stock exchanges, brokers and listed companies, and (7) delays or failures in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">transaction payment and settlement in some foreign markets. Additionally, trading in foreign markets generally involves higher transaction costs than trading </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">in U.S. markets. The Fund’s investment in a foreign issuer may subject the Fund to regulatory, political, currency, security, economic and other risks associated </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">with that country, including tariffs, trade disputes and sanctions. Global economic and financial markets have become increasingly interconnected and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">conditions (including recent volatility, terrorism, war and political instability) and events (including natural disasters) in one country, region or financial market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may adversely impact issuers in a different country, region or financial market.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Frontier Markets Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Frontier market countries generally have smaller economies and less developed capital markets or legal, regulatory and political systems than traditional </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">emerging market countries. As a result, foreign investing risk and the risks of investing in emerging market countries are magnified in frontier market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">countries. The magnification of risks is the result of: (1) the potential for extreme price volatility and illiquidity in frontier markets; (2) government ownership </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">or control of parts of the private sector or other protectionist measures; (3) trade barriers and exchange controls, (4) large currency fluctuations; (5) fewer </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">companies and investment opportunities; or (6) inadequate investor protections and regulatory enforcement. Investments that the Fund holds may be exposed </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">to these risks, which could have a negative impact on their value.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Geographic Concentration Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">From time to time, based on market or economic conditions, the Fund may invest a significant portion of its assets in the securities of issuers located in, or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">with significant economic ties to, a single country or geographic region, which could increase the risk that economic, market, political, business, regulatory, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">diplomatic, social and environmental conditions in that particular country or geographic region may have a significant impact on the Fund’s performance. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Investing in such a manner could cause the Fund’s performance to be more volatile than the performance of more geographically diverse funds. A decline in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">the economies or financial markets of one country or region may adversely affect the economies or financial markets of another.</span></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">European Securities Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> The Fund’s performance may be affected by political, social and economic conditions in Europe, such as growth of economic </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">output (the gross national product of the countries in the region), the rate of inflation, the rate at which capital is reinvested into European economies, the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">success of governmental actions to reduce budget deficits, the resource self-sufficiency of European countries, the monetary exchange rates between </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">European countries, and conflict between European countries. The European financial markets have experienced and may continue to experience volatility </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">and adverse trends due to concerns relating to economic downturns; rising government debt levels and the possible default on government debt; national </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">unemployment in several European countries; public health crises; political unrest; economic sanctions; inflation; energy crises; and war and military conflict, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">such as the Russian invasion of Ukraine. A default or debt restructuring by any European country could adversely impact holders of that country’s debt and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">sellers of credit default swaps linked to that country’s creditworthiness, which may be located in other countries. Such a default or debt restructuring could </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">affect exposures to European countries. In addition, issuers have faced difficulties obtaining credit or refinancing existing obligations, and financial markets </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">have experienced extreme volatility and declines in asset values and liquidity. These events have affected the exchange rate of the Euro and may continue to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">significantly affect European countries.</span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Responses to financial problems by European governments, central banks, and others, including austerity measures and other reforms, may not produce the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">desired results, may result in social unrest and may limit future growth and economic recovery or may have unintended consequences. The Fund makes </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investments in securities of issuers that are domiciled in member states of the European Union (the “EU”). The economies and markets of European </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">countries are often closely connected and interdependent, and events in one country in Europe can have an adverse impact on other European countries. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">One or more countries may abandon the Euro and/or withdraw from the EU. The impact of these actions, especially if they occur in a disorderly fashion, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">could be significant and far-reaching. The United Kingdom’s withdrawal from the EU could be an indication that one or more other countries may withdraw </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">from the EU and/or abandon the Euro. These events and actions have affected, and may in the future affect, the value and exchange rate of the Euro and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may continue to significantly affect the economies of every country in Europe, including countries that do not use the Euro and non</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">-</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">EU member states.