Global Renewables+

Renewable energy infrastructure assets tend to have a significant element of their revenues derived from long dated government support programs (e.g. Renewable Obligations) or contractual arrangements with creditworthy counterparties (e.g. Corporate Power Purchase Agreements). As such, investment strategies focussed on these assets tend to have more secure income flows which are lower risk due to their well-contracted income generation which is a key component of the return composition.

The principal risks associated with such strategy include, but are not limited to:

• Concentration risk: The Fund may be concentrated in a limited number of geographical regions, sectors, markets and/or individual assets. This may expose the fund to potential changes in its net asset value or reduce its ability to pay distributions should an asset be underperforming, requiring maintenance or subject to any other issues.
• Currency risk: The fund may be exposed to different currencies. Changes in foreign exchange rates could create losses. 
• Derivatives risk: Derivatives, which are financial instruments deriving their value from an underlying asset, may be used to manage the portfolio efficiently. A derivative may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the fund.
• Industry/Country risk:  Legislative changes, changes in general economic conditions and increased competitive forces may affect the value of investments. Additional risks may include greater social and political uncertainty and instability and natural disasters. 
• Infrastructure asset risk: The fund invests in illiquid assets which are harder to sell; the investment strategy is therefore specifically designed for buy and hold. Investments have no guaranteed valuation and are subject to capital loss. Investment risk is concentrated on specific sectors, countries, currencies, or companies, with resulting concentration risk.·
• Interest rate risk: The fund may lose value as a direct result of interest rate changes.
• Liquidity risk: The fund invests in illiquid instruments, which are harder to sell. Illiquidity increases the risks that the fund will be unable to sell its holdings in a timely manner in order to meet its financial obligations at a given point in time. It may also mean that there could be delays in investing committed capital into the asset class.
• Maintenance & Renewal risk: During the lifetime of an investment, components of certain infrastructure assets are likely to need to be replaced or undergo major refurbishment. Timing and costs of such replacements or refurbishments are forecast, modelled and provided for but various factors such as shorter than anticipated asset lifespans or underestimated costs and/or inflation higher than forecast, may result in life-cycle costs being higher than projected.
• Market risk: The value of investments can go up and down and an investor may not get back the amount initially invested.
• Performance risk: Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macro economic environment, investment objectives may become more difficult to achieve.
• Development risk: The Fund may invest in development assets as well as operational assets. Development assets may be subject to risks concerning including, amongst others, those related to planning, permitting and regulatory approvals, construction delays or development partner insolvency, latent defect issues and supply chain issues.
• Sustainability risk: The fund has the objective of sustainable investment. This means it may have limited exposure to some companies, industries or sectors and may forego certain investment opportunities, or dispose of certain holdings, that do not align with its sustainability criteria chosen by the investment manager. The fund may invest in companies that do not reflect the beliefs and values of any particular investor.
• Tax risk: The Fund and its returns may rely on certain available tax efficiencies at the inception of the Fund which may be subject to changes in tax treatment or interpretations. Any change in the actual or perceived tax status or exposure of the Fund or its investments as well as in tax legislation, practice or in accounting standards could adversely affect the anticipated level of taxation.
• Valuation risk: The valuation of private asset investments is performed on a less frequent basis than listed securities. In addition, it may be difficult to find appropriate pricing references for private asset investments. This difficulty may have an impact on the valuation of the portfolio of investments. Certain investments are valued on the basis of estimated prices and therefore subject to potentially greater pricing uncertainties than listed securities.