Common use of Non-Diversification Risk Clause in Contracts

Non-Diversification Risk. A non-diversified Underlying Fund may invest a greater percentage of its assets in the obligations of a single issuer than a diversified Underlying Fund, and consequently is more susceptible than a diversified Underlying Fund to any economic, political or regulatory occurrence that affects an individual issuer.

Appears in 2 contracts

Sources: Participation Agreement, Participation Agreement