Risk Disclosure

General investment risk

This document is a template and should be reviewed and finalised by qualified legal counsel before publication.

All investments involve risk. The value of investments and the income derived from them can fall as well as rise, and you may not recover the amount you originally invested. Different types of investment carry different levels and combinations of risk, and the risks described here should be read together as a whole.

This disclosure is provided for general information and does not describe every risk relevant to a particular investment. You should ensure you understand the specific risks of any investment before proceeding, and seek independent professional advice if you are in any doubt.

Capital at risk

Your capital is at risk. There is no assurance that you will preserve the value of your investment, and in adverse circumstances you could lose some or all of the amount invested. You should only invest money you are able to place at risk, after taking into account your other financial commitments and the need to maintain adequate reserves.

Market & liquidity risk

The prices of securities fluctuate, sometimes significantly, in response to economic conditions, interest rates, company performance, investor sentiment, and other factors that may be beyond anyone’s control. Past movements are not a reliable guide to future prices.

Liquidity risk is a particularly important consideration in the Maldivian market. The domestic market is small and concentrated, with a limited number of listed securities and relatively modest trading volumes. As a result, it may be difficult to buy or sell a security at the time or price you wish, and larger orders may move the market. In some cases you may be unable to exit a position when you would like to.

Concentration & sector risk

A portfolio that is concentrated in a small number of securities, issuers, or industries is more exposed to the fortunes of those specific holdings than a broadly diversified portfolio. Adverse developments affecting a single company or sector can therefore have a disproportionate effect on your investment.

Opportunities in the Maldives are closely tied to a small number of core industries — notably marine, fishing, and resort development. These sectors are sensitive to factors such as tourism demand, global commodity and fuel prices, fish stocks and catch volumes, weather and climate events, and changes in regulation or policy. Exposure to these industries may result in a higher degree of concentration and correlated risk than a more diversified market would present.

Currency risk

Where investments, income, or settlement are denominated in a currency other than your home currency, changes in exchange rates may increase or decrease the value of your investment independently of the underlying performance of the asset. Movements between the Maldivian rufiyaa and other currencies, and any measures affecting the availability or convertibility of foreign currency, may affect returns and your ability to repatriate funds.

No guarantee of returns / past performance

No return is guaranteed. Neither we nor any other party guarantees the performance of any investment, the payment of any income, or the return of your capital. Any forecasts, projections, or targets are illustrative only and may not be achieved. Past performance is not a reliable indicator of future results, and simulated or hypothetical performance carries additional limitations.

Suitability & your responsibility

An investment that is appropriate for one person may be entirely unsuitable for another. Whether an investment is suitable for you depends on your objectives, financial situation, investment horizon, knowledge and experience, and your capacity and willingness to bear loss.

You are responsible for satisfying yourself that any investment is appropriate for your circumstances. Where we provide a personal recommendation, we will assess suitability on the basis of the information you give us; it is important that this information is complete and accurate.

Advisory vs execution-only

The nature and extent of the protections available to you depend on the service you receive from us.

• Advisory services — where we provide a personal recommendation, we will consider your circumstances and assess suitability, but the decision to invest and the associated risks remain yours.
• Execution-only services — where you instruct us to execute a transaction without advice, we do not assess whether it is suitable for you. You are solely responsible for the decision and its consequences.

The scope of any service will be set out in your engagement documentation with us.

This is not personal advice

This disclosure, and any information provided on this website, is general in nature and does not constitute a personal recommendation or advice tailored to your circumstances. It should not be relied upon as the sole basis for any investment decision. If you would like advice appropriate to your situation, please contact us at info@credencecapitalmv.com so that we can establish a formal engagement.