Global Regulatory and Legal Disclosures

Performance Trust Capital Partners, LLC ("PTCP") is a registered broker-dealer and registered investment adviser with the U.S. Securities and Exchange Commission ("SEC") and a member of the Financial Industry Regulatory Authority ("FINRA"), the Securities Investor Protection Corporation ("SIPC"), and the National Futures Association ("NFA"). 4These disclosures apply to all data, models or modeling, information from back-testing, communications, videos, publications, speaking engagements, and all written materials in any format whatsoever whether related to services or otherwise (collectively, "information") to you from PTCP and are intended only for institutional investors as defined by FINRA Rule 2210(a)(4), qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933, as amended; a "Professional Investor" as defined in the Securities and Futures Ordinance (the "SFO") and /or the Securities and Futures (Professional Investor) Rule ("Professional Investor Rules") and / or the SFC's Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission ("Code of Conduct"); or a "per se professional client" or an "elective professional client" as defined by the FCA's Conduct of Business Rules. You should notify us immediately if, at any point in time, you consider that you would no longer fall within one of the above definitions of an institutional or professional investor/client.

Personal Use Only. All information contained herein shall only be used by the recipient for his/her own personal reference. Any other use, including any disclosure or distribution to of any information to any third party, requires the express written permission of PTCP.

For Informational Purposes Only. The information described in this communication is provided to you "as is" and "as available" without warranties of any kind, expressed, implied, or otherwise, including but not limited to all warranties of merchantability, fitness for a particular purpose, or non-infringement.

The views, written or otherwise, expressed in the information are those of authors or speakers alone and are subject to change without notice. PTCP has no obligation to the information. Any views expressed in the information are those of the authors or speakers alone and are subject to change without notice.

Such views or statements in any information do not necessarily reflect the views and opinions of PTCP, its affiliates, or its employees. This information is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. PTCP makes no representations as to accuracy, completeness, timeliness, suitability or validity of any information presented herein and will not be liable for any errors, omissions, or delays in this information or any losses, injuries or damages arising from its display or use and no representation is made that any returns will be achieved through its use

NO ACTION HAS BEEN MADE OR WILL BE TAKEN IN CONNECTION HEREWITH THAT WOULD PERMIT AN OFFERING OF ANY SECURITIES OF ANY ENTITY APPEARING IN THE INFORMATION IN ANY JURISDICTION IN WHICH ACTION FOR THAT PURPOSE IS REQUIRED. NO OFFERS, SALES, RESALES OR DELIVERY OF ANY SECURITIES OR DISTRIBUTION OF ANY OFFERING MATERIAL RELATING TO ANY SECURITIES MAY BE MADE IN OR FROM ANY JURISDICTION EXCEPT IN CIRCUMSTANCES WHICH WILL RESULT IN COMPLIANCE WITH ANY APPLICABLE LAWS AND REGULATIONS AND WHICH WILL NOT IMPOSE ANY OBLIGATION ON PTCP.

THE INFORMATION DOES NOT DISCLOSE ALL THE RISKS AND OTHER SIGNIFICANT ISSUES RELATED TO AN INVESTMENT IN ANY SECURITIES. THE INFORMATION IS NOT INTENDED TO BE DISTRIBUTED TO ANY INVESTOR OR PROSPECTIVE OR INVESTORS.

Information Provided May Not Be Accurate Or Complete And May Be Sourced From Third Parties. All information, whether proprietary to PTCP or a third party, is provided "as is" and PTCP makes no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to any information included herein. Other than disclosures relating to PTCP, the information has been obtained from sources that PTCP believes to be reliable, but PTCP makes no representations that the information contained herein is accurate, reliable, complete, or appropriate for use by all investors in all locations.

Further, PTCP does not guarantee the accuracy or completeness of information that is obtained from, or is based upon, trade and statistical services or other third-party sources. Because of the possibility of human and mechanical errors as well as other factors, PTCP is not responsible for any errors or omissions in the information contained herein. PTCP is not responsible for, and makes no warranties whatsoever as to, the content of any third-party web site accessed via a hyperlink contained herein and such information is not incorporated by reference.

