What protections are there from key person risk?

Due to the nature of our investment approach, we believe most key person risks are substantially mitigated. Our long-term investment horizon and relatively low turnover precludes the need for urgent attention and therefore substantially diminishes any potentially deleterious effects of a key person being incapacitated for an extended period of time. Further, all client assets are held separately by independent custodians so even in the worst case that a key person passes away, client assets are still safe.

It is true that Areté depends substantially on the services of David Robertson, although Mr. Robertson is in his early 50s and in excellent health.  As a result, there is very little risk of his untimely death and we do not consider this to be a material risk.

The other side of key person risk is that Mr. Robertson has a substantial vested interest in the success of Areté, which we believe gives clients a much better chance of benefiting from his enduring commitment. Fund managers at many larger organizations, in contrast,  turn over much more frequently.