Home / Offering Memorandum / RISK FACTORS AND INVESTMENT CONSIDERATIONS / Risk of Use of Leverage
Home / Offering Memorandum / RISK FACTORS AND INVESTMENT CONSIDERATIONS / Risk of Use of Leverage
18.70. Risk of Use of Leverage
The Investment Compartments may achieve some leverage through the use of financial derivatives instruments for the purpose of making investments/hedging purposes. The use of leverage creates special risks and may significantly increase the Investment Compartments’ investment risk. Leverage creates an opportunity for greater yield and total return but, at the same time, will increase the exposure of an Investment Compartment to capital risk.