The United Church Foundation's investment strategy during these turbulent times has been to preserve liquidity and to maintain our long-term strategy that stresses diversification and quality investments.

Our money market investments are invested only in government securities where liquidity is readily available. The United Church Foundation's Fixed Income and Equity Funds had no exposure to Lehman Brothers or Washington Mutual at the time of bankruptcy and our Fixed Income Fund has never invested in sub-prime mortgages.

Even though the returns on our Funds have been depressed by general market conditions, we have ample liquidity to weather the current turbulence. We do not have to sell securities at depressed prices. Given the quality of our investments, we are confident that the Funds are positioned to participate in the anticipated market recovery.