</span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The continuing effects on the economies of European countries of the Russia/Ukraine war and Russia’s response to sanctions imposed by the U.S., EU, UK </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">and others, are impossible to predict, but have been and could continue to be significant. For example, exports in Eastern Europe have been disrupted for </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">certain key commodities, pushing commodity prices to record highs. Also, both wholesale energy prices and energy prices charged to consumers in Europe </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">have increased significantly.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Latin American Securities Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Investments in Latin American issuers are subject to heightened political, economic, regulatory, and market risks. Countries </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">in the region have experienced periods of inflation, currency devaluation, economic instability, government intervention, political uncertainty, sovereign </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">debt difficulties, and changing trade policies. Many Latin American economies depend heavily on commodity exports, including oil and other natural </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">resources, making them sensitive to fluctuations in commodity prices and global demand. In addition, the region’s economies may be significantly affected </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">by developments involving key trading partners, including the United States, Europe, and Asia. These factors may cause increased volatility, reduced </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">liquidity, and losses in the Fund’s investments</span></div>
</td>
</tr>
</table></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Hedging Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">If the Fund uses a hedging instrument at the wrong time or judges the market conditions incorrectly, or the hedged instrument does not correlate to the risk </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">sought to be hedged, the hedge might be unsuccessful, reduce the Fund’s return, or create a loss. In addition, hedges, even when successful in mitigating </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">risk, may not prevent the Fund from experiencing losses on its investments. Hedging instruments may also reduce or eliminate gains that may otherwise have </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">been available had the Fund not used the hedging instruments.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>High-Yield Securities Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Exposure to high-yield, below investment-grade securities (commonly referred to as </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">having </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">“junk</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">“ status</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">) generally involves significantly greater risks than an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investment in investment grade securities. High-yield debt securities may fluctuate more widely in price and yield and may fall in price when the economy is </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">weak or expected to become weak. These securities also may be difficult to sell at the time and price the Fund desires. High-yield securities are considered to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">be speculative with respect to an issuer’s ability to pay interest and principal and carry a greater risk that the issuers of lower-rated securities will default on the </span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">timely payment of principal and interest. High-yield securities may experience greater price volatility and less liquidity than investment grade securities. Issuers </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">of securities that are in default or have defaulted may fail to resume principal or interest payments, in which case the Fund may lose its entire investment.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Interest Rate Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Generally, the value of investments with interest rate risk, such as fixed-income securities or derivatives, will move in the opposite direction as movements in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">interest rates. Factors including central bank monetary policy, rising inflation rates, and changes in general economic conditions may cause interest rates to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">rise, which could cause the value of the Fund’s investments to decline. </span><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Additionally, the value of income-oriented equity securities that pay dividends and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">floating rate securities, among other instruments, may decline when interest rates rise, as rising interest rates can reduce companies’ profitability and their </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">ability to pay dividends.</span></div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Interest rate increases, including significant or rapid increases, may result in a decline in the value of investments</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">or derivatives</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> held </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">by the Fund, make issuers less willing or able to make principal and interest payments on fixed-income investments when due, lead to heightened volatility in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">the fixed-income markets and adversely affect the liquidity of certain fixed-income investments, any of which may result in substantial losses to the Fund. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">value of floating rate and variable rate securities may decline if their coupons do not rise as quickly, or as much, as general interest rates.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">prices of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">fixed-income securities</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">or derivatives</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> are also affected by their durations. Fixed-income securities or derivatives with longer durations generally have greater </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">sensitivity to changes in interest rates than those with shorter durations. Rising interest rates may cause the value of the Fund’s investments with longer </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">durations and terms to maturity to decline, which may adversely affect the value of the Fund. For example, if a bond has a duration of eight years, a 1% </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">increase in interest rates could be expected to result in an 8% decrease in the value of the bond.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Investment Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">An investment in the Fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">government agency.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> When you sell your shares of the Fund, they could be worth less than what you paid for them. Therefore, you may lose money by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investing in the Fund.</span></div>
