What are the significant risks associated with the GEF and how is this risk monitored?
Equity values in the GEF can fluctuate in response to the activities of individual companies, and general market conditions. In the short-term, stock prices can fluctuate dramatically in response to these factors. Bond prices in the GEF can also fluctuate based on changes in interest rates and the credit quality of the issuers. Investments in international securities in the GEF can involve political and macroeconomic risk in addition to typical individual company risks as in domestic markets. An additional element of risk in all international investments is the currency risk as the returns on those investments must be converted to US dollars for use here. Some of the longer term investments in the GEF, including venture capital and private equity, also have an element of liquidity risk due to the fact that these investments could not be easily converted to cash at short notice. All these risks are carefully monitored by both the UTIMCO staff and the UTIMCO Board. It is essential that s
