VERTICAL INCOME PORTFOLIO - Eagle Asset

VERTICAL INCOME PORTFOLIO

Seeking to Generate Income

Sources of Income

Not FDIC Insured

May Lose Value

No Bank Guarantee

EAGLE VERTICAL INCOME PORTFOLIO

Seeking to Generate Income

A POTENTIAL SOURCE OF INCOME for Today's Needs

We keep our eye on the income landscape and are agnostic as to the instrument as we seek to provide investors with the most compelling yields we can find in high-quality securities. Capital allocation policies can vary from one company to the next: Some are more generous to shareholders in the form of rising dividend payments while others are more generous to debtholders or owners of the companies' preferred securities. Our flexible, active approach allows our team to be nimble in pursuing income without worrying about being hemmed in to one investment class or another.

SEEKING YIELD Across the Capital Spectrum

The Eagle Vertical Income Portfolio aims to maximize an investor's yield potential by utilizing a capital-structure agnostic approach. The process begins with an intensive credit research process that is designed to determine the operating stability and growth prospects of a company. The portfolio primarily consists of investment-grade corporate bonds, but the investment team will opportunistically invest in a company's common stock or preferred securities when either of these asset classes provide greater income potential than a company's debt securities. When the investment team is comfortable with a company, it will generally invest in the highest yielding asset class -- corporate bonds, preferred securities, common stocks -- in that corporation's capital structure.

A DISCIPLINED Filtering Process Uncovers the Most Attractive Yield

VERTICAL INCOME PORTFOLIO VERTICAL INCOME PORTFOLIO

CORPORATE BOND ISSUERS

Approved Issuers

Capital Structure Yield Analysis

Common Preferred Corporate

Stock Security

Debt

50-75 Income-Producing

Securities

YIELD SUMMARY

Current Yield

Yield to Worst

Common Stocks

4.2% --

Preferred Securities

5.4% 8.5%

Corporate Bonds

4.2% 4.9%

Represents respective asset class "sleeves" of the Vertical Income Portfolio as of 12/31/2023.

There is no guarantee that the investment goals/objectives will be met.

Dividend yields are not guaranteed and subject to change. For the most up to date yield information please contact your financial professional.

AN EXPERIENCED Investment Team

James Camp, CFA Managing Director

Years of experience: 35

Joe Jackson, CFA Portfolio Co-Manager

Years of experience: 25

Brad Erwin, CFA Portfolio Co-Manager

Years of experience: 29

John Lagowski, CFA Portfolio Co-Manager

Years of experience: 17

VERTICAL INCOME PORTFOLIO Current Characteristics

(Composite data shown Aas ofsDesceemtberC31l,a20s23s) Weighting

Asset Class Weighting

Total PoSretfTcootlotiaorlDSPieosctrrttifoboruliDtoioisntribution

76.1%

CORPORATE

BONDS

9.1%

COMMON STOCKS

9.0%

PREFERRED SECURITIES

3.7%

U.S. Treasury

2.1% CASH

0.8% ENERGY

1.5%

MATERIALS

2.9%

REAL ESTATE

6.0%

CONSUMER DISCRETIONARY

6.5%

COMMUNICATIONS

22.0%

TECHNOLOGY

6.6%

UTILITIES

9.0%

FINANCIALS

12.6%

HEALTH CARE

17.2%

CONSUMER STAPLES

14.9% INDUSTRIALS

Vertical Income Portfolio Characteristics of Equity Holdings

Estimated Price/Earnings1

15.5x

Vertical Income Portfolio Characteristics of Corporate Bond Holdings

Average Duration2

6.5 years

(Excludes cash)

Vertical Income Portfolio Characteristics of Preferred Holdings

Average Duration2

3.3 years

Dividend Yield

4.2%

Average Maturity

9.0 years

Average Coupon

4.7%

TTM Price/Earnings

17.8x

Average Coupon

4.0%

Current Yield

5.4%

Market Cap (wtd. average)

$142.1 B

Current Yield

4.2%

?Bloomberg Estimates 12-month forward-looking. 2Effective duration is used for our taxable portfolios because it takes into consideration the embedded options and fluctuations in cash flows for structured products like mortgage-backed securities and asset-backed securities. Source: Bloomberg, Perform. There is no guarantee that the investment goals/objectives will be met.

