Disclosure:
Emerging markets are generally in the infancy stage of capital markets development. As a result, their economic systems are still evolving and their political systems are typically less stable than those in developed economies. Emerging markets securities also involve foreign security risk which is the risk that the prices of foreign securities may be more volatile because of economic conditions abroad, political developments, and changes in the regulatory environment. In addition, changes in exchange rates and interest rates in foreign countries may adversely affect share prices.
Additionally, the Fund may also invest in derivatives, and to a limited extent in emerging market debt, developed market stocks and illiquid securities. Derivative instruments involve risks different from, or possibly greater than, the risks of investing directly in securities. These risks include liquidity risk, market risk, credit risk and management risk. Emerging market debt risk is affected by a country's credit rating, political environment, and the yield spread of emerging market debt over U.S. Treasuries. If interest rates rise, the price of bonds will decline, making emerging market debt less appealing. Investing in small company stocks involves additional risks as such companies may not have the management experience, financial resources or product diversification of larger companies. Smaller company stocks may be more volatile and less liquid than the stocks of larger companies.
|
