Risk Disclosure Statement

1. General Investment Risk

All investments carry risk. The value of investments and the income derived from them can go down as well as up, and investors may not get back the amount originally invested. Investment returns are not guaranteed, and there is no assurance that any investment strategy will achieve its objectives.

The degree of risk varies depending on the type of investment, the markets in which it is made, and the economic conditions prevailing at the time. Before making any investment decision, you should carefully consider your investment objectives, financial situation, and particular needs, and seek independent financial, legal, and tax advice.

2. Market Risk

Market risk is the risk that the value of an investment will decrease due to movements in market factors. Key market risks include:

• Equity risk: The risk that share prices will fall, reducing the value of equity investments. Share prices can be volatile and may be affected by company-specific factors, sector trends, and broader market conditions.
• Interest rate risk: The risk that changes in interest rates will adversely affect the value of fixed income investments. Generally, when interest rates rise, bond prices fall, and vice versa.
• Currency risk: The risk that changes in exchange rates will adversely affect the value of investments denominated in foreign currencies. This is particularly relevant for internationally diversified portfolios.
• Commodity risk: The risk that changes in commodity prices will affect the value of commodity-related investments.
• Volatility risk: The risk that market volatility will result in significant short-term fluctuations in portfolio value.

3. Credit Risk

Credit risk is the risk that a borrower or counterparty will fail to meet its obligations. This includes:

• Default risk: The risk that an issuer of a debt security will be unable to make interest payments or repay principal
• Counterparty risk: The risk that a party to a financial transaction will default on its obligations
• Concentration risk: The risk arising from excessive exposure to a single issuer, sector, or geography
• Sovereign risk: The risk that a government will default on its debt obligations or impose restrictions on capital flows

4. Liquidity Risk

Liquidity risk is the risk that an investment cannot be sold quickly enough to prevent or minimise a loss. Some investments, particularly in private markets, real assets, or less liquid securities, may be difficult to sell at a fair price, or at all, within a desired timeframe. Investors in illiquid assets should be prepared to hold their investment for an extended period.

5. Inflation Risk

Inflation risk is the risk that the purchasing power of investment returns will be eroded by inflation. If the rate of inflation exceeds the rate of return on an investment, the real value of that investment will decline over time. This risk is particularly relevant for cash and fixed income investments.

6. Concentration Risk

Concentration risk arises when a portfolio is not sufficiently diversified across asset classes, sectors, geographies, or individual securities. A concentrated portfolio may experience greater volatility and larger losses than a well-diversified portfolio. Virex Wealth Management seeks to manage concentration risk through appropriate diversification, but diversification does not guarantee against loss.

7. Regulatory and Legal Risk

Regulatory and legal risk is the risk that changes in laws, regulations, or government policies will adversely affect investments. This includes changes to tax laws, financial services regulations, foreign investment rules, and other legislation that may affect the value or accessibility of investments.

8. Operational Risk

Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, systems, or external events. This includes risks associated with technology failures, human error, fraud, and natural disasters. Virex Wealth Management maintains robust operational controls and business continuity plans to mitigate operational risks.

9. Cross-Border and Geopolitical Risk

Investments in international markets are subject to additional risks, including political instability, changes in government, civil unrest, war, terrorism, and other geopolitical events that may adversely affect markets and economies. Emerging market investments carry higher levels of these risks than investments in developed markets.

10. Leverage Risk

The use of leverage (borrowing to invest) can magnify both gains and losses. Leveraged investments may result in losses that exceed the initial amount invested. Margin calls may require investors to provide additional funds at short notice or face forced liquidation of positions at unfavourable prices. Virex Wealth Management will only recommend leveraged strategies where appropriate for a client's risk profile and financial circumstances.

11. Derivatives Risk

Derivatives are financial instruments whose value is derived from an underlying asset. They can be used for hedging or speculative purposes. Derivatives carry specific risks including leverage risk, counterparty risk, liquidity risk, and the risk that the derivative may not perform as expected. Losses from derivatives can exceed the initial investment.

12. Alternative Investment Risk

Alternative investments, including private equity, hedge funds, real assets, and infrastructure, carry specific risks including illiquidity, limited transparency, complex fee structures, and limited regulatory oversight. These investments are generally only suitable for sophisticated investors with a high risk tolerance and long investment horizon.

13. Tax Risk

Tax laws and their interpretation can change, potentially affecting the after-tax returns on investments. The tax treatment of investments depends on individual circumstances and may differ between jurisdictions. Virex Wealth Management does not provide tax advice, and clients should seek independent tax advice regarding the tax implications of their investments.

14. Acknowledgement

By engaging Virex Wealth Management's services, you acknowledge that you have read and understood this Risk Disclosure Statement, that you understand the risks associated with investing, and that you accept these risks as part of your investment strategy. This statement does not disclose all risks associated with investing, and you should seek independent advice if you have any questions.

For further information about the risks associated with specific investment strategies or products, please contact your Virex Wealth Management adviser or email info@virexgroup.com.