Disclaimer: Risk Warning
The value of shares and the income from them can go down as well as up and you may get back less than the amount invested.
MarketsFlow's products may not be suitable for everyone.
Any financial performance figures refer to the past and that past performance is not a reliable indicator of future results.
For your information MarketsFlow have provided a summary of the main risks that are associated with investing and opening an account with us. This list is not comprehensive but should act as a guide for you to better understand the risks involved.
There are a number of risks associated with investing and opening an Account that are outside MarketsFlow's control. Whilst not exhaustive, the following summary should assist you to understand some of the general risks of investing:
- The value of your investments may go down as well as up and any capital that you invest is at risk. A fall in prices of any or all of the securities making up your Portfolio may result in its value being lower than the amount you invested, and you may lose the entire amount invested.
- The value of your investments may be subject to foreign exchange fluctuations.
- There could be risks relating to the reliability of dealing, settlement and custody practices.
- Prices of investments in, or linked to, emerging markets can be significantly more volatile than those in developed markets and the risks in respect of foreign exchange fluctuations, and less reliable dealing, settlement and custody practices may be greater than those in developed markets.
- For each Portfolio we try to ensure that the liquidity profile of the investments in the Portfolio is appropriate and employ a liquidity risk management process to ensure investors can redeem their investments. Nevertheless, there may be circumstances where it is not possible to sell all or part of the portfolios at a given point in time, or the price may be lower than previously reported. This is beyond our control and could be due to the suspension of securities or of a market, or concerns relating to the financial stability of an issuer of a security.
- If the value of your investment does not keep up with the rate of inflation, it will have less buying power in the future.
- Past performance is not an indicator of future performance.
Discretionary Investment Management
- Your Portfolio and its performance will be specific to you, even when compared to a portfolio with a broadly similar mandate
- We use your stated preferences in determining the investment strategy for your different portfolios. As a consequence, your portfolios may outperform or underperform the "average" customer Portfolio.
- The performance of any equity security within the Portfolio, is affected by the performance of the relevant company, the sector, country and region within which the company operates and the performance of equity markets.
- Income from dividends may fluctuate and is not guaranteed.
- Trading can be suspended due to market closure.
- There may be reduced liquidity and the difference in price between purchase and sale prices may fluctuate significantly, which could increase costs of trading for investors.
Foreign Currency Investments
We may buy on your behalf in an investment denominated in a currency other than the agreed base currency of your Portfolio.
The main risks are:
- A movement in exchange rates may have a separate effect, unfavourable as well as favourable, on the gain or loss otherwise experienced on the investment concerned.
- If you deposit collateral denominated in one currency, you may be subject to margin calls in circumstances where the obligations secured by such collateral are denominated in another currency (in addition to the risk of margin calls for fluctuations in relative values)
- Some currencies are not freely convertible and restrictions may be placed on the conversion and/or repatriation of your funds including any profits or dividends