Management Risk. Each Fund is subject to management risk because each Fund is actively managed. There is no guarantee that the investment techniques and risk analyses used by each Fund’s managers will produce the desired results.
Management Risk. The fund is actively managed and depends heavily on the adviser’s judgment about markets, interest rates or the attractiveness, relative values, liquidity, or potential appreciation of particular investments made for the fund’s portfolio. The fund could experience losses if these judgments prove to be incorrect. Additionally, legislative, regulatory, or tax developments may adversely affect management of the fund and, therefore, the ability of the fund to achieve its investment objective.
Management Risk. The Fund is actively managed, and the investment techniques and risk analysis used by the Fund’s portfolio managers may not produce the desired results.
Management Risk. The Group is initially dependent upon the Business Manager for the implementation of its strategy and the operation of its activities. Unless the Business Management Agreement is terminated within the first 5 years, with a notice period of 18 months, the agreement is thereafter extended with 2 years at the time until terminated with a notice period of 12 months. Although the Business Management Agreement is non- terminable during the first 5 years from signing (with certain exceptions), there is an uncertainty with regard to the management of the Group in the event of a termination of the Business Management Agreement. In addition, the Group will depend upon the services and products of certain other consultants, contractors and other service providers in order to successfully pursue the Group’s business plan. There is a risk that the Group cannot purchase new management services or other necessary services or products on favourable terms, or at all, which could have an adverse effect on the Group’s business, financial condition and equity returns. Further, should the Group terminate the Business Management Agreement, an exit fee will be payable to the Business Manager in accordance with the terms of the Business Management Agreement. Finally, there is a risk that the fees (including any start-up or exit fee) connected to the Business Management Agreement with the Business Manager, as well as other arrangements with the Manager, could have an adverse effect on the Group’s financial condition.
Management Risk. The Group is initially dependent upon the Business Manager for the implementation of its strategy and the operation of its activities. The Business Management Agreement is continual and may be terminated after the earlier of (i) the date that is five years after the date of signing of the Business Management Agreement and (ii) the date on which 2/3 of the shareholders of the Company request it. Termination of the Business Management Agreement after five years as mentioned in (i) shall require 12 months written notice. In the event of termination as mentioned in (ii), such termination shall enter into effect immediately. There is an uncertainty with regard to the management of the Group in the event of a termination of the Business Management Agreement. In addition, the Group will depend upon the services and products of certain other consultants, contractors and other service providers in order to successfully pursue the Group’s business plan. There is a risk that the Group cannot purchase new management services or other necessary services or products on favourable terms, or at all, which could have an adverse effect on the Group’s business, financial condition and equity returns. Further, should the Group terminate the Business Management Agreement, an exit fee will be payable to the Manager in accordance with the terms of the Master Agreement. Finally, there is a risk that the fees (including any start-up or exit fee) connected to the Business Management Agreement with the Business Manager, as well as arrangements with the Manager, may adversely affect the Group’s financial condition, operations and earnings.
Management Risk. As the fund will not fully replicate the underlying index, it is subject to the risk that BFA’s investment strategy may not produce the intended results.
Management Risk. Each Fund is subject to management risk because each Fund is actively managed. The investment techniques and risk analyses used by each Fund’s managers may not produce the desired results. In addition, each Fund operates under a “manager-of-managers” struc- ture, which gives the adviser the right, with the prior approval of the Fund’s Board of Trustees and without share- holder approval, to change subadvis- ers. If a subadviser is added or replaced on a Fund, the Fund could experience higher portfolio turnover and higher transaction costs than normal if the new subadviser realigns the portfolio to reflect its investment techniques and philosophy. A realignment of a Fund’s portfolio could result in higher net real- ized capital gains distributions, which could affect the tax efficiency of a Fund negatively.
Management Risk. This involves the possibility that the in- vestment techniques and risk analyses used by the Fund’s manager will not produce the desired results.
Management Risk. The Funds are actively managed investment portfolios and are therefore subject to the risk that the investment strategies employed for the Funds may fail to produce the intended results. A Fund may underperform its benchmark index or other mutual funds with similar investment objectives.
Management Risk. The performance of the Fund is affected by the experience, expertise and investment strategy of the Investment Manager. A lack of experience, knowledge and expertise, as well as poor execution of the investment strategy of the Fund may affect the returns of the Fund and may result in a loss of the capital invested. The performance of the Fund depends on the investments of the Fund. If the investments of the Fund do not perform in accordance with expectations, there will be a negative impact on the performance of the Fund. This is where the experience and expertise of the Investment Manager is important as highlighted in the fund management risk write-up above. In view of the aforesaid, there is never a guarantee that investing in the Fund will produce the desired investment returns. Inflation creates uncertainties over the future value of investments. There is a risk that the Fund may generate a return on investment lower than the inflation rate. This would reduce investors’ purchasing power even though the nominal value of the investment in monetary terms has increased. This risk refers to the possibility of a breakdown in our internal controls and policies. The breakdown may be a result of human error (for instance keying in wrong details), system failure (causing unnecessary downtime) or even fraud (where our employees collude with one another). We will regularly review our internal policies and system capability to mitigate the occurrence of this risk. Additionally, we maintain a strict segregation of duties to mitigate occurrence of fraudulent practices amongst our employees. This risk refers to the possibility that the Manager may not follow the provisions set out in this Information Memorandum or the Deed or the laws, rules, Guidelines or internal operating policies which govern the Fund. Non-compliance may occur directly due to factors such as human error or system failure and can also occur indirectly due to amendment on the relevant regulatory frameworks, laws, rules and other legal practices affecting the Fund. This risk may result in operational disruptions and potential losses to the Fund.
