Industry and Market. Sector Risk — An investment strategy can result in significant over- or under-exposure to certain countries, industries, or market sectors, which can cause a portfolio’s performance to be more or less sensitive to developments affecting those countries, industries, or sectors. Allocation Risk — Asset classes in which the strategy seeks investment exposure can perform differently than each other at any given time so the strategy will then be affected by its allocation among the various asset classes. If the strategy favors exposure to an asset class during a period when that class underperforms, performance can decline. Derivative Risk — Options, futures, and other derivatives can be riskier than other types of investments because they can be more sensitive to changes in economic and market conditions. Specifically, prices of derivative instruments may fluctuate widely and rapidly. Derivatives subject a portfolio to counterparty risk including the credit risk of the derivative counterparty. A small investment in derivatives can have a large impact on the strategy’s performance. The use of derivatives involves risks different from the risks associated with investing directly in the underlying assets. Counterparty Risk — A counterparty to a transaction can default or fail to meet certain terms of the agreement. Cybersecurity Risks — Cybersecurity is a generic term used to describe the technology, processes, and practices designed to protect networks, systems, computers, programs, and data from “hacking” by other computer users, other unauthorized access, denial of service, or malicious acts targeting networks, systems, computers, programs, and data and the resulting damage and disruption of hardware and software systems, loss or corruption of data or business as well as misappropriation of confidential information. Information security risks for financial institutions are significant, in part, because of the proliferation of new technologies to conduct financial transactions and the increased sophistication and activities of organized crime, hackers, terrorists, and other external parties, including foreign state actors. A breach of security also can adversely affect the ability to effect transactions, service clients, and manage exposure to risk. Cyberattacks include, among other items, stealing or corrupting data maintained online or digitally, preventing legitimate users from accessing information or services on a website, releasing confidential informatio...
Industry and Market. Sector Risk - An investment strategy can result in significantly over or under exposure to certain country, industry or market sectors, which can cause a portfolio’s performance to be more or less sensitive to developments affecting those countries, industries or sectors. Allocation Risk - Asset classes in which the strategy seeks investment exposure can perform differently than each other at any given time so the strategy will then be affected by its allocation among the various asset classes. If the strategy favors exposure to an asset class during a period when that class underperforms, performance can decline. Derivative Risk - Derivatives can be riskier than other types of investments because they can be more sensitive to changes in economic and market conditions. Derivatives subject a portfolio to counterparty risk including the credit risk of the derivative counterparty. A small investment in derivatives can have a large impact on the strategy’s performance. The use of derivatives involves risks different from the risks associated with investing directly in the underlying assets. Counterparty Risk - A counterparty to a transaction can default or fail to meet certain terms of the agreement. Cybersecurity Risks - Information security risks for financial institutions are significant in part because of the proliferation of new technologies to conduct financial transactions and the increased sophistication and activities of organized crime, hackers, terrorists and other external parties, including foreign state actors. A breach of security also can affect adversely the ability to effect transactions, service clients and manage exposure to risk. An event that results in the loss of information would require the firm to reconstruct lost data or reimburse clients for data and credit monitoring services, which could be costly and have a negative impact on our business and reputation. Further, even if not directed at the firm, attacks on financial or other institutions important to the overall functioning of the financial system or on counterparties could affect, directly or indirectly, aspects of the Confluence business.
Industry and Market. Sector Risk — An investment strategy can result in significant over- or under-exposure to certain countries, industries or market sectors, which can cause a portfolio’s performance to be more or less sensitive to developments affecting those countries, industries or sectors. Allocation Risk — Asset classes in which the strategy seeks investment exposure can perform differently than each other at any given time so the strategy will then be affected by its allocation among the various asset classes. If the strategy favors exposure to an asset class during a period when that class underperforms, performance can decline. Derivative Risk — Options, futures and other derivatives can be riskier than other types of investments because they can be more sensitive to changes in economic and market conditions. Specifically, prices of derivative instruments may fluctuate widely and rapidly. Derivatives subject a portfolio to counterparty risk including the credit risk of the derivative counterparty. A small Counterparty Risk — A counterparty to a transaction can default or fail to meet certain terms of the agreement. Force Majeure — Investments can be affected by force majeure events (i.e., events beyond the control of the party claiming that the event has occurred, including, without limitation, acts of God, fire, flood, earthquakes, outbreaks of an infectious disease, pandemic or any other serious public health concern, war, terrorism, labor strikes, major plant breakdowns, pipeline or electricity line ruptures, failure of technology, defective design and construction, accidents, demographic changes, government macroeconomic policies, social instability, etc.).
Industry and Market. Sector Risk — An investment strategy can result in significant over- or under-exposure to certain countries, industries, or market sectors, which can cause a portfolio’s performance to be more or less sensitive to developments affecting those countries, industries, or sectors. Allocation Risk — Asset classes in which the strategy seeks investment exposure can perform differently than each other at any given time so the strategy will then be affected by its allocation among the various asset classes. If the strategy favors exposure to an asset class during a period when that class underperforms, performance can decline. Derivative Risk — Options, futures, and other derivatives can be riskier than other types of investments because they can be more sensitive to changes in economic and market conditions. Specifically, prices of derivative instruments may fluctuate widely and rapidly. Derivatives subject a portfolio to counterparty risk including the credit risk of the derivative counterparty. A small investment in derivatives can have a large impact on the strategy’s performance. The use of derivatives involves risks different from the risks associated with investing directly in the underlying assets.
