What is an Investment Mandate?

An investment mandate is a set of guidelines or instructions that outline how an investment manager or fund should invest the assets under their control.

The investment mandate typically specifies the types of investments that the manager is allowed to make, the level of risk that is acceptable, and any other constraints or preferences that the manager must follow.

Investment mandates are used to ensure that investment managers align with the goals and preferences of their clients or investors. They may be used by institutional investors, such as pension funds or endowments, or by individual investors.

Investment mandates may be broad or narrow in scope, depending on the preferences of the investor. For example, a mandate may specify that an investment manager should only invest in socially responsible companies, or it may give the manager more flexibility to invest in a wider range of assets.

Overall, investment mandates are an important tool for ensuring that investment managers align with the goals and preferences of their clients or investors.