Risk warning

Important information

The following information is very important. You should read this information if you are unclear at any time as to the purposes of this site and who is responsible for its maintenance.

The site contains information only relevant to UK investors and financial advisers. This is designed to inform and protect you. There are certain legal and regulatory limitations that apply to the information contained on this web site and by proceeding you are deemed to have read and understood this warning.

The information in this section is intended for persons who are United Kingdom residents for tax and investment purposes or those who advise such persons. In particular the information is not for distribution and under no circumstances is to be considered as an offer or solicitation to deal in investments in any jurisdiction in which such offer, solicitation or distribution would be unlawful, including, but not limited to, the United States of America.

Investment in any of the products described should only be made on the basis of the applicable offer document (eg Scheme Particulars, Prospectus, Key Information Document or other Terms and Conditions). Nothing in the Aberdeen web site constitutes investment legal tax or other advice nor is it to be relied upon in making an investment decision.

The information is not to be reproduced, copied or made available to others. Any research or analysis used in the preparation of this web site has been procured by Aberdeen Asset Management PLC and its subsidiary companies ('The Company') for its own use and it may have been acted on by the Company for its own purposes.

It is believed that the information is accurate at the date of publication and no warranty is given. It may be changed without prior notice.

Any tax reliefs mentioned are those currently available and are subject to change. Their value depends on the personal circumstances of the investor. Information relating to investment trust savings schemes, investment trust ISAs is approved by Aberdeen Asset Managers Limited, authorised and regulated by the Financial Conduct Authority in the United Kingdom.

The AIFM

Under the terms of the Management Agreement, the Company has appointed Aberdeen Fund Managers Limited, with effect from initial Admission, as the Company's alternative investment fund manager for the purposes of AIFM rules. The AIFM has delegated portfolio management to Aberdeen Asset Investments Limited as the Investment Manager.

Risk factors you should consider prior to investing:

  • Risks arising from the Cuban political and economic environment
    Although reforms have been enacted which provide further opportunity to market participants and investors in Cuba, Cuba remains subject to a very high degree of control over economic matters by the Cuban government. Cuban government policies extensively regulate and impact business in the country and the ownership and operation of assets and properties, such as the hotel and office properties in which the Company is invested. Any changes in government policy may adversely affect the Company or its investments in Cuba.
  • Joint venture risks
    All of the Company’s investments in Cuban real estate assets are made through Cuban joint venture companies in which Cuban government entities hold an equity interest. Due to present Cuban government policy, the Company is not able to obtain majority control over these Cuban joint venture companies and therefore does not exercise control over the joint ventures or the underlying assets.
  • Currency risks
    The functional currency and the principal reporting currency of the Company is the U.S. Dollar. The Company is exposed to risk associated with currency fluctuations, particularly between Pounds Sterling, Euros, the U.S. Dollar, and potentially the Cuban Convertible Peso (CUC) or the Cuban Peso (CUP) and the Company does not intend to hedge currency risk.
  • Liquidity of investments
    All direct investments in Cuban joint venture companies and other foreign investment vehicles are generally illiquid investments.
  • Dependence on tourism
    The Company holds significant interests in Cuban joint venture companies that own hotel properties, which are highly dependent on tourism in Cuba. The operations and results of these properties are subject to operating risks inherent to the tourism industry generally.
  • U.S. government restrictions relating to Cuba
    The United States has maintained numerous long-standing sanctions and other legal limitations aimed at Cuba, including a comprehensive trade embargo and a variety of travel and other trade restrictions limiting the transactions that may be carried out between U.S. Persons and Cuba (collectively the “U.S. Embargo”), which have had and are likely to continue to have a negative impact on the Cuban economy and which may, as a result, also have a negative impact on the business of the Company, as well as its access to capital and finance and limiting the extent to which third parties will deal or transact with the Company.
  • Risks relating to property investments in Cuba
    The Cuban Liberty and Democratic Solidarity (Libertad) Act of 1996 (Helms–Burton Act) extended the territorial application of the U.S. Embargo to apply to foreign companies investing in Cuba. U.S law penalizes foreign persons allegedly “trafficking” in property formerly owned by U.S. citizens but confiscated by Cuba after the Cuban revolution. Although, due diligence has been carried out and no notice of alleged “trafficking” has been received by the Company, given the broad definitions and terms of the law, there is no certain way for the Company to diligently verify whether any future litigation may arise in respect of a particular property.
  • The market price of the Shares may rise or fall rapidly
    General movement in local and international stock markets, prevailing and anticipated economic conditions and interest rates in, and investor sentiment towards, Cuba and general economic conditions may all affect the market price of the Shares. To optimise returns, Shareholders may need to hold the Shares for the long term and therefore the Shares are not suitable for short term investment.
  • The value of investments and the income from them can go down as well as up and you may get back less than the amount invested.
  • Past performance is not a guide to future results.
  • Investment trusts are specialised investments and may not be appropriate for all investors.
  • Investing globally can bring additional returns and diversify risk. However, currency exchange rate fluctuations may have a positive or negative impact on the value of your investment.
  • The Ordinary Shares may trade at a discount to the Net Asset Value per Ordinary Share and Shareholders may be unable to realise their investments through the secondary market at the Net Asset Value per Ordinary Share.
  • The Fund may hold a limited number of investments. If one of these investments declines in value this can have a greater impact on the fund’s value than if it held a larger number of investments.
  • Property values are a matter of the valuers' opinions and can go up and down. There is no guarantee that property values, or rental values from them, will increase so you may not get back the full amount invested.
  • Property investments can take significantly longer to buy and sell than other investments, such as bonds and company shares. If properties have to be sold quickly this could result in lower prices being obtained for them.
  • The Fund invests in a specialist sector and it will not perform in line with funds that have a broader investment policy.
  • A full list of risks applicable to CEIBA Investments Limited can be found in the Prospectus.

Other important information:

Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom.

Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1XL. Registered in Scotland No. 108419. A member of the Aberdeen Asset Management group of companies. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments.