Risk Summary

Estimated reading time: 2 min

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

1. You could lose all the money you invest

  • Most investments are interests in funds that invest in alternative assets. These assets contain no fixed repayment terms, and any return is contingent on the performance of the underlying assets. If performance is poor, you could lose 100% of the money invested.

  • Checks on the assets the fund is investing in, such as how well they are expected to perform, may not have been carried out by the platform you are investing through. You should do your own research before investing.

2. You won’t get your money back quickly

  • Even if the assets the fund invests in are successful, it will likely take several years to get your money back.

  • The most likely way to get your money back is from the returns generated by the assets invested in by the fund. These returns are often contingent on events that are outside of the control of the fund.

  • There is no secondary market for your investment. You should not expect to get your money back this way.

3. Don’t put all your eggs in one basket

  • Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well. A good rule of thumb is not to invest more than 10% of your money in high-risk investments. Learn more here.

4. You are unlikely to be protected if something goes wrong

  • Coach House Investment Managers Limited is authorised and regulated by the Financial Conduct Authority for the purpose of managing unauthorised Alternative Investment Funds.

  • Alternative Investment Funds are not considered eligible complainants for the purposes of FCSC and do not benefit from the protections offered.

  • The unauthorised Alternative Investment Funds themselves are not regulated and do not qualify for FCSC compensation. They are considered “Non-Mass Market” Investments and are high risk.

  • Coach House Investment Managers Limited does not provide investment advice.

  • Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.

  • Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated entity, FOS may be able to consider it. Learn more about FOS protection here.

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.