September 15, 2008 

Volatility in the financial markets has been in the news headlines all week. Like many of you, we are concerned with the implications for the ongoing financial health of our country. Closer to home, all of us are concerned about our families’ financial futures and the security of the institutions, like the UNA, in which we invest. We want each of you to know that we have been meeting daily with our portfolio manager to monitor our investment portfolio and, more importantly, the impact of events not yet reported by the investment rating agencies and the media. 

We are happy to report that the UNA investment portfolio remains a healthy one – currently maintaining a yield of over 6 percent through the second quarter of 2008. In order to mitigate the risk, we subscribe to a policy of broad portfolio diversification. As of today, our investment in any single U.S. corporation is less than 2 percent. Our portfolio holds fixed income securities from 118 unique issuers; 96 percent of the portfolio is invested in Agency and AAA to BBB investment grade securities according to Standard and Poors designations. All these safeguards have been consciously developed over time – some from our own experience, some from the experience of others.

The upside of “not putting all our eggs in one basket” so to speak, is that such broad diversification helps mitigate the impact of any one specific investment that may find itself in financial difficulty. However, the downside to this diversification is that we will have small investments in literally hundreds of companies, which increases the probability that any one of them may be negatively impacted by adverse market conditions. We are happy to report that, to date, our portfolio remains in a solid position. 

We believe the UNA’s investment strategy and policy remain sound. The UNA will continue to monitor the situation closely and modify its strategy and plan when needed. To quote General George S. Patton: "A good plan, executed now, is better than a great plan executed next week." 

If you have any questions, please feel free to contact me at 973-292-9800.


On behalf of the Executive Committee


Roma Lisovich, Treasurer

Ukrainian National Association