At Pheim, we strongly believe that good risk management and internal control is a critical component of our business and forms the foundation for a safe, sound and sustainable business. More importantly, a strong and effective system of internal procedures and control will help to ensure that the goals, needs and objectives of our clients are met.

Our risk management and internal control system was designed primarily to address the spectrum of risks that our clients' assets are likely to be exposed to. Those risk factors include market and position risk, counter party risk, liquidity risk, exchange rate risk and operational risk. As part of our portfolio risk monitoring, we also carry out regular review of our portfolio risk measures, including portfolio standard deviation, tracking error and information ratio. We believe that our risk management and internal control system, coupled with our policies of not engaging in proprietary trading as well as stringent control on staff dealings will ensure that clients' interests are fully safeguarded. To date, we have not engaged in any legal disputes with any client or other party.

We strongly believe that strategic asset allocation that takes advantage of major market trends, supported by good stock picks are key to superior out-performance without taking on unduly high risks.