Common use of Interest Rate Risk Clause in Contracts

Interest Rate Risk. During periods of very low or negative interest rates, the fund may be unable to maintain positive returns or pay dividends to fund shareholders. Very low or negative interest rates may magnify interest rate risk. Changing interest rates, including rates that fall below zero, may have unpredictable effects on markets, result in heightened market volatility and detract from the fund’s performance to the extent the fund is exposed to such interest rates. Additionally, under certain market conditions in which interest rates are low and the market prices for portfolio securities have increased, the fund may have a very low, or even negative yield. A low or negative yield would cause the fund to lose money in certain conditions and over certain time periods. An increase in interest rates will generally cause the value of securities held by the fund to decline, may lead to heightened volatility in the fixed-income markets and may adversely affect the liquidity of certain fixed-income investments, including those held by the fund. The historically low interest rate environment heightens the risks associated with rising interest rates.

Interest Rate Risk. During periods of very low or negative interest rates, the fund Fund may be unable to maintain positive returns or pay dividends to fund Fund shareholders. Very low or negative interest rates may magnify interest rate risk. Changing interest rates, including rates that fall below zero, may have unpredictable effects on markets, result in heightened market volatility and detract from the fundFund’s performance to the extent the fund Fund is exposed to such interest rates. Additionally, under certain market conditions in which interest rates are low and the market prices for portfolio securities have increased, the fund Fund may have a very low, low or even negative yield. A low or negative yield would cause the fund Fund to lose money in certain conditions and over certain time periods. An increase in interest rates will generally cause the value of securities held by the fund Fund to decline, may lead to heightened volatility in the fixed-fixed- income markets and may adversely affect the liquidity of certain fixed-income investments, including those held by the fundFund. Because rates on certain floating rate debt securities typically reset only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the net asset value of the Fund to the extent that it invests in floating rate debt securities. The historically low interest rate environment in recent years heightens the risks associated with rising interest rates.

Interest Rate Risk. During periods of very low or negative interest rates, the fund Fund may be unable to maintain positive returns or pay dividends to fund Fund shareholders. Very low or negative interest rates may magnify interest rate risk. Changing interest rates, including rates that fall below zero, may have unpredictable effects on markets, result in heightened market volatility and detract from the fundFund’s performance to the extent the fund Fund is exposed to such interest rates. Additionally, under certain market conditions in which interest rates are low and the market prices for portfolio securities have increased, the fund Fund may have a very low, or even negative yield. A low or negative yield would cause the fund Fund to lose money in certain conditions and over certain time periods. An increase in interest rates will generally cause the value of securities held by the fund Fund to decline, may lead to heightened volatility in the fixed-fixed- income markets and may adversely affect the liquidity of certain fixed-income investments, including those held by the fundFund. The historically low interest rate environment heightens the risks associated with rising interest rates.