Designing a performance-measuring system that fits our investment approach, identifying the various risks entailed, and implementing various strategies for controlling such risks – those are the main tasks of Twenty First Capital’s Risk Management & Control team.
Risk is best controlled in the management process itself. The Risk Management & Control team monitors the portfolios’ and funds’ risk profiles on an ongoing basis by identifying, quantifying and analysing the risks incurred in its management strategies.

An independent team

The team is fully independent of the investment managers and uses dedicated procedures and monitoring systems. In so doing, it guides the managers in their objective of reducing risk and enhancing overall returns.

Our Risk Management & Control team ensures that the operational teams act in a regulated framework, observing the rules of compliance and professional ethics.

The client’s best interests, the measurement and supervision of risks and the control of the evidence and traceability of transactions are at the forefront of the team’s priorities.

The team’s duty is therefore to maintain a compliant ecosystem giving our asset managers the peace of mind to pursue their objectives, while remaining fully aware of their obligations.

Efficient analytical and monitoring methods


Twenty First Capital has set up a risk monitoring system, to identify and map the various types of investment risk:

  • Market risk
  • Counterparty risk
  • Limits and constraints (risk of breach of constraints and limits)
    • Regulatory constraints
    • Contractual constraints (as laid down in the fund prospectuses or signed mandates)
    • Internal limits (defined by the Risk Control Committee depending on the market and economic environment)
  • Liquidity risk
  • Operational risks

The team also monitors operating risks incurred in investment management by overseeing the various areas of risk and issues recommendations accordingly:

  • Control of the proper application of our “pricing policy”;
  • Control of operations;
  • Monitoring exposures in each portfolio and their aggregation in order to obtain a global company-wide view;
  • Monitoring of the business continuity plan and measures for safeguarding, archiving and restoring data.

Risk Control Committee

Chaired each month by the Risk Manager, the committee analyses the risks incurred from the investment management process.

The committee reviews the main risk indicators and any other points calling for special attention. The methodologies and models used by the Risk Management & Control team are submitted on a regular basis for approval by Committee members.

The committee’s members include the Chairman, the Managing Director, the Corporate Secretary, the Chief Compliance Officer and the Risk Manager. Depending on the topics addressed and the issues raised, certain portfolio managers or middle-office staff may be asked to take part.