Fund Detail

InvestEd 90 Portfolio

Track Fund
$11.46 NAV as of 9/25/2020
$0.13 / 1.15% Daily NAV Change
0.53% YTD (NAV) as of 9/25/2020 i

Fund Summary

To seek to provide growth of capital.
The Portfolio seeks to maintain an approximate allocation ratio of 90% equity securities and 10% fixed income securities. By allocating approximately 90% of its asset to equities via investments in the Underlying Equity Funds, the Portfolio is susceptible to significant short-term market fluctuations. It is most appropriate for investors who have a high tolerance for risk and a long-term investment horizon, and who do not expect to incur expenses for higher education for at least 16 years.
Morningstar Style Box
Value Blend Growth
Large
Medium
Small
LTD MOD EXT
High
Medium
Low
Portfolio Management
  • Chace Brundige, CFA

    • — Ivy Investment Management Company
    • — 3 Years with Fund
    • — 27 Years in Industry
  • Aaron D. Young

    • — Ivy Investment Management Company
    • — 3 Years with Fund
    • — 15 Years in Industry
  • W. Jeffery Surles, CFA

    • — Ivy Investment Management Company
    • — 2 Years with Fund
    • — 19 Years in Industry
Growth of a $10,000 Investment through 8/31/2020

Assumes an investment over 10 years or life of the share class, reinvestment of dividends and capital gains, and does not include the effect of sales charges or taxes. If it had, performance shown would have been lower.

Documents
Fact Sheet
Prospectus
Summary Prospectus
Statement of Additional Information
Annual Report
Semi-Annual Report
Quarterly Commentary
XBRL
Daily Prices as of 9/25/2020
Net Asset Value (NAV) $11.46  
Daily NAV Change $0.13 1.15%
Weekly NAV Change ($0.17) -1.46%
Public Offering Price (POP) $11.75
Fund Facts
Ticker Symbol WAGPX
CUSIP 46132D402
Fund Code 804
Fund Type InvestEd
Fund Inception 9/18/2017
Class Inception 9/18/2017
Fiscal Year End December
Dividends Paid December
Fund Assets
(as of 8/31/2020)
$18.8 mil
Portfolio Turnover Rate
(as of 12/31/2019)
10%
Morningstar Category Allocation--85%+ Equity
Benchmark57% Russell 3000 Index + 33% MSCI ACWI ex U.S.A. IMI Index + 8% Bloomberg Barclays U.S. Universal Index + 2% Bloomberg Barclays 1-3 Year Gov/Credit Index
Benchmark10% BBgBarc US Universal TR USD, 29% MSCI ACWI Ex USA NR USD, 61% Russell 3000 TR USD
BenchmarkRussell 3000 TR USD
BenchmarkMSCI ACWI Ex USA IMI NR USD
BenchmarkBBgBarc US Universal TR USD
BenchmarkBloomberg Barclays 1-3 Year Gov/Credit Index
BenchmarkMSCI ACWI Ex USA NR USD

Fund Performance

Data quoted is past performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.

All Ivy InvestEd 529 Plan investment options except Ivy Government Money Market Fund shares are charged a front-end sales load of 2.50% for purchases up to $250,000. Ivy Government Money Market Fund does not have a front-end sales load. For Breakpoints and Rights of Accumulation see the Ivy InvestEd 529 Plan Program Overview. An annual $20 account maintenance fee is not included in the calculations.

Monthly Rates of Return Average Annual Total Returns as of 8/31/2020

(Returns for periods of less than 1-yr are not annualized)
YTD 1YR 3YR 5YR 10YR LIFE
Portfolio at NAV 5.00% 14.36% N/A N/A N/A 8.69%
Portfolio with 2.50% sales charge 2.39% 11.50% N/A N/A N/A 7.75%
57% Russell 3000 Index + 33% MSCI ACWI ex U.S.A. IMI Index + 8% Bloomberg Barclays U.S. Universal Index + 2% Bloomberg Barclays 1-3 Year Gov/Credit Index 5.06% 15.79% 9.33% 10.33% 10.71% -
10% BBgBarc US Universal TR USD, 29% MSCI ACWI Ex USA NR USD, 61% Russell 3000 TR USD 5.60% 16.25% 9.86% 10.68% 11.09% -
Russell 3000 TR USD 9.39% 21.44% 13.95% 13.86% 14.94% -
MSCI ACWI Ex USA IMI NR USD -2.97% 8.66% 2.56% 5.85% 5.43% -
BBgBarc US Universal TR USD 6.40% 6.41% 5.09% 4.61% 3.97% -
Bloomberg Barclays 1-3 Year Gov/Credit Index 3.11% 3.66% 2.79% 2.15% 1.59% -
MSCI ACWI Ex USA NR USD -3.05% 8.32% 2.63% 5.75% 5.26% -
Morningstar Allocation--85%+ Equity 1.13% 10.62% 6.70% 8.13% 10.16% -

