The Fund is exposed to a variety of financial risks through its holding of financial assets for investment purposes. The components of financial risks are mainly market risk (including cash flow and fair value interest rate risk, equity price risk and currency risk), credit risk and liquidity risk. These risks arise from open positions in interest rate, currency and equity holdings, all of which are exposed to general and specific market movements. All investments present a risk of loss of capital. The maximum loss of capital on equity is limited to the fair value of those positions. The Board of Governors has articulated an Investment Strategy for the Fund. The Board of Governors reviews the Investment Strategy on a periodic basis to ensure that investments are managed efficiently and within the approved risk mandates. The Fund is also exposed to operational risks such as custody risk. Custody risk is the risk of loss of securities held in custody occasioned by the insolvency or negligence of the custodian. Although an appropriate legal framework is in place that reduces the risk of loss of value of the securities held by the Fund/custodian, in the event of its failure, the ability of the Fund to transfer the securities might be temporarily impaired. The risk mitigating measures taken by the Fund seek to maximise the returns derived for the level of risk to which the Fund is exposed and seek to minimise potential adverse effects on the financial performance of the Fund. The management of these risks is carried out by the Chief Executive Officer in accordance policies approved by the Board of Governors. The Board provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, the use of derivative financial instruments and non-derivative financial instruments and the investment of excess liquidity.