Risk Considerations
Equity Risk. An investment in a portfolio containing common stocks is subject to certain risks, such as an economic recession and the possible deterioration of either the financial condition of the issuers of the equity securities or the general condition of the stock market.
Financials Risk. The companies engaged in the financials sector are subject to the adverse effects of volatile interest rates, economic recession, decreases in the availability of capital, increased competition from new entrants in the field, and potential increased regulation.
Foreign Securities Risk. Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers.
High-Yield or Junk Bonds Risk.
Investing in high-yieldsecurities should be viewed as speculative and you should review your abilityto assume the risks associated with investments that utilize such bonds.High-yield securities are subject to numerous risks including higher interest rates,economic recession, deterioration of the junk bond market, possible downgradesand defaults of interest and/or principal. High-yield security prices tend tofluctuate more than higher rated bonds and are affected by short-term creditdevelopments to a greater degree.
Preferred Securities Risk. Preferred securities are equity securities of the issuing company which pay income in the form of dividends. Preferred securities are typically subordinated to bonds and other debt instruments in a company's capital structure, and therefore will be subject to greater credit risk than those debt instruments.
Volatility Risk. The value of the securities held by the trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers.
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