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18.104. Market Disruption and Geopolitical Risk

The aftermath of instability in Afghanistan, Pakistan, Egypt, Libya, Syria, Russia, Ukraine and the Middle East, possible terrorist attacks around the world, growing social and political discord in world, the European debt crisis, widened economic sanctions applied to Russia, further downgrade of securities and other similar events, may have long-term effects on the worldwide financial markets and may cause further economic uncertainties worldwide. 

The Investment Compartment does not know how long the securities markets may be affected by these events and cannot predict the effects of these and similar events in the future on the economy and securities markets. The Investment Compartment may be adversely affected by abrogation of international agreements and national laws which have created the market instruments in which the Investment Compartment may invest, failure of the designated national and international authorities to enforce compliance with the same laws and agreements, failure of local, national and international organization to carry out the duties prescribed to them under the relevant agreements, revisions of these laws and agreements which dilute their effectiveness or conflicting interpretation of provisions of the same laws and agreements. 

The Investment Compartment may be adversely affected by uncertainties such as terrorism, international political developments, and changes in government policies, taxation, restrictions on foreign investment and currency repatriation, currency fluctuations and other developments in the laws and regulations of the countries in which it is invested.