The Portfolio

Risk Management

Investment risk in the portfolio is managed through a combination of due diligence in the stock selection process, and an ongoing portfolio maintenance process.

Ocean Dial runs a Risk Management Committee (RMC), independent of the Investment Team, which monitors all aspects of investment risk, across the funds it manages. Operational, compliance and regulatory risk are monitored in a separate committee. In the case of ICGF, both the investment and operational risk committees report directly to the Board on a quarterly basis.

Investment risk in the portfolio is managed through a combination of due diligence in the stock selection process, and an ongoing portfolio maintenance process. The former involves a combination of self-imposed risk controls that ensure potential investee companies meet a set of pre-defined requirements before consideration for the Portfolio. Liquidity in the underlying scrip is carefully monitored to ensure stocks can be acquired without meaningful impact on the share price and sold, in an appropriate time frame, should the need arise. Asset quality conviction is also analysed through the screening and modelling process, as well as regular interaction with the company. A detailed and standardised process documents all meetings to ensure an accurate picture of the company can be established, over time. The portfolio maintenance process is conducted through regular meetings with the Investment Advisory Team to analyse performance of underlying investee companies, changes in the liquidity environment, and changes to the investment view, as a result of events that have occurred, either at a stock or a broader macro level.