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other business continuity problem, could materially interrupt our business operations and cause materialfinancial loss, loss of human capital, regulatory actions, reputational harm, or legal liability.Certain of the portfolios we manage, including our emerging market portfolios, are vulnerable tosignificant market-specific political, economic, or other risks, any of which may negatively impact ourrevenues and income. Our emerging market portfolios and revenues derived from managing these portfoliosare subject to significant risks of loss from political, economic, and diplomatic developments, currencyfluctuations, social instability, changes in governmental policies, expropriation, nationalization, assetconfiscation and changes in legislation related to foreign ownership. International trading markets,particularly in some emerging market countries, are often smaller, less liquid, less regulated andsignificantly more volatile than those in the U.S.Our revenues, earnings, and income could be adversely affected if the terms of our managementagreements are significantly altered or these agreements are terminated by the funds and other sponsoredinvestment products we advise. Our revenues are dependent on fees earned under investment managementand related services agreements that we have with the funds and other sponsored investment products weadvise. These revenues could be adversely affected if these agreements are altered significantly orterminated. The decline in revenue that might result from alteration or termination of our investmentmanagement services agreements could have a material adverse impact on our earnings or income.Regulatory and governmental examinations and/or investigations, civil litigation relating topreviously-settled regulatory and governmental investigations, and the legal risks associated with ourbusiness, could adversely impact our assets under management, increase costs and negatively impact ourprofitability and/or our future financial results. From time to time we may receive requests for documentsor other information from governmental authorities or regulatory bodies or we also may become the subjectof governmental or regulatory investigations and/or examinations. Moreover, governmental or regulatoryinvestigations or examinations that have been inactive could become active. We may be obligated, andunder our standard form of indemnification agreement with certain officers and directors in some instances,we are obligated, or we may choose, to indemnify directors, officers, or employees against liabilities andexpenses they may incur in connection with such matters to the extent permitted under applicable law. Inaddition, we have been named as a defendant in mutual fund shareholder class action and fund derivativelawsuits, as well as in a corporate derivative lawsuit, that relate to previously settled regulatory andgovernmental investigations. While management believes that the claims made in these lawsuits are withoutmerit, and intends to defend against them vigorously, litigation typically is an expensive process. Risksassociated with legal liability often are difficult to assess or quantify and their existence and magnitude canremain unknown for significant periods of time. Moreover, settlements or judgments against us have thepotential of being substantial if we are unsuccessful in settling or otherwise resolving matters early in theprocess and/or on favorable terms. Eventual exposures from and expenses incurred relating to current andfuture litigation, investigations, examinations and settlements could adversely impact our assets undermanagement, increase costs and negatively impact our profitability and/or our future financial results.Judgments or findings of wrongdoing by regulatory or governmental authorities or in civil litigation againstus could affect our reputation, increase our costs of doing business and/or negatively impact our revenues,any of which could have a material negative impact on our financial results.Our ability to meet cash needs depends upon certain factors, including the market value of our assets,operating cash flows and our perceived credit worthiness. Our ability to meet anticipated cash needsdepends upon factors such as the market value of our assets, our operating cash flows and ourcreditworthiness as perceived by lenders. If we are unable to obtain funds and financing, we may be forcedto incur unanticipated costs or revise our business plans. Further, our access to the capital markets dependssignificantly on our credit ratings. A reduction in our long- or short-term credit ratings could increase our31