Morningstar® Investment Profile™   Morningstar® Disclosure   Format for Print Pioneer Bond VCT I Release date as of 2024-10-31. Data on page is subject to change. Snapshot Ratings & Risk Portfolio Nuts & Bolts

Morningstar Report Overall Morningstar Rating™ What is this? As of 2024-10-31 Out of 529 Intermediate Core-Plus Bond Funds Morningstar® Style Box™ What is this? As of 2024-09-30 Total Fund Assets ($ Mil) 130.5 View Historical Morningstar Star Ratings and Definitions

Investment Objective & Strategy   The investment seeks current income and total return. The fund normally invests at least 80% of its net assets (plus the amount of borrowings, if any, for investment purposes) in debt securities issued or guaranteed by the U.S. government, its agencies and instrumentalities, investment grade debt securities (including convertible debt) of corporate or other issuers and cash, cash equivalents and other short-term holdings. It may invest a substantial portion of its assets in mortgage-related securities.

Morningstar Category: Intermediate Core-Plus Bond Intermediate-term core-plus bond portfolios invest primarily in investment-grade U.S. fixed-income issues including government, corporate, and securitized debt, but generally have greater flexibility than core offerings to hold non-core sectors such as corporate high yield, bank loan, emerging-markets debt, and non-U.S. currency exposures. Their durations (a measure of interest-rate sensitivity) typically range between 75% and 125% of the three-year average of the effective duration of the Morningstar Core Bond Index.

Investment Risks There are no additional fund specific investment risks (e.g. liquidity risk, currency risk, foreign investment risk, etc.) associated with this fund beyond the normal risks generally associated with investing in a mutual fund.

Portfolio Profile Asset Allocation % of Net Assets U.S. Stocks 0.0 Non-U.S. Stocks 0.0 Bonds 91.0 Cash 8.8 Other 0.3 Data through 2024-09-30 Morningstar Fixed-Income Sectors % Fund Government 3.99 Corporate 38.37 Securitized 50.97 Municipal 0.00 Cash & Equivalents 6.68 Derivative 0.00 Data through 2024-09-30 Credit Analysis % Bonds AAA 15.13 AA 33.36 A 12.74 BBB 30.35 BB 4.23 B 1.09 Below B 0.07 Not Rated 3.02 Data through 2024-09-30 Holding Status Total Number of Stock Holdings 0 Total Number of Bond Holdings 753 % of Net Assets in Top 10 Holdings 19.96 Turnover % (as of 2023-12-31) 56.00 30 Day SEC Yield % 4.60 Top Holdings Maturity Date Shares Value $000 % of Net Assets Dreyfus Government Cash Mgmt Instl --- 6,685 6,685 5.13 Federal National Mortgage Association 6.5% 2054-10-01 3,800 -3,917 3.01 Pioneer ILS Interval --- 381 3,695 2.84 Federal Home Loan Mortgage Corp. 6.5% 2054-05-01 3,438 3,544 2.72 Federal National Mortgage Association 2% 2054-10-01 2,100 1,736 1.33 Fnma Pass-Thru I 2.5% 2052-04-01 1,699 1,468 1.13 Fnma Pass-Thru I 2.5% 2052-01-01 1,640 1,435 1.10 Fnma Pass-Thru I 1.5% 2042-03-01 1,483 1,246 0.96 Federal Home Loan Mortgage Corp. 1.5% 2042-03-01 1,402 1,178 0.90 United States Treasury Bonds 2.25% 2052-02-15 1,597 1,089 0.84 Data through 2024-09-30

Principal Risks    Lending, Credit and Counterparty, Extension, Inflation-Protected Securities, Prepayment (Call), Foreign Securities, Loss of Money, Not FDIC Insured, Interest Rate, Market/Market Volatility, Convertible Securities, High-Yield Securities, Industry and Sector Investing, Inverse Floaters, Mortgage-Backed and Asset-Backed Securities, Municipal Obligations, Leases, and AMT-Subject Bonds, Other, Preferred Stocks, Restricted/Illiquid Securities, Underlying Fund/Fund of Funds, U.S. Government Obligations, Derivatives, Leverage, Pricing, Dollar Rolls, Socially Conscious, Increase in Expenses, Shareholder Activity, Amortized Cost, Credit Default Swaps, Forwards, Management, Structured Products, Zero-Coupon Bond Show Risk Definitions

