Citi Global Wealth PUTTiNG YoUr CASH To worK iN A HiGHer rATe eNviroNMeNT | | 38 Investments FiGUre 5. US iG PreFerreDS YieLDS HAve CLiMBeD LATeLY wHAT To Do Now? 9 We believe that investors should review their asset allocations presently and consider adding highly rated short-term 8 fixed income securities to a diversified portfolio. These may offer high income 7 even after expected inflation, with low credit risk. In addition, should 6 opportunities arise in 2023 in other asset classes such as equities or lower ) IG Capital rated credit, short-term securities are % 5 typically liquid and can be sold quickly to ( Securities yield generate cash to redeploy into these new d l e (CIPS) potential opportunities. i 4 Y 3 2 5yr US 1 Treasury yield 0 '16 '17 '18 '19 '20 '21 '22 Source: Bloomberg, as of 24 Nov 2022. All forecasts are expressions of opinion, are subject to change without notice and are not intended to be a guarantee of future events. Indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. Index returns do not include any expenses, fees or sales charges, which would lower performance. Past performance is no guarantee of future results. Real results may vary. See Glossary for definitions. Chart shows the yields for IG Capital Securities as represented by the ICE BofA US Investment Grade Capital Securities Index and 5-year US Treasuries.