Risk management

A final layer of independent oversight is provided by Aurum’s Risk Committee, which uses quantitative screening to regularly review both the Aurum portfolios and the underlying invested hedge funds for excess risk and, in conjunction with the CIO, ensures that action is taken to mitigate the impact of downside events. Each Aurum Fund has its own specific portfolio and risk parameters which are set internally to ensure that there is sufficient diversification of risk such that the risk of loss to investors is minimised; and that the original mandate of each portfolio is adhered to in line with investors’ expectations.

Aurum has put in place a thorough process of initial screening, evaluation, due diligence and monitoring of managers. We are of the opinion that good knowledge is the best form of risk control and we approach analysis and due diligence to ensure that we have the best quality information in order to make our investment decisions.  In conducting our research, we place a lot of emphasis on a manager’s ability to assess, take on and manage risk in their portfolios and look carefully at instances in the past where their skills and abilities have been proven. 

Separately, we evaluate operational risk:

•       Operational Risk Team is independent from the Investment Team

•       Ability to veto any new or existing investment