The third ‘pillar’ of Mitiska’s investment activities is Asset Management, i.e. investments in well-diversified portfolios of liquid financial instruments including government and corporate bonds, shares and derivative instruments, as well as investments in mutual funds and hedge funds.
Our aim is threefold:
- to improve the overall liquidity profile of our assets by having part of our assets invested in the financial markets with contractual liquidity ranging from three days to three months;
- to improve the overall diversification of our assets by having part of our assets invested across various geographical locations, industries and asset classes;
- to decrease the overall risk profile of our assets by having part of our assets invested with a reduced risk/lower return profile, i.e. preserving purchasing power ‘plus’, over five-year rolling periods.
To optimise the management of this activity, we work with third-party advisors who have significant experience in this type of asset allocation.
The Asset Management portfolios also serve as cash reserves for unexpected cash calls in Private Equity and Real Estate.