Indian Ocean Asset Management Risk Guide for Investors
2008 certainly proved to be one of the most challenging investment environments ever. In addition to negotiating falling stock markets, house prices and commodity prices, investors had to deal with a multitude of risks that may not have been previously known or fully appreciated beforehand. Who, for example, would have imagined that Lehman Brothers Investment Bank in the U.S. would have gone bankrupt or that several British High Street banks would, effectively, need to be nationalised? How many investors ever contemplated that they would lose access to their savings when the Icelandic banking system collapsed? Indeed. who would have thought that, one of the most successful Fund Managers of modern times (Bernard Madoff) had in fact been conducting the largest financial fraud ever, stealing over $50 billion from his clients?We, therefore, considered it essential that we create a document that would highlight for all our clients some of more esoteric risks that they may not be as familiar with but are present whenever an investment is made. We also explain how Indian Ocean Asset Management monitors and addresses these risks on your behalf.
Investment Risks Covered:
“Miss-match” Risk - Market Risk
- Interest Rate Risk
- Inflation Risk
- Credit Risk
- The Risk of Market Timing
- The Risk of Poor Diversification
- Gearing Risk
- Counterparty Risk
- Liquidity Risk
- Legislative Risk
- Currency Risk