Principal Risks Clause Samples

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 stocks usually are more volatile than bonds and because the Fund invests most of its assets in stocks, the Fund’s overall level of risk should be moderate to high. The principal risks of investing in this fund are: Stock Market Risk, Country/Regional Risk, Currency Risk, Interest Rate Risk, Credit Risk, Income Risk, Call Risk, and Currency Hedging 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. 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. This is the chance that bond prices will decline because of rising interest rates.

Principal Risks. The following list indicates the risks associated with the Fund’s principal investments. Active Management Cash Drag Conflict of Interest Convertible Securities Country or Region Credit and Counterparty Derivatives Distressed Investments Dollar Rolls Emerging Markets Fixed Income Securities Foreign Securities Forwards Futures High-Yield Securities Income Industry and Sector Investing Inflation/Deflation Inflation-Protected Securities Interest Rate Investment-Grade Securities Issuer Lending Leverage Loss of Money Management Market/Market Volatility Maturity/Duration Mortgage-Backed and Asset-Backed Securities New Fund Not FDIC Insured Options Preferred Stocks Prepayment (Call) Pricing Regulation/Government Intervention Reinvestment Restricted/Illiquid Securities Repurchase Agreements Sovereign Debt Structured Products Suitability Swaps Unrated Securities Valuation Time Variable-Rate Securities Warrants These risks are described in the Additional Fund Information and Principal Risk Definitions Booklet and can be accessed at ▇▇▇.▇▇▇▇▇▇▇▇▇.▇▇▇/▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇. Only trusts that meet the eligibility criteria described in Sections 2.1 and 2.2 of the Trust and complete and return to the Trustee such participation materials as the Trustee may require from time to time will be eligible to invest in the Fund. The following eligibility requirement also applies for participation: • Until such time as the assets of the Fund exceed $100 million, each Participating Plan is (A) a qualified institutional buyer within the meaning of Rule 144A of the Securities Act of 1933, and (B) either (i) a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, or (ii) an employee benefit plan within the meaning of ERISA, that is not an individual retirement account. Earnings of the Fund will be reinvested and the Fund’s value will be adjusted accordingly. No income will be distributed.

Principal Risks. The fund is designed for investors with a low tolerance for risk, but you could still lose money by investing in it. The fund is subject to the following risks, which could affect the fund’s performance, and the level of risk may vary based on market conditions: income risk, interest rate risk, credit risk, index sampling risk, liquidity risk.

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. An investment in the fund could lose money over short or long periods of time. You should expect the fund’s share price and total return to fluctuate within a wide range. The fund is subject to the following risks, which could affect the fund’s performance, and the level of risk may vary based on market conditions: BlackRock High Yield Bond Fund The investment objective of the BlackRock High Yield Bond Portfolio (the “High Yield Fund” or the “fund”) is to seek to maximize total return, consistent with income generation and prudent investment management.

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 stocks usually are more volatile than bonds and because the Fund invests most of its assets in stocks, the Fund’s overall level of risk should be moderate to high. The principal risks of investing in this fund are: Stock Market Risk, Country/Regional Risk, Currency Risk, Interest Rate Risk, Credit Risk, Income Risk, Call Risk, and Currency Hedging Risk. With a target allocation of approximately 80% 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. The Fund is also subject to the following 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. With a target allocation of approximately 20% 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. An investment in the Fund could lose money over short or long periods of time. You should expect the Fund’s share price and total return to fluctuate within a wide range. The Fund is subject to the following risks, which could affect the Fund’s performance: • Stock market risk, which 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. The Fund’s investments in foreign stocks can be riskier than U.S. stock investments. Foreign stocks tend to be more volatile and less liquid than U.S. stocks. The prices of foreign stocks and the prices of U.S. stocks may move in opposite directions. In addition, the Fund’s target index may, at times, become focused in stocks of a particular market sector, which would subject the Fund to proportionately higher exposure to the risks of that sector. • Investment style risk, which is the chance that returns from non-U.S. small- and mid- capitalization stocks will trail returns from global stock markets. Historically, non- U.S. small- and mid-cap stocks have been more volatile in price than the large-cap stocks that dominate the global markets, and they often perform quite differently. • Country/regional risk, which 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. Because the Fund may invest a large portion of its assets in securities of companies located in any one country or region, the Fund’s performance may be hurt disproportionately by the poor performance of its investments in that area. Country/regional risk is especially high in emerging markets. • Currency risk, which 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. Currency risk is especially high in emerging markets. • Emerging markets risk, which is the chance that the stocks of companies located in emerging markets will be substantially more volatile, and substantially less liquid, than the stocks of companies located in more developed foreign markets because, among other factors, emerging markets can have greater custodial and operational risks; less developed legal, tax, regulatory, and accounting systems; and greater political, social, and economic instability than developed markets.

Principal Risks. The principal risks of each Acquired Fund and its corresponding Acquiring Fund are identical. The principal risks of each Fund are listed in the table below. These risks are then further described in the narrative that follows the table. UBS Select Prime Series II Institutional Fund (Acquired Fund) UBS Select Prime Series II Preferred Fund (Acquired Fund)

Principal Risks. As with any fund, there is no guarantee that the fund will achieve its objective(s). The fund’s share price fluctuates, which means you could lose money by investing in the fund. The principal risks of investing in this fund, which may be even greater in bad or uncertain market conditions, are summarized as follows: same economic sector may be similarly affected by economic or market events, making the fund more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly. Total Annual Separately Managed Account Operating Expenses 0.33% DFA U.S. Large Cap Value Portfolio The investment objective of the U.S. Large Cap Value Portfolio (the “portfolio”) is to achieve long-term capital appreciation. The portfolio is a feeder portfolio and pursues its objective by investing substantially all of its assets in its corresponding master fund, The U.S. Large Cap Value Series (the “U.S. Large Cap Value Series” or the “series”) of The DFA Investment Trust Company (the “trust”), which has the same investment objective and policies as the portfolio.