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18.90. Defensive Investing Risk

For defensive purposes, the Investment Compartment may allocate assets into cash or short-term fixed income securities without limitation. In doing so, the Investment Compartment may succeed in avoiding losses but may otherwise fail to achieve its investment objectives. Further, the value of short-term fixed income securities may be affected by changing interest rates and by changes in credit ratings of the investments. If the Investment Compartment holds cash uninvested it will be subject to the credit risk of the depository institution holding the cash.