HMCT.L - Risk

Risk & Diversification Scores

Transparent evaluation of price volatility (SRI) and 4-dimensional portfolio diversification.

Volatility Risk Score

7/7 Very High

7 / 7 SRI PRIIPs Risk Class

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors.

Volatility (5Y)

22.3% p.a.

5-Year Horizon

Max Drawdown (5Y)

-46.2%

Deepest Drawdown

Sharpe Ratio

-0.30

Negative (< 0.0)

Rec. Holding Period

10+ Years

Investment Horizon

Speculative / High Risk: Score Basis:

Diversification Score

Broadly Diversified (< 35%)

48 / 100 Portfolio Diversification

4 Dimensions: Holdings (30%) • Sectors (25%) • Industries (25%) • Regions (20%)

High risk diversification: No dependency on individual heavyweights.

Top 10 Holdings

20.3%

Low Concentration

Effective Holdings

~173

of 393 holdings

Top Sector

24.1%

Financial Services

Top Region / Country

99.4%

China

Excellent multi-dimensional diversification across holdings, industries, and geographies.

Multi-Horizon Risk & Performance Matrix

Historical volatility, drawdowns, and risk-adjusted return across 1, 3, 5, and 10 years.

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	-2.6%
3 Years	22.6%	-29.3%	0.22	+7.4%
5 Years	22.3%	-46.2%	-0.3	-4.1%
10 Years	23.7%	-51.5%	0.04	—

Notes & Warnings

🟢 Favorable / fair valuation: Avg P/E of 13.9

🟢 Balanced position distribution (< 35% in Top 10)

Solid fund volume

🔴 Low analyst coverage (4.2 analysts, higher growth estimate uncertainty)

🔴 High single-country risk: 99% of portfolio in "China".

⚠️ Elevated emerging markets risk: 99% Emerging Markets.

🔴 Growth estimates are hyper-concentrated: Top 3 growth drivers account for 68% of total forward growth.

⚠️ Elevated Economic Cyclicality: 51% in cyclical industries – more vulnerable to economic downturns.

⚠️ Elevated Interest Rate Sensitivity: 41% in rate-sensitive or leverage-heavy industries (real estate, banks, utilities).

⚠️ Elevated Regulatory & Policy Risk: 57% in heavily regulated industries (defense, regulated utilities, healthcare policy).

⚠️ Historical Stress Test: Maximum peak-to-trough drawdown of -51.5% in the extended horizon.