Financials Income Fund

Overview

The Fund pursues current income and total return alongside positive societal impact. The Fund seeks to offer investors an attractive yield for investment-grade risk with low correlation to the broader fixed-income market. Specifically, the Fund will invest in the following:

  • Financial institutions including banks, insurance companies, REITs, BDCs and other financial services companies
  • Senior debt, subordinated debt, trust preferred, preferred and common equity securities issued by the above
  • Financial institutions that have been designated as Responsible Financial Institutions (RFIs) exhibiting strong alignment with environmental, social and governance (ESG) factors

Performance

Total Returns (as of 11/21/19) NAV NAV Change Dollars NAV Daily Change (%) YTD (%)
Class I NAV $9.49 $0.00 0.00% 6.14%
Class A NAV $9.51 $0.00 0.00% 5.89%
MOP $9.73 $0.00 0.00% 3.56%
Class C NAV $9.41 ($0.01) -0.11% 5.17%
MOP $9.41 ($0.01) -0.11% 4.17%
Bloomberg Barclays US Aggregate Bond Index n/a n/a -0.15% 8.61%
Bloomberg Barclays Inv. Grade: Fin Institutions Index (USD) n/a n/a -0.20% 12.00%
Total Returns (as of 10/31/19) Prior Mo. YTD 1 Year 3 Years 5 Years Since Inception1
Class I NAV 0.57% 5.98% 7.27% 5.42% n/a 3.73%
Class A NAV 0.66% 5.75% 7.11% 5.18% n/a 3.50%
MOP -1.62% 3.43% 4.74% 4.37% n/a 3.03%
Class C NAV 0.50% 5.07% 6.19% 4.37% n/a 2.71%
MOP -0.50% 4.07% 5.19% 4.37% n/a 2.71%
Bloomberg Barclays Inv. Grade: Fin Institutions Index (USD) 0.77% 12.10% 13.33% 4.63% n/a 4.39%
Bloomberg Barclays US Aggregate Bond Index 0.30% 8.85% 11.51% 3.29% n/a 3.26%
Total Returns (as of 09/30/19) Prior Qtr. YTD 1 Year 3 Years 5 Years Since Inception1
Class I NAV 1.46% 5.38% 6.78% 5.29% n/a 3.68%
Class A NAV 1.29% 5.06% 6.51% 5.04% n/a 3.43%
MOP -1.01% 2.75% 4.16% 4.23% n/a 2.95%
Class C NAV 1.12% 4.55% 5.69% 4.25% n/a 2.66%
MOP 0.12% 3.55% 4.69% 4.25% n/a 2.66%
Bloomberg Barclays Inv. Grade: Fin Institutions Index (USD) 2.33% 11.25% 11.54% 4.25% n/a 4.31%
Bloomberg Barclays US Aggregate Bond Index 2.27% 8.52% 10.30% 2.92% n/a 3.25%

Expense Ratios*

  Class A Class I Class C
Gross 1.43% 1.18% 2.18%
Net 0.94% 0.69% 1.69%

Performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than what is stated.

1 The inception date of the Angel Oak Financials Income Fund A Class and I Class (ANFLX and ANFIX) was 11/3/14, while the inception date of C Class (AFLCX) was 8/4/15. The returns of AFLCX shown for periods prior to the inception date include the returns of ANFLX and are adjusted to reflect the operating expenses of AFLCX.

NAV represents annualized returns without a sales charge. MOP represents annualized returns with the maximum sales charge. Class A has a maximum sales charge of 2.25%. Maximum Contingent Deferred Sales Charge (load) as a % of amount redeemed: Class A & I: None. Class C shares are subject to a CDSC of 1.00% if you redeem your shares within twelve (12) months of purchase, based on the lower of the shares’ cost or current net asset value.

*Gross expense ratios are reported as of the 5/31/19 prospectus. The net expense ratios are reported as of the 1/31/19 Annual Report and are referenced in the 5/31/19 prospectus. The Adviser has contractually agreed to waive fees through 5/31/20.