Other Information Inception Date: 1987-07-21 Portfolio Manager(s) Bradley Komenda   (2018-02-01) Brad Komenda is Managing Director, Director of Investment Grade Corporates, and Portfolio Manager. As Director of Investment Grade Corporates, he leads a team that supports the management of high-grade credit exposure across all fixed income portfolios managed by Amundi US, including crossover and high-grade CDS exposure. He is a member of the team managing stand-alone long duration and high-grade credit strategies, including portfolios with ESG mandates. Brad is also responsible for managing multi-sector fixed income portfolios. Prior to joining Amundi US in 2008, Brad spent ten years as an Investment Grade and High Yield Analyst at Columbia Management. He began his career with General Electric Capital and Assurance as an investment grade and high yield research associate where he worked for five years. He holds a B.A. in Accounting and Business Administration from Central Washington University (1991). He is a CFA® charterholder. Kenneth J. Taubes   (2004-12-31) Ken Taubes is Chief Investment Officer, US and a Portfolio Manager at Amundi US. As Chief Investment Officer, Ken oversees US fixed income, equity, and multi-asset teams, including portfolio management, fundamental research and trading. In addition, Ken leads the day-to-day investment activities of the US fixed income team and is a Portfolio Manager on a number of fixed income multi-sector portfolios. Ken is Chairman of the US Investment Committee, and a member of the US Executive Committee and US Management Committee. He also is a Trustee of the Pioneer Funds, which oversees Amundi US’s US-registered portfolios. Prior to joining Amundi US in 1998, Ken was a Senior Vice President and Senior Portfolio Manager at Putnam Investments. Ken also served as Senior Vice President and Corporate Treasurer of Home Owners Savings Bank in Boston, a large New England thrift holding company and one of the nation’s largest mortgage banks, where he worked from 1986 to 1990. He began his career in 1980 as a treasury officer with Bank of New England’s international treasury division. Ken received a Bachelor of Science in accounting from Syracuse University’s Utica College and an M.B.A. from Suffolk University in Boston. Jonathan Scott   (2021-11-01) Jonathan Scott is a Senior Vice President, Deputy Director of Multi-Sector Fixed Income, and Portfolio Manager. As Deputy Director of Multi-Sector Fixed Income, he helps oversee a team of investment professionals who are responsible for managing multi-sector fixed income strategies and retail funds for US and international investors. He is also a member of portfolio management teams responsible for managing Multi-Sector Fixed Income portfolios. Jonathan joined Amundi US in 2008, working first in the firm’s Fund Accounting department, and in 2011 as a Fixed Income Risk Analyst for the Investment Risk Management Team, where he worked closely with the Fixed Income team. He joined the Fixed Income team in 2012 as an Investment Associate where he supported portfolio construction and traded Investment Grade Corporate bonds. He was promoted to Associate Portfolio Manager in 2016 and in 2018, was named as a Multi-Sector Portfolio Manager. He also assumed portfolio management responsibilities for a US TIPS portfolio. In 2021, he was promoted to Deputy Director of Multi-Sector Fixed Income. Jonathan holds a B.A. in Economics and East Asian Studies with a concentration in Chinese from Colby College. He is a CFA® charterholder. Timothy D. Rowe   (2018-06-08) Tim Rowe is Managing Director and Portfolio Manager at Amundi US. Tim is a portfolio manager for investment-grade core bond portfolios, which he has managed at the firm since 1994, and works with the sector teams to construct portfolios that meet clients’ risk and return objectives. Prior to his current role, Tim was the Director of Multi-Sector Fixed Income where he oversaw a team of investment professionals responsible for managing institutional strategies and retail funds for US and international investors. Prior to that, his responsibilities included managing agency mortgage-backed security portfolios and leading the Securitized Credit team. Before joining the firm in 1988, Tim was an Assistant Economist at the Federal Reserve Bank of Richmond, Virginia. He holds a Master of Business Administration with specialization in Finance from the University of Chicago Booth School of Business and a Bachelor of Arts in Economics and History from Duke University. Investment Advisor(s) Amundi Asset Management US, Inc. Issuer Amundi US Subadvisor(s) ---

Show Data Definitions © Copyright 2024 Morningstar, Inc. All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or any losses arising from any use of information. Past performance is no guarantee of future performance. Past performance is no guarantee of future results. Returns will vary and shares may be worth more or less than their original cost when sold.



