The investment solutions which we manage or for which we act as advisors are subject to risk monitoring on 4 levels. We are obligated to provide strict and independent risk management. All processes and products are monitored daily and controlled. This ensures that the overall risk remains within the set limits and that the investment guidelines have been met.
Risk management on an operative level (Research & Portfolio Management)
The first level includes, among other things, the transaction check (pre-and post Trade) and a restriction check as well as performance monitoring. Other elements include the compliance with the liquidity requirements and addressing stock-specific bets in harmony with the risk profile of the stock upon which it is based.
The strict control of risks is an integral part of our investment process. Self-responsibility is a top priority and already on the portfolio management level there is zero tolerance in terms of restriction violations.
Preventative risk management through the independent area (Administration / Middle-/Back-Office)
Among other things, this control process includes the monitoring of investment restrictions (fund rules) and internal guidelines. Regularly, a comprehensive risk assessment report (total risks, tracking error, factor risks, liquidity risks etc.) is prepared to the attention of the management, board and Risk Management.
In addition, the Administration/Middle-/Back-Office division reviews all transactions made and regularly compares the internal fund accounting with the data provided by the fund administration and custody bank.
Risk control through an independent entity (Risk Management & Compliance)
This control process involves the specification of the monitoring methods, among other things. Thus, all important processes are continuously analyzed with an internal control system (ICS). Compliance with all regulation, regulatory and internal guidelines is also reviewed using random samples.
The risk assessments reports regularly prepared by the Administration/ Middle-/Back-Office division are critically reviewed and their results are analysed. Reports are often prepared to the attention of the management and the board.
Risk control through external units (Fund Administration, external audit)
In addition to the Investment Manager, who safeguards the constant compliance of the guidelines with independent entities, the fund administration continuously reviews compliance with the investment rules (fund prospectus, etc.) and the regulatory requirements.
In addition, the investment solutions are audited at least once a year by external auditors. Also Konwave AG, its process, the ICS, accounting, etc. are audited annually. The external auditors perform their auditing tasks according to the applicable legal requirements (Swiss Code of Obligations, FINMA, etc.)