How we Measure and Mitigate Strategy Related Risks: 

• Market Risk

  • Daily attribution and return contribution analysis

  • Daily VaR and tracking error analysis

  • Overlay hedge strategies where applicable

  • Rigid portfolio construction rules

  • Mandatory stops, rolling stops, limits and trims

• Liquidity Risk
  • 3-tiered rolling liquidity limits
  • Rolling capacity override rules
  • Funds enjoy weekly liquidity, no side pockets and no gates

• Counterparty Risk
  • Regulated independent service providers
  • Mitigate counterparty risk by using multiple brokers
  • Use of an independent and regulated global custodian
  • Heavy investment in IT and portfolio reporting systems to provide bespoke client reporting (SUNGARD Asset Arena Portfolio Management System)

• Transparency
  • Adoption of GIPS method for calculating and reporting returns and IFRS for auditing books (funds and firm)
  • Direct access to fund manager, monthly fact sheets, semiannual strategy note
  • Comprehensive AIMA compliant due diligence questionnaire with a short RFP process response period
  • Frequent external communication (media, television, conferences and periodicals)

• Investment Process Governance
  • Detailed and well documented investment process supported by coherent governance and a clear decision making hierarchy

• Team Retention
  • Management and investment team are largest shareholders
  • Clear and transparent incentive based compensation
  • Cash bonus vesting system during above average paying years in order to retain talent especially during downward years

How we Measure and Mitigate Business Related Risks:

• Operational Risk
  • Comprehensive business and system recovery backup
  • Operational contingency and succession planning supported by well documented policies and procedures
  • On the ground team with over three market cycles of experience in financial

• Reputational Risk
  • Stringent internal and external compliance and KYC processes on clients, partners, employees and investment mandates
  • Personal dealing prohibition for entire team to invest in MENA markets other than through funds managed by the team

• Regulatory and Compliance Risks
  • Compliance officer and MLRO reporting directly to the board
  • Entity regulated by Dubai Financial Services Authority (DFSA)
  • “Whistle-blower” policy for employees to report on suspicious or fraudulent transactions directly to regulator

• Segregation of Duties
  • Operations and compliance segregated from investments and CEO through in-house COO and compliance officer/MLRO

• Governance
  • Independent non-executive board members