Morningstar® Investment Profile™   Morningstar® Disclosure   Format for Print Pioneer Bond VCT I Release date as of 2024-10-31. Data on page is subject to change. Snapshot Ratings & Risk Portfolio Nuts & Bolts

Morningstar Ratings Morningstar Return Morningstar Risk Morningstar Rating Number of Funds 3-Year Average Average 529 5-Year Above Avg High 489 10-Year Above Avg Above Avg 353 Overall Above Avg Above Avg 529 Morningstar Category: Intermediate Core-Plus Bond | Number of Funds in Category: 529 Data through 2024-10-31

Ratings reflect risk-adjusted performance and are derived from a weighted average of the performance figures associated with its three, five and ten-year (if applicable) time periods.

Volatility Measurements Standard Deviation 7.98 Mean -1.72 Sharpe Ratio -0.69 Trailing 3-Yr as of 2024-10-31

Modern Portfolio Theory Statistics Best Fit Index Bloomberg US Universal TR USD R-Squared 97 Beta 1.03 Alpha 0.26 Trailing 3-Yr as of 2024-10-31

Principal Risks    Lending, Credit and Counterparty, Extension, Inflation-Protected Securities, Prepayment (Call), Foreign Securities, Loss of Money, Not FDIC Insured, Interest Rate, Market/Market Volatility, Convertible Securities, High-Yield Securities, Industry and Sector Investing, Inverse Floaters, Mortgage-Backed and Asset-Backed Securities, Municipal Obligations, Leases, and AMT-Subject Bonds, Other, Preferred Stocks, Restricted/Illiquid Securities, Underlying Fund/Fund of Funds, U.S. Government Obligations, Derivatives, Leverage, Pricing, Dollar Rolls, Socially Conscious, Increase in Expenses, Shareholder Activity, Amortized Cost, Credit Default Swaps, Forwards, Management, Structured Products, Zero-Coupon Bond Show Risk Definitions

Investment Risks There are no additional fund specific investment risks (e.g. liquidity risk, currency risk, foreign investment risk, etc.) associated with this fund beyond the normal risks generally associated with investing in a mutual fund.

Show Data Definitions © Copyright 2024 Morningstar, Inc. All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or any losses arising from any use of information. Past performance is no guarantee of future performance. Past performance is no guarantee of future results. Returns will vary and shares may be worth more or less than their original cost when sold.



Morningstar® Investment Profile™   Morningstar® Disclosure   Format for Print Pioneer Bond VCT I Release date as of 2024-10-31. Data on page is subject to change. Snapshot Ratings & Risk Portfolio Nuts & Bolts

Style Box Details for Bond Holdings Average Eff Duration 6.52 Yrs Average Eff Maturity 6.94 Yrs Average Wtd Coupon 4.67 Average Wtd Price 96.01 As of 2024-09-30 Data as of 2024-09-30

Asset Allocation % of Net Assets U.S. Stocks 0.0 Non-U.S. Stocks 0.0 Bonds 91.0 Cash 8.8 Other 0.3 Data through 2024-09-30

Morningstar Fixed-Income Sectors % Fund Government 3.99 Corporate 38.37 Securitized 50.97 Municipal 0.00 Cash & Equivalents 6.68 Derivative 0.00 Data through 2024-09-30

Credit Analysis % Bonds AAA 15.13 AA 33.36 A 12.74 BBB 30.35 BB 4.23 B 1.09 Below B 0.07 Not Rated 3.02 Data through 2024-09-30