<span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">An investment in the Fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">government agency.</span>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Issuer Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The value of, and/or the return generated by, a security may decline for a number of reasons that directly relate to the issuer, such as management </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">performance, financial leverage and reduced demand for the issuer’s goods or services, as well as the historical and prospective earnings of the issuer and the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">value of its assets.</span></div>
<div><span style="font-family: Arial, Helvetica, sans-serif; font-size: 8.02pt"><b>Liquidity
Risk</b></span><br/><span style="font-family: Arial, Helvetica, sans-serif; font-size: 8.02pt">The
Fund is susceptible to the risk that certain investments held by the Fund may have limited
marketability, be subject to restrictions on sale, be difficult or impossible to purchase
or sell at favorable times or prices or become less liquid in response to market developments
or adverse credit events that may affect issuers or guarantors of a security. An inability
to sell a portfolio position can adversely affect the Fund’s value or prevent the
Fund from being able to take advantage of other investment opportunities. Market prices for
such instruments may be volatile. During periods of substantial market volatility, an investment
or even an entire market segment may become illiquid, sometimes abruptly, which can adversely
affect the Fund’s ability to limit losses. The Fund could lose money if it is unable
to dispose of an investment at a time that is most beneficial to the Fund. The Fund may be
required to dispose of investments at unfavorable times or prices to satisfy obligations,
which may result in losses or may be costly to the Fund. Judgment plays a greater
role in pricing illiquid investments than in investments with more active markets. Fluctuations
in interest rates may also affect the liquidity of fixed-income securities and instruments
held by the Fund.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Loan Interests Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">In making investments in bank loans or senior loans, the Fund will depend primarily on the creditworthiness of the borrower for payment of principal and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">interest and will also rely on the financial institution to make principal and interest payments to the Fund once it receives payment on the underlying loan. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Fund will also rely on the financial institution to pursue appropriate remedies against a borrower in the event that the borrower defaults. As such, the Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may be exposed to the credit risk of both the financial institution that made the loan and the underlying borrower.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Unlike publicly traded common stocks, which trade on national exchanges, there is no central place or exchange for loans, including bank loans and senior </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">loans, to trade. There is a risk that the value of any collateral securing a loan in which the Fund has an interest may decline and that the collateral may not be </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">sufficient to cover the amount owed on the loan. In the event that the borrower defaults, the Fund’s access to the collateral may be limited or delayed by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">bankruptcy or other insolvency laws. Loans trade in an over-the-counter market, and confirmation and settlement, which are effected through standardized </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">procedures and documentation, may take significantly longer than seven days to complete. Extended trade settlement periods may, in unusual market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">conditions with a high volume of shareholder redemptions, present a risk to shareholders with respect to the Fund’s ability to pay redemption proceeds within </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">the allowable time periods stated in the Prospectus. The secondary market for loans also may be subject to irregular trading activity and wide bid/ask spreads. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The lack of an active trading market for certain loans may impair the ability of the Fund to sell its loan interests at a time when it may otherwise be desirable </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">to do so or may require the Fund to sell them at prices that are less than what the Fund regards as their fair market value and may make it difficult to value </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">such loans. Accordingly, loan interests may at times be illiquid. Interests in loans made to finance highly leveraged companies or transactions, such as </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">corporate acquisitions, may be especially vulnerable to adverse changes in economic or market conditions.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Market Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund is subject to the risk that the securities markets will move down, sometimes rapidly and unpredictably, based on overall economic conditions and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">other factors, which may negatively affect the Fund’s performance. The financial markets generally move in cycles, with periods of rising prices followed by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">periods of declining prices. The value of your investment may reflect these fluctuations. During a general downturn in the securities markets, multiple asset </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">classes may decline in value simultaneously. Even when certain securities prices have generally increased over time, there have been periods of price decreases </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">during those times, resulting in losses for investors, which are likely to occur again in the future.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Geopolitical and other events, including war, terrorism, trade disputes, pandemics, public health crises, natural disasters, and cybersecurity incidents, have led, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">and in the future may continue to lead, to general instability in world economies and markets and reduced liquidity in securities, which may negatively affect </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">the value of your investment.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Policies established by the U.S. government and/or Federal Reserve and economic and political circumstances within the U.S. and abroad, such as inflation, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">changes in interest rates, recessions, changes in government leadership, a government’s inability to agree on a budget, high public debt, the threat or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">occurrence of a federal government shutdown and threats or the occurrence of a failure to increase the federal government’s debt limit, which could result in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">a default on the government’s obligations, may negatively affect investor and consumer confidence and may negatively impact financial markets and the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">broader economy, perhaps suddenly and to a significant degree.