Prior to making an investment decision, please consider the following risks:
ALL: Model Portfolios & Multi-Asset Funds invest in underlying funds that may have some or all of these risks present.
Capital risk: All capital invested is at risk. You may not get back some or all of your investment.
Counterparty risk: The portfolios may have contractual agreements with counterparties. If a counterparty is unable to fulfil their obligations, the sum that they owe to the portfolios 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 may lose value as a result of movements in foreign exchange rates.
Derivatives risk: A derivative may not perform as expected, and may create losses greater than the cost of the derivative.
Derivatives risk – efficient portfolio management and investment purposes: Derivatives may be used to manage the portfolios efficiently. 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. The portfolios may also materially invest in derivatives including using short selling and leverage
techniques with the aim of making a return. When the value of an asset changes, the value of a derivative based on that asset may change to a much greater extent. This may result in greater losses than investing in the underlying asset.
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.
IBOR risk: The transition of the financial markets away from the use of interbank offered rates (IBORs) to alternative reference rates may impact the valuation of certain holdings and disrupt liquidity in certain instruments. This may impact the investment performance of the portfolios.
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 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.
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: Failures at service providers could lead to disruptions of fund operations or losses.
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.
