| Risk type |
Impact level |
|
WVP Cash Deposit |
| Market (Change in:) |
|
| securities prices |
medium |
| interest rates |
medium |
| exchange rates |
low |
| liquidity risk |
low |
| Credit risk |
low |
| Political risk |
low |
| Change of tax regulations |
low |
| Counterparty risk |
low |
| Operational risk |
medium |
| Custody risk |
low |
Market risk – Depends on the movement of market prices of the securities that form part of the Fund’s portfolio.
Credit risk – The probability that the issuer of a particular security will not be able, fully or partially, to settle its obligations at the time they fall due.
Interest-rate risk – Changes in interest rates may have a positive or negative impact on the value of the Fund’s assets, since most assets will be invested in debt securities and deposits with authorized banks in the Republic of North Macedonia.
Currency risk – arises when the price of one currency changes relative to another.
Liquidity risk – The probability that, at any given moment, the Fund will have difficulty obtaining funds to settle obligations related to the redemption of units, as a result of being unable to quickly sell financial assets at a price approximately equal to their real value — primarily because of unfavourable current market demand.
Political risk – The probability of potential political crises in the countries where the Fund has invested under this Prospectus may lead to a change in the Fund’s assets.
Risk of change in tax regulations – The probability that the legislative authority, in the Republic of North Macedonia or abroad, will change tax regulations in a way that would negatively affect the Fund’s return.
Operational risk – sums up all the uncertainties that are part of the Company’s day-to-day business activities. They may arise from failures in internal processes, human errors, IT, legal and system errors.
MK
SQ