</span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Markets and market participants are increasingly reliant upon public and proprietary data and systems. Data or technology malfunctions and inaccuracies may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">disrupt markets and lead to negative consequences for market participants like the Fund. </span></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Recent Market Events Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Both U.S. and international markets have experienced significant volatility in recent months and years. As a result of such </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">volatility, investment returns may fluctuate significantly. Moreover, during periods of significant volatility, the risks discussed herein associated with an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investment in the Fund may be increased. National economies are substantially interconnected, as are global financial markets, which creates the possibility </span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:1pt;padding-right:2%;padding-left:0%;" width="100%">
<tr>
<td style="color:#999999;;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:18pt;font-family:Arial, Helvetica, sans-serif;"></div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">that conditions in one country or region might adversely impact issuers in a different country or region. However, the interconnectedness of economies and/</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">or markets may be changing, which may impact such economies and markets in ways that cannot be foreseen at this time.</span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Some countries, including the U.S., have adopted more protectionist trade policies, including trade tariffs and other trade barriers, which is a trend that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">appears to be continuing globally. The economies of all nations, including the U.S., are subject to the risks of slowing global economic growth, protectionist </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">trade policies, inflationary pressures, limits imposed by international trade and security agreements, political or economic dysfunction, poor consumer </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">sentiment, and reduced demand for goods due to fluctuating commodity prices and currency values, and these risks may create significant market volatility </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">in ways that cannot be foreseen at the present time. These economic risks could have a negative impact on the Fund’s investments.</span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The U.S. Federal Reserve and certain foreign central banks </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may raise or</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> lower interest rates</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> in response to</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> economic or other factors</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">, including inflation</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">. It is </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">difficult to accurately predict the various economic and political factors that influence </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">interest rate changes, including the direction, pace,</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> timing, frequency </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">or magnitude of any such changes in interest rates</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">. Changes in interest rates could lead to an economic slowdown in the U.S. and abroad, significant </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">market volatility and reduced liquidity in certain sectors of the market.</span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Tensions, war, or open conflict between nations, such as among the United States, Israel and Iran, between Russia and Ukraine, otherwise in the Middle </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">East or in eastern Asia could affect the economies of many nations, including the United States and may contribute to increased volatility and uncertainty in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">the financial markets. The extent and duration of ongoing hostilities and related sanctions and the repercussions of such events cannot be predicted. Those </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">events have presented and could continue to present material uncertainty and risk with respect to markets globally, including in the oil and gas markets and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">potentially other industries and sectors, and the performance of the Fund and its investments or operations could be negatively impacted. </span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Advancements in technology, including advanced development and increased regulation of artificial intelligence, may adversely impact market movements </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">and liquidity. As artificial intelligence is used more widely, which can occur relatively rapidly, the profitability and growth of certain issuers and industries </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may be negatively impacted in ways that cannot be foreseen and could adversely impact issuer and market performance. As a consequence, the Fund’s </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">holdings and its overall performance could be negatively impacted.</span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Global climate change may affect property and security values. Certain issuers, industries and regions may be adversely affected by the impacts of climate </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">change in ways that cannot be foreseen. The impacts of legislation, regulation and international accords related to climate change, as well as any indirect </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">consequences that may not be foreseen, may negatively impact certain issuers, industries and regions.</span></div>
</td>
</tr>
