Risk Management

Already in the annual reports from 2006 and 2007 for the Danish mutual fund "Nielsen Global Value" Ole Nielsen mentioned difficulties in finding undervalued companies so that he had to invest liquidity resulting from sales of positions in other remaining positions in order to stay under the legally binding quota of 20 % liquidity.

The Luxemburgian Nielsen - Global Value follows the same concept of investing in undervalued companies but has several measures in addition which reduce the risk of permanent loss of capital.

Adjustable liquidity management: in case that no investment opportunities can be found up to 100 % of the fund assets can be invested in liquid assets such as cash investments and commercial papers.

Currency Hedging: the risk of losses due to currency fluctuations can be hedged up to 100%.

Hedging of Share prices: in extreme situations at financial markets the equity portfolio can be secured by means of financial derivatives.