Common use of Principal Risks Clause in Contracts

Principal Risks. The Fund is subject to the risks associated with the stock and bond markets, any of which could cause an investor to lose money. However, because fixed income securities such as bonds usually are less volatile than stocks and because the Fund invests a significant portion of its assets in fixed income securities, the Fund’s overall level of risk should be moderate. The principal risks of investing in this fund are: Stock Market Risk, Country/Regional Risk, Currency Risk, Currency Hedging Risk, Interest Rate Risk, Credit Risk, Income Risk and Call Risk. Risks Associated with Investment in the Stock Market With a target allocation of approximately 60% of its assets in stocks, the Fund is proportionately subject to 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. Risks Associated with Investment in Foreign Stocks The Fund is also subject to the following risks associated with investments in foreign stocks: 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. 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. Risks associated with Investment in Bonds With a target allocation of approximately 40% of its assets in bonds, the Fund is proportionately subject to bond risks, including the following: This is the chance that bond prices will decline because of rising interest rates.

Principal Risks. The Fund is subject to the risks associated with the stock and bond markets, any of which could cause an investor to lose money. However, because fixed income securities such as bonds stocks usually are less more volatile than stocks bonds and because the Fund invests a significant portion most of its assets in fixed income securitiesstocks, the Fund’s overall level of risk should be moderatemoderate to high. The principal risks of investing in this fund are: Stock Market Risk, Country/Regional Risk, Currency Risk, Currency Hedging Risk, Interest Rate Risk, Credit Risk, Income Risk Risk, Call Risk, and Call Currency Hedging Risk. Risks Associated with Investment in the Stock Market With a target allocation of approximately 6080% of its assets in stocks, the Fund is proportionately subject to 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. Risks Associated with Investment in Foreign Stocks The Fund is also subject to the following risks risk associated with investments in foreign stocks: 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. 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. Risks associated with Investment in Bonds With a target allocation of approximately 4020% of its assets in bonds, the Fund is proportionately subject to bond risks, including the following: This is the chance that bond prices will decline because of rising interest rates.