What does FSL Trust do to manage its credit risk?
• The Trustee-Manager has developed a set of proprietary internal risk management protocols to manage the risk profile of the overall portfolio, as well as individual transactions. These include the identification, assessment and pricing of risks prior to a potential transaction, monitoring of on-going risks following the execution of a transaction and hedging of risks associated with a transaction. FSL Trust’s portfolio is diversified across customers and sub-sectors of the shipping industry and its internal risk policy is intended to ensure that the risk profile of the portfolio is not overly concentrated on any particular lessee or sub-sector. The long-term objective of FSL Trust is to limit the exposure of any single customer to no more than 25% of its revenues and any single shipping sub-sector to no more than 40% of its revenues, although there may be deviations from these limits in the short-term as FSL Trust grows its vessel portfolio. The Trustee-Manager has a dedicated risk m
