UNDERSTAND YOUR RISK
All investments have an inherent level of risk. You should contact an independent financial advisor to see if this product is suitable for you.
The strategy aims to maximize returns for a given level of risk. Reducing the risk in the portfolio is just as important as increasing returns. In fact, more time and attention go into managing and reducing risk than any other aspect of the management of the strategy.
Leverage is chosen with reference to the strategy’s simulated back tested results. These results give an indication of expected returns and maximum drawdowns at the portfolio level and individual asset levels. The characteristics of the automated strategy are chosen to keep the draw-downs within pre-defined limits. These expected drawdown limits will be continually published and updated on our website as they will vary over time depending on the latest results.
It is important to understand that back-test results do not limit future losses and unforeseen circumstances could cause the strategy to exceed the expected maximum daily drawdown.
Additionally, the Portfolio Manager assesses the risk and benefits of each position in the portfolio, considering small and large price changes, changes in volatility and the passage of time. Where necessary the strategy is modified to mitigate risk.
The Portfolio Manager also sets hard limits on both individual and aggregate positions. These limits will also be published and updated on our website.