Growth of $10,000 Since Inception as of 9/30/19

This chart illustrates the performance of a hypothetical $10,000 investment made in Angel Oak Financials Income Fund (ANFIX) I Shares since inception on 11/3/14. It assumes reinvestment of capital gains and dividends. This chart is not intended to imply any future performance.

Bloomberg Barclays U.S. Aggregate 3-5 Year Index: An index that tracks bonds with 3-5 year maturities within the Bloomberg Barclays U.S. Aggregate Bond Index.

Record Date  Payable Date Reinvestment Price ($/share) Ordinary Income ($/share) ST Cap Gains ($/share) LT Cap Gains ($/share)
1/30/2019 1/31/2019 9.33 0.03759  –  –
2/27/2019 2/28/2019 9.33 0.03361  –  –
3/28/2019 3/29/2019 9.37 0.03792  –  –
4/29/2019 4/30/2019 9.38 0.03582  –  –
5/30/2019 5/31/2019 9.42 0.03598  –  –
6/27/2019 6/28/2019 9.47 0.03291  –  –
7/30/2019 7/31/2019 9.46 0.03448  –  –
8/29/2019 8/30/2019 9.53 0.03472  –  –
9/29/2019 9/30/2019 9.50 0.03265  –  –
10/30/2019 10/31/2019 9.52 0.03237  –  –
Total 2019     0.34805    

Record Date  Payable Date Reinvestment Price ($/share) Ordinary Income ($/share) ST Cap Gains ($/share) LT Cap Gains ($/share)
1/30/2018 1/31/2018 9.45 0.03235  –  –
2/27/2018 2/28/2018 9.46 0.02874  –  –
3/28/2018 3/29/2018 9.45 0.03230  –  –
4/29/2018 4/30/2018 9.42 0.03453  –  –
5/30/2018 5/31/2018 9.46 0.03413  –  –
6/28/2018 6/29/2018 9.41 0.03498  –  –
7/30/2018 7/31/2018 9.39 0.03602  –  –
8/30/2018 8/31/2018 9.37 0.03787  –  –
9/27/2018 9/28/2018 9.33 0.03727  –  –
10/30/2018 10/31/2018 9.30 0.03846  –  –
11/29/2018 11/30/2018 9.33 0.03854  –  –
12/30/2018 12/31/2018 9.32 0.04037  –  –
Total 2018     0.42556    

Record Date  Payable Date Reinvestment Price ($/share) Ordinary Income ($/share) ST Cap Gains ($/share) LT Cap Gains ($/share)
1/30/2017 1/31/2017 9.42 0.03217  –  –
2/27/2017 2/28/2017 9.46 0.03310  –  –
3/30/2017 3/31/2017 9.41 0.03766  –  –
4/27/2017 4/28/2017 9.40 0.03629  –  –
5/30/2017 5/31/2017 9.40 0.03602  –  –
6/29/2017 6/30/2017 9.42 0.03374  –  –
7/30/2017 7/31/2017 9.43 0.03511  –  –
8/30/2017 8/31/2017 9.46 0.03400  –  –
9/28/2017 9/29/2017 9.45 0.03249  –  –
10/30/2017 10/31/2017 9.48 0.03030  –  –
11/29/2017 11/30/2017 9.49 0.03032  –  –
12/29/2017 12/29/2017 9.50 0.03250  –  –
Total 2017     0.40370    

Record Date  Payable Date Reinvestment Price ($/share) Ordinary Income ($/share) ST Cap Gains ($/share) LT Cap Gains ($/share)
1/29/2016 1/30/2016 9.56 0.03648  –  –
2/26/2016 2/29/2016 8.86 0.05012  –  –
3/30/2016 3/31/2016 9.08 0.03965  –  –
4/28/2016 4/29/2016 9.20 0.03968  –  –
5/27/2016 5/31/2016 9.17 0.03667  –  –
6/29/2016 6/30/2016 9.18 0.03401  –  –
7/28/2016 7/29/2016 9.33 0.03445  –  –
8/30/2016 8/31/2016 9.34 0.03509  –  –
9/29/2016 9/30/2016 9.36 0.03374  –  –
10/30/2016 10/31/2016 9.35 0.03478  –  –
11/29/2016 11/30/2016 9.37 0.03377  –  –
12/27/2016* 12/28/2016* 9.37 0.01248  –  –
12/29/2016 12/30/2016 9.38 0.03523  –  –
Total 2016     0.45615    

*Due to our annual tax review, there was additional earned income that was required to be paid out prior to the calendar year end.