Quarterly Rates of Return Average Annual Total Returns as of 6/30/2020

(Returns for periods of less than 1-yr are not annualized)
YTD 1YR 3YR 5YR 10YR LIFE
Portfolio at NAV -4.65% 2.91% N/A N/A N/A 5.52%
Portfolio with 2.50% sales charge -7.01% 0.36% N/A N/A N/A 4.55%
10% BBgBarc US Universal TR USD, 29% MSCI ACWI Ex USA NR USD, 61% Russell 3000 TR USD -4.71% 3.51% 7.09% 7.32% 10.30% -
Russell 3000 TR USD -3.48% 6.53% 10.04% 10.03% 13.72% -
BBgBarc US Universal TR USD 5.17% 7.88% 5.15% 4.42% 4.11% -
Bloomberg Barclays 1-3 Year Gov/Credit Index 2.88% 4.20% 2.87% 2.11% 1.63% -
MSCI ACWI Ex USA NR USD -11.00% -4.80% 1.13% 2.26% 4.97% -
Morningstar Allocation--85%+ Equity -8.39% -1.38% 3.90% 4.85% 9.37% -

Calendar Year Return

20152016201720182019201020112012201320142005200620072008200920032004
Class A- - - -7.21 24.52 - - - - - - - - - - - -
10% BBgBarc US Universal TR USD, 29% MSCI ACWI Ex USA NR USD, 61% Russell 3000 TR USD- - 21.06 -7.15 26.03 - - - - - - - - - - - -
Russell 3000 TR USD0.48 12.74 21.13 -5.24 31.02 16.93 1.03 16.42 33.55 12.56 6.12 15.72 5.14 -37.31 28.34 - 11.95
BBgBarc US Universal TR USD0.43 3.91 4.09 -0.25 9.29 7.16 7.40 5.53 -1.35 5.56 2.72 4.97 6.50 2.38 8.60 - 4.97
Bloomberg Barclays 1-3 Year Gov/Credit Index0.65 1.28 0.84 1.60 4.03 - - - - - - - - - - - -
MSCI ACWI Ex USA NR USD-5.66 4.50 27.19 -14.20 21.51 11.15 -13.71 16.83 15.29 -3.87 16.62 26.65 16.65 -45.53 41.45 40.83 20.91

Morningstar Ranking through 8/31/2020

Category: Allocation--85%+ Equity

  Rank Percentile
1 Year 65 /174 38

Morningstar Ranking / # of Funds in Category displays the fund's actual rank within its Morningstar Category based on average annual total return and number of Funds in that Category. The Morningstar Percentile Ranking compares a Fund's Morningstar risk and return scores with all the Funds in the same Category, where 1% = Best and 100% = Worst.

Expense Ratios as of 9/1/2020

Net 0.91%
Gross 0.91%

Growth of a $10,000 Investment through 8/31/2020

Assumes an investment over 10 years or life of the share class, reinvestment of dividends and capital gains, and does not include the effect of sales charges or taxes.

Fund Distributions

Historical Prices Inception 9/18/2017

Date Price Dividend Reinvest Date Capital Gain Reinvest Date

Historical Distributions Inception 9/18/2017

Ex-date Income Capital Gains Reinvest Gains Payment Date

*Special Dividend
The table includes the daily prices at NAV (net asset value) for the history of this fund's selected share class. NAV is the amount per share you would receive if you sold shares that day.

