Risk Management

Core to our investment philosophy and the firm's culture is strong risk management; be it market or operational risk. The unique risk methodology and proprietary system along with a respectful culture towards governance and regulation has contributed to the success of the firm.

The risk governance framework is a fundamental part of our structure. It is made up of a two tier approach: a proactive risk management process at investment selection, sizing and portfolio optimisation; and an independent risk monitoring and reporting process under the supervision of an investment committee mandated with ensuring that the strategy remains within pre-defined limits.

Proactive Risk Management

The first aspect is the unique risk methodology employed for the investment strategy. Proactive risk management looks to ensure that the portfolio is bound by the maximum loss criteria, avoiding that no single investment or a collective group could impinge on this limit. Proprietary quantitative models are used for these processes and real-time monitoring is carried out using a proprietary risk engine. Responsibility for these processes and resultant decisions are with the investment management team.

Risk Monitoring, Reporting and Accountability

The second aspect is the independent monitoring that is performed by an independent risk management team. Core to the objective of monitoring and reporting is to ensure that the Fund's pre-defined limits are maintained and any breach is corrected.

To ensure the governance of this policy, the risk team reports to the investment committee, which is mandated to enforce risk limits and ensure any potential breaches are resolved within the risk remit.

Strong risk management with a focus of downside protection