Home / Offering Memorandum / RISK FACTORS AND INVESTMENT CONSIDERATIONS / Foreign Currency Risk

18.67. Foreign Currency Risk

Because the Investment Compartment may invest in securities denominated or quoted in different currencies, changes in foreign currency exchange rates may affect the value of securities held by the Investment Compartment and the unrealized appreciation or depreciation of investments. Currencies of certain countries may be volatile and therefore may affect the value of securities denominated in such currencies, which means that the Investment Compartment’s NAV could decline as a result of changes in the exchange rates between foreign currencies and the U.S. dollar. The Manager may, but is not required to, elect for the Investment Compartment to seek to protect itself from changes in currency exchange rates through hedging transactions depending on market conditions. In addition, certain countries, particularly emerging market countries, may impose foreign currency exchange controls or other restrictions on the transferability, repatriation or convertibility of currency.