Market Risk
Market risk refers to the potential decline in investment value due to economic changes or events affecting the broader market.
Financial Risk
The company is committed to maintaining sufficient resources to meet its contractual, business, and regulatory obligations under both normal conditions and a range of stressed scenarios. While the company is open to market and credit risk exposures necessary for achieving its business goals, such exposures are closely managed to control capital and liquidity requirements, concentration risk, and potential financial loss.
Strategic Risk
The company acknowledges that strategic risk is inherent in pursuing its business model. It proactively identifies and manages these risks, ensuring they inform strategy and business planning. The company has a low tolerance for failing to meet its business objectives due to controllable underperformance. Performance against the business plan is closely monitored, with prompt actions taken to address any significant deviations..when an unknown printer took a galley of type and scrambled it to make a type specimen bookhas survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchan galley of type and scrambled it to make a type specimen book.
Liquidity Risk
Liquidity risk involves the inability to sell an investment at a fair price or withdraw funds when desired. In some cases, such as with certain market-exempt investments, selling may not be possible at all
Foreign Exchange Risk
The Sub-Fund may hold securities denominated in currencies other than its base currency. Fluctuations in foreign exchange rates can impact the value of these securities or the shares held by shareholders. A depreciation in the currency's value will reduce the exchange value of the securities. Investors should be aware that exchange rate fluctuations may cause the value of their investments to decrease.
The Aitechflows Approach:
A Dedicated Risk Management Team
The Portfolio Construction and Risk Group (PCG) operates independently of the investment businesses and reports directly to the CEO. This team oversees the allocation of risk capital, supported by a dedicated R&D team that develops specialized tools and technologies.
The Risk Management Center
Aitechflows Risk Management Center offers a comprehensive overview of all investment portfolios, ensuring they adhere to established guidelines. It features a 27’ by 8’ interactive touchscreen for visualizing data and a robust backend system that connects to every Aitechflows office globally. This system continuously monitors various aspects like operational readiness, risk, and stress tests.
Executing Rigorous Processes
Before trades, the Portfolio Construction and Risk Group evaluates the potential impact on portfolio risk and stress levels. After trades, they analyze factors like skill, infrastructure, investment scope, risk, and capital use to inform future risk capital allocation decisions.