The Directed Portfolio holds 70% of all funds received from the Malta Individual Investment Programme Agency which will be used for social and development purposes. The holding, management, directions and disposals of the directed investments, must be in accordance with the provisions of S.L. 188.03 and S.L. 595.12 and must satisfy the investment criteria stated in the Investment Policy of the Fund as articulated by the Board of Governors from time to time. Any interest or other income received from investments held in the Directed Portfolio are reinvested or disbursed by the Fund as may be decided by the Board of Governors.

In general, the Fund expects to receive a commercial return on the assets held in the Directed Portfolio which may include:

• direct equity participation;
• purchase of financial instruments issued by special purpose vehicles (SPVs) and banks such as Medium Term Note programmes;
• issuance of guarantees, underwriting, performance bonds, standby letters of credit, credit enhancement (over-collateralisation);
• participation in syndicated lending; and
• any other strategic investments as may be considered by the Board of Governors in line with the Investment Policy.

The Directed Portfolio will also be used to fund social and economic initiatives in respect of which there will be no direct financial return to the Fund.  In such instances, the investment will be considered by the Fund as a grant with a “social or economic return”. All investment proposals in respect of which there is no direct financial return to the Fund are evaluated by the Board of Governors to ensure that such investments generate a positive social or economic impact.