What is an investment policy?

"Investment policy" is the way in which a private or professional investor arranges their securities portfolio, taking into account matters such as the investment status, the investment motives, the investment horizon, and the demands and wishes in the area of costs, risk, and return.

An example of this is how Vive has adjusted its investment policy by checking whether investments have ESG ratings. This way, Vive can work towards a better world, and not just financial return. Social impact and risk management are also included in this.

In short, an investment policy provides direction on how investors approach their investments and ensures that the strategy is in line with their goals, values, and risk tolerance.