Asset allocation policy: Corporate assets are managed in a combined portfolio, including two main parts: stocks and fixed income assets. The role of investment in stocks is to maximize real growth of corporate assets in the long-term, while the role of investment in fixed income assets is to protect the portfolio against a decline in the value of investment market in the stock section as well as managing funds. To control the company's portfolio risk, the factors of liquidity, information disclosure quality and major shareholders are considered in the selection of a company, in addition to fundamental conditions.
Strategy and time horizon of investments: Stocks for the company's portfolio is selected based on fundamental analyses with a one-year time horizon. Obviously, investment managers continually review conditions and variables affecting stock value and they will take the necessary decisions if major changes occur in fundamental variables. According to the market conditions, available stocks in the portfolio may reach price targets in a lesser time in which case, investment managers will make decisions on maintaining, selling or replacing stocks.
Diversification policy: Diversification is a tool for investment managers in order to avoid the risk of major losses in long term. To protect the portfolio against undesirable results of a class of assets, managers do not allow too much investment to be focused on a particular class.
Rebalance: Actual asset allocation of the portfolio is expected to be different from target asset allocation due to the changes in the periodic returns obtained. Thus, investment managers periodically review the company's portfolio and modify it in case of significant deviation with target asset allocation.