The risk in investments must be considered just as carefully as the opportunities. We take the time to do this thoroughly and in detail in our individual discussions and recommendations to clients. This is important, as only investors who are aware of all aspects of an investment can make informed decisions. This page gives an overview of the basic risks of investments and the specific risks of our approach.



Past performance does not automaticly mean that similar results may be expected in the future. The value of investments and the income provided by them can both rise and fall, and is not guaranteed. Financial instruments with high volatility can experience very sharp price changes and the value of an investment can fall suddenly and hard. It is possible that the original invested capital cannot be repaid in full. Changes in currency levels can lead to a rise or fall in the value of investments.

Basic risks of investments

Examples of basic risks of investments are:

  • Economic risk
  • Inflation risk
  • Country and transfer risk
  • Currency risk
  • Liquidity risk
  • Psychological risk
  • Risks due to the financing of investments with borrowed funds
  • Taxation risk
  • Risk of secondary costs and their influence

In addition to these factors all financial instruments, such as stocks, bonds, or derivatives, have special risks which come from the specific characteristics of the individual instrument. These individual risks can have a major effect on the success or failure of an investment.

All of these risks are described in detail in the Broschure "Basic Information about Securities" which we will be pleased to send you.

Limitations and systematic risks of our strategic approach

In addition to the basic risks of any investment and the special risks associated with individual financial instruments our management approach with its proceedures and systems carries its own special risks for the expected performance.

The risks associated with our approach could have the following effects:

  • Underperformance in multi-year uptrends due to performance-inhibiting hedge transactions
  • In case of opening gaps downwards (“crash”) in previously intact uptrends hedge activities can come too late.
  • Underperformance in sideways markets in which the market swings are so small that the hedge costs of the concept are higher than the negative moves in the benchmark.
  • Underperformance due to frequent strong and sharp market reversals which force the closure of positions or hedges which have just been entered.
  • The increased market risk permitted in some funds may result in increased performance risk, because the sum of all investments is permitted to exceed 100 % of the fund capital.

Furthermore we request that you read the general and strategy-specific risk descriptions which are contained in the sales prospectus of our mutual funds.