The Board of Directors considers the Investment Strategy to fulfil the principal objective of maximising shareholders' returns, seeking to achieve a sustainable long-term performance while carefully managing risk by investing principally in a diverse portfolio. The main principles of the Investment Strategy are:
1. To protect the capital and grow the value of the fund by obtaining an acceptable rate of return.
2. To achieve a sustainable long term rate of return on shareholders' funds. It is expected that year-on-year returns might vary and that there
might be years when returns are negative.
3. To manage investment risk by investing principally in a diverse portfolio.
4. The company's investment portfolio has a relatively long time horizon. The shareholders are prepared to endure a reasonable level
volatility of returns in expectation of long term growth.
The Company's goal is to maintain a moderate balanced portfolio consisting of stocks and other listed securities, fixed income securities, cash and cash equivalents as well as private equity and real estate investments. The moderate investment strategy of Demetra Investment Public Limited places a great emphasis on current income and on future price appreciation with income growth. We see to invest in a diverse investment portfolio comprised of:
1. Stocks and other listed securities
2. Fixed income securities
3. Real estate investments
4. Private equity investments
5. Cash and cash equivalents
The Board of Directors may from time to time decide to seek professional advice from Accountants, Solicitors or Financial and Technical Advisors in the formulation or implementation of this or any future investment strategy. In formulating this investment strategy the Board of Directors have taken into consideration relevant features of the various investments in accordance with both the fund's objectives and appropriate legislation.
While drafting this investment strategy, the Board of Directors have taken into account all of the circumstances of the fund, including:
1. The risks involved in making each investment;
2. The likely return from making each investment;
3. The range and diversity of investments;
4. Any risks coming from limited diversification;
5. The liquidity of the fund's investments;
6. Expected cash flow requirements; and
7. The ability of the fund to meet its existing and prospective liabilities
The policies adopted by the Board of Directors in order to achieve these objectives are:
1. Regular monitoring of the performance of the fund's investment, to oversee the overall investment mix and the expected cash flow
requirements of the fund.
2. Balancing the fund's investment portfolio due to changes in market conditions, by further sale and purchase of investments.
The Board of Directors aim will always be to ensure that they follow the investment strategy, however, the Board of Directors will at all times reserve the right to change the investment mix depending on the market situation and opportunities available to strengthen its objectives.