Information Provided Is Not Indicative of Future Results. Any information on past performance contained herein is not necessarily indicative of future results. All levels, prices and spreads are historical and do not represent current market levels, prices or spreads, some or all of which may have changed. The information referenced herein or any of the results derived from any analytic tools or reports referenced herein are not intended to predict actual results and no assurances are given with respect thereto.

The value of and income from any investment may fluctuate from day to day as a result of changes in relevant economic markets (including changes in market liquidity).

No Liability. To the extent permitted by law, in no event shall PTCP, nor any affiliate, nor any of their respective officers, directors, partners, employees or third party licensors have any liability, direct or indirect, including but not limited to any special, punitive, indirect, or consequential damages or any lost profits, lost revenue, loss of anticipated savings or loss of opportunity or other financial loss, even if notified or advised of the possibility of such damages or potential loss, arising from any use of the information provided herein.

No Advice. PTCP and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

The information provided does not constitute investment advice or take into account the individual financial circumstances or objectives of the clients who receive it. This document is not advertising or marketing any financial investment product, service or transaction.

No Use for Valuation Purposes. No data or price information should be used for any valuation, trading, settlement, accounting purposes or other related functions.

Not Available in All Jurisdictions. Not all products or services mentioned are available in all jurisdictions. No offers, sales, resales, or delivery of any products or services described herein or any offering materials relating to any such products or services may be made in or from any jurisdiction except in circumstances which will result with compliance with any applicable laws and regulations and which will not impose any obligations on PTCP.

Intellectual Property. ©2023 Performance Trust Capital Partners, LLC. All rights reserved. Performance Trust Capital Partners, LLC is a registered trademark of Performance Trust Capital Partners, LLC. No part of this document may be reproduced or redistributed in any manner without the prior written permission of Performance Trust Capital Partners, LLC.

Sales and Trading Materials Disclosure

This Sales and Trading Disclosure applies to any document, information, marketing material, desk strategy, market or trading commentary, data, models or modeling, information from back-testing, communications, videos, publications, speaking engagements, and all written materials in any format whatsoever whether related to services or otherwise (collectively and individually, "Sales and Trading Materials") that has been provided to a prospect or client by or in conjunction with the sales and trading personnel of Performance Trust Capital Partners, LLC ("PTCP"), a registered broker-dealer and a member of the Financial Industry Regulatory Authority ("FINRA"), the Securities Investor Protection Corporation ("SIPC"), and the National Futures Association ("NFA") and a registered investment adviser with the U.S. Securities and Exchange Commission ("SEC").

Sales and Trading Material is provided on a confidential basis and may not be reproduced, distributed or transmitted in whole or in part without the prior written consent of PTCP and is intended only for institutional investors as defined by FINRA Rule 2210(a)(4), qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933, as amended; a "Professional Investor" as defined in the Securities and Futures Ordinance (the "SFO") and /or the Securities and Futures (Professional Investor) Rule ("Professional Investor Rules") and / or the SFC's Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission ("Code of Conduct"); or a "per se professional client" or an "elective professional client" as defined by the FCA's Conduct of Business Rules. The financial products or services referred to in Sales and Trading Materials may not be eligible for sale in all jurisdictions. Sales and Trading Materials are directed at institutional clients who have professional experience as defined by applicable law or regulation in the relevant jurisdiction. It is not for and should not be provided to retail clients and it is not for distribution into any jurisdiction where providing Sales and Trading Materials is not permitted.

