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18.21. New Issued Risk

“New Issue” are initial public offerings of equity securities. Investments in companies that have recently gone public have the potential to produce substantial gains for each Investment Compartment. However, there is no assurance that the relevant Investment Compartment will have access to profitable IPOs and therefore investors should not rely on any past gains from IPOs as an indication of future performance. The investment performance of the relevant Investment Compartment during periods when it is unable to invest significantly or at all in IPOs may be lower than during periods when the relevant Investment Compartment is able to do so. Securities issued in IPOs are subject to many of the same risks as investing in companies with smaller market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may be available for very limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the initial public offering. When an initial public offering is brought to the market, availability may be limited and the relevant Investment Compartment may not be able to buy any shares at the offering price, or, if it is able to buy shares, it may not be able to buy as many shares at the offering price as it would like.