</table></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Mortgage-Backed and Mortgage-Related Securities Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Investments in mortgage-backed and mortgage-related securities are influenced by the factors affecting the mortgages underlying the securities or the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">housing market. These securities tend to be more sensitive to changes in interest rates than other types of debt securities. Investments in mortgage-backed </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">and mortgage-related securities also are subject to market risks for fixed-income securities, which include, but are not limited to, credit risk, interest rate risk, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">prepayment and extension risk, callable securities risk, valuation risk, liquidity risk, and restricted securities risk. A decline in the credit quality of the issuers of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">mortgage-backed and mortgage-related securities or instability in the markets for such securities may affect the value and liquidity of such securities, which </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">could result in losses to the Fund. These securities are also subject to the risk of default on the underlying mortgages, particularly during periods of market </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">downturn, and an unexpectedly high rate of defaults on the underlying assets will adversely affect the security’s value.</span></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Collateralized Mortgage Obligation (“CMOs”) Risk</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">. CMOs may offer a higher yield than U.S. government securities, but they may also be subject to greater </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">price fluctuation and credit risk. In addition, CMOs typically will be issued in a variety of classes or series, which have different maturities and are retired in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">sequence. In the event of a default by an issuer of a CMO, there is no assurance that the collateral securing such CMO will be sufficient to pay principal and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">interest. It is possible that there will be limited opportunities for trading CMOs in the OTC market, the depth and liquidity of which will vary from time to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">time.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Commercial Mortgage-Backed Securities (“CMBS”) Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> CMBS reflect the risks of investing in the real estate securing the underlying mortgage loans. These </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">risks reflect the effects of local and other economic conditions on real estate markets, the ability of borrowers to make loan payments, and the ability of a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">property to attract and retain tenants. CMBS may not be backed by the full faith and credit of the U.S. Government and are subject to risk of default on the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">underlying mortgages, particularly during periods of economic downturn. CMBS are subject to a greater degree of prepayment and extension risk than </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">many other forms of fixed-income securities, and CMBS may be less liquid and exhibit greater price volatility than other types of mortgage- or asset-backed </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">securities. Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of CMBS.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Mortgage Pass-Through Securities Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Mortgage pass-through securities provide for the “pass through” of the monthly payments made by individual </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">borrowers on their residential or commercial mortgage loans, net of any fees by the security issuer and guarantor, as applicable, to the holder of the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">security. Mortgage pass-through securities are sensitive to interest rate changes, and small movements in interest rates, both increases and decreases, may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">quickly and significantly affect the value of certain mortgage pass-through securities. Mortgage pass-through securities involve interest rate risk, credit risk, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">prepayment risk and extension risk.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Residential Mortgage-Backed Securities (“RMBS”) Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> RMBS include securities that reflect an interest in pools of residential mortgage loans secured by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">residential real property. While subject to the risks generally associated with mortgage-backed securities, RMBS are particularly susceptible to prepayment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">risks. Homeowners frequently refinance high-rate mortgages when mortgage rates fall, which results in the prepayment of high-rate mortgages. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Conversely, when mortgage rates increase, prepayments from refinancing arrangements decline, extending the life of RMBS with lower yields. RMBS may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">not be backed by the full faith and credit of the U.S. government and are subject to risk of default on the underlying mortgages. The rate of delinquencies </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">and defaults on RMBS and the amount of the resulting losses depend on a number of factors: many of the risks of investing in the real estate securing the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">underlying mortgage loans, including general economic conditions and local economic conditions in the geographic area where the mortgaged property is </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">located, the terms of the mortgage loan, the borrower’s equity in the mortgaged property, and the financial circumstances of the borrower. RMBS issued by </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">non-government entities may offer higher yields than those issued by government entities, but also may be subject to greater volatility than government </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">issues. RMBS backed by subprime loans may suffer significantly greater declines in value due to defaults or the increased risk of default. </span></div>
</td>
</tr>
</table></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>New Fund Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund had not commenced operations prior to the date of this Prospectus. The current performance of the Fund may not represent how it is expected to, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">or may, perform in the long term if and when it becomes larger and has fully implemented its investment strategies. Investment positions may have a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">disproportionate impact (negative or positive) on the Fund’s performance. The Fund may also require a period of time before it is invested in securities that </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">meet its investment objectives and policies and achieves a representative portfolio composition. Fund performance may be lower or higher during this </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">“ramp-up” period, and may also be more volatile, than would be the case after the Fund is fully invested. Similarly, the Fund’s investment strategies may </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">require a longer period of time to show returns that are representative of the strategies. As a new ETF, the Fund may experience low trading volume and wide </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">bid-ask spreads.