What is the AIF investment strategy?

AIFs offer diversification beyond traditional investments, potentially higher returns, and access to specialised investment strategies like private equity and real estate. They cater to accredited investors seeking portfolio diversification and better risk-adjusted returns over the long term.

Subject to the above, the management of the Fund is aimed at pursuing the increase in the value of the Fund's assets primarily through the completion of development or enhancement transactions, through an investment strategy that promotes environmental or social characteristics, as well as to enable participants to benefit from the income derived from the properties held in the portfolio.

Our investment Process comprises 4 main phases:

1. Asset Allocation: Our Investment Committee decides our strategic asset allocation evaluating a comprehensive list of both qualitative and quantitative factors.
2. Investment Selection: We choose the most suitable investments for each asset class, based on a systematic list of criteria, such as liquidity, cost efficiency, likelihood of outperformance.
3. Optimisation: We perform a detailed optimization of portfolios, with the objective of offering investors more attractive returns for the level of risk chosen.
4. Risk Management and Monitoring: Portfolios are continuously monitored. We have developed specific software designed to measure, monitor, minimize and forecast risk.

The Company considers the integration of ESG (Environmental, Social and Governance) factors into the AIF's investment process to be of fundamental importance, in the belief that these elements, in addition to fostering sustainable economic and social development, can contribute positively to the financial results of the AIF itself, while at the same time reducing its risks.

In the investment process related to the Fund (i.e. from the scouting phase to the disinvestment phase), the Company, in accordance with the provisions of the internal investment and disinvestment policy, integrates sustainability risks, adopting the relevant assessment and mitigation parameters, and analyzes the relevant sustainability factors, consistent with the investment strategies defined for the Fund, providing in this context to:

I. complete the risk profile of the investment;

II. identify any opportunities for intervention;

III. estimate the impact of these risks on the value creation process; and

IV. assess their consistency with the Fund's classification.