Issuer Risk Clause Samples

Issuer Risk. The performance of the Fund depends on the performance of individual securities or other assets to which the Fund has exposure. The value of securities or other assets may decline, or perform differently from the market as a whole, due to changes in the financial condition or credit rating of the issuer or counterparty.

Issuer Risk. The value of a security can decline for a number of reasons which directly relates to the issuer, such as management performance, financial advantage and reduced demand for the issuer’s products or services. Environmental, Social and Governance (“ESG”) Characteristics – In connection with our equity strategies, clients may impose mutually agreed upon reasonable restrictions on investing in

Issuer Risk. In case of warrants you bear the issuer risk, i.e., the risk of insolvency of the warrant issuer.

Issuer Risk. The value of a security can decline for a number of reasons which directly relate to the issuer, such as management performance, financial advantage, and reduced demand for the issuer’s products or services. Environmental, Social and Governance (“ESG”) Characteristics — In connection with our equity strategies, clients can impose mutually agreed upon reasonable restrictions on investing in certain securities or industry sectors, which may include considering specific ESG, impact, or sustainability characteristics of a company in selecting equity securities. Confluence will consider the characteristics it deems relevant or additive when making investment decisions for a client that has imposed such restrictions. Investments can be made in issuers that do not reflect the beliefs and values with respect to ESG of any particular investor. ESG considerations may affect exposure to certain companies or industries and a client imposing ESG restrictions may forego certain investment opportunities.

Issuer Risk. The value of a security can decline for a number of reasons which directly relate to the issuer, such as management performance, financial advantage, and reduced demand for the issuer’s products or services. Environmental, Social and Governance (“ESG”) Characteristics — In connection with our equity strategies, clients can impose mutually agreed upon reasonable restrictions on investing in certain securities or industry sectors, which may include considering specific ESG, impact, or sustainability characteristics of a company in selecting equity securities. In these instances, Confluence management will consider ESG characteristics as part of the investment process, which may include consideration of third-party research as well as consideration of internal

Issuer Risk. The value of a security can decline for a number of reasons which directly relate to the issuer, such as management performance, financial advantage, and reduced demand for the issuer’s products or services. Environmental, Social and Governance (“ESG”) Characteristics — In connection with our equity strategies, clients can impose mutually agreed upon reasonable restrictions on investing in certain securities or industry sectors, which may include considering specific ESG, impact, or sustainability characteristics of a company in selecting equity securities. In these instances, Confluence management will consider ESG characteristics as part of the investment process, which may include consideration of third-party research as well as consideration of internal research across the ESG risks and opportunities regarding an issuer. Confluence will consider those ESG characteristics it deems relevant or additive when making investment decisions for a client that has imposed ESG restrictions. The ESG characteristics utilized in Confluence’s investment process are anticipated to evolve over time and one or more characteristics may not be relevant with respect to all issuers that are eligible for investment. ESG characteristics are not the sole considerations when making investment decisions. Further, investors can differ in their views of what constitutes positive or negative ESG characteristics. As a result, investments may be made in issuers that do not reflect the beliefs and values with respect to ESG of any particular investor. ESG considerations may affect exposure to certain companies or industries and a client imposing ESG restrictions may forego certain investment opportunities.

Issuer Risk. Issuer risk means a risk of the issuer’s insolvency, changing of credit and other ratings of the issuer, bringing suits or claims against the issuer that may result in dramatic decrease of value of the issuer’s securities or failure to redeem the debt securities. It should be noted that the Issuer may not provide the complete information about non-publicly traded securities, in this case, the Client will have access to less reliable and less detailed information about the issuers, consequently, the Client may be obliged to make investment decisions based on available financial information.

Issuer Risk. The performance of a Fund depends on the performance of individual securities or other assets to which the Fund has exposure. The value of securities or other assets may decline, or perform differently from the market as a whole, due to changes in the financial condition or credit rating of the issuer or counterparty. Large-Capitalization Companies Risk. Large-capitalization companies may be less able than smaller-capitalization companies to adapt to changing market conditions and competitive challenges. Large-capitalization companies may be more mature and subject to more limited growth potential compared with smaller-capitalization companies. The performance of large-capitalization companies could trail the overall performance of the broader securities markets. Large Shareholder and Large-Scale Redemption Risk. Certain shareholders of a Fund, including an Authorized Participant, a third-party investor, the Fund’s adviser, an affiliate of the Fund’s adviser, a market maker, or another entity, may from time to time own or manage a substantial amount of Fund shares or may hold their investment in the Fund for a limited period of time. These shareholders may also pledge or loan Fund shares (to secure financing or otherwise), which may result in the shares becoming concentrated in another party. There can be no assurance that any large shareholder or large group of shareholders would not redeem their investment or that the size of a Fund would be maintained. Redemptions of a large number of Fund shares may adversely affect a Fund’s liquidity and net assets. To the extent a Fund permits redemptions in cash, these redemptions may force the Fund to sell portfolio securities or other assets when it might not otherwise do so, which may negatively impact the Fund’s NAV, have a material effect on the market price of Fund shares, increase the Fund’s brokerage costs, accelerate the realization of taxable income and/or capital gains, and cause the Fund to make taxable distributions to its shareholders earlier than the Fund otherwise would have. In addition, under certain circumstances, non-redeeming shareholders may be treated as receiving a disproportionately large taxable distribution during or with respect to such tax year. A Fund also may be required to sell its more liquid investments to meet a large redemption, in which case the Fund’s remaining assets may be less liquid, more volatile, and more difficult to price. Management Risk. An index Fund invests in securi...

Issuer Risk. The Fund will be affected by factors specific to the issuers of securities and other instruments in which the Fund invests, including actual or perceived changes in the financial condition or business prospects of such issuers. Investing In Growth-Oriented Stocks Risk: Growth-oriented common stocks and other equity-type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) may involve larger price swings and greater potential for loss than other types of investments."