Additional Performance Information

Fund performance includes reinvestment of all distributions. This fund began operations on 2/14/05 with Institutional shares. Returns prior to inception reflect the original share class performance, adjusted for higher operating expenses and/or the maximum sales charge.

Important Objectives, Strategy and Risk Information

The fund’s investment objective is total return.

The team uses a quantitative, rules-based methodology to determine the fund’s commodity sector weightings relative to its benchmark, the Bloomberg Commodity Index. Our tactical investment strategy gives us the ability to increase or decrease market exposure and potentially provide a measure of downside protection. It also gives the team the ability to reduce exposure to all commodity sectors when commodities in general may appear overvalued.

The fund invests in commodity-linked derivatives which may subject the fund to special risks. Market price movements or regulatory and economic changes will have a significant impact on the fund’s performance. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Any fund that concentrates in a particular segment of the market will generally be more volatile than a fund that invests more broadly. Bond investments are subject to interest-rate, credit, liquidity and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Investing in foreign securities presents certain risks, such as currency fluctuations, political and economic changes, and market risks. Emerging markets tend to be more volatile and less liquid than the markets of more mature economies, and generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. A counterparty with whom the fund does business may decline in financial health and become unable to honor its commitments, which could cause losses for the fund. The fund may lend securities to approved institutions. Please read the prospectus for details.

Important Information and Definitions

©2020 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (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. 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. 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 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.

Morningstar Risk is based on the calculation of the difference between the Morningstar Return (adjusted for loads and excess over the risk-free rate) and the Morningstar Risk-Adjusted Return (adjusted for loads, excess over risk-free rate and risk). The calculation results in a rating system such that for each time period (3-, 5-, 10-years), the top 10% are given a risk score of 5 or High, next 22.5% of 4 or Above Average, next 35% of 3 or Average, next 22.5% of 2 or Below Average and the bottom 10% of 1 or Low.
Source: Morningstar, Inc. R-squared (R2) is a historical measure that indicates how closely a fund’s past fluctuations have correlated with those of the fund’s benchmark. An R2 of 100% means that all movements of a fund are explained by benchmark movements. Both beta and R2 are based on a 3-year period relative to the index.Source: Morningstar, Inc. Turnover rate is the rate of trading activity in a fund’s portfolio of investments, equal to the lesser of purchases or sales, for a year, divided by average total assets for that year.
Effective maturity is the weighted average of the bonds held by the fund taking into consideration any available maturity shortening features. Effective duration is an approximate measure of the fund’s sensitivity to interest rate changes taking into consideration any maturity shortening features.