The Alliance Fund retains two critical risk adversity control mechanisms. Firstly, its own internal selection process and thereafter the regulatory appraisal and external fund management governance protocols through our appointed AIFM.
The fund employs a positive asymmetric risk reward algorithm, which in simple terms, ensures that developments have a vastly lower risk profile than the prevailing rewards in any and all assets acquired. Furthermore, additional defensive conditions are applied to include punitive penalty structures and highly tuned initiatives for a timely delivery of the ROI for the fund.
The target conclusion resides in the asymmetric pay-off becoming a greater return than the opposing downside contemplation.
As can clearly be seen, through detailed transparent reporting protocols, the level of capital injection is substantial. In summary, the founders of the fund have heavily invested time and capital to ensure the success of the fund in the short, medium and long term.
Our AIFM are bound by regulatory laws to assess and appraise that any and all proposed acquisitions meet strict guidelines, to mitigate risk in the nature of the asset under consideration and its overall proposition. The prevailing return on investment is thereafter bound to the fund to establish healthy inflation in share values.
The nature of these mechanisms ensures structured threshold gates to amplify security for all participants involved. It should be noted the founders of the Alliance Fund have incurred substantial cost and time upon fund set up and the seeding of the fund to support its acquisitions.