SEEK INCOME & OPTIMIZE YIELD

5 implementation ideas

Investors are in a unique position to explore current income opportunities while positioning portfolios for potential future gains. As central bank rate cuts signal the start of a new growth cycle, we believe it’s an ideal time to adjust portfolios and consider opportunities emerging from market shifts.

Consider extending duration in high-quality fixed income

Historically, rate cutting cycles tend to be long with cash and cash equivalents underperforming and high-quality fixed income outperforming.

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Risk considerations

Investing involves risk, including possible loss of principal. Past Performance does not guarantee future results. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed. 

Asset allocation and diversification do not ensure a profit or protect against a loss. International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards. Fixed-income investments are subject to interest rate risk; as interest rates rise their value will decline. A portion of the Fund’s income may be subject to state and/or local taxes, and it may be subject to federal alternative minimum tax (AMT) for certain investors. Risks of preferred securities differ from risks inherent in other investments. In particular, in a bankruptcy preferred securities are senior to common stock but subordinate to other corporate debt. Lower-rated securities are subject to additional credit and default risks. Potential investors should be aware that Investment grade corporate bonds carry credit risks, default risk, liquidity risks, currency risks, operational risks, legal risks, counterparty risk and valuation risks.

Important information

This material covers general information only and does not take account of any investor’s investment objectives or financial situation and should not be construed as specific investment advice, a recommendation, or be relied on in any way as a guarantee, promise, forecast or prediction of future events regarding an investment or the markets in general. Information presented has been derived from sources believed to be accurate; however, we do not independently verify or guarantee its accuracy or validity. Any reference to a specific investment or security does not constitute a recommendation to buy, sell, or hold such investment or security, nor an indication that the investment manager or its affiliates has recommended a specific security for any client account. Subject to any contrary provisions of applicable law, the investment manager and its affiliates, and their officers, directors, employees, agents, disclaim any express or implied warranty of reliability or accuracy and any responsibility arising in any way (including by reason of negligence) for errors or omissions in the information or data provided.

This material may contain `forward‐looking’ information that is not purely historical in nature and may include, among other things, projections, and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.

MM14144 | 09/2024 | 3979968-092026