Chapter III, Article 21 · Council Decision (EU) 2026/1561

Contents

Article 21Investment horizon, investment objective and risk tolerance#

1.The assets shall be invested with the objective of preserving, and where possible enhancing, the value of those assets to meet the liquidity needs arising from the funding calls (the ‘investment objective’). The investment objective shall be pursued over the investment horizon and delivered with a high confidence level.

2.The assets shall be managed in accordance with prudential rules and the principles of sound financial management, and in accordance with the rules and procedures set out by the accounting officer of the Commission and with the risk management framework of the Commission.

3.The investment objective shall be pursued through the implementation of a prudent investment strategy based on diversification across eligible asset classes, geographical areas, issuers and maturities (the ‘investment strategy’). The investment strategy shall take into account the investment horizon and the size of remaining assets and shall ensure that necessary funds are available in a sufficiently liquid form as and when needed.

4.The investment strategy shall be expressed in the form of a strategic asset allocation, which shall set out the indicative target allocations to different categories of eligible financial assets.

5.The Commission shall reflect the strategic asset allocation in a strategic benchmark (the ‘benchmark’), against which the performance of the assets shall be compared.

6.The investment strategy and the benchmark shall be determined by the Commission in accordance with the rules on the delegation of budget implementation powers referred to in Article 60 of Regulation (EU, Euratom) 2024/2509. In case the assets are invested only in current bank accounts and term deposits, an investment benchmark and investment strategy shall not be required.

7.The Commission may modify the investment strategy and the benchmark in the event of:

(a)a change in economic conditions that is duly demonstrated by relevant documentation;

(b)a substantial change in the needs and situation of the contributing instruments; or

(c)a significant change in inflow or outflow estimates.

The procedure for modification of the investment strategy shall be the same as for its initial determination.

8.The investment strategy shall be established taking into account the investment horizon and the risk tolerance of the assets.