investment strategies of corporate and institutional investors have their own
peculiarities in terms of their variability, which are embodied in such variants of a
typical presentation of these strategies:
- a compromise, which involves the maximum reduction of investment risks,
accompanied by a stable and low return on investment;
- moderate (balanced), which involves obtaining an average level of profitability
taking into account the moderate level of riskiness of investment;
- aggressive, which involves obtaining the maximum profitability of investments
and adopting a high level of risk of their losses.
Choosing the type and kind of investment strategy is closely linked to the search,
evaluation and acceptance of alternative investment decisions that fully correspond to
the investor's purpose and outlined prospects for its development.
Thus, the investment strategy is formed in accordance with the strategic
guidelines of investment activity of corporate and institutional investors by a
combination of successive stages aimed at the efficient formation and use of their
investment potential.
Zonal ranking of quality levels of formation and use of investment potential
of investment-institutes in the financial market. The "starting point" that makes it
possible to outline a reference point for the development of an active or passive
investment strategy can be the resulting indicators of the zonal ranking of financial
market institutions in terms of the quality of the formation and use of their investment
potential, which should be distinguished in three groups that embody the main system
blocks: inputs that characterize the means of forming the investment potential
(financial resources) of the investment institution; indicators of the process, which
characterize the size, structure, mobility (formation) of the investment resources of the
institute-investor; output indicators that characterize the means of using the investment
potential (means of transforming investment resources into investments) of different
institute-investor.
Thus, in assessing the quality of the formation and use of investment potential
within the framework of the system approach, there is a need to select a set of different
indicators. In order to make a reasonable decision on the achievement or not
achievement of a certain quality, it is necessary to select for each indicator a certain
criterion or a set of criteria characteristic for a level approach to the assessment of the
quality of both the formation and the use of investment potential. To reduce the
subjectivity in assessing the quality of the formation and use of investment potential,
it is obvious that the use of those indicators that allow transformation into quantitative
criteria and norms is used. However, native and foreign experience shows that careless
introduction of quantitative criteria and excessive admiration of it may lead to
misleading representations about the presence or absence of quality and to erroneous
- 142 -