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Other Investment Companies Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">To the extent that the Fund invests in shares of other registered investment companies, the Fund will indirectly bear the fees and expenses charged by those </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investment companies in addition to the Fund’s direct fees and expenses. To the extent the Fund invests in other investment companies that invest in equity </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">securities, fixed-income securities and/or foreign securities, or that track an index, the Fund is subject to the risks associated with the underlying investments </span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">held by the investment company or the index fluctuations to which the investment company is subject. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund may invest in securities of an investment </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">company advised by the Manager, with respect to which the Manager also receives a management fee. The Manager has a financial incentive to invest in an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">affiliated rather than unaffiliated investment company and thus has a potential conflict between its own financial interest and the Fund’s interest. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> The Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">will be subject to the risks associated with investments in those companies, including but not limited to the following:</span></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">BDCs Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> The Fund’s investments in business development companies (“BDCs”) may be subject to certain additional risks, including competition for </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">limited investment opportunities, the liquidity of a BDC’s investments, uncertainty as to the value of a BDC’s investments, risks associated with access to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">capital and leverage, and reliance on the management of a BDC.</span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Exchange-Traded Funds (“ETFs”) Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Because ETFs are listed on an exchange, they may be subject to trading halts, may trade at a premium or discount to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">their net asset value (“NAV”) and may not be liquid. An ETF that tracks an index may not precisely replicate the returns of that index, and an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">actively-managed ETF’s performance will reflect its adviser’s ability to make investment decisions that are suited to achieving the ETF’s investment objectives. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Future legislative or regulatory changes, including changes in taxation, could impact the operation of ETFs. </span></div>
</td>
</tr>
</table></div><div>
<table cellspacing="0" style="padding-top:2pt;margin-left:0%;" width="100%">
<tr>
<td style="color:#0027BA;padding-top:0pt;width:2%;padding-bottom:0pt;padding-left:0pt;text-align:left;vertical-align:top;size:3;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;">■</div>
</td>
<td style="vertical-align:top;padding-bottom:0pt;padding-top:1pt;width:98%;padding-left:2pt;align:left;vertical-align:top;text-align:left;">
<div style="font-size:10pt;font-family:Arial, Helvetica, sans-serif;"><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;color:#0027BA;;">Government Money Market Funds Risk.</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"> Investments in government money market funds are subject to interest rate risk, credit risk, and market risk.</span></div>
</td>
</tr>
</table></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Pay-In-Kind Securities Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Pay-in-kind securities are debt securities that do not make regular cash interest payments. Pay-in-kind securities pay interest through the issuance of additional </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">securities. Because these securities do not pay current cash income, their prices can be volatile when interest rates fluctuate. If an issuer of pay-in-kind </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">securities defaults, the Fund may lose its entire investment. In order to continue to qualify for treatment as a “regulated investment company” under the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Internal Revenue Code and avoid federal excise tax, the Fund may be required to distribute a portion of such non-cash income and may be required to dispose </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">of other portfolio securities in order to generate cash to meet these distribution requirements, potentially during periods of adverse market prices.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Preferred Stock Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Preferred stocks are sensitive to movements in interest rates. Preferred stocks may be less liquid than common stocks and, unlike common stocks, participation </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">in the growth of an issuer may be limited. Distributions on preferred stocks generally are payable at the discretion of an issuer and after required payments to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">bond holders. In certain situations, an issuer may call or redeem its preferred stock or convert it to common stock. The market prices of preferred stocks are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">generally more sensitive to actual or perceived changes in the issuer’s financial condition or prospects than are the prices of debt securities.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Prepayment and Extension Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Prepayment and extension risk is the risk that a bond or other fixed-income security or investment might, in the case of prepayment risk, be called or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">otherwise converted, prepaid or redeemed before maturity and, in the case of extension risk, that the investment might not be prepaid as expected. Due to a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">decline in interest rates or excess cash flow into the issuer, a debt security may be called or otherwise converted, prepaid or redeemed before maturity. If this </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">occurs, no additional interest will be paid on the investment. The Fund may have to reinvest the proceeds in another investment at a lower rate, may not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">benefit from an increase in value that may result from declining interest rates, and may lose any premium it paid to acquire the security, any of which could </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">result in a reduced yield to the Fund. The rate of prepayments tends to increase as interest rates fall, which could cause the average maturity of the portfolio </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">to shorten. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Variable and floating rate securities may be less sensitive to prepayment risk. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Conversely, extension risk is the risk that a decrease in prepayments </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may, as a result of higher interest rates or other factors, result in the extension of a security’s effective maturity, increase the risk of default or delayed </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">payment, heighten interest rate risk and increase the potential for a decline in an investment’s price. In addition, as a consequence of a decrease in </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">prepayments, the amount of principal available to the Fund for investment would be reduced. Extensions of obligations could cause the Fund to exhibit </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">additional volatility and hold securities paying lower-than-market rates of interest. Either case could hurt the Fund’s performance.