Any opinions expressed in Sale and Trading Materials are those of the author who is a member of the sales, trading, or analytics department. Information presented in the Sales and Trading Material has been obtained from or based upon sources believed by the personnel or product specialist to be reliable, but PTCP does not represent or warrant its accuracy or completeness and is not responsible for losses or damages arising out of errors, omissions, or changes or from the use of information presented in this document. This Sales and Trading Material does not purport to contain all the information that an interested party may desire and, in fact, provides only a limited view. The information provided is not intended to provide a sufficient basis on which to make an investment decision. The Sales and Trading Material is intended only to provide observations and views of certain personnel, which may be different from, or inconsistent with, the observations and views of other PTCP personnel or the proprietary positions of PTCP. Observations and views expressed herein may be changed by the personnel at any time without notice.

Any statements contained herein of future expectations and other forward-looking statements are based on firm personnel's current view and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements. Actual results, performance, or events may differ materially from those in such statements due to, without limitation (i) general economic conditions, including in particular economic conditions in PTCP's core markets, (ii) performance of financial markets, including emerging markets, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) interest rate levels, (vii) currency exchange rates, including the Euro - U.S. dollar exchange rate, (viii) increasing levels of competition, (ix) changes in laws and regulations, including monetary convergence and the European Monetary Union, (x) changes in the policies of central banks and/or foreign governments, and (xi) general competitive factors, in each case on a global, regional and/or national basis.

The Sales and Trading Material is provided for informational purposes only, is subject to change without notice and is not binding. Any prices or quotations in Sales and Trading Materials are indicative only, are subject to change without notice and may not be used or relied on for any purpose, including valuation purposes. Any communication that contains Sales and Trading Material is not a solicitation to buy or sell any product, or to engage in, or refrain from engaging in, any transaction, except to the extent covered by the CFTC Rules (see Derivatives Disclosure below). The Sales and Trading Material does not constitute investment research, a research report or a personal or other recommendation. Nothing in any Sales and Trading Material should be construed as legal, financial, accounting, tax, or other advice.

PTCP is a provider of investment banking, broker, dealer, analytics, and financial advisory services. As such, PTCP may act in various roles including as provider of underwriting services act as a dealer, purchase or sell as a market maker, holder of principal positions, broker, or advisor, and may receive fees, brokerage or commissions for acting in those capacities. In addition, PTCP and associated personnel may at any time buy, sell, or hold interests in financial instruments referred to in Sales and Trading Materials either on behalf of clients or as principal. Therefore, Sales and Trading Materials should not be relied upon as either independent or objective from the interests of PTCP and associated personnel which may conflict with your interests.

To the extent permitted by law, PTCP accepts no responsibility or liability (in negligence or otherwise) for loss or damage resulting from the use of or relating to any error, inaccuracy, or incompleteness in Sales and Trading Materials provided. Sales and Trading Materials have been prepared in good faith and are based on information obtained from sources believed to be reliable, however, PTCP is not responsible for information stated to be obtained from third party sources. Any modelling, scenario analysis, past or simulated past performance (including back-testing) contained in the Sales and Trading Materials is no indication as to future performance.

Derivatives Disclosure. Sales and Trading Materials constitutes a solicitation for entering into a derivatives transaction only for the purposes of, and to the extent it would otherwise be subject to, US Commodity Futures Trading Commission Regulations §§ 1.71 and 23.605 promulgated under the US Commodity Exchange Act (the "CFTC Rules"). Futures options and derivatives products are not suitable for all investors and trading in those instruments involves substantial risk of loss.

For important product or country-specific disclosures please refer to https://www.performancetrust.com/regulatory-disclosures.

PT Score Disclosure

PT Score™ is a propriety risk assessment system created using numerous call report-based ratios selected by PTCP. PT Score™ is uses bank level data and does not incorporate holding company leverage or any other consolidated financial metrics. PT Score™ is based on unadjusted call report data and does not incorporate adjustments for one-time or other unusual items. An institution's PT Score™ corresponds to a CAMELS equivalent rating to help provide an accurate picture of such institution's level of risk. An institution's score ranges from 0 to 500. The higher an institution's PT Score™, the higher the implied level of risk.

