Annual Report 2017

119 3.4 Liquidity risk The Group has no significant exposure to liquidity risk as the Group has sufficient cash to support its operations. The Group aims on maintaining flexibility of funding by using internal capital of the Group. 3.5 Risk from investments and deposits The Group is exposed to market risks as the investor of financial instruments, and credit risk from the issuer of financial instruments. The Group, therefore, has a policy of diversifying its investments and deposits to high credit financial institutions according to the investment policy prescribed by the resolution of the investment committee. The investment policies framework regarding types and proportion of investments are as follows: Type of investment Proportion of investment 1) Investments in debt securities Government securities, debentures or bonds of state enterprises or entities incorporated by specific laws and guaranteed by the Ministry of Finance Unlimited Fixed deposits or NCDs at commercial banks and promissory notes of finance companies or financial institutions incorporated by specific laws Not to exceed 15% of total debt investment per institution. Debentures or warrants of debentures and bills of exchange Not to exceed 5% of total debt investment per issuer. Investment units or warrants of investment units in mutual funds invested in debt securities Not to exceed 10% of total debt investment per mutual fund. 2) Investments in equity securities Investment units or warrants of investment units in mutual funds invested in equity securities Not to exceed 10% of total equity investment per each Fund, and not to exceed 10% of fund size. 3) Investments in property funds Property funds Not to exceed 10% of fund size per each Fund, except for Fund of Property Funds, not to exceed 20% of fund size. 4) Investments in foreign investment funds Foreign investment funds - Foreign direct investment not to exceed 20%-30% of fund size per each Fund (2016: Not to exceed 20% - 30% of total investments) - Direct investment in Exchange Traded Fund “ETF”. Not to exceed 10% of foreign equity value per each fund. 5) Investments in gold funds Gold funds Not to exceed 10% of fund size per mutual fund. Investments in each asset management company should not exceed 40% of total investments.