All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying assets. Generally, the higher the potential return of an investment, the greater the risk. The risks of investing in this Fund include:
Investment risk: The Fund seeks to generate higher income returns than traditional cash investments. The risk of an investment in the Fund is higher than an investment in a typical bank account or term deposit. Amounts distributed to unitholders may fluctuate, as may the Fund’s unit price. The unit price may vary by material amounts, even over short periods of time, including during the period between a redemption request being made and the time the redemption unit price is calculated.
Income securities risk: The Fund may have exposure to a range of income securities, including government and corporate bonds, floating rate notes, hybrids, and structured securities. The value of these securities may fall, for example due to market volatility, interest rate movements, perceptions of credit quality, supply and demand pressures, market sentiment, or issuer default. These risks may be greater for securities offering higher returns. Income security risk may cause unit price volatility and/or financial loss to the Fund.
Credit risk: The value of the Fund’s investments may be sensitive to changes in market perceptions of credit quality, both of individual issuers and of the credit markets in general. The Fund has exposure to credit related securities and takes credit risk in order to achieve its investment objectives. However, the value of such securities, and therefore the Fund’s unit price, may be impacted by changes in the market’s perception of credit quality.
More information on the risks of investing in the Fund is contained in the Product Disclosure Statement, which should be considered before deciding to invest in the Fund.