Top 25 Holdings Total Number of Stock Holdings 0 Total Number of Bond Holdings 753 % of Net Assets in Top 10 Holdings 19.96 Turnover % (as of 2023-12-31) 56.00 30 Day SEC Yield % 4.60 Top 25 Holdings Maturity Date Shares Value $000 % of Net Assets Dreyfus Government Cash Mgmt Instl --- 6,685 6,685 5.13 Federal National Mortgage Association 6.5% 2054-10-01 3,800 -3,917 3.01 Pioneer ILS Interval --- 381 3,695 2.84 Federal Home Loan Mortgage Corp. 6.5% 2054-05-01 3,438 3,544 2.72 Federal National Mortgage Association 2% 2054-10-01 2,100 1,736 1.33 Fnma Pass-Thru I 2.5% 2052-04-01 1,699 1,468 1.13 Fnma Pass-Thru I 2.5% 2052-01-01 1,640 1,435 1.10 Fnma Pass-Thru I 1.5% 2042-03-01 1,483 1,246 0.96 Federal Home Loan Mortgage Corp. 1.5% 2042-03-01 1,402 1,178 0.90 United States Treasury Bonds 2.25% 2052-02-15 1,597 1,089 0.84 Fnma Pass-Thru I 6% 2053-09-01 713 729 0.56 Federal Home Loan Mortgage Corp. 2.5% 2051-05-01 832 727 0.56 Fnma Pass-Thru I 2.5% 2051-11-01 792 698 0.54 AerCap Ireland Capital DAC / AerCap Global Aviation Trust 3.3% 2032-01-30 765 690 0.53 Fnma Pass-Thru I 2.5% 2051-05-01 733 646 0.50 Federal National Mortgage Association 6.5% 2054-11-01 600 618 0.47 Bank of America Corp. 2.884% 2030-10-22 663 616 0.47 Federal National Mortgage Association 6.5% 2054-05-01 580 598 0.46 Federation des Caisses Desjardins du Quebec 5.25% 2029-04-26 570 587 0.45 Aker BP ASA 3.1% 2031-07-15 640 570 0.44 Federal National Mortgage Association 3.5% 2054-10-01 600 559 0.43 Liberty Mutual Insurance Co. 7.697% --- 456 541 0.42 Federal National Mortgage Association 3% 2054-10-01 600 -538 0.41 Banco Santander, S.A. 3.225% 2032-11-22 600 531 0.41 ING Groep N.V. 4.25% --- 635 529 0.41 Data through 2024-09-30

Show Data Definitions © Copyright 2024 Morningstar, Inc. All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or any losses arising from any use of information. Past performance is no guarantee of future performance. Past performance is no guarantee of future results. Returns will vary and shares may be worth more or less than their original cost when sold.



Morningstar® Investment Profile™   Morningstar® Disclosure   Format for Print Pioneer Bond VCT I Release date as of 2024-10-31. Data on page is subject to change. Snapshot Ratings & Risk Portfolio Nuts & Bolts

Fees and Expenses Taken from prospectus dated 2024-05-01   Maximum Fees Administrative --- Management 0.40% 12b-1 --- Actual Fees 12b-1 0.00% Management 0.40% Expense Ratio 0.49% (taken from annual report dated 2024-06-30) Total Annual Operating Expense 0.64%

