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Infinium LTD Brochure

Investment Brochure for Infinium Limited Fund

Investment Brochure for Infinium Limited Fund

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Monetary investments

As a general rule, cash, short-term deposits, treasury bills and similar forms of investments

are considered as monetary investments - that is, all those investments that are

cash or securities with a maturity of less than one year and are liquid. They are considered

the safest form of investment, but are also the least profitable.

Equity investments

A share/stock is a form of security representing a share of ownership in a joint stock

company - a share is an equity. The value of shares on the organized securities market

depends to a large extent on the performance of the company. Shares are one of the

most widespread and commonly traded instruments on stock exchanges. Many shares

allow investors to participate in the performance in the form of a periodically paid dividend.

Fixed income investments

The bond constitutes the obligation of the issuer to oblige the holder of the bond to repay

the money lent increased by interest (i.e. the coupon) over a period of time longer than

one year - the bond is a debt security. The bond is in fact nothing more than a loan, or a

method of borrowing. Issuers issue a bond when they need money. One of major differences

between a regular loan and a bond is flexibility of transfer, as many are traded on

the stock exchange.

Alternative investments

An alternative investment is an investment that is not one of the traditional investments,

such as cash, equity and fixed income. Alternative investments usually have a low correlation

with traditional investment classes, which make them suitable for portfolio diversification.

Alternative investments may include real estate, commodities, various currencies,

and other investments. They may also be traded in the form of derivatives to financial

instruments. Managers who pursue absolute returns do not compare themselves with

returns of the capital markets, but pursue a pre-established investment objective (target

profitability), which they set independently of the conditions on financial markets, stock

market trends or competition. Even at the time of the bear market, the managers strive to

achieve the set target profitability.

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