Navigating a negative rate world
The Fed is facing pressure to push rates towards zero, while the ECB is doubling down on its negative rate policy.
The opinions expressed are those of the Fund’s managers and are not meant as investment advice or to predict or project the future performance of any investment product. The opinions are current through Sept. 30, 2019, are subject to change at any time based on market and other current conditions, and no forecasts can be guaranteed. This commentary is being provided as a general source of information and is not intended as a recommendation to purchase, sell, or hold any specific security or to engage in any investment strategy. Investment decisions should always be made based on an investor’s specific objectives, financial needs, risk tolerance and time horizon. Past performance is not a guarantee of future results.
All information is based on Class I shares.
Top 10 equity holdings as a percent of net assets as of 09/30/2019: Taiwan Semiconductor Manufacturing Co. Ltd. 4.0%, Lockheed Martin Corp. 3.4%, Nestle S.A., Registered Shares 3.3%, AstraZeneca plc 3.2%, Philip Morris International, Inc. 3.2%, Verizon Communications, Inc. 3.1%, Tokio Marine Holdings, Inc. 3.1%, Royal Dutch Shell plc, Class A 2.9%, Samsung Electronics Co. Ltd. 2.9% and The Procter & Gamble Co. 2.8%.
Risk factors: The value of the Fund’s shares will change, and you could lose money on your investment. International investing involves additional risks including currency fluctuations, political or economic conditions affecting the foreign country, and differences in accounting standards and foreign regulations. These risks are magnified in emerging markets. Fixed income securities are subject to interest rate risk and, as such, the net asset value of the Fund may fall as interest rates rise. Investing in high-income securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds. Dividend-paying investments may not experience the same price appreciation as non-dividend paying instruments. Dividend-paying companies may choose to not pay a dividend or the dividend may be less than expected.These and other risks are more fully described in the Fund’s prospectus. Not all funds or fund classes may be offered at all broker/dealers.