Investment Strategy
Investment Philosophy
Investments are made globally in individual equities and listed investment funds, such as index funds and ETFs, with a preference for assets issued by well-established companies on reputable exchanges. High liquidity and transparency are key selection criteria, and markets with minimal political risk are generally favored.
Diversification and Allocation
Diversification is a core principle, with capital allocated across different sectors, geographies, and investment themes to reduce risk and enhance long-term growth potential. The portfolio is structured with a target allocation of 80% in funds and 20% in individual stocks. No single company share may exceed 20% of the portfolio's value, and as the portfolio grows, the aim is to limit each individual position to a maximum of 5%.
Decision-Making and Rebalancing
Investment decisions are guided by a combination of historical performance and forward-looking assessments, always with the objective of optimizing total return. The portfolio is rebalanced periodically to maintain the desired allocation and risk profile. When rebalancing, liquidity may be withdrawn to fund grants, provided that the total assets never fall below the accumulated value of all prior donations.
HOW DO WE DO IT?
A donation into The Rotary Investment Fund will be invested – and not turned into a grant immediately and thereby spent. By investing the donations, it's our goal to create financial value that will enable Rotary paying out grants year after year in the future. Rotary Investment Fund wishes to create a portfolio of shares in companies characterized by
Strong competitive positions
Stable growth in earnings per share
Focus on the creation of shareholder value
Growth in the underlying market
Stable and high Return on Capital Invested
Stack dividend pay-out
Low debt