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Redemption Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Certain shareholders, including the Manager, the sub-advisor or an affiliate of either, other funds or accounts advised by the Manager or the sub-advisor or an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">affiliate of either, or Authorized Participants or other entities, may from time to time invest in the Fund, including to facilitate the Fund’s commencement of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">operations, and therefore own a substantial amount of the Fund’s shares. There is no requirement that these shareholders maintain their investment in the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Fund, and there can be no assurance that any such shareholder would not redeem its investment, that the size of the Fund would be maintained at such </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">levels or that the Fund would continue to meet applicable listing requirements. There is a risk that such shareholders or that the Fund’s shareholders generally </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may redeem all or a substantial portion of their investments in the Fund in a short period of time, which could have a significant negative impact on the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Fund’s NAV, liquidity, brokerage costs, and expenses. To the extent the Fund permits redemptions in cash, these redemptions may force the Fund to sell </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">portfolio securities when it might not otherwise do so. Large redemptions could also result in tax consequences to shareholders and impact the Fund’s ability </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">to implement its investment strategy, and there is no guarantee that the Fund could maintain sufficient assets to continue operations, in which case the Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may be liquidated.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Reliance on Corporate Management and Financial Reporting Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The sub-advisor may select investments for the Fund in part on the basis of information and data made directly available to the sub-advisor by the issuers of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">securities or through sources other than the issuers such as collateral pool servicers. The sub-advisor has no ability to independently verify such information </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">and data and is therefore dependent upon the integrity of the management of these issuers and of such servicers and the financial and collateral performance </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">reporting processes in general. Information and data provided regarding a particular issuer may not necessarily contain information that the sub-advisor </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">normally considers when evaluating the investment prospects of a company.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Restricted Securities Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Securities not registered in the U.S. under the Securities Act of 1933, as amended (the “Securities Act”), or in non-U.S. markets pursuant to similar </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">regulations, including “Section 4(a)(2)” securities and “Rule 144A” securities, are restricted as to their resale. Such securities may not be listed on an </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">exchange and may have no active trading market. The prices of these securities may be more difficult to determine than publicly traded securities and these </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">securities may involve heightened risk as compared to investments in securities of publicly traded companies. They may be more difficult to purchase or sell at </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">an advantageous time or price because such securities may not be readily marketable in broad public markets or may have to be held for a certain time period </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">before they can be resold. The Fund may not be able to sell a restricted security when the sub-advisor considers it desirable to do so and/or may have to sell </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">the security at a lower price than the Fund believes is its fair market value. In addition, transaction costs may be higher for restricted securities and the Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may receive only limited information regarding the issuer of a restricted security. The Fund may have to bear the expense of registering restricted securities for </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">resale and the risk of substantial delays in effecting the registration.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Secured, Partially Secured and Unsecured Obligation Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Debt obligations may be secured, partially secured or unsecured. Interests in secured and partially-secured obligations have the benefit of collateral and, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">typically, of restrictive covenants limiting the ability of the borrower to further encumber its assets. However, there is no assurance that the liquidation of </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">collateral from a secured or partially-secured obligation would satisfy the borrower’s obligation, or that the collateral can be liquidated. Furthermore, there is a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">risk that the value of any collateral securing an obligation in which the Fund has an interest may decline and that the collateral may not be sufficient to cover </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">the amount owed on the obligation. In the event the borrower defaults, the Fund’s access to the collateral may be limited or delayed by bankruptcy or other </span></div><div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">insolvency laws. Unsecured debt, including senior unsecured and subordinated debt, will not be secured by any collateral and will be effectively subordinated </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">to a borrower’s secured indebtedness (to the extent of the collateral securing such indebtedness). With respect to unsecured obligations, the Fund lacks any </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">collateral on which to foreclose to satisfy its claim in whole or in part. Such instruments generally have greater price volatility than that of fully secured </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">holdings and may be less liquid.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Securities Selection Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Securities selected for the Fund may not perform to expectations. This could result in the Fund’s underperformance compared to its performance index(es), or </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">other funds with similar investment objectives or strategies.