Waiver Data Type Date % --- --- --- ---

Management Inception Date: 1987-07-21

Mngr Name Bradley Komenda Mngr Start Date 2018-02-01 Biography Brad Komenda is Managing Director, Director of Investment Grade Corporates, and Portfolio Manager. As Director of Investment Grade Corporates, he leads a team that supports the management of high-grade credit exposure across all fixed income portfolios managed by Amundi US, including crossover and high-grade CDS exposure. He is a member of the team managing stand-alone long duration and high-grade credit strategies, including portfolios with ESG mandates. Brad is also responsible for managing multi-sector fixed income portfolios. Prior to joining Amundi US in 2008, Brad spent ten years as an Investment Grade and High Yield Analyst at Columbia Management. He began his career with General Electric Capital and Assurance as an investment grade and high yield research associate where he worked for five years. He holds a B.A. in Accounting and Business Administration from Central Washington University (1991). He is a CFA® charterholder. Mngr Name Kenneth J. Taubes Mngr Start Date 2004-12-31 Biography Ken Taubes is Chief Investment Officer, US and a Portfolio Manager at Amundi US. As Chief Investment Officer, Ken oversees US fixed income, equity, and multi-asset teams, including portfolio management, fundamental research and trading. In addition, Ken leads the day-to-day investment activities of the US fixed income team and is a Portfolio Manager on a number of fixed income multi-sector portfolios. Ken is Chairman of the US Investment Committee, and a member of the US Executive Committee and US Management Committee. He also is a Trustee of the Pioneer Funds, which oversees Amundi US’s US-registered portfolios. Prior to joining Amundi US in 1998, Ken was a Senior Vice President and Senior Portfolio Manager at Putnam Investments. Ken also served as Senior Vice President and Corporate Treasurer of Home Owners Savings Bank in Boston, a large New England thrift holding company and one of the nation’s largest mortgage banks, where he worked from 1986 to 1990. He began his career in 1980 as a treasury officer with Bank of New England’s international treasury division. Ken received a Bachelor of Science in accounting from Syracuse University’s Utica College and an M.B.A. from Suffolk University in Boston. Mngr Name Jonathan Scott Mngr Start Date 2021-11-01 Biography Jonathan Scott is a Senior Vice President, Deputy Director of Multi-Sector Fixed Income, and Portfolio Manager. As Deputy Director of Multi-Sector Fixed Income, he helps oversee a team of investment professionals who are responsible for managing multi-sector fixed income strategies and retail funds for US and international investors. He is also a member of portfolio management teams responsible for managing Multi-Sector Fixed Income portfolios. Jonathan joined Amundi US in 2008, working first in the firm’s Fund Accounting department, and in 2011 as a Fixed Income Risk Analyst for the Investment Risk Management Team, where he worked closely with the Fixed Income team. He joined the Fixed Income team in 2012 as an Investment Associate where he supported portfolio construction and traded Investment Grade Corporate bonds. He was promoted to Associate Portfolio Manager in 2016 and in 2018, was named as a Multi-Sector Portfolio Manager. He also assumed portfolio management responsibilities for a US TIPS portfolio. In 2021, he was promoted to Deputy Director of Multi-Sector Fixed Income. Jonathan holds a B.A. in Economics and East Asian Studies with a concentration in Chinese from Colby College. He is a CFA® charterholder. Mngr Name Timothy D. Rowe Mngr Start Date 2018-06-08 Biography Tim Rowe is Managing Director and Portfolio Manager at Amundi US. Tim is a portfolio manager for investment-grade core bond portfolios, which he has managed at the firm since 1994, and works with the sector teams to construct portfolios that meet clients’ risk and return objectives. Prior to his current role, Tim was the Director of Multi-Sector Fixed Income where he oversaw a team of investment professionals responsible for managing institutional strategies and retail funds for US and international investors. Prior to that, his responsibilities included managing agency mortgage-backed security portfolios and leading the Securitized Credit team. Before joining the firm in 1988, Tim was an Assistant Economist at the Federal Reserve Bank of Richmond, Virginia. He holds a Master of Business Administration with specialization in Finance from the University of Chicago Booth School of Business and a Bachelor of Arts in Economics and History from Duke University. Investment Advisor(s) Amundi Asset Management US, Inc. Web Site www.pioneerinvestments.com Issuer Amundi US Subadvisor(s) ---

Show Data Definitions © Copyright 2024 Morningstar, Inc. All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or any losses arising from any use of information. Past performance is no guarantee of future performance. Past performance is no guarantee of future results. Returns will vary and shares may be worth more or less than their original cost when sold.



Morningstar Investment Profilessm: Disclosure Statement

Morningstar Rating, Risk and Return

The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

For private funds, the Morningstar Rating presented is hypothetical, because Morningstar does not independently analyze private funds. Rather, the rating is assigned as a means to compare these funds with the universe of mutual funds that Morningstar rates. The evaluation of this investment does not affect the retail mutual fund data published by Morningstar.

