Investment Strategy

What is an Investment Strategy?

Each fund must have a clearly defined investment strategy for managing entrusted assets. The investment strategy must be predetermined, specific, and binding for the fund manager, who is obligated to manage the fund's assets in accordance with it. It’s important to understand that investment activity is a service provided to investors who contribute their assets to the fund.

The manager carries out this activity based on the investment strategy.

What does the Investment Strategy include?

According to the law, an investment strategy refers to the method of investing by an alternative investment fund.

The investment strategy should include in particular:

• types of assets that may be acquired into the fund’s property – e.g. types of securities or types of bonds;
• investment limits that must be observed in relation to the above-mentioned assets;
• information on whether the fund tracks or replicates an index, and its description;
• details of a particular economic sector, area, or market segment in which the fund concentrates its investments;
• possibilities and limits of hedging or guarantees and the manner of their application;
• information on the techniques used for managing the fund and the possibilities and limits of their use;
• rules for the use of leverage;
• an indication of the investment horizon or description of risks;
• and more.

We’ll be happy to help you prepare an investment strategy for your alternative investment fund or optimize your current one.

Where to next?

• What is an alternative investment fund?
• Obligations of the fund manager
• Turnkey establishment of an alternative fund
• CNB reporting
• AML obligations
• Preparation of the KID under the PRIIPs Regulation
• Investment agreement
• News