For the past several decades, US intermediate-term bond funds provided income and total return with relatively low volatility. However, the Federal Reserve’s (Fed) introduction of quantitative easing (QE) after the global financial crisis altered the risk-and-return characteristics of the fixed-income assets investors had come to rely on. As QE pushed bond prices higher and yields lower, investors added more duration and credit risk to pursue the yields they were accustomed to.
Important Risks: Investing involves risk, including the possible loss of principal. There is no assurance that the investment process will consistently lead to successful investing. • Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall.