Market Turbulence Resulting from COVID-19. the outbreak of COVID-19 has negatively affected the worldwide economy, including the U.S. The future impact of COVID-19 is currently unknown, and it may exacerbate other risks that apply to the Fund. Market: the market price of a security may decline, sometimes rapidly or unpredictably, due to general market conditions that are not specifically related to a particular issuer, company, or asset class. Local, regional or global events such as the spread of infectious illness or other events could have a significant impact on a security or instrument.
REITs: REITS involve additional risks compared to those from common stock. REITs are dependent upon management skills; generally may not be diversified; and are subject to heavy cash flow dependency, defaults by borrowers, self-liquidation, and tax risks.
Real Estate Market: The Real Estate industry is subject to certain market risks such as property revaluations, interest rate fluctuations, rental rate fluctuations and operating expenses, increasing vacancies, rising construction costs and potential modifications to government regulations.
Sector Concentration: The focus of the Fund’s portfolio on the real estate sector may present more risks than if the portfolio were broadly diversified over numerous sectors.
Management and Strategy: The evaluation and selection of the Fund’s investments depend on the judgment of the Fund’s Sub-Advisor about the quality, relative yield, value or market trends affecting a particular security, industry, sector or region, which may prove to be incorrect.
Equity: The value of the equity securities held by the Fund may fall due to general market and economic conditions, perceptions regarding the real estate industry, or factors relating to specific companies.
Market Capitalization: Real estate companies tend to be small- to medium-sized companies in relation to the equity markets as a whole. Small- to medium-sized real estate company shares can be more volatile than large company stocks. The securities of small-capitalization and mid-capitalization companies may be subject to more abrupt or erratic market movements.
Growth-Oriented Investment Strategy: Growth securities typically are very sensitive to market movements. When revenues do not meet expectations, the prices of growth securities typically fall.
Non-Diversification: As a non-diversified fund, the Fund may focus its assets in the securities of fewer issuers, which exposes the Fund to greater market risk than if its assets were diversified among a greater number of issuers.
Interest Rate: Rising interest rates may impact the prices of REITS, and could increase operating costs and reduce the ability of REITs and other real estate companies to carry out acquisitions or expansions in a cost-effective manner.