The material on this site is for information purposes only and provides background to the risks inherent in a range of financial instruments that may be available to you as a client of Cazenove Capital. You should ensure that you fully understand the nature of such investments and the potential risks relevant to them.
Past performance is not a reliable indicator of future performance. Investors should remember that the value of an investment and the income received from an investment can go down as well as up, and they may not get back the amount they invested. Changes in exchange rates or taxation may have an adverse effect on the price, value or income of the investments. Investment returns may be constrained by charges levied and inflation may reduce the value of investments.
All forms of investment, which we may undertake on your behalf, involve risk. The value of investments and the income derived from them is not guaranteed and it can fall as well as rise.
The Terms and Conditions for Investment Services provide detailed information on investment risks. In deciding your objectives and any restrictions that you wish to impose, we would draw your attention to the terms below and to our interpretation of the generic risks in the asset classes we use.
The risk stemming from inability to buy or sell an investment quickly enough to prevent or minimise capital loss.
The risk that the real value (the value adjusted to remove the effects of price changes over time) of an investment will fall as a result of the rate of inflation exceeding the rate of return on the investment.
The risk that the value of equity becomes worthless as the company becomes bankrupt.
The risk of an issuer defaulting and being unable to repay the principal investment or financial gain.
A statistical measure of the tendency of an individual investment to feature significant fluctuations in value. Commonly, the higher the volatility, the riskier the investment.
The risk that the value of an individual investment or portfolio will fall as a result of a fall in markets.
The risk that there is an insufficient level of diversification such that an investor is excessively exposed to one or a limited number of investments.
The risk that a party connected to an investment or transaction is unable to meet its commitment.
We aim to have a prudent diversification of holdings within each asset class. Portfolios may contain a proportion of higher-risk investments and exposure to non-base currency markets. Where appropriate, we may take exposure to an asset class through structured products.
The descriptions above are intended to provide a summary only of the main risks associated with investment services. More detailed information can be found in the full Terms and Conditions, which are available on request.
The Income Trust for Charities, The Equity Income Trust for Charities, The Growth Trust for Charities
There are risks associated with investment in the Trusts. The Trusts are unregulated collective schemes, available only to qualifying charity investors in England, Wales, Scotland and Northern Ireland.
- The value of your investment may fall as well as rise and you may not get back the amount you invested. Participation should generally be viewed as a long-term investment.
- Past performance is not a guide to future performance.
- Changes in rates of exchange may have an adverse effect on the value, price or income of investments.
- Income from investments may fluctuate. Income payments may constitute a return of capital in whole or part. Income may be achieved by foregoing future capital growth. Trust charges may be applied in whole or part to capital, which may result in capital erosion.
- Where fixed income securities are held, there is credit risk, arising from the possibility of default by the issuer on payment of income or on repayment of capital or both. This risk is accentuated in the case of lower-rated, higher yielding securities.
- The levels and bases of, and reliefs from, taxation may change.
Prospective investors are strongly encouraged to read the Trusts’ Scheme Particulars, in particular, the section entitled ‘Risk Factors’, which describes more fully the risks associated with investing in the Trusts.