Entrepreneurial Risk. Equity investments represent a direct participation in the economic success or failure of a company. In the worst-case scenario (i.e. insolvency and the compulsory winding-up of the company), this may result in the total loss of the amounts invested. Key Personnel Risk. The investment success is often driven by the suitability and the success of the persons taking actions. However, the composition of the fund management may change. New key personnel and decision makers may be less successful than their predecessors. Portfolio Turnover. Sub-Funds may have relatively high turnover at times. Although the Management Company intends to limit turnover, the Management Company has the discretion to buy or sell investments at a rate that may result in high transaction costs. Valuation Risk. Sub-Funds carry certain risks in relation to the valuation and/or settlement of their assets such as:
Appears in 8 contracts
Samples: Unit Trust Agreement, Unit Trust Agreement, Unit Trust Agreement
