Vontobel Fund II - Active Beta Opportunities

There is no guarantee that the fund will achieve its investment objective or that you will get back the amount you originally invested.

The value of your investment can go up or down in response to changes in economic conditions, interest rates, exchange rates, or company creditworthiness. Events such as pandemics, wars, or natural disasters can cause significant and unpredictable market disruptions worldwide.

If a key service provider (such as the investment manager or depositary) fails or becomes insolvent, this could cause delays in processing your transactions or result in financial losses for the fund.

In difficult market conditions, it may not be possible to sell certain investments quickly or at a fair price, which could mean the fund is unable to meet your redemption request promptly or may have to apply tools such as temporary restrictions on withdrawals.

Shares in companies can fall in value at any time, and there is no guarantee of returns; while equities have historically offered higher long-term returns, they also carry higher short-term risk.

Bonds and other debt securities can fluctuate in value due to changes in interest rates and the creditworthiness of the issuer, meaning you may receive less than you invested.

If a borrower fails to meet its financial obligations (such as paying interest or repaying principal), the value of the fund's investment in that issuer could fall significantly. In extreme cases, the fund could lose the full amount invested in that issuer.

When interest rates rise, the value of bonds and other fixed-income investments typically falls, and vice versa. Early repayments of bonds may also mean the fund has to reinvest at lower rates, reducing returns.

Investments in alternative assets such as commodities, hedge funds, private equity, and real estate can be highly illiquid, difficult to value accurately, and subject to complex risks not present in traditional investments. Returns from these asset classes are heavily dependent on the skill of the portfolio manager, and there is a risk of total loss.

REITs can fall in value due to declining property prices, rising interest rates, increased operating costs, or poor management quality. These factors directly reduce the value of the underlying real estate and therefore the REIT securities held by the fund

Commodity prices can be highly volatile, driven by factors such as supply and demand shifts, weather conditions, geopolitical events, and government intervention. These price swings can significantly impact the performance of the fund.

Derivatives such as options, futures, and swaps can magnify gains but also amplify losses, and if used incorrectly or in unfavourable market conditions could result in substantial or total loss. There is also a risk that the counterparty to a derivative contract defaults on its obligations, further increasing potential losses.

A fund using an absolute return strategy aims to generate positive returns in all market conditions, but this goal is not guaranteed and unexpected market movements or poor investment decisions may result in losses.

Total return swaps allow the fund to gain exposure to assets without owning them directly, but introduce the risk that the counterparty fails to meet its obligations, potentially resulting in losses for the fund. In such a scenario, losses are generally limited to the net unpaid amounts under the swap agreement.

Using leverage (borrowing or derivatives to increase exposure) can amplify both gains and losses, making the fund's value more volatile than if it had invested directly. Currency hedging and options strategies can also contribute to higher leverage levels, sometimes significantly.

When the fund invests in assets denominated in a different currency to the fund's reference currency, movements in exchange rates can increase or decrease the value of your investment independently of how the underlying assets perform. Not all currency exposure may be hedged.

Active currency trading strategies are highly speculative and depend heavily on the portfolio manager's ability to forecast exchange rate movements; if these forecasts prove incorrect, the fund can suffer substantial losses.

Applying ESG (environmental, social, and governance) criteria may cause the fund to avoid certain investments or sectors, which could positively or negatively affect performance compared to funds that do not apply such criteria. ESG data from third parties may be incomplete or inaccurate, and there is no universally agreed standard for what qualifies as a sustainable investment.

The fund's investment strategy may result in significant holdings in a small number of sectors or companies, which could make its value more volatile than a more broadly diversified fund.

Strategies that trade on financial market volatility are exposed to sudden and unpredictable swings driven by economic, geopolitical, or behavioural factors, which can result in significant losses.

Environmental, social, or governance events (such as climate change, social controversies, or poor corporate governance) can negatively impact the value of the fund's investments.