Record Date  Payable Date Reinvestment Price ($/share) Ordinary Income ($/share) ST Cap Gains ($/share) LT Cap Gains ($/share)
1/29/2015 1/30/2015 10.13 0.01451
2/27/2015 2/28/2015 10.17 0.00540
3/30/2015 3/31/2015 10.23 0.03107
4/29/2015 4/30/2015 10.27 0.04528  –  –
5/28/2015 5/29/2015 10.38 0.04012  –  –
6/29/2015 6/30/2015 10.27 0.03770  –  –
7/30/2015 7/31/2015 10.27 0.03784  –  –
8/28/2015 8/31/2015 10.22 0.03532  –  –
9/29/2015 9/30/2015 10.08 0.03987  –  –
10/29/2015 10/30/2015 10.01 0.03979    
11/27/2015 11/30/2015 9.98 0.04070  –  –
12/29/2015* 12/30/2015* 9.90 0.05814  –  –
Total 2015     0.42575    

*Due to our annual tax review, there was additional earned income that was required to be paid out prior to the calendar year end.

Record Date  Payable Date Reinvestment Price ($/share) Ordinary Income ($/share) ST Cap Gains ($/share) LT Cap Gains ($/share)
1/30/2019 1/31/2019 9.32 0.03959  –  –
2/27/2019 2/28/2019 9.31 0.03584  –  –
3/28/2019 3/29/2019 9.36 0.03957  –  –
4/29/2019 4/30/2019 9.36 0.03781  –  –
5/30/2019 5/31/2019 9.40 0.03797  –  –
6/27/2019 6/28/2019 9.45 0.03485  –  –
7/30/2019 7/31/2019 9.44 0.03626  –  –
8/29/2019 8/30/2019 9.51 0.03669  –  –
9/29/2019 9/30/2019 9.48 0.03461  –  –
10/30/2019 10/31/2019 9.50 0.03429  –  –
Total 2019     0.36748    

Record Date  Payable Date Reinvestment Price ($/share) Ordinary Income ($/share) ST Cap Gains ($/share) LT Cap Gains ($/share)
1/30/2018 1/31/2018 9.44 0.03434  –  –
2/27/2018 2/28/2018 9.45 0.03091  –  –
3/28/2018 3/29/2018 9.44 0.03418  –  –
4/29/2018 4/30/2018 9.40 0.03480  –  –
5/30/2018 5/31/2018 9.44 0.03596  –  –
6/28/2018 6/29/2018 9.39 0.03695  –  –
7/30/2018 7/31/2018 9.37 0.03796  –  –
8/30/2018 8/31/2018 9.35 0.03987  –  –
9/27/2018 9/28/2018 9.32 0.03926  –  –
10/30/2018 10/31/2018 9.29 0.04038  –  –
11/29/2018 11/30/2018 9.31 0.03908  –  –
12/30/2018 12/31/2018 9.31 0.04236  –  –
Total 2018     0.44605    

Record Date  Payable Date Reinvestment Price ($/share) Ordinary Income ($/share) ST Cap Gains ($/share) LT Cap Gains ($/share)
1/30/2017 1/31/2017 9.41 0.03578  –  –
2/27/2017 2/28/2017 9.45 0.03609  –  –
3/30/2017 3/31/2017 9.40 0.04009  –  –
4/27/2017 4/28/2017 9.39 0.03877  –  –
5/30/2017 5/31/2017 9.39 0.03784  –  –
6/29/2017 6/30/2017 9.40 0.03582  –  –
7/30/2017 7/31/2017 9.41 0.03709  –  –
8/30/2017 8/31/2017 9.45 0.03594  –  –
9/28/2017 9/29/2017 9.43 0.03351  –  –
10/30/2017 10/31/2017 9.46 0.03214  –  –
11/29/2017 11/30/2017 9.48 0.03189  –  –
12/29/2017 12/29/2017 9.48 0.03437  –  –
Total 2017     0.42933    

