INVESTMENT STRATEGY AND ASSET MIX ALLOCATION PRINCIPLES

An investment strategy is a set of rules, behaviors or procedures, designed to guide an investor's selection of an investment portfolio. Usually the strategy will be designed around the investor's risk-return tradeoff: some investors will prefer to maximize expected returns by investing in risky assets, others will prefer to minimize risk, but most will select a strategy somewhere in between. Passive strategies are often used to minimize transaction costs, and active strategies such as market timing are an attempt to maximize returns.

Selecting an asset allocation mix for your portfolio GR Group managers proceed from your investment objective and the target yield rate. In order to compile a performing portfolio the manager should find the appropriate asset allocation mix in such way that the relationships of various assets to one another are not too strong and portfolio yields the expected return with minimal value fluctuations. In other words our asset mix should result in the highest capital increase with the lowest possible risks.

• Target profit
• Possible risks
• Assets liquidity
• Duration of investing

• We pick up asset with sound fundamental indicators ensuring mid-term growth even if the market sees short-term trend deterioration.
• We do not invest in "bummers" which are likely to drop abruptly in mid- or long-term perspective.
• We combine trading strategies with various investment horizons.
• We diversify by industry.
• We diversify by issuers. GR Group does not invest more than 20% of your portfolio in stocks of one company.
• We monitor market trends checking whether it is wise to consider portfolio restructuring.

• Shares of the major Bahrani companies ("blue chips")
• Smallcap stocks of developing enterprises with high growth potential
• Promissory notes issued by major Bahrani companies with good credit history and liquid secondary market
• Corporate bonds with fixed and/or floating interest rates, whose repayment and interim income payouts incorporate compensation for loss on exchange rate
• Government bonds placed with discount or coupon bearing bonds
• Municipal bonds and bonds issued by regional authorities

GR Group offers various investment programs and investment portfolio options dependent on customer's requirements and objectives. We classify these options as "conservative portfolio", "moderately conservative portfolio", "balanced portfolio", moderately aggressive portfolio" and "aggressive portfolio":