A multi-layered risk framework designed to protect capital, manage volatility, and ensure portfolios stay within defined risk parameters.
At ActiFund, risk management is not a separate function — it is embedded in every stage of our investment process. We believe that controlling the downside is equally as important as pursuing the upside.
Our independent risk team operates with full authority to challenge portfolio managers, enforce limits, and escalate concerns. This separation of investment and risk oversight is fundamental to our governance structure.
Our risk management operates through three independent layers to ensure comprehensive coverage.
The first line of defence sits with our portfolio managers who apply position-level risk controls including stop-losses, position sizing limits, and sector concentration caps as part of their daily management process.
Our dedicated risk team monitors all portfolios in real-time using proprietary systems. They operate independently from investment teams and report directly to the Chief Risk Officer and the Board.
The third layer includes our compliance team, external auditors, and Board risk committee who provide oversight over the entire risk management framework and ensure regulatory adherence.
Advanced quantitative tools and qualitative assessments work together for comprehensive risk oversight.
We calculate daily parametric and historical VaR at the 95% and 99% confidence levels for each portfolio. Breaches trigger immediate review and, if necessary, position adjustments to bring risk back within tolerance.
Weekly stress tests simulate historical crisis scenarios (2008 financial crisis, 2020 COVID crash, 2022 rate shock) and hypothetical scenarios to understand portfolio vulnerability under extreme conditions.
Continuous tracking of portfolio drawdowns against predefined limits. If a fund approaches its maximum drawdown threshold, a systematic de-risking protocol is activated to preserve capital.
Daily decomposition of portfolio returns into factor exposures (value, growth, momentum, quality, size, volatility) ensures managers take only intended risks and avoid uncompensated factor bets.
Regular assessment of portfolio liquidity ensures we can meet redemption obligations under stress. We maintain minimum liquidity buffers and monitor bid-ask spreads and trading volumes for all holdings.
All counterparty exposures are monitored and limited. We diversify across prime brokers and custodians and maintain strict credit quality thresholds for all financial intermediaries.
Learn how our risk management framework can protect your investment while still pursuing attractive returns.