- The Story
Obtaining an investment return higher than cash deposits will involve taking risk. To meet your longer-term objectives, you may have to be prepared to take on a higher level of risk than you have historically.
Risks associated with investments can take various forms, including:
The sensitivity of your investments to various market events or economic factors, including changes to interest rates and inflation
The possibility that your investments do not meet your objective, such as a specific amount for targeted future expenditure
The chance of irregular or unusual investment returns, particularly in times of economic crisis
The likelihood of temporary or permanent loss of capital or income
The possible lack of liquidity
Your investment objective, specifically the level of growth or income you are seeking, is linked to the level of risk you are willing to take and that you can afford in your investment portfolio.
To establish your risk profile, you should consider two aspects:
• Your willingness to accept risk in the portfolio, often referred to as risk tolerance. • Your financial ability to withstand losing some or all of your investment portfolio, referred to as your capacity to absorb financial loss.
Normally risk tolerance is categorised within one of five bands – from lower to higher. The risk tolerance dictates the maximum level of higher risk assets (such as equities) that should be held in your portfolio. The relationship between your objective, risk tolerance and capacity to absorb financial loss interconnect to provide your overall risk profile.
Risk Management
The Nexus Global Solutions Portfolio will be invested within agreed control ranges.
It will be constructed on a rating of 4 as classified on the 1-7 CESR risk scale. However, when invested at either end of the control ranges, the rating may vary between 3 and 5.
The Nexus Global Dynamic Portfolio will be invested within agreed control ranges. It will be constructed on a rating of 6 as classified on the 1-7 CESR risk scale.
The Nexus Global Cautious Portfolio will be invested within agreed control ranges. It will be constructed on a rating of 3 as classified on the 1-7 CESR risk scale.
Performance monitored in absolute terms and relative to benchmark.
Internal Monitoring: Portfolio manager and compliance
External Monitoring: International Fund Management Limited