Electronic Communications Disclosure

This message and any attachments are for the intended recipient only, and may contain information that is privileged, proprietary, confidential and/or the exclusive property of Performance Trust Capital Partners, LLC ("PTCP"). PTCP is a registered broker-dealer and registered investment adviser with the U.S. Securities and Exchange Commission ("SEC") and a member of the Financial Industry Regulatory Authority ("FINRA"), the Securities Investor Protection Corporation ("SIPC"), and the National Futures Association ("NFA"). PTCP's principal place of business is 500 W. Madison Street, Suite 450, Chicago, IL 60661. If you are not the intended recipient, please immediately delete and/or destroy all copies of this message and attachments and kindly notify the sender. Any unauthorized review, use, disclosure or distribution is prohibited.

This document is directed at institutional investors only, is not intended for retail investor use, and must not be forwarded or shared with retail investors. This communication is for general information purposes only and may constitute a solicitation derivatives business generally, only for the purposes of, and to the extent it would otherwise be subject to, CFTC Regulations 1.71 and 23.605.

This message is not intended as an offer, solicitation, or confirmation of transaction for the purchase or sale of any product or service. All market prices, data and other information are not warranted as to completeness or accuracy and are subject to change without notice. Past performance is no guarantee of future results. Investing involves risks, including the potential for principal loss. Any comments or statements in this message do not necessarily reflect those of PTCP. PTCP and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

PTCP and its associated persons may have material interests that conflict with the interests of the recipient of this document. PTCP and its respective officers, directors, partners, and employees may maintain a long or short position in, purchase or sell as market-makers, or act as advisors, brokers, or commercial and/or investment bankers in relation to any security including financial products of a companies mentioned in this document.

Any content contained herein is as of the date of this e-mail, and historical prices and values are as of the date indicated, all of which are subject to change without notice. PTCP does not accept any responsibility for the contents of any electronic communication or for any delays, inaccuracies or omissions in the transmission of orders or other information to PTCP and disclaims all liability to the fullest extent permitted by applicable law for any loss, damage, or delay arising from any reliance on or use of this message in any way.

This message may not be reproduced, redistributed or disseminated, without the prior written consent of PTCP. PTCP does not guarantee that communications transmitted electronically are secure, accurate or complete as information could be intercepted, tampered with, corrupted, lost, destroyed or delayed or could contain malicious content. Although this message and any attachments are believed to be free of any malicious content or other defect that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is free of malicious content. By messaging with PTCP, you understand and accept all risks associated with electronic communications.

Any electronic communication conducted within or through PTCP's systems is subject to monitoring, review, retention and external production in order to comply with relevant laws, regulations and regulatory requests, for risk management or operational purposes; may be stored or otherwise processed in countries other than the country in which you are located; and will be treated in accordance with PTCP's policies and applicable laws and regulations. Please notify sender or, if available, use the unsubscribe function if you do not wish to receive further similar emails.

For important disclosures related to materials prepared by PTCP Sales, Trading , and Analytics personnel as well as product or country-specific disclosures please refer to https://www.performancetrust.com/regulatory-disclosures. In addition, this message and any related attachments may be subject to PTCP's terms and conditions available at https://www.performancetrust.com/terms-and-conditions-of-use and privacy policy available at https://www.performancetrust.com/privacy-policy.

International Regulatory Disclosures

Asia

Performance Trust Capital Partners, LLC ("PTCP") is a registered broker-dealer and registered investment adviser with the U.S. Securities and Exchange Commission ("SEC") and a member of the Financial Industry Regulatory Authority ("FINRA"), the Securities Investor Protection Corporation ("SIPC"), and the National Futures Association ("NFA"). These disclosures apply to all data, models or modeling, information from back-testing, communications, videos, publications, speaking engagements, and all written materials in any format whatsoever whether related to services or otherwise (collectively, "information") to you from PTCP and are intended only for institutional investors as defined by FINRA Rule 2210(a)(4), qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933, as amended; a "Professional Investor" as defined in the Securities and Futures Ordinance (the "SFO") and /or the Securities and Futures (Professional Investor) Rule ("Professional Investor Rules") and / or the SFC's Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission ("Code of Conduct"); or a "per se professional client" or an "elective professional client" as defined by the FCA's Conduct of Business Rules. You should notify us immediately if, at any point in time, you consider that you would no longer fall within one of the above definitions of an institutional or professional investor/client.

