Risk Warnings

You should not rely on the information or opinions set out here before making an investment or other decision but should obtain appropriate and specific professional advice of your own.

Nothing contained in this notice constitutes or should be construed to constitute investment, legal, tax or other advice.

The information supplied is not and in no way should be construed to constitute a recommendation with respect to the purchase or sale of any investment.

In particular:
Existing tax rules and legislation may change over time and changes can be retrospective. The value of any tax reliefs depends on the personal circumstances of the investors, who should consult their own tax advisers before making an investment.

Whilst the contents of this notice are provided in good faith for information purposes only, no representation or warranty, express or implied is given by Gresham House Asset Management Limited or by any of its directors, members, or employees as to its accuracy or completeness or that it is up to date, and it should not be relied on as such.

To the fullest extent allowed by law and the rules and regulations of the Financial Conduct Authority, Gresham House Asset Management Limited and its directors, members and employees shall not be liable, whether in contract, tort (including negligence) or otherwise howsoever, for any losses, damages, costs or expenses of whatever nature (including (without limitation) any consequential, indirect or unforeseeable loss or loss of bargain, opportunity or profit) incurred or suffered by you or any third party arising out of or in connection with the use of the contents of this notice.

Market risk: 

• The value of investments can rise or fall, and investors may not recover the amount originally invested. Investment values may be affected by political and economic developments, government policy, technological change, demographic trends, natural or human-caused disasters, pandemics, climate conditions, scientific discoveries, and changes in energy, commodity, or natural resource markets. These impacts may be short-term or long-term, and localised or widespread. 

Political and economic risks: 

• Economic conditions and market sentiment can affect the performance of underlying companies and their ability to meet interest and principal repayments. Factors such as inflation, unemployment, competition, technological developments, and political events may adversely impact investment value and returns. The strategy may also be exposed to country-specific or regional political, macroeconomic, and financial risks. 

Interest rate risk: 

• Changes in interest rates may negatively affect the value of underlying investments, potentially reducing investment value. 

Forecast risk: 

• Past performance, including that of the manager’s previous investments, is not a reliable indicator of future performance. There is no guarantee that investment objectives, projections, or targets will be achieved. Opportunity terms are indicative only and subject to change. 

Currency risk: 

• Investment returns may increase or decrease due to fluctuations in foreign exchange rates. 

Tax risks: 

• Investments may involve complex tax considerations that vary by investor. Prospective investors should seek independent tax advice before investing. Tax reliefs depend on individual circumstances and may change in the future. 

Climate change risk: 

• Investments may be affected directly by physical environmental changes linked to climate change, or indirectly through the transition to a low-carbon economy. 

Commodity price risk: 

• Investment values may fluctuate due to changes in commodity prices driven by supply and demand dynamics, geopolitical developments, weather conditions, and global economic activity. 

Pest and disease risk: 

• Investments related to agriculture or natural resources may be negatively affected by pests or diseases, which can reduce yields, increase operational costs, and disrupt supply chains. 

Water availability risk: 

• Water scarcity, droughts, regulatory restrictions, or increased competition for water resources may adversely affect operational performance and investment returns. 

Operational risk: 

• Failures in operational processes, including the safekeeping of assets, may result in financial losses. 

Risk of extraordinary events: 

• Extraordinary events such as pandemics, wars, or other major disruptions may materially and adversely affect investment performance. In severe cases, investors could lose the entire value of their investment. 

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be very complex and high risk.

What are the key risks?

1. You could lose all the money you invest

• If the business offering this investment fails, there is a high risk that you will lose all your money. Businesses like this often fail as they usually use risky investment strategies.
• Advertised rates of return aren’t guaranteed. This is not a savings account. If the issuer doesn’t pay you back as agreed, you could earn less money than expected or nothing at all. A higher advertised rate of return means a higher risk of losing your money. If it looks too good to be true, it probably is.
• These investments are very occasionally held in an Innovative Finance ISA (IFISA). While any potential gains from your investment will be tax free, you can still lose all your money. An IFISA does not reduce the risk of the investment or protect you from losses.

2. You are unlikely to be protected if something goes wrong

The Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover investments in unregulated collective investment schemes. You may be able to claim if you received regulated advice to invest in one, and the adviser has since failed. Try the FSCS investment protection checker at the following address: https://www.fscs.org.uk/check/investment-protection-checker/

Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection at the following address: https://www.financial-ombudsman.org.uk/consumers

3. You are unlikely to get your money back quickly

• This type of business could face cash-flow problems that delay payments to investors. It could also fail altogether and be unable to repay any of the money owed to you.
• You are unlikely to be able to cash in your investment early by selling your investment. In the rare circumstances where it is possible to sell your investment in a ‘secondary market’, you may not find a buyer at the price you are willing to sell.
• You may have to pay exit fees or additional charges to take any money out of your investment early.

4. This is a complex investment

• This kind of investment has a complex structure based on other risky investments, which makes it difficult for the investor to know where their money is going.
• This makes it difficult to predict how risky the investment is, but it will most likely be high.
• You may wish to get financial advice before deciding to invest.

5. Don’t put all your eggs in one basket

• Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
• A good rule of thumb is not to invest more than 10% of your money in high-risk investments: https://www.fca.org.uk/investsmart/5-questions-ask-you-invest

If you are interested in learning more about how to protect yourself, visit the FCA’s website at the following address: https://www.fca.org.uk/investsmart

For further information about unregulated collective investment schemes (UCIS), visit the FCA’s website at the following address: https://www.fca.org.uk/consumers/unre