Risk Constraints

Portfolio risk constraints are designed to ensure portfolios have a balance between risk and reward.

The Atom Small Cap Fund has the following constraints:

• A limit on the number of different stocks held:
  • Minimum - 25
  • Maximum - 75,
• A general limit on the holding of the outstanding listed shares of a company -5%
• No more than 10% of the Fund will be invested in any one stock.

As a final check the portfolio is analysed to determine differences against its benchmark index. Differences highlighted include:

• Individual stock positions
• Industry exposure
• Small or micro capitalisation bias
• Value, growth or NPV bias

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