This disclosure serves as notice to clients resident in Asia that PTCP relies on the following conditions being met to do business with clients domiciled in Asia: clients qualify as a "Professional Investor", have certified their consent to be treated as an Institutional Professional Investor, and possess the knowledge, expertise and experience in financial matters, products and markets and are aware of and understand the inherent risks involved in the trading of securities and financial products. Materials relating to securities business are distributed in Hong Kong to "professional investors" as defined by the Securities and Futures Ordinance ("SFO") for the Hong Kong Special Administration Region only.

United Kingdom ("UK")

Performance Trust Capital Partners, LLC ("PTCP") is a registered broker-dealer and registered investment adviser with the U.S. Securities and Exchange Commission ("SEC") and a member of the Financial Industry Regulatory Authority ("FINRA"), the Securities Investor Protection Corporation ("SIPC"), and the National Futures Association ("NFA"). These disclosures apply to all data, models or modeling, information from back-testing, communications, videos, publications, speaking engagements, and all written materials in any format whatsoever whether related to services or otherwise (collectively, "information") to you from PTCP and are intended only for institutional investors as defined by FINRA Rule 2210(a)(4), qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933, as amended; a "Professional Investor" as defined in the Securities and Futures Ordinance (the "SFO") and /or the Securities and Futures (Professional Investor) Rule ("Professional Investor Rules") and / or the SFC's Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission ("Code of Conduct"); or a "per se professional client" or an "elective professional client" as defined by the FCA's Conduct of Business Rules. You should notify us immediately if, at any point in time, you consider that you would no longer fall within one of the above definitions of an institutional or professional investor/client.

This disclosure serves as notice to clients resident in the UK that PTCP relies on the following conditions being met to do business with clients domiciled in the UK: clients qualify and will be treated as a "per se professional client" or an "elective professional client" as defined by the FCA's Conduct of Business Rules ("Rules"). A Professional Client is deemed to possess the experience and knowledge to make its own investment decisions and assess the risks arising, and hence is not entitled to certain regulatory protections available to a "retail client" (as defined by the Rules).

Canada

Performance Trust Capital Partners, LLC ("PTCP") is a registered broker-dealer and registered investment adviser with the U.S. Securities and Exchange Commission ("SEC") and a member of the Financial Industry Regulatory Authority ("FINRA"), the Securities Investor Protection Corporation ("SIPC"), and the National Futures Association ("NFA"). PTCP's principal place of business is in Chicago, IL (USA). This disclosure serves as notice to PTCP's Canadian clients of PTCP's transacting in securities.

PTCP relies upon the international dealer exemption from the dealer registration requirement under NI 31-103 and is only permitted to trade "foreign securities" (i.e., non Canadian) with clients resident in Canada. A foreign security is a security issued by an issuer incorporated, formed or created under the laws of a foreign (i.e., non-Canadian) jurisdiction or a security issued by a government of a foreign jurisdiction. This serves as notice that clients residing in Canada should only place orders with PTCP in foreign securities. Additionally, there may be difficulty enforcing legal rights against PTCP because it resides outside of Canada and all of its assets are situated outside of Canada.

The below list contains PTCP's agent for service process for each applicable province in Canada:

ONTARIO

DLA Piper Suite 6000

1 First Canadian Place PO Box 367

100 King St W Toronto, Ontario M5X 1E2

Attn: Eric Belli-Bivar

BRITISH COLUMBIA

Victoria Corporate Records Ltd.

