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18.60. Duration and Maturity Risk

The Investment Compartment has no set policy regarding portfolio maturity or duration of the fixed-income securities it may hold. The Manager may seek to adjust the duration or maturity of the Investment Compartment’s fixed-income holdings based on its assessment of current and projected market conditions and all other factors that the Manager deems relevant. Any decisions as to the targeted duration or maturity of any particular category of investments will be made based on all pertinent market factors at any given time. The Investment Compartment may incur costs in seeking to adjust the portfolio average duration or maturity. There can be no assurance that the Manager’s assessment of current and projected market conditions will be correct or that any strategy to adjust duration or maturity will be successful at any given time. Generally speaking, the longer the duration of any fixed-income securities in the Investment Compartment’s portfolio, the more exposure the Investment Compartment will have to the interest rate risks described above.