2 A Compelling Case for Bonds in Today’s Environment – Bloomberg, ICE Data. Data as of 6/30/2025. Corporates = Bloomberg U.S. Corporate Bond Index; High Yield = Bloomberg U.S. Corporate High Yield Bond Index; Agency RMBS = Bloomberg U.S. Mortgage-Backed Securities (MBS) Index; CMBS = ICE U.S. Fixed Rate Non-Agency CMBS Index; Sub. ABS = ICE BofA AA-BBB U.S. Asset Backed Securities Index; Emerging Markets (EM) = JP Morgan EMBI Global Diversified Index. Past performance is no guarantee of future results, which will vary. It is not possible to invest directly in an index. 

 

3 Opportunistic When Market Conditions Change  - Source: MacKay Municipal Managers and Bloomberg, as of 6/30/2025. Chart shows change in HY allocation with change in HY Muni Spread. % HY Allocation – Percentage allocation of a portfolio towards high-yield bonds. HY Muni Spread – Difference in yield between high-yield municipal bonds and comparable US Treasury securities. It is a measure of the credit risk premium for investing in high-yield municipal bonds.

 

4 The Time is Right for Municipal Bonds – Source: Bloomberg as of 6/30/2025.​ Yield is represented by yield to worst of Bloomberg Municipal Bond Index. Past performance is not indicative of future results. It is not possible to invest directly in an index. Yield to Worst (YTW) is the lowest yield a bond investor can earn if the bond is called or redeemed early, assuming no default.

 

All investments are subject to market risk, including the potential loss of principal. Past performance is not indicative of future results. Investment returns and principal value will fluctuate, and investors may experience gains or losses upon redemption.​

The Sharpe Ratio is a measure of risk-adjusted return, calculated by dividing the excess return of an investment over the risk-free rate by its standard deviation. It is used to understand the return of an investment compared to its risk. A higher Sharpe Ratio indicates better risk-adjusted performance.​

This material is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The information provided does not consider the specific objectives or circumstances of any particular investor. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with their financial professionals.​

About Risk: Funds that invest in bonds are subject to interest-rate risk and can lose principal value when interest rates rise. Bonds are also subject to credit risk which is the possibility that the bond issuer may fail to pay interest and principal in a timely manner. Investing in below investment grade securities may carry a greater risk of nonpayment of interest or principal than higher-rated bonds. Diversification cannot assure a profit or protect against loss in a declining market. The Funds may invest in derivatives which may amplify the effects of market volatility on the Fund’s Share price.

MSDIX:. Foreign securities are subject to interest rate, currency exchange
rate, economic, and political risks. These risks may be greater for emerging markets. Short positions pose a risk because they lose value as a security's price increases; therefore, the loss on a shortsale is theoretically unlimited. As a result, these funds may not be suitable for all investors. The use of leverage may increase the Fund's exposure to long equity positions and make any change in the Fund's NAV greater than it would be without the use of leverage. This could result in increased volatility of returns. Issuers of convertible securities may not be as financially strong as those issuing securities with higher credit ratings and are more vulnerable to economic changes. The principal risk of mortgage dollar rolls is that the security the Fund receives at the end of the transaction may be worth less than the security the Fund sold to the same counterparty at the beginning of the transaction. The principal risk of mortgage-related and asset-backed securities is that the underlying debt may be prepaid ahead of schedule, if interest rates fall, thereby reducing the value of the fund's investment.

MTFGX: Municipal bond risks include the ability of the issuer to repay the obligation, the relative lack of information about certain issuers, and the possibility of future tax and legislative changes, which could affect the market for and value of municipal securities. A portion of the Fund's income may be subject to state and local taxes or the alternative minimum tax. Income from municipal bonds held by the Fund could be declared taxable because of unfavorable changes in tax law, adverse interpretations by the Internal Revenue Service or state tax authorities, or noncompliant conduct of a bond issuer.

SECR: Asset-backed securities are subject to credit risk, extension risk, interest rate risk, liquidity risk and valuation risk. The impairment of the value of collateral or other assets underlying an asset backed security, such as a result of non-payment of loans or non-performance of underlying assets, may result in a reduction in the value of such asset-backed securities and losses to the Fund.
Investments in mortgage-related securities are also significantly affected by the rate of prepayments. Impairment of the underlying obligations or collateral, such as by non-payment, will reduce a mortgage-related security’s value.