4529 Melrose Street

Port Alberni, British Columbia

Canada V9Y 1K7

Fixed Income Securities' Risks Disclosures

Interest Rate Risk. All bonds are susceptible to fluctuations in interest rates. If interest rates rise, bond prices will generally decline, despite the lack of change in both the coupon and maturity. The degree of price volatility due to changes in interest rates is usually more pronounced for longer-term securities.

Inflation Risk. Inflation risk is a risk that the income generated may be lower than the rate of inflation. Inflation may diminish the purchasing power of a bond's interest and principal.

Credit and Default Risk. Bonds and their issuers generally receive a credit grade rating by independent rating agencies. Changes in credit rating can also affect prices. If one of the major rating services lowers its credit rating for a particular issue, the price of that security usually declines. Less creditworthy issuers may be more likely to default on interest payments or principal repayment. If a bond issuer fails to make either a coupon or principal payment when they are due or fails to meet some other provision of the bond indenture, it is said to be in default.

Call Risk. Some bonds have call features, which means they can be redeemed or paid off at the issuer's discretion before maturity. Typically, an issuer will call a bond when interest rates fall, potentially leaving investors with a capital loss or loss in income and less favorable reinvestment options.

Liquidity Risk. If a bond is not traded on a regular basis, the market for this bond may not be considered liquid. This can be attributed to the large number of issuers and variety of securities. For example, with limited exceptions for some large more actively traded issues, the chances of finding a specific municipal bond in the secondary market at any given time are relatively small. Selling prior to maturity can present a challenge for municipal bond investors due to the fragmented and thinly traded nature of the market.

Corporate Bond Risk. Corporate bonds are susceptible to all the risks described above. In addition, a corporate bond's payments are dependent on the issuer's ability to generate cash flow. Unforeseen events could impact their ability to meet those commitments. Corporate bond issuers fall into four main sectors: industrial, financial, utilities, and transportation. Bonds in these economic sectors can be affected by a range of factors, including corporate events, consumer demand, changes in the economic cycle, changes in regulation, interest rate and commodity volatility, changes in overseas economic conditions, and currency fluctuations. Many corporate bonds may have call provisions, which means they can be redeemed or paid off at the issuer's discretion prior to maturity. Typically an issuer will call a bond when interest rates fall potentially leaving investors with a capital loss or loss in income and less favorable reinvestment options.

Government / Agency Bond Risk. While Government Sponsored Entities ("GSE") and agency bonds have relatively low credit risk, there is some risk that the issuing agency or GSE will default. GSE and agency bonds are not an obligation of the U.S. government; credit and default risks are based on the individual issuer. Yields on GSE and agency bonds are usually higher than those offered by treasuries, there is a risk that the income generated may be lower than the rate of inflation. Inflation may diminish the purchasing power of a bond's interest and principal. Some agency or GSE bonds have call features, which means they can be redeemed or paid off at the issuer's discretion before maturity. Typically, an issuer will call a bond when interest rates fall, potentially leaving investors with a capital loss or loss in income and less favorable reinvestment options.

Municipal Bond Risk. Municipal bonds are susceptible to all the risks described above. Most municipal bonds are not traded on a regular basis; therefore, the market for a specific municipal bond may not be particularly liquid. This can be attributed to the large number of municipal issuers and variety of securities. With limited exceptions for some large more actively traded issues, the chances of finding a specific municipal bond in the secondary market at any given time are relatively small. Selling prior to maturity can present a challenge for municipal bond investors due to the fragmented and thinly traded nature of the market. With revenue bonds, the interest and principal are dependent on the revenues paid by users of a facility or service, or other dedicated revenues including those from special taxes. In general, the consumer spending that provides the funding or income stream for revenue bond issuers may be more vulnerable to changes in consumer tastes or a general economic downturn than the income stream for general obligation bond issuers. A key investor consideration for a project financed with revenue bonds is whether such facility delivers fundamental or essential services, such as water and sewer, as they may be more likely to have dependable revenues through multiple economic cycles. Many municipal bonds carry provisions that allow the issuer to call or redeem the bond prior to the actual maturity date. An issuer will typically call bonds when prevailing interest rates drop, making reinvestment less desirable for the holder. Some municipal bonds, including housing bonds and certificates of participation (COPs), may be callable at any time regardless of the stated call features. In some cases, bond issuers will call bonds to modify an indenture through a new offering. Special or extraordinary redemption provisions are provisions that give a bond issuer the right to call the bonds due to a one-time occurrence, such as a natural disaster, interruption to a revenue source, unexpended bond proceeds, or cancelled projects.

