{"id":8113,"date":"2021-11-19T15:54:17","date_gmt":"2021-11-19T15:54:17","guid":{"rendered":"https:\/\/www.quoniam.com\/?page_id=8113"},"modified":"2025-06-25T09:07:30","modified_gmt":"2025-06-25T09:07:30","slug":"risk-information","status":"publish","type":"page","link":"https:\/\/www.quoniam.com\/en\/risk-information\/","title":{"rendered":"Risk information"},"content":{"rendered":"\n
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Risk information<\/h1>\n<\/div><\/div>\n\n\n\n
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General Information<\/h5>\n\n\n\n

As defined by regulatory provisions and contractually agreed investment guidelines, Quoniam Asset Management GmbH (\u201cQuoniam\u201d) invests on a discretionary basis in assets that contain risks as well as opportunities for growth in value. Thus it is possible to sustain losses, more specifically the chance that the market value of invested assets can fall. Although Quoniam aims to achieve constant growth with each investment strategy, this cannot be guaranteed. Investors\u2019 risk however is limited to the amount invested. The investor shall not be required to make any payments beyond the sum invested. Concentrating investments in certain assets or markets may create further risks. The portfolio is therefore particularly highly dependent on the development of these assets or markets. Furthermore, because of inflation there is a risk that all the assets will lose relative value. The investment strategy may focus on the acquisition of assets from, for example, only a small number of sectors, markets or regions\/ countries. Such concentration on few specific investment sectors may offer special opportunities which may have corresponding risks (e.g. narrow markets, high volatility within certain economic cycles).<\/p>\n\n\n\n

The following risk categories may not apply to all portfolios equally but depend on the chosen investment strategy and the investment guidelines agreed upon.<\/p>\n<\/div><\/div>\n\n\n\n

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Market Risk<\/h5>\n\n\n\n

The price or market value of financial instruments depends in particular on the development of capital markets, which in turn is affected by the general global economic situation, and the economic and political conditions in the respective countries. The general development of securities\u2019 prices, especially on a stock exchange, may also be affected by irrational factors, such as sentiment, opinions and rumors.
Risk of Interest Rate Changes<\/p>\n\n\n\n

The risk that the interest rate given at the point of the transaction may change accompanies an investment in fixed interest rate financial instruments. If the market interest rate rises above the level present at the point of issue, the returns of the fixed interest rate financial instrument will generally fall. However, if the market interest rate falls below the instruments fixed amount, its returns generally increase. This price dynamic ultimately means that the fixed interest rate instrument\u2019s current returns generally reflect the current market interest rate. However, these price movements differ according to the duration of the fixed interest rate instrument. Those with shorter durations carry lower fluctuation risks than those with longer durations. In contrast, fixed interest rate instruments with shorter durations also generally deliver lower returns when compared to those with longer durations. Money market instruments generally have a very low interest rate fluctuation risk. This is due to their short duration, of under 12 months.<\/p>\n<\/div><\/div>\n\n\n\n

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Country or Transfer Risk<\/h5>\n\n\n\n

A country or transfer risk exits when, for example, a foreign debtor, despite solvency, is unable, because of a lack of transfer capability or readiness on the part of his country of domicile, to make payments on time or at all. Thus, for example, payments to which the portfolio is entitled may not be made or may be made in a currency that is no longer convertible due to foreign exchange restrictions.<\/p>\n<\/div><\/div>\n\n\n\n

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Settlement Risk<\/h5>\n\n\n\n

Especially when investing in unlisted securities, there is a risk that the settlement will not run as expected over a transfer system due to a delayed or not agreed upon payment or delivery.<\/p>\n<\/div><\/div>\n\n\n\n

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Counterparty risk<\/h5>\n\n\n\n

The portfolio may incur losses through the default of an issuer or counterparty. Issuer risk describes the effect of particular developments of individual issuers on the price of a security, in addition to the general trends in the capital markets. Notwithstanding a careful selection of assets, losses may result if issuers become insolvent. Counterparty risk is the risk that a counterparty to a contract partially or completely defaults on its liabilities.<\/p>\n<\/div><\/div>\n\n\n\n

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Currency Risk<\/h5>\n\n\n\n

If assets are held in currencies other than the base currency, the portfolio receives the income, repayments and proceeds from the investment in the respective currency. If the value of that currency falls against the base currency, this reduces the value of the portfolio.<\/p>\n<\/div><\/div>\n\n\n\n

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Custody<\/h5>\n\n\n\n

The custody of assets, particularly abroad, carries a risk of value losses that may result from insolvency, violation of due diligence or improper conduct of the custodian or sub-custodian. With regard to bank deposits with a credit institution, there is a risk of value losses in the case of the insolvency of the bank.<\/p>\n<\/div><\/div>\n\n\n\n

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Liquidity Risk<\/h5>\n\n\n\n

Assets may be acquired for the portfolio, which are not admitted to official trading on a stock exchange or on a regulated market. Acquiring assets is associated with the risk that problems may arise when seeking to sell the assets to a third party.<\/p>\n<\/div><\/div>\n\n\n\n

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Legal and Tax Risk<\/h5>\n\n\n\n

The legal and tax treatment of the portfolio may change in unforeseeable and uncontrollable ways.<\/p>\n\n\n\n

Risks on the Exercise of Shareholders\u2019 Rights<\/p>\n\n\n\n

If contractually agreed, Quoniam may exercise the voting rights attached to investments on behalf of the investor. A performance disadvantage may arise for the portfolio due to the practice of some countries\u2019 markets to block pending stocks.<\/p>\n<\/div><\/div>\n\n\n\n

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Risks Associated with Derivative Transactions<\/h5>\n\n\n\n

If the investment guidelines allow for the acquisition and sale of options, futures contracts or swaps, then the following risks apply:<\/p>\n\n\n\n