18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.
18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.
18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.
18.3. A description of the investment policy of the SWF should be publicly disclosed.
“l’Etude Stratégique FMDT” is strategic paper voted by the board and reviewed annually which outlines investment policies of Ithmar and ensures consistency throughout the investment process and the management of the assets with the strategic objectives set by the shareholders.
Risk exposure and the use of financial leverage are clearly defined within the processes; specifically the relationship between the operational teams and the investment and steering committee sets clear limits and delegations. Financial derivative transactions are subject to prior board approval.
The external managers' programme is subject to a specific internal committee with defined processes to ensure transparency in the selection and adequate follow-up of their performance.
A general approach to Ithmar's investment policy is defined within its decree of creation. For confidentiality reasons “l’Etude Stratégique FMDT” is strictly restricted to shareholders.