Investment Solutions

Counterparty risk

The portfolios/funds may have contractual agreements with counterparties. If a counterparty is unable to fulfil their obligations, the sum that they owe to the funds may be lost in part or in whole.

Credit risk

A decline in the financial health of an issuer could cause the value of the instruments it issues, such as equities or bonds, to fall or become worthless.

Currency risk

The portfolios/funds may lose value as a result of movements in foreign exchange rates, otherwise known as currency rates.

Derivatives risk

Derivatives, which are financial instruments deriving their value from an underlying asset, may be used to manage the portfolios/funds efficiently. The portfolios/funds may also materially invest in derivatives including using short selling and leverage techniques with the aim of making a return. A derivative may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the portfolios/funds.

Equity risk

Equity prices fluctuate daily, based on many factors including general, economic, industry or company news.

High yield bond risk

High yield bonds (normally lower rated or unrated) generally carry greater market, credit and liquidity risk meaning greater uncertainty of returns.

Higher volatility risk

The price of the funds may be volatile as it may take higher risks in search of higher rewards, meaning the price may go up and down to a greater extent.

Interest rate risk

The portfolios may lose value as a direct result of interest rate changes.

Investments in other collective investment schemes risk

The portfolios/funds will invest mainly in other collective investment schemes.

Leverage risk

The portfolios use derivatives for leverage, which makes them more sensitive to certain market or interest rate movements and may cause above-average volatility and risk of loss.

Liquidity risk

In difficult market conditions, the portfolios may not be able to sell a security for full value or at all. This could affect performance and could cause the portfolios to defer or suspend redemptions of its shares, meaning investors may not be able to have immediate access to their holdings.

Market risk

The value of investments can go up and down and an investor may not get back the amount initially invested.

Money market & deposit risk

A failure of a deposit institution or an issuer of a money market instrument could have a negative impact on the performance of the portfolios.

Negative yields risk

If interest rates are very low or negative, this may have a negative impact on the performance of the portfolios.

Operational risk

Operational processes, including those related to the safekeeping of assets, may fail. This may result in loses to the portfolios.

Performance risk

Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macro economic environment, investment objectives may become more difficult to achieve.

Sustainable investing risk

The portfolios apply sustainability criteria in its selection of investments. This investment focus may limit the portfolios’ exposure to companies, industries or sectors and the portfolios may forego investment opportunities that do not align with its sustainability criteria chosen by the investment manager. As investors may differ in their views of what constitutes sustainability, the portfolios may invest in companies that do not reflect the beliefs or values of any particular investor.