60 seconds with the portfolio manager

The strategy's main risks are

• Risk of capital loss: there is no guarantee for investors relating to the capital invested in the strategy in question, and investors may not receive back the full amount invested.

• Sustainability Risk: The sustainability risk refers to any environmental, social or governance-related event or situation that might affect the performance and/or reputation of issuers invested in.
  Sustainability risks may be subdivided into three categories:
  •    Environmental: environmental events may create physical risks for the companies invested in.
  •    Social: refers to the risk factors linked to human capital, the supply chain and the way companies manage their impact on society.
  •    Governance: these aspects are linked to governance structures.
  The sustainability risk may be specific to the issuer, linked to the issuer’s activities and practices, but may also be due to external factors. If an unforeseen event occurs in a business issuer such as a strike or more generally an environmental disaster, the event could have a negative impact on the performance. In addition, issuers who adapt their activities and/or policies may be less exposed to the sustainability risk.

• Equity risk: Some strategies may be exposed to equity market risk through direct investment (through transferable securities and/or derivative products). These investments, whether long positions or short exposure, may entail a risk of substantial losses. A variation in the equity market in the reverse direction to the positions can lead to the risk of losses and may cause the performance to fall.

• Derivative risk: financial derivatives are instruments whose value depends on (or is derived from) one or more underlying financial assets (equities, interest rates, bonds, currencies, etc.). The use of derivatives therefore involves the risk associated with the underlying instruments. They may be used for purposes of exposure or hedging against the underlying assets. Depending on the strategies employed, the use of derivative financial instruments can also entail leverage risks (amplifying downward market movements). In a hedging strategy, the derivative financial instruments may, under certain market conditions, not be perfectly correlated to the assets to be hedged. With options, an unfavourable fluctuation in the price of the underlying assets could cause the strategy to lose all of the premiums paid. OTC financial derivatives also entail a counterparty risk (though this may be attenuated by the assets received as collateral) and may involve a valuation risk or a liquidity risk (difficulty selling or closing open positions).

• Arbitrage risk: arbitrage is a technique which consists in benefiting from the differences in prices recorded (or anticipated) between markets and/or sectors and/or securities and/or currencies and/or instruments. If such arbitrage transactions perform unfavourably (a rise in sell transactions and/or fall in buy transactions), the performance may fall.

The risks listed are not exhaustive, and further details on risks are available in regulatory documents.