Risk Consideration

Effective risk management is an essential part of delivering our corporate strategy. Our approach is predicated on strong risk awareness and risk accountability across all lines of defence in our business. We believe that this delivers long-term value for our clients, customers and shareholders, and protects their interests. We aim to ensure that: Our decision-making is attentive to both risk and reward in pursuit of our business plan objectives and strong client outcomes Our responsibilities to clients and customers are prioritised. Risk governance: Our governance drives how we make decisions on current and future risks drawing on our assessment, monitoring and control processes. We seek to ensure that risk decisions are taken at the right level. Most risk decisions are taken in our business units but certain decisions will be taken in senior executive committees or at Board level. Risk monitoring: The ongoing monitoring of risks and the performance of key controls is a critical activity to allow us to keep track of developments, drive action and ensure appropriate capital allocation Risk control: We operate processes so that risk is mitigated using controls with clearly identified control-owners. The effectiveness of controls is reviewed on a regular basis.

Financial risk

The Company has no appetite to fail to maintain sufficient resources to meet its contractual, business and regulatory obligations. We will ensure it can do so under both normal conditions and an appropriate range of company and market stressed scenarios. The Company has an appetite for market and credit risk exposures where these are required in pursuit of its business objectives. Exposures must be controlled to manage capital and liquidity requirements, concentration risk and the risk of financial loss.

Strategic risk

The Company has an appetite for strategic risk that arises as a consequence of pursuing its chosen business model. We proactively identify and understand the strategic risks that it is exposed to, the options available to manage them and ensure that these inform strategy formation and business planning. We have a limited appetite for failing to deliver our business plan objectives as a result of underperformance that is within our direct control. Ongoing performance against the business plan are closely monitored and prompt action taken to address any material adverse divergence.

Foreign investment risk

Some countries in the Asia ex-Japan region may prohibit or impose restrictions on investments by foreign investors and such restrictions may change from time to time.

Market risk


The risk of investments declining in value because of economic developments or other events that affect the entire market. The main types of market risk

Liquidity Risk

The risk of being unable to sell your investment at a fair price and get your money out when you want to. To sell the investment, you may need to accept a lower price. In some cases, such as exempt market investments, it may not be possible to sell the investment at all.

Foreign exchange risk

The Sub-Fund may hold securities denominated in a currency other than the base currency. Changes in foreign currency exchange rates will affect the value of securities held in the Sub-Fund or value of shares held by the shareholders respectively. A depreciation of the denomination currency will lead to depreciation in the exchange value of the securities. Shareholders investing in the Sub-Fund other than in its base currency should be aware that exchange rate fluctuations could cause the value of their investment to diminish