Mortgage and Asset Backed Bond Risk. Mortgage-backed securities are unsecured bonds or debentures of pass-through securities backed by pools of mortgages and issued by one of the following U.S. government-sponsored agencies: Government National Mortgage Association ("GNMA"); Federal National Mortgage Association ("FNMA") and Federal Home Loan Mortgage Corporation ("FHLMC"). Bonds or debentures issued by government agencies, including Fannie Mae and Freddie Mac, are generally backed only by the general creditworthiness and reputation of the government agency issuing the bond or debenture and are not backed by the full faith and credit of the U.S. government. Mortgage-backed securities are subject to prepayment risk and extension risk. During periods of rising interest rates, certain debt obligations may be paid off substantially more slowly than originally anticipated and the value of those securities may fall sharply, resulting in a decline in income and potentially in the value of the investment. Because of these risks, mortgage-backed securities react differently than other bonds to changes in interest rates. Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain mortgage-backed securities. Investments in mortgage-related and other asset-backed securities are subject to the risk of significant credit downgrades, illiquidity, and defaults to a greater extent than many other types of fixed-income investments. During periods of falling interest rates, mortgage- and asset-backed securities may be called or prepaid, which may result in having to reinvest proceeds in other investments at a lower interest rate.

Preferred Securities Risk. Preferred securities have characteristics of both stocks and bonds, and therefore may be subject to the risks of both the equity and bond markets. Many preferred securities carry a payment deferral feature, which allows the issuer, at its discretion, to suspend or defer all or a portion of dividend or interest payments. Payments, if suspended or deferred, may be cumulative or non-cumulative. In the case of non-cumulative preferred securities, deferred payments due not accumulate if unpaid, and the issuer is under no obligation to pay the missed payments in the future. If payments are deferred, usually the company is also no longer permitted to pay dividends on other securities ranked either equally, or lower, in the hierarchy of the company's capital structure. As a result, holders of noncumulative securities carry a greater potential risk of losing an important source of total return, whereas cumulative preferred shareholders may be able recoup lost income if a company is able to return to financial health and make up the missed payments. Many preferred securities carry call or other early redemption provisions that allow the issuer to redeem the security upon certain events or at its discretion. An issuer will often exercise a call provision when prevailing interest rates drop below the rate at which the security was originally issued. Many preferred securities include a conditional call option, allowing the issuer to redeem the securities at the liquidation value upon the occurrence of certain events (e.g. tax law changes disallows the deductibility of payments by the issuer's parent company, or subjects the issue to taxation separate from the parent company). Certain preferred securities permit the issuer, at its discretion, to extend the maturity date (if any) one or more times, which would ultimately delay final repayment of the security's principal. Certain preferred securities may not be able to be readily redeemed (liquidated) or may only be liquidated at a deep discount to par (face) value due to a limited secondary market for the securities.

Inflation Protected Bond Risk. The interest payments of TIPS are variable, they generally rise with inflation and fall with deflation.

Floating Rate Bond Risk. Floating-rate loans generally are subject to restrictions on resale. They sometimes trade infrequently in the secondary market, so may be more difficult to value, buy, or sell. A floating-rate loan might not be fully collateralized, which may cause it to decline significantly in value.

High Yield Bond Risk. These are lower-quality debt securities that involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.

Last modified: December 21, 2023