Important Risk Factors

IMPORTANT RISK FACTORS

General Risk Factors that Investors should note
Investments in the FX markets are speculative and involve significant risks, and there can be no assurance that we will achieve our returns objectives or that investors will not incur losses.

In considering an investment in ACMP II prospective investors should consult their independent legal, tax, financial and other advisors, and should be aware of certain considerations and risk factors, which include, but are not limited to, the following: market and investment risk, strategy
risk, strategy implementation risk, adviser risk, fund structure risk and tax related risk, as more fully described below.

Other risks are not limited to, but may include risks associated with both fixed income and alternative asset class investments such as market factors, management risks, commodity volatility risks, and currency risks.

Before deciding to invest in ACMP II investors should carefully consider their objectives, financial situation, needs and level of experience. Investors participating in our trading program will be
subjected to a number of risks, including, but not limited to the following: 
(i) there can be no guarantee that the investment objectives of the management team will be achieved; 
(ii) Investors may not recover the amount initially invested; 
(iii) the investment objective is a medium to long term strategy, and early redemption could lead to capital loss for an investor; 
(iv) ACMP II may be executing trades on margin and using synthetic leveraging, which carries a higher level of risk, therefore investors should ensure they fully understand the degree of risk being taken by investing on margin; 
(v) investors should make themselves aware of their own tax position and bear in mind that changes in laws and rules affecting their tax position could adversely affect their performance;
(vi) investors should be aware that by the very nature of the investments of ACMP II capital growth is not guaranteed.

General
The transactions in which the trading team will engage involve significant risks. Growing competition may limit the trading team's abilities to take advantage of trading opportunities in rapidly changing markets, or limit market access. No assurance can be given that investors will realise a profit on their investment. Moreover, each investor may lose some or all of its investment. Because of the nature of the ACMP II's trading activities, the results of the strategy may fluctuate from month to month and from period to period. Accordingly, investors should understand that the results of a particular period will not necessarily be indicative of results in future periods.

Operating History
ACMP II has limited operating history of 42 months (as at end May 2017). Past Performance is Not an Indication of Future Results. No assurance can be given that the strategy or the Investment Manager(s) will achieve attractive returns or will continue to be successful or that the returns of the ACMP II strategy will be similar to that achieved in the past.

Dependence on Key Personnel
We have 2 principal designers and architects/traders. We have 3 traders in addition to them who are familiar with the system. We have one staff member who is cross trained on all of the data input functionality of the system, and we have our system backed up in 3 locations. Additionally, we have portal access to the system in 6 global locations in case there is a disaster in one major hub, or prolonged power outages. In the event of death, we are 6 deep. In the event of illness, it is the same. The system is built to run on its own, although we choose to always have an override capability and watching eyes, particularly for events like the Brexit Vote, where real time data is irrelevant. In that instance, we chose to suspend trading until after the vote and until the market returned to normalcy. All positions were hedged and suspended. We had a double digit gain that month.

We are dependent on the services of this limited number of persons, and if the services of these key persons were to become unavailable, risk will be heightened to the extent of the Stop Loss Policy in place.

Managed Account Allocations
Managed accounts expose investors to theoretically unlimited liability, and it is possible, given the leverage used from time to time (up to 100 x) that an investor could lose more than the investor had allocated to the strategy.

Trading Is Speculative
Securities and futures prices are highly volatile. Price movements for securities and futures are influenced by, among other things, government trade, fiscal, monetary and exchange control programs and policies; weather and climate conditions; changing supply and demand relationships; national and international political and economic events; changes in interest rates; and the psychological emotions of the market place. In addition, governments from time to time intervene, directly and by regulation, in certain markets, often with the intent to influence prices directly. The effects of governmental intervention may be particularly significant at certain times in the financial instrument and currency markets, and such intervention (as well as other factors) may cause these markets to move rapidly.

Leverage
We may use leverage in allocating investor assets. At certain times this leverage may be as high as 100 x and investors should be aware that the use of significant leverage may result in certain additional risks to trading. For example, should the securities pledged to a broker to secure a margin account decline in value, the broker may issue a "margin call" pursuant to which additional funds would have to be deposited with the broker or the pledged securities would be subject to mandatory liquidation to compensate for the decline in value. In the event of a sudden precipitous drop in the value of the assets pledged to a broker as margin, assets may not be able to be liquidated quickly enough to pay off the margin debt and the Fund may therefore suffer additional significant losses as a result of such a default.