Overall ratings represent a weighted average of specific time period (3-, 5- and 10-year) ratings.

The Morningstar Return rates a fund's performance relative to other managed products in its Morningstar Category. It is an assessment of a product's excess return over a risk-free rate (the return of the 90-day Treasury Bill) in comparison with the products in its Morningstar category. In each Morningstar category, the top 10% of products earn a High Morningstar Return (High), the next 22.5% Above Average (+Avg), the middle 35% Average (Avg), the next 22.5% Below Average (-Avg), and the bottom 10% Low (Low). Morningstar Return is measured for up to three time periods (three, five, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the product. Products with less than three years of performance history are not rated.

Morningstar Risk evaluates a fund's downside volatility relative to that of other products in its Morningstar Category. It is an assessment of the variations in monthly returns, with an emphasis on downside variations, in comparison with the products in its Morningstar category. In each Morningstar category, the 10% of products with the lowest measured risk are described as Low Risk (Low), the next 22.5% Below Average (-Avg), the middle 35% Average (Avg), the next 22.5% Above Average (+Avg), and the top 10% High (High). Morningstar Risk is measured for up to three time periods (three, five, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the product. Products with less than three years of performance history are not rated.

Pioneer Bond VCT I

Morningstar Ratings (Relative to Category)    Morningstar Return Morningstar Risk Morningstar Rating # of Funds 3-year Average Average 529 5-year Above Avg High 489 10-year Above Avg Above Avg 353 Overall Above Avg Above Avg 529 Morningstar Category : Intermediate Core-Plus Bond | Number of Funds in Category: 529 Data through 2024-10-31

Risk Measures

R-squared reflects the percentage of an investment option's movements that are explained by movements in its benchmark index, showing the degree of correlation between the investment option and the benchmark.

Beta is a measure of an investment option's sensitivity to market movements. A portfolio with a beta greater than 1 is more volatile than the market, and a portfolio with a beta less than 1 is less volatile than the market. Alpha measures the difference between an investment option's actual returns and its expected performance, given its level of risk (as measured by beta).

The Sharpe ratio uses standard deviation and excess return to determine reward per unit of risk.

Standard deviation is a statistical measure of the volatility of the investment option's returns.

Mean represents the annualized three-year geometric return.

Morningstar Style BoxTM

The Morningstar Style Box reveals a fund's investment strategy as of the date noted on this report.

For equity funds, the vertical axis shows the market capitalization of the long stocks owned, and the horizontal axis shows the investment style (value, blend, or growth). A darkened cell in the style box matrix indicates the weighted average style of the portfolio.

For portfolios holding fixed-income investments, a Fixed Income Style Box is calculated. The vertical axis shows the credit quality based on credit ratings and the horizontal axis shows interest-rate sensitivity as measured by effective duration. There are three credit categories - "High", "Medium", and "Low"; and there are three interest rate sensitivity categories - "Limited", "Moderate", and "Extensive"; resulting in nine possible combinations. As in the Equity Style Box, the combination of credit and interest rate sensitivity for a portfolio is represented by a darkened square in the matrix. Morningstar uses credit rating information from credit rating agencies (CRAs) that have been designated Nationally Recognized Statistical Rating Organizations (NRSROs) by the Securities and Exchange Commission (SEC) in the United States. For a list of all NRSROs, please visit https://www.sec.gov/ocr/ocr-current-nrsros.html. Additionally, Morningstar will use credit ratings from CRAs which have been recognized by foreign regulatory institutions that are deemed the equivalent of the NRSRO designation. To determine the rating applicable to a holding and the subsequent holding weighted value of a portfolio two methods may be employed. First is a common methodology approach where if a case exists such that two CRAs have rated a holding, the lower rating of the two should be applied; if three or more CRAs have rated a holding, the median rating should be applied; and in cases where there are more than two ratings and a median rating cannot be determined, the lower of the two middle ratings should be applied. Alternatively, if there is more than one rating available an average can be calculated from all and applied. Please Note: Morningstar, Inc. is not an NRSRO nor does it issue a credit rating on the fund. Credit ratings for any security held in a portfolio can change over time.

