Income Risk. This is the chance that an underlying fund’s income will decline because of falling interest rates. If an underlying fund holds securities that are callable, the underlying fund’s income may decline because of call risk: Call Risk This is the chance that during periods of falling interest rates, issuers of callable bonds may call (redeem) securities with higher coupon rates or interest rates before their maturity dates. An underlying fund would then lose any price appreciation above the bond’s call price and would be forced to reinvest the unanticipated proceeds at lower interest rates, resulting in a decline in the underlying fund’s income. The Fund is also subject to the following risks associated with investments in currency-hedged foreign bonds: Country/Regional Risk This is the chance that world events—such as political upheaval, financial troubles, or natural disasters—will adversely affect the value and/or liquidity of securities issued by foreign governments, government agencies, or companies. Currency/Hedging Risk This is the chance that the currency hedging transactions entered into by the underlying international bond fund may not perfectly offset the fund’s foreign currency exposure. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Appendix I - Summaries of the Underlying Mutual Funds Risk Category - Vanguard LifeStrategy Income Fund Vanguard LifeStrategy Conservative Growth Fund Vanguard LifeStrategy Moderate Growth Fund Vanguard LifeStrategy Growth Fund Call Risk Country/Regional Risk Credit Risk Currency Hedging Risk Currency Risk Income Risk Interest Rate Risk Stock Market Risk Participation Agreement APPENDIX II I am entering into this legally binding Participation Agreement (“Agreement”) with the Treasurer in order to establish a STABLE Account in the Plan. I am legally competent and over the age of
Income Risk. This is the chance that an underlying fund’s income will decline because of falling interest rates. If an underlying fund holds securities that are callable, the underlying fund’s income may decline because of call risk: Call Risk This is the chance that during periods of falling interest rates, issuers of callable bonds may call (redeem) securities with higher coupon rates or interest rates before their maturity dates. An underlying fund Vanguard LifeStrategy Conservative Growth Fund (VSCGX) continued would then lose any price appreciation above the bond’s call price and would be forced to reinvest the unanticipated proceeds at lower interest rates, resulting in a decline in the underlying fund’s income. The Fund is also subject to the following risks associated with investments in currency-hedged foreign bonds: Country/Regional Risk This is the chance that world events—such as political upheaval, financial troubles, or natural disasters—will adversely affect the value and/or liquidity of securities issued by foreign governments, government agencies, or companies. Currency/Hedging Risk This is the chance that the currency hedging transactions entered into by the underlying international bond fund may not perfectly offset the fund’s foreign currency exposure. With a target allocation of approximately 40% of its assets in stocks, the Fund is proportionately subject to stock market risk: Stock Market Risk This is the chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices. The Fund is also subject to the following risks associated with investments in foreign stocks: Country/Regional Risk This is the chance that world events—such as political upheaval, financial troubles, or natural disasters—will adversely affect the value of securities issued by companies in foreign countries or regions. Currency Risk This is the chance that the value of a foreign investment, measured in U.S. dollars, will decrease because of unfavorable changes in currency exchange rates. Country/regional risk and currency risk are especially high in emerging markets. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Vanguard LifeStrategy Moderate Growth Fund (VSMGX) Investment Objective The Fund seeks to provide capital appreciation and a low to moderate level of current income. Principal I...
Income Risk. This is the chance that an underlying fund’s income will decline because of falling interest rates. If an underlying fund holds securities that are callable, the underlying fund’s income may decline because of call risk: Call Risk This is the chance that during periods of falling interest rates, issuers of callable bonds may call (redeem) securities with higher coupon rates or interest rates before their maturity dates. An underlying fund would then lose any price appreciation above the bond’s call price and would be forced to reinvest the unanticipated proceeds at lower interest rates, resulting in a decline in the underlying fund’s income. The Fund is also subject to the following risks associated with investments in currency-hedged foreign bonds: Country/Regional Risk This is the chance that world events—such as political upheaval, financial troubles, or natural disasters—will adversely affect the value and/or liquidity of securities issued by foreign governments, government agencies, or companies. Currency/Hedging Risk This is the chance that the currency hedging transactions entered into by the underlying international bond fund may not perfectly offset the fund’s foreign currency exposure. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Appendix I – Summaries of the Underlying Mutual Funds Risk Category Vanguard LifeStrategy Income Fund Vanguard LifeStrategy Conservative Growth Fund Vanguard LifeStrategy Moderate Growth Fund Vanguard LifeStrategy Growth Fund Call Risk Country/Regional Risk Credit Risk Currency Hedging Risk Currency Risk Income Risk Interest Rate Risk Stock Market Risk APPENDIX II Participation Agreement I am entering into this legally binding Participation Agreement (“Agreement”) with the Treasurer in order to establish a STABLE Account in the Plan. I am legally competent and over the age of 18. I understand that my STABLE Account shall represent an interest in the Plan. I understand and agree that this Agreement is subject to the Plan Disclosure Statement. I understand that all of the information in the Plan Disclosure Statement and in my completed STABLE Account Application are part of this Agreement. I understand that by enrolling in the Plan I have accepted the terms of the Plan Disclosure Statement and this Agreement. The effective date of this Agreement is the date my signed STABLE Account Application is submi...
