Performance

Fixed income markets remained defensive throughout November, shaped by a dearth of economic data amid the U.S. government shutdown, the longest on record. In this environment, market movements were driven by isolated data releases, hawkish commentary from Federal Reserve officials, mid-month equity weakness, and global spillover effects. Against this backdrop, the Fund delivered a positive return of 0.2%*. The UST 10-year yield declined slightly from 4.078% to 4.015%, reflecting a modest risk-off tone. Although the shutdown officially ended on November 12, it failed to restore clarity, with investors still awaiting a backlog of delayed data. Notable releases included strong October ADP employment figures, firm ISM services data, and solid September payrolls. Meanwhile, rising Japanese government bond yields added indirect upward pressure on U.S. rates. Despite shifting expectations for Fed policy and a heavy Treasury auction calendar, markets remained resilient. Fixed income indices broadly ended the month flat to slightly positive, as falling Treasury yields were offset by wider credit spreads. The Fund participated in a tender offer from a Brazilian media company, contributing to a reduced Brazil weighting. The current strategy remains focused on improving credit quality amid tight spreads, while retaining selective EM exposure in names offering favorable risk/reward. As of month-end, the Fund held an average duration of 5.9 years and a yield-to-maturity of 5.7%. * Net performance, B1 shares