1. Investment Strategy and implementation
This Investment Compartment will adopt a low risk/low return strategic investment approach with emphasis on preservation of capital with a minimum return on investment by investing primarily in a diversified portfolio of cash deposits or capital guaranteed products with various banks and financial institutions, corporate and/or government bonds with minimum rating of A-, and capital guaranteed products offered by highly rated foreign banks (i.e. minimum rating of A-).
2. Investment Strategy and Policies
This Investment Compartment will seek long term capital appreciation measured in EUR terms. In order to achieve its objective, the Company aims to utilize to the full extent the longstanding knowledge and experience of its Directors, who will actively invest funds in accordance with the investment strategy and policies of the Investment Compartment, which is detailed in the following section.
The Directors are responsible for the formulation of the Compartment’s investment objective and policy. The present investment objectives and policy, inclusive of any investment restrictions set out below, may be amended from time to time by the Directors, if and as they shall deem it to be in the best interests of the Company to do so and in light of political and / or economic conditions. Any changes to the investment objective and/or policy will need to be notified and approved by the Cyprus Securities & Exchange Commission, and if substantial will require the consent of existing Participating Shareholders.
This Investment Compartment seeks to achieve its objective by focusing on low risk/low return strategic investments in cash deposits or capital guaranteed products with various banks and financial institutions, corporate and/or government bonds with minimum rating of A-, and capital guaranteed products offered by highly rated foreign banks (i.e. minimum rating of A-), that the Directors of the Company believe will deliver safe returns in terms of capital gains and/or modest interest income over a medium to long term horizon. Under normal circumstances, this Investment Compartment will invest at least 50-70% of its total net assets in bank deposits or bank capital guaranteed products and 30-60% in corporate and/or government bonds with predetermined rating.
The Investment Compartment will focus on low risk/low return liquid investments, with potential for modest returns that the Directors of the Company will consider to be a primary selection that will preserve the value of the assets in the long term and that will have very low or no volatility. The allocation of assets will be implemented according to fundamental research and selection procedure that will be mainly based on reports by international banking institutions with minimum rating of A- on economies/markets/product availability.
3. Methodology / Investment Process
Management of the Company will be active in order to meet the investment objectives as set by the investment strategy and generate a moderate return on investment in accordance to various well-known banking rating benchmarks:
✓ Moody’s
✓ Fitch
✓ Standard and Poor’s
