Events such as political upheaval, financial troubles, or natural disasters may adversely affect the value of securities issued in those areas.
The combination of climate change, political polarization, and deep social inequality could exacerbate these stresses wherever in the world they may occur. This may be further magnified by the nature of global investing, since certain international markets may be substantially more volatile and less liquid than domestic securities. Because registered investment company securities (e.g., a mutual fund) may invest a large portion of their assets in securities located in any one country or region, their performance may be hurt disproportionately by the poor performance of its investments in that area.