Market Risk
The Investment Compartment’s investments are denominated in Euros. Certain of the assets of the Compartment may be denominated in currencies other than in the currency in which the Participating Shares are subscribed for. Accordingly, the value of such assets may be affected favourably or unfavourably by fluctuations in currency rates. In addition, prospective investors whose assets and liabilities are predominately in other currencies should take into account the potential risk of loss arising from fluctuations in value between the Euro and such other currencies.
Price Risk
Some of the Recognised Exchanges on which the Company may invest may prove to be illiquid, insufficiently liquid or highly volatile from time to time. This may affect the price at which the Company may liquidate positions to meet redemption requests or other funding requirements.
Prices of equities fluctuate daily and can be influenced by many factors, such as political and economic news, corporate earnings reports, demographic trends and catastrophic events. Further, some European equity markets may be less liquid and experience greater volatility than more established Western European and American markets.
Custody Risk
Financial Institutions will have custody of the assets of the Investment Compartment. Bankruptcy or fraud at one of these institutions could impair the operational capabilities or the capital position of the Investment Compartment.