Record Date  Payable Date Reinvestment Price ($/share) Ordinary Income ($/share) ST Cap Gains ($/share) LT Cap Gains ($/share)
1/29/2016 1/30/2016 9.56 0.04210  –  –
2/26/2016 2/29/2016 8.85 0.05198  –  –
3/30/2016 3/31/2016 9.07 0.04152  –  –
4/28/2016 4/29/2016 9.20 0.04211  –  –
5/27/2016 5/31/2016 9.16 0.03850  –  –
6/29/2016 6/30/2016 9.17 0.03584  –  –
7/28/2016 7/29/2016 9.33 0.03688  –  –
8/30/2016 8/31/2016 9.33 0.03761  –  –
9/29/2016 9/30/2016 9.36 0.03628  –  –
10/30/2016 10/31/2016 9.34 0.03769  –  –
11/29/2016 11/30/2016 9.37 0.03643  –  –
12/27/2016* 12/28/2016* 9.36 0.01300  –  –
12/29/2016 12/30/2016 9.37 0.03776  –  –
Total 2016     0.48770    

*Due to our annual tax review, there was additional earned income that was required to be paid out prior to the calendar year end.

Record Date  Payable Date Reinvestment Price ($/share) Ordinary Income ($/share) ST Cap Gains ($/share) LT Cap Gains ($/share)
1/29/2015 1/30/2015 10.13 0.01582
2/27/2015 2/28/2015 10.17 0.00655
3/30/2015 3/31/2015 10.23 0.03307
4/29/2015 4/30/2015 10.27 0.04636  –  –
5/28/2015 5/29/2015 10.38 0.04117  –  –
6/29/2015 6/30/2015 10.27 0.03920  –  –
7/30/2015 7/31/2015 10.27 0.03994  –  –
8/28/2015 8/31/2015 10.22 0.03715  –  –
9/29/2015 9/30/2015 10.09 0.04209  –  –
10/39/2015 10/30/2015 10.01 0.04191    
11/27/2015 11/30/2015 9.99 0.04296  –  –
12/29/2015* 12/30/2015* 9.91 0.06043  –  –
Total 2015     0.44665    

*Due to our annual tax review, there was additional earned income that was required to be paid out prior to the calendar year end.

Record Date  Payable Date Reinvestment Price ($/share) Ordinary Income ($/share) ST Cap Gains ($/share) LT Cap Gains ($/share)
1/30/2019 1/31/2019 9.25 0.03230  –  –
2/27/2019 2/28/2019 9.24 0.02802  –  –
3/28/2019 3/29/2019 9.29 0.03248  –  –
4/29/2019 4/30/2019 9.29 0.02998  –  –
5/30/2019 5/31/2019 9.33 0.03012  –  –
6/27/2019 6/28/2019 9.38 0.02706  –  –
7/30/2019 7/31/2019 9.37 0.02867  –  –
8/29/2019 8/30/2019 9.43 0.02949  –  –
9/29/2019 9/30/2019 9.40 0.02702  –  –
10/30/2019 10/31/2019 9.42 0.02718  –  –
Total 2019     0.29232    

Record Date  Payable Date Reinvestment Price ($/share) Ordinary Income ($/share) ST Cap Gains ($/share) LT Cap Gains ($/share)
1/30/2018 1/31/2018 9.37 0.02670  –  –
2/27/2018 2/28/2018 9.39 0.02294  –  –
3/28/2018 3/29/2018 9.38 0.02726  –  –
4/29/2018 4/30/2018 9.33 0.03375  –  –
5/30/2018 5/31/2018 9.37 0.02825  –  –
6/28/2018 6/29/2018 9.33 0.02902  –  –
7/30/2018 7/31/2018 9.30 0.03031  –  –
8/30/2018 8/31/2018 9.28 0.03195  –  –
9/27/2018 9/28/2018 9.25 0.03139  –  –
10/30/2018 10/31/2018 9.22 0.03280  –  –
11/29/2018 11/30/2018 9.24 0.03287  –  –
12/30/2018 12/31/2018 9.24 0.03471  –  –
Total 2018     0.36195    

