Core Fixed Income includes a broad range of fixed-income securities that may include government, corporate, mortgage-backed, and municipal-bond securities as well as short duration fixed-income securities. Extended Fixed Income includes fixed-income securities that add potential for increased income relative to core fixed income, but may also feature greater risk. Examples include high-yield bonds and emerging markets debt. Diversifiers are asset classes that offer diversifying exposure beyond core and extended fixed-income asset classes. Examples include inflation-protected securities,real assets, and multi-asset income funds.
The Tax-Aware Moderate Model considers the generation of tax efficient income as part of its model objective. It seeks to achieve this objective through allocating a portion of its assets to underlying funds which invest in municipal securities. It may also consider the tax efficiency of exchange-traded funds relative to mutual funds, as well as expected mutual fund turnover, in its allocations. The model may not meet its tax-efficient objective.
