About NorWatt > Risk Profile

General

Expected annualized standard deviation is less than 18 %, and activities should be adapted to this objective.

Limited counterparty risk

NorWatt Energy AS will only invest in cleared power and emission contracts cleared by Nord Pool Clearing. This gives a very limited counterparty risk.

Initial Margin called by Nord Pool Clearing shall not correspond to more than a third of the Net Asset Value (NAV) in NorWatt Energy. The probability that NAV will decrease by more 5 % from one day to another shall not exceed 5 % (dVaR). If NAV falls below 50 % of its historical highest value, all positions will be closed and investors will be offered to redeem their shares. In this case, trading will not resume until the beginning of next month.

Recommended time horizon for investments in NorWatt Energy is minimum three years.