VERTICAL INCOME PORTFOLIO Current Performance

(Composite data shown as of December 31, 2023)

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Year to Date

Gross Net

Gross

Net Gross Net Gross Net Gross

Net

BBg US

Blended

Corporate Index Benchmark3

2016

-4.31% -5.03% -4.31% -5.03%

-2.82%

-2.28%

2017

2.81% 2.04% 3.12% 2.36% 2.18% 1.43% 1.20% 0.45% 9.63% 6.41%

6.43%

8.12%

2018 -2.07% -2.81% 0.20% -0.55% 0.98% 0.23% -1.79% -2.53% -2.69% -5.58%

-2.52%

-2.91%

2019

7.48% 6.70% 3.41% 2.65% 3.10% 2.34% 1.10% 0.35% 15.86% 12.47%

14.53%

16.06%

2020 -5.94% -6.66% 9.17% 8.37% 2.59% 1.83% 3.41% 2.65% 8.93% 5.73%

9.87%

6.58%

2021 -0.76% -1.50% 3.92% 3.16% 0.11% -0.64% 2.59% 1.83% 5.92% 2.80%

-1.03%

4.08%

2022 -4.24% -4.95% -6.77% -7.49% -4.77% -5.50% 3.70% 2.93% -11.84% -14.47% -15.76%

-14.03%

2023

2.35% 1.59% -0.43% -1.18% -2.83% -3.56% 7.11% 6.33% 6.07% 2.95%

8.52%

8.36%

Gross

Net

BBg US Coporate Index

Blended Benchmark3

One year Three years Five years Since Inception (Oct. 1, 2016)

6.07% -0.32% 4.57% 3.42%

2.95% -3.26% 1.49% 0.37%

8.52% -3.29% 2.63% 1.92%

8.36% -1.03% 3.70% 2.90%

370%/15%/15% blend of the Bloomberg U.S. Corporate Bond Index, ICE BofA Core Fixed Rate Preferred Securities Index, and S&P 500 High Dividend Index, respectively. Past performance does not guarantee or indicate future results. Please see important risk considerations on the back page of this document.

The calculation of the performance data includes reinvestment of all income and gains and is depicted on a time-weighted and size-weighted average for the entire period. Performance is shown after deduction of transaction costs and both "gross" (before the deduction of management fees) and "net" (after the deduction of management fees). The net returns reflect the application of the highest wrap fee of 3% annum.

Risk Information Dividend investing is based upon the identification of companies that possess both moderate growth rates as well as higher-than-average and consistent dividend distributions. Historically, dividend yields have been relatively constant and therefore have created a cushion for investors when stock prices have declined. However, as with all equity investing, there is the risk that a company will not achieve its expected earnings results, or that an unexpected change in the market or within the company will occur, both of which may adversely affect investment results. The biggest risk of equity investing is that returns can fluctuate and investors can lose money. Not every investment opportunity will meet all of the stringent investment criteria mentioned to the same degree. Trade-offs must be made, which is where experience and judgment play a key role. Accounts are invested at the discretion of the portfolio manager and may take up to 60 days to become fully invested. Dividends are not guaranteed and must be authorized by the company's board of directors. Many investors consider bonds to be "risk-free" investment vehicles. Historically, bonds have indeed provided less volatility and less risk of loss of capital than has equity investing. However, there are many factors which may affect the risk and return profile of a fixed-income portfolio. The two most prominent factors are interest-rate movements and the creditworthiness of the bond issuer. The risk of a change in the market value of the investment due to changes in interest rates is known as interest-rate risk. Interest-rate risk is subject to many variables but may be analyzed based on various data (e.g., effective duration). The risk that the issuer may default on interest and/or principal payments is often referred to as credit risk. Credit risk is typically measured by ratings issued by ratings agencies such as Moody's and Standard & Poor's. Bonds issued by the U.S. Government have significantly less risk of default than those issued by corporations and municipalities (see below for a discussion of the risk associated with convertible securities). However, the overall return on Government bonds tends to be less than these other types of fixed-income securities. Finally, reinvestment risk is the possibility that the proceeds of a maturing investment must be invested in a lower yielding security, all other things held constant, due to changes in the interest-rate environment. Investors should pay careful attention to the types of fixed-income securities which comprise their portfolio, and remember that, as with all investments, there is the risk of the loss of capital. Convertible securities and preferred stock combine the fixed characteristics of bonds with some of the potential for capital appreciation of equities and thus may be subject to greater risk than pure fixed-income instruments. Unlike bonds, preferred stock and some convertible securities do not have a fixed par value at maturity, and in this respect may be considered riskier than bonds. Convertible securities may include convertible bonds, convertible preferred stocks and other fixed-income instruments which have conversion features. The lower rating of high-yield bonds (less than investment-grade) reflects a greater possibility that the financial condition of the issuer or adverse changes in general economic conditions may impair the ability of the issuer to pay income and principal. Periods of rising interest rates or economic downturns may cause highly leveraged issuers to experience financial stress, and thus markets for their securities may become more volatile. Moreover, to the extent that no established secondary market exists, there may be thin trading of high-yield bonds, which increases the potential for volatility. Duration incorporates a bond's yield, coupon, final maturity and call features into one number, expressed in years, that indicates how price-sensitive a bond or portfolio is to changes in interest rates. Bonds with higher durations carry more risk and have higher price volatility than bonds with lower durations. High-yield (below investment-grade) bonds are not appropriate for all investors. The lower rating of high-yield bonds reflects a greater possibility that the financial condition of the issuer or adverse changes in general economic conditions may impair the ability of the issuer to make income and principal payments. To the extent that no established secondary market exists, there may be thin trading of high-yield bonds, which increases the potential for volatility. Dividend yields in this presentation are presented as indicated by the current rate of dividend payout divided by the current stock price. Investment-grade refers to fixed-income securities rated BBB or better by Standard & Poor's or Baa or better by Moody's. Quality ratings are used to evaluate the likelihood of default by a bond issuer. Moody's Investors Service, or another independent rating agency, analyzes the financial strength of each bond's issuer. Their ratings range from Aaa (highest quality) to C (lowest quality). Bonds rated Baa3 and better are considered "investment-grade" bonds. Bonds rated Ba1 and below are considered "below investment grade" bonds. Performance Disclosures Past performance does not guarantee or indicate future results. No inference should be drawn by present or prospective clients that managed accounts will achieve similar performance in the future. Investment in a portfolio, investment manager or security should not be based on past performance alone. Because accounts are individually managed, returns for separate accounts may be higher or lower than the average performance stated. Individual portfolio/performance results may vary due to market conditions, trading costs and certain other factors, which may be unique to each account. There is no guarantee that these investment strategies will work under all market conditions, and each investor should evaluate their ability to invest for the long term, especially during periods of downturn in the market. Investing involves risk and you may incur a profit or a loss. Investment returns and principal value will fluctuate so that an investor's portfolio, when redeemed, may be worth more or less than their original cost. Diversification does not ensure a profit or guarantee against a loss. All performance data is shown on a time-weighted and size-weighted basis and is shown before (gross) and after (net) the deduction of imputed management fees, custodial fees and miscellaneous charges that could be charged to client accounts; all performance is shown after transaction costs. The net returns reflect the application of the highest wrap fee of 3% annum. Calculations include reinvestment of all income and gains. Performance figures include all internal, retail Vertical Income Portfolio accounts of Eagle Asset Management, a St. Petersburg, Florida-based firm. A client's return will be reduced by the advisory fees. Eagle's fees are set forth in Eagle's Form ADV, Part II. Over a period of five years, an advisory fee of 1 percent could reduce the total value of a client's portfolio by 5 percent or more. Investing in equities may result in a loss of capital. Current performance may be lower or higher than the performance information quoted.