Record Date  Payable Date Reinvestment Price ($/share) Ordinary Income ($/share) ST Cap Gains ($/share) LT Cap Gains ($/share)
1/30/2017 1/31/2017 9.37 0.03217  –  –
2/27/2017 2/28/2017 9.40 0.03310  –  –
3/30/2017 3/31/2017 9.35 0.03766  –  –
4/27/2017 4/28/2017 9.34 0.03030  –  –
5/30/2017 5/31/2017 9.33 0.02955  –  –
6/29/2017 6/30/2017 9.35 0.02828  –  –
7/30/2017 7/31/2017 9.36 0.02946  –  –
8/30/2017 8/31/2017 9.39 0.02800  –  –
9/28/2017 9/29/2017 9.38 0.02975  –  –
10/30/2017 10/31/2017 9.40 0.02493  –  –
11/29/2017 11/30/2017 9.42 0.02567  –  –
12/29/2017 12/29/2017 9.42 0.02683  –  –
Total 2017     0.35570    

Record Date  Payable Date Reinvestment Price ($/share) Ordinary Income ($/share) ST Cap Gains ($/share) LT Cap Gains ($/share)
1/29/2016 1/30/2016 9.55 0.03465  –  –
2/26/2016 2/29/2016 8.84 0.04568  –  –
3/30/2016 3/31/2016 9.07 0.03378  –  –
4/28/2016 4/29/2016 9.19 0.03415  –  –
5/27/2016 5/31/2016 9.15 0.03166  –  –
6/29/2016 6/30/2016 9.16 0.02899  –  –
7/28/2016 7/29/2016 9.31 0.03445  –  –
8/30/2016 8/31/2016 9.31 0.03509  –  –
9/29/2016 9/30/2016 9.33 0.03374  –  –
10/30/2016 10/31/2016 9.31 0.03478  –  –
11/29/2016 11/30/2016 9.33 0.03377  –  –
12/27/2016* 12/28/2016* 9.32 0.01096  –  –
12/29/2016 12/30/2016 9.33 0.03523  –  –
Total 2016     0.42693    

*Due to our annual tax review, there was additional earned income that was required to be paid out prior to the calendar year end.

Record Date  Payable Date Reinvestment Price ($/share) Ordinary Income ($/share) ST Cap Gains ($/share) LT Cap Gains ($/share)
8/28/2015 8/31/2015 10.22 0.03294
9/29/2015 9/30/2015 10.08 0.03314
10/29/2015 10/30/2015 10.00 0.03688    
11/27/2015 11/30/2015 9.98 0.03662
12/29/2015* 12/30/2015* 9.90 0.05212
Total 2015     0.19170    

*Due to our annual tax review, there was additional earned income that was required to be paid out prior to the calendar year end.

(Since Inception) Fund Index1
Std. Deviation (%) 3.6 2.4
Sharpe Ratio 1.1 0.9
Correlation to Index 0.2 1.0
% Positive Months 79.3 60.3
% Negative Months 20.7 39.7

As of 9/30/19.

1Bloomberg Barclays U.S. Aggregate 3-5 Year Index.

Bloomberg Barclays U.S. Aggregate 3-5 Year Index: An index that tracks bonds with 3-5 year maturities within the Bloomberg Barclays U.S. Aggregate Bond Index.

Correlation to Index: A statistical measure of how two securities move in relation to another. Index used for comparison is the Bloomberg Barclays U.S. Aggregate 3-5 Year Index.

Sharpe Ratio: A statistical measure that uses standard deviation and excess return to determine reward per unit of risk. A higher Sharpe ratio implies a better historical risk-adjusted performance. The Sharpe ratio has been calculated since inception using the 3-month LIBOR for the risk-free rate of return.

