Institutional approach
Portfolio Risk Management
A disciplined framework for identifying, assessing and overseeing the risks that matter to an institutional mandate.
Risk in relation to purpose
Risk is more than volatility.
Portfolio risk management begins with the institution’s objectives, obligations, time horizon, liquidity requirements and governance framework. Risk is therefore considered not as a single number, but in relation to what the capital is intended to achieve and the circumstances in which it may be called upon.
Quantitative measures can help describe exposures, concentrations and sensitivities. They are interpreted alongside liquidity, market conditions, implementation constraints and the quality of available information. No model or measure can capture every possible outcome.
Risk management does not eliminate investment risk or prevent losses. Its role is to make material risks more visible, support informed decisions and help keep the portfolio within agreed parameters.
ANNEAU’s risk management framework
Two frameworks. Shared accountability.
Our philosophy places risk minimisation and capital preservation at the heart of the investment process, with attention to the relationship between risk and return. These are objectives, not guarantees: taking investment risk remains necessary when pursuing investment returns.
ANNEAU’s risk management framework distinguishes between the Enterprise Risk Management Framework (ERMF) and the Investment Risk Management Framework (IRMF). Together, they address risks affecting the firm and the portfolios entrusted to it.
Enterprise Risk Management Framework
The ERMF addresses enterprise risks in the conduct of ANNEAU’s business, including the responsibilities, processes and controls through which those risks are identified, assessed, monitored and reported.
Investment Risk Management Framework
The IRMF integrates risk oversight into investment decisions and ongoing portfolio monitoring. It connects risk tolerance and investment strategy to the objectives and limits defined in mandates, investment management agreements and investment policy statements.
Risk oversight considers both intended exposures and less apparent sources of loss. It supports informed investment discretion within professional standards of monitoring, control and accountability, rather than treating risk as a single measurement.
The frameworks are reviewed and updated as needed, with updates shared with the Board and its committees. They are intended to respond to changes in business activities and investment circumstances, supporting informed decisions without providing absolute assurance that every risk will be identified or every objective achieved.
Access to risk documentation
Investors may contact ANNEAU to request a copy of the Risk Management Manual or to arrange consultation of the Risk Management Policy at the company’s offices.
Enquire about risk documentationA continuous discipline
Observe. Assess. Respond.
Risk oversight is most useful when it remains connected to decisions before, during and after implementation.
Identify
Map material exposures, concentrations, dependencies and potential sources of loss in relation to the mandate.
Assess
Consider scale and interaction using appropriate measures, scenarios and informed qualitative judgement.
Oversee
Monitor change, exceptions and emerging risks through documented review, escalation and reporting.
A portfolio-wide view
The whole portfolio in view.
Concentration and interaction
Individual holdings are considered together because exposures that appear distinct may behave similarly under stress.
Liquidity and implementation
Expected liquidity, trading conditions, costs and practical constraints are considered alongside portfolio risk measures.
Governance and accountability
Clear responsibilities, limits, escalation paths and reporting support disciplined institutional oversight.
Risk lenses
Three perspectives. One mandate.
No single measure is sufficient. A coherent view brings portfolio behaviour, implementation realities and governance responsibilities together.
Market and concentration
Exposures, sensitivities and dependencies are examined at both holding and total-portfolio level.
Liquidity and implementation
Access to capital, market depth, costs and execution constraints are considered in context.
Governance and mandate
Limits, decision authority, exceptions and reporting are aligned with agreed institutional responsibilities.
Asset-class perspectives
Explore the asset classes.
Explore our investment approach across public equities, fixed income and alternatives. The choice of assets remains subject to the institution’s objectives, constraints and agreed mandate.
Public Equities
Public equities are investments in the common stocks of publicly listed companies, locally, regionally and internationally.
Fixed Income
Fixed income includes investments in debt issued by the Mauritian government, other sovereign governments, supranational institutions and corporate issuers.
Alternatives
Alternatives include private equity, infrastructure, energy, real estate and property investments, real estate investment trusts (REITs), commodities and hedge funds.
An institutional conversation
Let us discuss your risk framework.
A useful discussion begins with the objectives, obligations and governance responsibilities that define the institution’s capacity for risk.
Begin a conversationThis page is provided for general information only. It does not constitute an offer, solicitation, investment recommendation or assurance regarding any investment outcome. Risk-management methods, limits, models, scenarios and diversification cannot eliminate investment risk, predict every event or prevent loss. The value of investments and any income may rise or fall, capital may be lost, and past performance is not a reliable indicator of future results. Any service is subject to an agreed mandate, relevant engagement terms, eligibility, and applicable legal and regulatory requirements.
