The management of an investment fund comprises many activities, which, given the complex and volatile nature of the environment, should not be governed solely by short-term ad-hoc decisions. It is paramount to determine the strategic variables, i.e. those which have a key impact upon the fund´s performance. The instrument capable of integrating, in a logical manner, all the key aspects of the fund´s activities, is its investment policy. This policy, which is a mix of philosophy and long-term planning, can provide answers to many questions as to the fund´s mission, its investment objectives, risk position and long-term asset structure. In order to develop a comprehensive investment policy, it is necessary to take into account many variables relating to both the environment and the fund itself. Some of these variables, e.g. the term structure of liabilities is unique to every fund. Therefore, technically, each of these institutions should have an individual and unique investment policy.