Risk framework

Private investments, real estate and other illiquid assets may be difficult to value. Valuations follow documented methodologies, with assumptions reviewed and independent expertise used where appropriate.

A compartment may hold a concentrated portfolio, including exposure to a single investment where permitted by its investment policy. We assess exposures to individual assets, connected counterparties, sectors and jurisdictions.

Private investments may lack an active secondary market and may take longer to realise than anticipated. Exit planning considers contractual transfer restrictions, potential buyers and refinancing options. However, exit timing and proceeds are not guaranteed. Investor redemptions remain subject to the applicable terms, including any permitted gates, deferrals or suspensions.

The failure of a borrower, bank, custodian or other counterparty may cause losses or restrict access to assets. We assess financial standing, contractual protections and relevant jurisdictions, and review custody, asset-registration and ownership-verification arrangements appropriate to each asset.

Exchange-rate movements may affect investment values, income and distributions where currencies differ from the relevant compartment's or share class's reference currency. Currency exposures are assessed alongside underlying cash flows. Hedging may be used where permitted and appropriate.

Borrowing, guarantees and derivative exposure are subject to applicable law, the relevant investment documents and required approvals. We assess leverage at compartment level and the economic impact of debt within underlying investment structures, including financing costs, collateral requirements and refinancing risk. Maximum permitted leverage and its calculation basis are specified in the applicable documentation.

Investments may be affected by political instability, sanctions, capital controls, expropriation or changes in taxation and regulation. We assess country exposure, local legal protections and the ability to transfer funds and enforce rights.

Legal due diligence, contractual protections and monitoring of material disputes support risk mitigation.

We seek to reduce performance and operational continuity dependency on key individuals through documented decision-making, shared access to essential records and appropriate succession or replacement arrangements.

Our approach includes identifying and recording conflicts, appropriate disclosure, abstention by conflicted decision-makers and fair allocation of investments, costs and opportunities. Transactions should not proceed where material conflicts cannot be adequately managed.

Investment restrictions and exposure limits are tailored to each compartment's mandate and applicable legal requirements. They address relevant asset, counterparty, sector, geographic, currency, liquidity and leverage exposures. Compliance is assessed before investment and monitored thereafter. Breaches are escalated for corrective action, changes to limits follow the approval and disclosure procedures required by the governing documents.