Income Risk. LBF's income stream moves in tandem with its performance in terms of management and productivity, raw material price fluctuations and other economic factors. Any adverse changes due to its competitiveness and/or economic factors may have a material impact on the financial position and performance of LBF. No assurance can be given that such adverse changes will not occur.
Income Risk. The Fund’s income may decline if interest rates fall. This decline in income can occur because the Fund may subsequently invest in lower- yielding bonds as bonds in its portfolio mature, are near maturity or are called, bonds in the Underlying Index are substituted, or the Fund otherwise needs to purchase additional bonds.
Income Risk. The Bond Fund’s income may decline when interest rates fall. This decline can occur because the Bond Fund may subsequently invest in lower-yielding bonds as bonds in its portfolio mature, are near maturity or are called; bonds in the Underlying Index are substituted; or the Bond Fund otherwise needs to purchase additional bonds. ● Index-Related Risk. There is no guarantee that the Bond Fund will achieve a high degree of correlation to the Underlying Index and therefore achieve its investment objective. Market disruptions and regulatory restrictions could have an adverse effect on the Bond Fund’s ability to adjust its exposure to the required levels in order to track the Underlying Index. Errors in index data, index computations and/or the construction of the Underlying Index in accordance with its methodology may occur from time to time and may not be identified and corrected by the Index Provider for a period of time or at all, which may have an adverse impact on the Bond Fund and its shareholders.
Income Risk. The Emerging Bond Fund’s income may decline when interest rates fall. This decline can occur because the Emerging Bond Fund may subsequently invest in lower- yielding bonds as bonds in its portfolio mature, are near maturity or are called, bonds in the Underlying Index are substituted or the Emerging Bond Fund otherwise needs to purchase additional bonds. ● Index-Related Risk. There is no guarantee that the Emerging Bond Fund will achieve a high degree of correlation to the Underlying Index and therefore achieve its investment objective. Market disruptions and regulatory restrictions could have an adverse effect on the Emerging Bond Fund’s ability to adjust its exposure to the required levels in order to track the Underlying Index. Errors in index data or index computation and/or the construction of the Underlying Index in accordance with its methodology may occur from time to time and may not be identified and corrected by the JPMorgan Chase & Co. (“Index Provider”) for a period of time, which may have an adverse impact on the Emerging Bond Fund and its shareholders.
Income Risk. The Fund’s income may decline if interest rates fall. This decline in income can occur because the Fund may subsequently invest in lower-yielding bonds as bonds in its portfolio mature, are near maturity or are called, bonds in the Underlying Index are substituted, or the Fund otherwise needs to purchase additional bonds. Index-Related Risk. There is no guarantee that the Fund’s investment results will have a high degree of correlation to those of the Underlying Index or that the Fund will achieve its investment objective. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the Underlying Index. Errors in index data, index computations or the construction of the Underlying Index in accordance with its methodology may occur from time to time and may not be identified and corrected by the Index Provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Unusual market conditions or other unforeseen circumstances (such as natural disasters, political unrest or war) may cause the Index Provider to postpone a scheduled rebalance. This could cause the Underlying Index to vary from its normal or expected composition.
Income Risk. The Underlying Fund’s income may decline due to falling interest rates or other factors. Issuers of securities held by the Underlying Fund may call or redeem the securities during periods of falling interest rates, and the Underlying Fund would likely be required to reinvest in securities paying lower interest rates. If an obligation held by the Underlying Fund is prepaid, the Underlying Fund may have to reinvest the prepayment in other obligations paying income at lower rates. Indexing Strategy/Index Tracking Risk: The Underlying Fund is managed with an indexing investment strategy, attempting to track the performance of an unmanaged index of securities, regardless of the current or projected performance of the index or of the actual securities comprising the index. This differs from an actively-managed fund, which typically seeks to outperform a benchmark index. As a result, the Underlying Fund’s performance may be less favorable than that of a portfolio managed using an active investment strategy. The structure and composition of the index will affect the performance, volatility, and risk of the index and, consequently, the performance, volatility, and risk of the Underlying Fund. When there are changes made to the component securities of the index and the Fund in turn makes similar changes to its portfolio, any transaction costs and market exposure arising from such portfolio changes will be borne directly by the Underlying Fund and its shareholders. The Underlying Fund may recognize gains as a result of rebalancing or reconstituting its securities holdings to reflect changes in the securities included in the index. The Underlying Fund also may be required to distribute any such gains to its shareholders to avoid adverse federal income tax consequences. While the Advisor seeks to track the performance of the index (i.e., achieve a high degree of correlation with the index), the Underlying Fund’s return may not match the return of the index. The Underlying Fund incurs a number of operating expenses not applicable to the index, and incurs costs in buying and selling securities. In addition, the Underlying Fund may not be fully invested at times, generally as a result of cash flows into or out of the Underlying Fund or reserves of cash held by the Underlying Fund to meet redemptions. The Advisor may attempt to replicate the index return by investing in fewer than all of the securities in the index, or in some securities not included in the index, potentia...
