Investment Strategy

Investment universe

Investments are made in individual shares. In the long term, investments can also be made in listed dividend-paying investment funds.

Investments are made in individual shares, which

• Are issued by well-established companies listed on a well-recognized stock exchange providing high liquidity and level of information,

• Are expected to distribute stable – hopefully growing - dividends, and

• Which are issued by companies operating in markets and with activities characterized by growth and stability

The investment focus is global

Investments are to have a high degree of liquidity and be located in markets with minimal political risk. Thus, many European and American companies are considered to fit these criteria.

• Once the size of the assets exceeds DKK 100,000, no single company share may exceed 20% of the total portfolio

• The minimum size for single investments - at present - DKK 20,000 (to be adjusted as RIF grows)

Extract of key parameters for stock-picking (Full list made in collaboration with external advisors)

• Assessment of competitive strength = > Earnings stability

• Growth in underlying market

• Direct return (dividend return)

• ROIC – return on internal invested capital

• Low debt

• The category of shares - 'compounders' - is considered an interesting category to pursue.

• Earnings expectations

• Absence of negative factors

The Portfolio is managed in collaboration with external advisors; initially, CBS Investment Club (CBSIC) will provide advice

RIF board:

•       Formulates criteria for selecting investment candidates

•       Decides on the selection of investment candidates on the basis of recommendations from CBSIC

CBS Investment Club and other advisors:

•       Prepare written material about investment candidates on the basis of the established criteria for investments

Meeting frequency and communication

Formerly once a quarter and ad-hoc for fast decisions.