12-Month Trailing Dist. Yield as of 8/31/2020

NAV 0.96%
With Sales Charge 0.94%

Fund Documents

Top 10 Industry Allocation (as a % of Equity Holdings as of 8/31/2020)
Internet & Direct Marketing Retail 4.7%
Pharmaceuticals 3.6%
Interactive Media & Services 3.5%
Technology Hardware, Storage & Peripherals 3.4%
Data Processing & Outsourced Services 3.2%
Semiconductors 3.2%
Systems Software 3.1%
Application Software 3.1%
Health Care Equipment 3.0%
Industrial Machinery 2.7%
Fixed Income Country Allocation (as a % of bond holdings as of 8/31/2020)
United States 94.3%
Norway 1.8%
Canada 0.9%
United Kingdom 0.5%
Japan 0.3%
Mexico 0.2%
Netherlands 0.2%
Luxembourg 0.2%
Australia 0.1%
Chile 0.1%
Ireland 0.1%
Peru 0.1%
Brazil 0.1%
Indonesia 0.1%
Cayman Islands 0.1%
France 0.1%
China 0.1%
Spain 0.1%
Columbia 0.1%
Argentina 0.0%
South Korea 0.0%
Bermuda 0.0%
Denmark 0.0%
Saint Lucia 0.0%
Panama 0.0%
Turkey 0.0%
Sweden 0.0%
India 0.0%
Venezuela 0.0%
Qatar 0.0%
Macau 0.0%
Vietnam 0.0%
Uruguay 0.0%
Jamaica 0.0%
United Arab Emirates 0.0%
Hong Kong 0.0%
Isle of Man 0.0%
Austria 0.0%
Saudi Arabia 0.0%
Poland 0.0%
Israel 0.0%
Costa Rica 0.0%
South Africa 0.0%
Russia 0.0%
British Virgin Islands 0.0%
Guernsey 0.0%
Switzerland 0.0%
Nigeria 0.0%
Egypt 0.0%
Malaysia 0.0%
Italy 0.0%
Mauritius 0.0%
Serbia 0.0%
Uzbekistan 0.0%
Portfolio Allocation Ranges (as of the most recent prospectus)
Low High
Ivy Pzena International Value Fund 0.0 % 25.0 %
Ivy International Core Equity Fund 0.0 % 25.0 %
Ivy Core Equity Fund 0.0 % 25.0 %
Ivy Large Cap Growth Fund 0.0 % 25.0 %
Ivy Global Growth Fund 0.0 % 25.0 %
Ivy ProShares S&P 500 Dividend Aristocrats Index Fund 0.0 % 25.0 %
Ivy Value Fund 0.0 % 25.0 %
Ivy Emerging Markets Equity Fund 0.0 % 15.0 %
Ivy LaSalle Global Real Estate Fund 0.0 % 15.0 %
Ivy International Small Cap Fund 0.0 % 15.0 %
Ivy Small Cap Growth Fund 0.0 % 10.0 %
Ivy Government Securities Fund 1 0.0 % 10.0 %
Ivy Limited-Term Bond Fund 0.0 % 10.0 %
Ivy Small Cap Core Fund 0.0 % 10.0 %
Ivy Securian Core Bond Fund 0.0 % 10.0 %
Ivy Government Money Market Fund 0.0 % 10.0 %
Ivy Mid Cap Income Opportunities Fund 0.0 % 10.0 %
Ivy ProShares Russell 2000 Dividend Growers Index Fund 0.0 % 10.0 %
Ivy Corporate Bond Fund 1 0.0 % 10.0 %
Ivy Mid Cap Growth Fund 0.0 % 10.0 %
Ivy Global Bond Fund 0.0 % 5.0 %
Ivy High Income Fund 0.0 % 5.0 %
Ivy Apollo Strategic Income Fund 0.0 % 5.0 %
Ivy Crossover Credit Fund 0.0 % 5.0 %

The table above does not include allocation ranges for the iShares Core S&P 500 ETF and the iShares Core MSCI EAFE ETF. For the InvestEd 90 Portfolio, those ranges are 0%-25% and 0%-25%, respectively, as of the most recent prospectus.

iShares® is a registered trademark of BlackRock (BlackRock, Inc. and its subsidiaries). Neither BlackRock nor the iShares® Funds make any representations regarding the advisability of investing in the InvestEd Portfolios.

Sector Allocation as a % of equity assets as of 8/31/2020
Information Technology 20.31%
Consumer Discretionary 14.09%
Health Care 12.69%
Industrials 11.88%
Financials 11.30%
Communication Services 7.55%
Consumer Staples 7.52%
Materials 5.41%
Real Estate 4.31%
Energy 2.81%
Utilities 2.13%
Quality as a % of fixed income assets as of 8/31/2020
Government Bonds 60.70%
NonRated 0.90%
AAA 5.00%
AA 3.50%
A 8.80%
BBB 17.50%
BB 1.60%
B 1.20%
CCC 0.80%
Below CCC 0.00%

Quality: Our preference is to always use ratings obtained from Standard & Poor's, Moody’s, and Fitch. It is each Portfolio’s general policy to classify such security at the lower rating level if only two ratings are available. If more than two ratings are available and a median exists, the median is used. If more than two ratings exist without a median, the lower of the two middle ratings is used. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.