Uncovered Risks
As a part of our management process we intend to employ various "risk reduction" techniques designed in an attempt to minimise the risk of loss in Managed Account positions. A substantial risk remains, nonetheless, that such techniques will not always be possible to implement and when possible will not always be effective in limiting losses. Hedging against a decline in the value of a Managed Account position does not eliminate fluctuations in the values of positions or prevent losses if the values of such positions decline, but the Investment Manager(s) establish other positions designed to gain from those same developments, thus moderating the decline in the portfolio positions' value. Such hedge transactions also limit the opportunity for gain if the value of a position should increase. Moreover, it may not be possible for the trading manager(s) to hedge against a fluctuation that is so generally anticipated that we are not able to enter into a hedging transaction at a price sufficient to protect from the decline in value of the position anticipated as a result of such a fluctuation. In addition, we may choose not to engage in a hedging transaction if the expense associated with such hedging transaction is perceived as being too costly. The success of the hedging transactions of the trading manager(s) will be subject to trading system’s abilities to correctly predict market fluctuations and movements. Therefore, while our systems may enter into such transactions to seek to reduce risks, unanticipated market movements and fluctuations may result in a poorer overall performance for an investor than if our trading manager(s) had not engaged in any such hedging transactions. In addition, the degree of correlation between price movements of the instruments used in a hedging strategy and price movements in an investor’s Managed Account position being hedged may vary.

Changes in Strategy
ACMP II’s Manager(s) have the power to expand, revise or alter their investment strategies without prior approval by, or notice to, the Managed Account holder provided that such investment strategy is in accordance with the guidelines set out in our marketing material. Any such change could result in exposure of a Managed Account to additional risks which may be substantial.

Decisions Based on Technical Analysis
The trading decisions of certain of the trading manager(s) may be based in part on investment strategies which utilise mathematical analyses of technical factors relating to past market performance. The buy and sell signals generated by a technical trend-following or counter trend-following investment strategy are based upon a study of actual daily, weekly and monthly price fluctuations, volume variations and changes in open interest in the markets. The profitability of any technical, trend-following or counter trend-following investment strategy depends upon the occurrence in the future of significant, sustained price moves in some of the markets traded.

A danger for trend-following or counter trend-following traders is "whipsaw" markets, that is, markets in which a potential price trend may start to develop but reverses before an actual trend is realised. A pattern of false starts may generate repeated entry and exit signals in technical systems which only result in unprofitable transactions. In the past there have been prolonged periods without sustained price moves. Presumably such periods will continue to occur. Periods without such price moves may produce substantial losses for such investment strategies. Thus, any factor which may lessen the prospect of such moves in the future (such as increased governmental control of, or participation in, the relevant markets) may reduce the prospect that any trend-following investment strategy will be profitable in the future.

Exchanges and Markets
ACMP II trading systems may engage in trading on exchanges and markets. Trading on such exchanges and markets may involve certain risks. For example, certain of such exchanges may not provide assurances of the integrity (financial and otherwise) of the marketplace and its participants. There also may be limited regulatory oversight and supervision by the exchanges themselves over transactions and participants in such transactions on such exchanges. Some exchanges are "principals' markets" in which performance is the responsibility only of the individual member with whom the trader has dealt and is not the responsibility of an exchange
or clearing association. Furthermore, trading on certain exchanges may be conducted in such a manner that all participants are not afforded an equal opportunity to execute certain trades and may also be subject to a variety of political influences and the possibility of direct government intervention.

Currency Exchange Rate Risks
Certain investments to be made may be denominated in non-U.S. currencies. Accordingly, the value of such investments may decline due to fluctuations in the exchange rates between Dollars and the currencies in which such investments are made. The risk to the Fund of a decline in value of the investments, due to foreign exchange fluctuations may not be hedged.

Concentration of Positions
Although the ACMP II trading systems may follow a general policy of seeking to diversify capital among a number of positions, our systems may depart from such policy from time to time and
may hold a few, relatively large positions in relation to the Managed Account size. Consequently, a loss in any such position could result in a proportionately higher reduction in the Managed Account than if such capital had been spread among a wider number of instruments.

Yield Curve Changes
Changes in the shape of the yield curve can cause significant changes in the profitability of hedging operations. In the event of the inversion of the yield curve, the reversal of the interest differential between positions of different maturities can make previously profitable hedging techniques unprofitable.

Conflicts of Interest
Actual and potential conflicts of interest exist in the operation of the Investment Manager’s business. See also the Section entitled "Conflicts of Interest."  

Counterparty Risk
Managed Account’s will be subject to the risk of the inability of counter-parties to perform with respect to transactions, whether due to insolvency, bankruptcy or other causes, which could subject Managed Account holders to substantial losses. In an effort to mitigate such risks, the Manager will attempt to limit transactions to counter-parties which are established, well capitalised and creditworthy.

Possible Law Changes
No assurance can be given that legislative, administrative or judicial changes will not occur which will alter, either prospectively or retroactively, the tax considerations or risk factors discussed in this Document. 

Other Risk Factors
General Risk Policy adhered to by A2ML
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