Morningstar uses the credit rating information to calculate a weighted-average credit quality value for the portfolio. This value is based only upon those holdings which are considered to be classified as "fixed income", such a government, corporate, or securitized issues. Other types of holdings such as equities and many, though not all, types of derivatives are excluded. The weighted-average credit quality value is represented by a rating symbol which corresponds to the long-term rating symbol schemas employed by most CRAs. Note that this value is not explicitly published but instead serves as an input in the Style Box calculation. This symbol is then used to map to a Style Box credit quality category of "low," "medium," or "high". Funds with a "low" credit quality category are those whose weighted-average credit quality is determined to be equivalent to the commonly used High Yield classification, meaning a rating below "BBB", portfolios assigned to the "high" credit category have either a "AAA" or "AA+" average credit quality value, while "medium" are those with an average rating of "AA-" inclusive to "BBB-". It is expected and intended that the majority of portfolios will be assigned a credit category of "medium".

For assignment to an interest-rate sensitivity category, Morningstar uses the average effective duration of the portfolio. From this value there are three distinct methodologies employed to determine assignment to category. Portfolio which are assigned to Morningstar municipal-bond categories employ static breakpoints between categories. These breakpoints are: "Limited" equal to 4.5 years or less, "Moderate" equal to 4.5 years to less than 7 years; and "Extensive" equal to more than 7 years. For portfolios assigned to Morningstar categories other than U.S. Taxable, including all domiciled outside the United States, static duration breakpoints are also used: "Limited" equals less than or equal to 3.5 years, "Moderate" equals greater than 3.5 years but less than or equal to 6 years, and "Extensive" is assigned to portfolios with effective durations of more than 6 years.

Note: Interest-rate sensitivity for non-U.S. domiciled portfolios (excluding those in Morningstar convertible categories) may be assigned using average modified duration when average effective duration is not available.

For portfolios Morningstar classifies as U.S. Taxable Fixed-Income, interest-rate sensitivity category assignment is based on the effective duration of the Morningstar Core Bond Index (MCBI). The classification assignment is dynamically determined relative to the benchmark index value. A "Limited" category will be assigned to portfolios whose average effective duration is between 25% to 75% of MCBI average effective duration, where the average effective duration is between 75% to 125% of the MCBI the portfolio will be classified as "Moderate", and those portfolios with an average effective duration value 125% or greater of the average effective duration of the MCBI will be classified as "Extensive".

Investment Risk

Foreign Securities Investment Options:/Emerging Market Investment Options: The investor should note that investment options that invest in foreign securities involve special additional risks. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks.

Sector Investment Options: The investor should note that investment options that invest exclusively in one sector or industry involve additional risks. The lack of industry diversification subjects the investor to increased industry-specific risks.

Non-Diversified Investment Options: The investor should note that investment options that invest more of their assets in a single issuer involve additional risks, including share price fluctuations, because of the increased concentration of investments.

Small Cap Investment Options: The investor should note that investment options that invest in stocks of small companies involve additional risks. Smaller companies typically have a higher risk of failure, and are not as well established as larger blue-chip companies. Historically, smaller-company stocks have experienced a greater degree of market volatility than the overall market average.

Mid Cap Investment Options: The investor should note that investment options that invest in companies with market capitalizations below $10 billion involve additional risks. The securities of these companies may be more volatile and less liquid than the securities of larger companies.

High-Yield Bond Investment Options: The investor should note that investment options that invest in lower-rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility, and increased risk of default.

Yield

The yield of an investment option refers to the income generated by an investment in that investment option over an identified period of time. The SEC 30-day yield refers to the income generated by an investment over an identified 30-day period. The SEC 30-day yield is calculated by dividing: (I) the net investment income per share of the investment option earned over a 30-day period; by (II) the maximum offering price per share of the investment option on the last day of the period. This number is then annualized using semi-annual compounding. This means that the amount of income generated during the 30-day period is assumed to be generated each month over a 12-month period and is reinvested every six months. The yield does not necessarily reflect income actually earned by investing in the investment option because of certain adjustments required by the SEC and, therefore, may not correlate to the dividends or other distributions paid to shareholders.