Portfolio Composition as a % of net assets as of 8/31/2020
Domestic Common Stock 60.32%
Foreign Common Stock 28.86%
Government Bonds 5.50%
Corporate Bonds 2.55%
Cash and Cash Equivalents 1.75%
Mortgage-Backed Securities 0.40%
Asset-Backed Securities 0.34%
Other Government Securities 0.18%
Senior Loans 0.06%
Revenue Bonds 0.04%
General Obligation Bonds 0.00%
Preferred Stock 0.00%
Equity Country Allocation as a % of equity assets as of 8/31/2020
United States 67.5%
China 4.4%
United Kingdom 3.9%
Japan 3.5%
Germany 2.8%
France 2.7%
Switzerland 1.9%
Canada 1.4%
Australia 1.3%
South Korea 1.3%
Taiwan 1.2%
India 1.1%
Netherlands 1.0%
Hong Kong 1.0%
Brazil 0.7%
Denmark 0.6%
Russia 0.6%
Ireland 0.6%
Norway 0.4%
Sweden 0.4%
South Africa 0.3%
Italy 0.3%
Singapore 0.3%
Bermuda 0.2%
Vietnam 0.1%
Spain 0.1%
Luxembourg 0.1%
Belgium 0.1%
Finland 0.1%
Indonesia 0.0%
Poland 0.0%
Mexico 0.0%
Israel 0.0%
Thailand 0.0%
Malaysia 0.0%
Chile 0.0%
Austria 0.0%
Macau 0.0%
Portugal 0.0%
Philippines 0.0%
Peru 0.0%
Underlying Fund Composition as a % of net assets as of 8/31/2020
Ivy International Core Equity 12.5 %
Ivy Large Cap Growth 12.0 %
Ivy ProShares S&P 500 Dividend Aristocrats Index 9.4 %
Ivy Core Equity 8.7 %
Ivy Value 7.4 %
Ivy Mid Cap Growth 7.3 %
Ivy Emerging Markets Equity 6.7 %
Ivy Government Securities 4.6 %
Ivy Mid Cap Income Opportunities 3.2 %
Ivy Securian Core Bond 2.6 %
Ivy Small Cap Growth 2.6 %
Ivy LaSalle Global Real Estate 1.9 %
Ivy ProShares Russell 2000 Dividend Growers Index 1.1 %
Ivy Limited-Term Bond 0.9 %
Ivy Corporate Bond 0.7 %
Ivy Small Cap Core 0.5 %
Ivy High Income 0.2 %
Ivy Global Bond 0.2 %

Fund Documents

Documents

Fact Sheet
Prospectus
Summary Prospectus
Statement of Additional Information
Annual Report
Semi-Annual Report
Quarterly Commentary
XBRL

Additional Fund Literature

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Data quoted is past performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.

Risk Factors: Past performance is not a guarantee of future results. An investment in the Portfolio is subject to risk. Your investment return and principal value will fluctuate, and it is possible to lose money by investing. The Portfolio's performance is generally subject to the same risks as those of the Underlying Funds it holds. The Portfolio invests in Underlying Equity Funds, for which a principal risk is market risk, the chance that stock prices overall will decline over short or even long periods of time. 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.

The Portfolio invests in Underlying Fixed Income Funds subject to interest rate risk and, as such, the net asset value of the Portfolio may fall as interest rates rise. Investing in below investment grade securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds. The Portfolio may invest in a limited number of Underlying Funds and may invest a significant portion of its assets in a single Underlying Fund. Therefore, the performance of a single Underlying Fund may have a significant effect on the performance of the Portfolio and the price of its shares than it would if the Portfolio invested in a larger number of Underlying Funds. These and other risks can be found in the InvestEd Portfolios prospectus.

You could lose money by investing in the Ivy Government Money Market Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.


Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the Ivy InvestEdSM 529 Plan. This and other information is found in the InvestEdSM Portfolios prospectus, and the Ivy Funds prospectus, the Ivy InvestEdSM 529 Plan Program Overview, and the Ivy InvestEdSM 529 Plan Account Application. All of these items are available from these links or from a financial advisor. Please read the prospectus carefully before investing.

Before investing, non-residents or tax-payers of states other than Arizona should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors than those offered under the Ivy InvestEdSM 529 Plan. Please consult your tax advisor regarding your personal tax situation.

Accounts are not insured by the State of Arizona, the Arizona Family College Savings Program Trust Fund (“the Trust”), the Arizona Commission for Postsecondary Education ("the Trustee") or any other governmental entity, Ivy Distributors, Inc., or any affiliated or related party, and neither the principal deposited nor any investment return is guaranteed by any of the above referenced parties. As of October 1, 2020, the Arizona State Board of Investment will become Trustee of the Trust, replacing the Arizona Commission for Postsecondary Education. Also, as of October 1, 2020, the Arizona State Treasurer’s Office will become Administrator of the Arizona Family College Savings Program. After October 1, 2020, all references to the Trustee and the Arizona Commission for Postsecondary Education shall refer collectively to the Arizona State Board of Investment and the Arizona State Treasurer’s Office.

Index Description: The Bloomberg Barclays U.S. Universal Index represents the union of the U.S. Aggregate Index, the U.S. High-Yield Corporate Index, the 144A Index, the Eurodollar Index, the Emerging Markets Index, and the non-ERISA portion of the CMBS Index. Municipal debt, private placements, and non-dollar-denominated issues are excluded from the Universal Index. The only constituent of the index that includes floating-rate debt is the Emerging Markets Index. Source: Bloomberg Barclays. It is not possible to invest directly in an index.

Index Description: The Bloomberg Barclays U.S. Universal Index represents the union of the U.S. Aggregate Index, the U.S. High-Yield Corporate Index, the 144A Index, the Eurodollar Index, the Emerging Markets Index, and the non-ERISA portion of the CMBS Index. Municipal debt, private placements, and non-dollar-denominated issues are excluded from the Universal Index. The only constituent of the index that includes floating-rate debt is the Emerging Markets Index. Source: Bloomberg Barclays. It is not possible to invest directly in an index.

Index Description: The MSCI ACWI ex USA Index captures large and mid-cap representation across 22 of 23 Developed Markets (DM) countries (excluding the U.S.) and 24 Emerging Markets (EM) countries. The index covers approximately 85% of the global equity opportunity set outside the U.S. It is not possible to invest directly in an index.

The MSCI information may only be used for your internal use, may not be reproduced or repurposed in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, salability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com) Source: MSCI.

Index Description: The Russell 3000® Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market. The Russell 3000® Index is constructed to provide a comprehensive, unbiased, and stable barometer of the broad market and is completely reconstituted annually to ensure new and growing equities are reflected. Source: FTSE Russell. It is not possible to invest directly in an index.

Index Description: The Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index is the 1-3 year component of the Bloomberg Barclays U.S. Government/Credit Index. It includes investment grade, U.S. dollar-denominated, fixed-rate Treasuries, government-related and corporate securities. To be included in the index, securities must have at least one, and up to, but not including three years to maturity. Source: Bloomberg Barclays. It is not possible to invest directly in an index.

Index Description: The MSCI ACWI ex USA Investable Market Index (IMI) - (Net) captures large, mid and small cap representation across 22 of 23 Developed Markets (DM) countries (excluding the US) and 26 Emerging Markets (EM) countries. The index covers approximately 99% of the global equity opportunity set outside the US. Source: MSCI. It is not possible to invest directly in an index.

Index Description: The Current Blended Benchmark is computed using a combination of 57% Russell 3000 Index + 33% MSCI ACWI ex U.S.A. IMI Index + 8% Bloomberg Barclays U.S. Universal Index + 2% Bloomberg Barclays 1-3 Year Gov/Credit Index. This benchmark index change is effective on September 1, 2020.Ivy Investment Management company believes that this index is more reflective of the types of securities that the Portfolio invests in. Both the Current Blended Benchmark and the Portfolio’s Former Blended Benchmark are included for comparison purposes. The Former Blended Benchmark is computed using a combination of 10% BBgBarc US Universal TR USD, 29% MSCI ACWI Ex USA NR USD, 61% Russell 3000 TR USD.