Index Definition The Bloomberg Corporate Index represents U.S. corporate bonds. ICE BofA Core Fixed Rate Preferred Securities Index tracks the performance of fixed rate US dollar denominated preferred securities issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody's, S&P and Fitch) and must have an investment grade rated country of risk (based on an average of Moody's, S&P and Fitch foreign currency long term sovereign debt ratings). In addition, qualifying securities must be issued as public securities or through a 144a filing, must be issued in $25, $50, or $100 par/liquidation preference increments, must have a fixed coupon or dividend schedule and must have a minimum amount outstanding of $100 million. The S&P 500 High Dividend Index serves as a benchmark for income seeking equity investors. The index is designed to measure the performance of 80 high yield companies within the S&P 500 and is equally weighted to best represent the performance of this group, regardless of constituent size. Index returns do not reflect the deduction of fees, trading costs or other expenses. Indices are unmanaged, and one cannot invest directly in an index. Index returns do not reflect the deduction of fees, trading costs or other expenses. The index is referred to for comparative purposes only and the composition of an index is different from the composition of the accounts included in the performance shown. Indices are unmanaged and one cannot invest directly in the index. BLOOMBERG, BLOOMBERG INDICES and Bloomberg Fixed Income Indices (the "Indices") are trademarks or service marks of Bloomberg Finance L.P. Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited, the administrator of the Indices (collectively, "Bloomberg") or Bloomberg's licensors own all proprietary rights in the Indices. Bloomberg does not guarantee the timeliness, accuracy or completeness of any data or information relating to the Indices. Not FDIC insured. No bank guarantee. May lose value.

About Raymond James Investment Management Raymond James Investment Management is a global asset management company that combines the exceptional insight and agility of individual investment teams with the strength and stability of a full-service firm. Together with our boutique investment managers ? Chartwell Investment Partners, ClariVest Asset Management, Cougar Global Investments, Eagle Asset Management, Reams Asset Management (a division of Scout Investments) and Scout Investments ? we offer a range of investment strategies and asset classes, each with a focus on riskadjusted returns and alpha generation. We believe providing a lineup of seasoned, committed portfolio managers ? spanning a wide range of disciplines and investing vehicles ? is the best way to help investors seek their long-term financial goals. About Eagle Asset Management Eagle Asset Management, a boutique in the Raymond James Investment Management family, provides a broad array of fundamental equity and fixed-income strategies designed to meet the long-term goals of institutional and individual investors. Eagle's multiple independent investment teams have the autonomy to pursue investment decisions guided by their individual philosophies and strategies.

Let us help you chart your course for income

Financial Professionals: 1.800.237.3101 | Investing Public: Contact your financial professional

880 Carillon Parkway | St. Petersburg, FL 33716 | M-487263 | Exp. 5/15/2024 | BR-EA-VIP

?2024, Eagle Asset Management, Inc. All rights reserved.

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