Buy and keep credit

Interest rate risk for fixed rate instruments: interest rate volatility may reduce the performance of fixed rate instruments. A rise in interest rates generally causes the prices of fixed rate instruments to fall.

Deterioration in the credit quality of the bond: caused by a change in the market environment (for commercial activities) or a change in laws/regulations (for all infrastructure activities).

Risk of default by an issuer: a deterioration in the financial health of an issuer can cause the value of its bonds to fall or lose.

Risk of early repayment: the capital can be repaid by the borrower before its maturity.

Currency risk: when the assets are denominated in a currency different from that of the investor, variations in exchange rates may affect the value of the investments.

Illiquid and Long Term Investment Risk: Due to the illiquid nature of the underlying investments, an investor may not be able to realize the capital invested before the end of the contractual arrangement (which is likely to be long-term). If the investment vehicle is required to liquidate parts of its portfolio for any reason, including in response to changes in economic conditions, the investment vehicle may not be able to sell part of its portfolio to favorable conditions or not at all.

Capital loss: the capital is not guaranteed.

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