Effective September 1, 2020, the Portfolio changed its asset allocations and underlying fund investments; performance prior to that date reflects the Portfolio’s performance using a different asset allocation and different underlying fund investments.

Pricing: All prices and year-to-date returns are based on closing quotes unless noted, as supplied to the NASDAQ by 6:00 p.m. Eastern time. YTD Prices can be updated 3 to 4 hours after the Daily Pricing information which can result in mismatching data.

Style Analysis: The Morningstar Style Box reveals a fund's investment style. For equity funds the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend, or growth). For fixed-income funds, the vertical axis shows the credit quality of the bonds owned and the horizontal axis shows interest rate sensitivity as measured by a bond's effective duration. Morningstar seeks credit rating information from fund companies on a periodic basis (e.g., quarterly). In compiling credit rating information, Morningstar instructs fund companies to only use ratings that have been assigned by the following Nationally Recognized Statistical Rating Organizations (NRSROs): Moody's, Standard & Poor's, Fitch, and Egan-Jones. If two NRSROs have rated a security, fund companies are to report the lowest rating; if three or more NRSROs have rated the same security differently, fund companies are to report the rating that is in the middle. For example, if NRSRO X rates a security AA-, NRSRO Y rates the same security an A and NRSRO Z rates it a BBB+, the fund company should use the credit rating of 'A' in its reporting to Morningstar. PLEASE NOTE: Morningstar, Inc. is not itself an NRSRO nor does it issue a credit rating on the fund. An NRSRO rating on a fixed-income security can change from time-to-time. For credit quality, Morningstar combines the credit rating information provided by the fund companies with an average default rate calculation to come up with a weighted-average credit quality. The weighted-average credit quality is currently a letter that roughly corresponds to the scale used by a leading NRSRO. Bond funds are assigned a style box placement of "low", "medium", or "high" based on their average credit quality. Funds with a low credit quality are those whose weighted-average credit quality is determined to be less than "BBB-"; medium are those less than "AA-", but greater or equal to "BBB-"; and high are those with a weighted-average credit quality of "AA-" or higher. When classifying a bond portfolio, Morningstar first maps the NRSRO credit ratings of the underlying holdings to their respective default rates (as determined by Morningstar's analysis of actual historical default rates). Morningstar then averages these default rates to determine the average default rate for the entire bond fund. Finally, Morningstar maps this average default rate to its corresponding credit rating along a convex curve. For interest-rate sensitivity, Morningstar obtains from fund companies the average effective duration. Generally, Morningstar classifies a fixed-income fund's interest-rate sensitivity based on the effective duration of the Morningstar Core Bond Index (MCBI), which is currently three years. The classification of Limited will be assigned to those funds whose average effective duration is between 25% to 75% of MCBI's average effective duration; funds whose average effective duration is between 75% to 125% of the MCBI will be classified as Moderate; and those that are at 125% or greater of the average effective duration of the MCBI will be classified as Extensive. For municipal bond funds, Morningstar also obtains from fund companies the average effective duration. In these cases static breakpoints are utilized. These breakpoints are as follows: (i) Limited: 4.5 years or less; (ii) Moderate: more than 4.5 years but less than 7 years; and (iii) Extensive: more than 7 years. In addition, for non-US taxable and non-US domiciled fixed income funds static duration breakpoints are used: (i) Limited: less than or equal to 3.5 years; (ii) Moderate: greater than 3.5 and less than equal to 6 years; (iii) Extensive: greater than 6 years.

Unsubsidized yields reflect what the yield would have been without the effect of reimbursements and waivers. The adviser and its affiliates have or may voluntarily waive a portion of their fees (including, but not limited to, distribution and service (12b-1) fees) and reimburse certain expenses. There is no guarantee that the fund will avoid a negative yield. Such undertaking may be amended or withdrawn at any time.

12-Month Trailing Distribution Yield: at NAV refers to the 12-month historical cash flow paid over the past 12 months in dividends, divided by the past months ending NAV.

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, and does not include the effects of sales charges. 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.

© 2020 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. Past performance is no guarantee of future results.

Quality: Our preference is to always use ratings obtained from Standard & Poor's, Moody’s, and Fitch. It is each Portfolio’s general policy to classify such security at the lower rating level if only two ratings are available. If more than two ratings are available and a median exists, the median is used. If more than two ratings exist without a median, the lower of the two middle ratings is used. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.

Information is subject to change and is not intended to represent any past or future investment recommendations.