Standard Deviation: A statistical measure of portfolio risk used to measure variability of total return around an average, over a specified period of time. The greater the standard deviation over the period, the wider the variability or range of returns and hence, the greater the fund’s volatility—calculated since inception.

Portfolio

 

 
Community Bank Debt 70.8%
 
Non-Bank Financials 22.8%
 
Bank Equities 3.4%
 
Cash & Other 3.0%

As of 9/30/19.

The portfolio is actively managed. Holdings and weightings are subject to change daily and are provided for informational purposes only and should not be deemed as a recommendation to buy or sell the securities mentioned. Fund composition is based on net assets. Please scroll down to see important information about the Fund. 

Management Team

Sreeni Prabhu

Sreeni Prabhu

Co-CEO and CIO

Investment industry since 1998
Read Bio

 
Navid Abghari

Navid Abghari

Portfolio Manager

Investment industry since 2005
Read Bio

 
Johannes Palsson

Johannes Palsson

Portfolio Manager

Investment industry since 1996 
Read Bio

 
Cheryl Pate

Cheryl Pate, CFA®

Portfolio Manager

Investment industry since 2006 
Read Bio

 
 

Fund Facts

Share Class Ticker CUSIP Inception Gross Expense Ratio* Net Expense Ratio*
Class A ANFLX 03463K109 11/3/14 1.43% 0.94%
Class I ANFIX 03463K208 11/3/14 1.18% 0.69%
Class C AFLCX 03463K604 8/4/15 2.18% 1.69%

*Gross expense ratios are reported as of the 5/31/19 prospectus. The net expense ratios are reported as of the 1/31/19 Annual Report and are referenced in the 5/31/19 prospectus. The Adviser has contractually agreed to waive fees through 5/31/20.

Fund Commentary

30-Day SEC Yield: The SEC yield is an annualized yield based on the most recent 30-day period. Subsidized yields reflect fee waivers in effect. Without such waivers, yields would be reduced. Unsubsidized yields do not reflect fee waivers in effect.

Bloomberg Barclays U.S. Aggregate 3-5 Year Index: An index that tracks bonds with 3-5 year maturities within the Bloomberg Barclays U.S. Aggregate Bond Index.

Responsible Financial Institution (RFI): A designation developed by Angel Oak Capital Advisors to indicate financial institutions with an objectively measureable commitment to environmental sustainability, social responsibility and strong corporate governance.

**As of 10/31/19, the Angel Oak Financials Income Fund (ANFIX) received a Morningstar rating based on risk-adjusted returns of 5 stars overall & 5 stars for the three-year period among 491 and 491 short-term bond funds, respectively. The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating™ for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating™ metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

© 2019 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Mutual fund investing involves risk; principal loss is possible. Investments in debt securities typically decrease when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower-rated and nonrated securities present a greater risk of loss to principal and interest than higher-rated securities do. Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of, including credit risk, prepayment risk, possible illiquidity, and default, as well as increased susceptibility to adverse economic developments. Derivatives involve risks different from—and in certain cases, greater than—the risks presented by more traditional investments. Derivatives may involve certain costs and risks such as illiquidity, interest rate, market, credit, management, and the risk that a position could not be closed when most advantageous. Investing in derivatives could lead to losses that are greater than the amount invested. The Fund may make short sales of securities, which involves the risk that losses may exceed the original amount invested. The Fund may use leverage, which may exaggerate the effect of any increase or decrease in the value of securities in the Fund’s portfolio or the Fund’s net asset value, and therefore may increase the volatility of the Fund. Investments in foreign securities involve greater volatility and political, economic, and currency risks and differences in accounting methods. These risks are increased for emerging markets. Investments in fixed-income instruments typically decrease in value when interest rates rise. The Fund will incur higher and duplicative costs when it invests in mutual funds, ETFs, and other investment companies. There is also the risk that the Fund may suffer losses due to the investment practices of the underlying funds. For more information on these risks and other risks of the Fund, please see the Prospectus.