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Unrated Securities Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Because the Fund may purchase securities that are not rated by any rating organization, the sub-advisor, after assessing their credit quality, may internally </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">assign ratings to certain of those securities in categories similar to those of rating organizations. Unrated securities are subject to the risk that the sub-advisor </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">may not accurately evaluate the security’s comparative credit rating. Some unrated securities may not have an active trading market or may be difficult to </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">value, which means the Fund might have difficulty selling them promptly at an acceptable price. Unrated securities may be subject to greater liquidity risk and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">price volatility.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>U.S. Government Securities and Government-Sponsored Enterprises Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">A security backed by the U.S. Treasury or the full faith and credit of the United States is guaranteed only as to the timely payment of coupons and the face </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">value at maturity, not its current market price. The market prices for such securities are not guaranteed and will fluctuate. Certain securities held by the Fund </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">that are issued by government-sponsored enterprises, such as the Federal National Mortgage Association (‘‘Fannie Mae’’), Federal Home Loan Mortgage </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Corporation (‘‘Freddie Mac’’), Federal Home Loan Bank (‘‘FHLB’’), and Federal Farm Credit Bank (“FFCB”), are not guaranteed by the U.S. Treasury and are not </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">backed by the full faith and credit of the U.S. government, and no assurance can be given that the U.S. government will provide financial support if these </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">organizations do not have the funds to meet future payment obligations. U.S. government securities and securities of government-sponsored enterprises are </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">also subject to credit risk, interest rate risk and market risk. The rising U.S. national debt may lead to adverse impacts on the value of U.S. government </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">securities due to potentially higher costs for the U.S. government to obtain new financing. It is possible that the U.S. government and government-sponsored </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">enterprises will not have the funds to meet their payment obligations in the future.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Valuation Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Certain of the Fund’s assets may be valued at a price different from the price at which they can be sold. This risk may be especially pronounced for </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">investments that are illiquid or may become illiquid, or securities that trade in relatively thin markets and/or markets that experience extreme volatility. The </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">valuation of the Fund’s investments in an accurate and timely manner may be impacted by technological issues and/or errors by third party service providers, </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">such as pricing services or accounting agents.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Variable and Floating Rate Securities Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The coupons on variable and floating-rate securities are not fixed and may fluctuate based upon changes in market rates. A variable rate security has a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">coupon that is adjusted at pre-designated periods in response to changes in the market rate of interest on which the coupon is based. The coupon on a </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">floating rate security is generally based on an interest rate, such as a money-market index, Secured Overnight Financing Rate (“SOFR”), or a Treasury bill rate. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Variable and floating rate securities are subject to interest rate risk and credit risk. As short-term interest rates decline, the coupons on variable and </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">floating-rate securities typically decrease. Alternatively, during periods of rising short-term interest rates, the coupons on variable and floating-rate securities </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">typically increase. Changes in the coupons of variable and floating-rate securities may lag behind changes in market rates or may have limits on the maximum </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">increases in the coupon rates. The value of variable and floating-rate securities may decline if their coupons do not rise as much, or as quickly, as interest rates </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">in general. Conversely, variable and floating rate securities will not generally increase in value if interest rates decline. Certain types of variable and floating </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">rate instruments may be subject to greater liquidity risk than other debt securities.</span></div>
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;"><b>Volatility Risk</b></span><br/><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">The Fund may have investments that appreciate or decrease significantly in value over short periods of time. This may cause the Fund’s NAV to experience </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">significant increases or declines in value over short periods of time.</span></div>
Fund Performance
<div><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Performance information for the Fund is not provided because the Fund had not commenced operations prior to the date of this Prospectus. Performance </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">information will be available in the Prospectus after the Fund has been in operation for one full calendar year. When available, performance for the Fund can </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">be accessed on the Fund’s website at </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">www.americanbeaconfunds.com</span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">. </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Past performance (before and after taxes) is not necessarily an indication of how the </span><span style="clear:both;font-family:Arial, Helvetica, sans-serif;font-size:8.02pt;;">Fund will perform in the future.</span></div>
www.americanbeaconfunds.com
Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
1Pursuant to a Distribution Plan, the Fund may bear a Rule 12b-1 fee not to exceed 0.25% per year of the Fund’s average daily net assets. However, no such fee is currently paid by the Fund, and the Board of Trustees has not currently approved the commencement of any payments under the Distribution Plan.
2Other Expenses are based on estimated expenses for the current fiscal year.