Investment Mandates

Definition ∞ Investment mandates are specific instructions or guidelines that dictate how a fund manager or advisor must allocate and manage assets on behalf of clients. These mandates define permissible asset classes, risk tolerances, liquidity requirements, and performance objectives. They ensure that investments align with the client’s financial goals and regulatory constraints. Strict adherence to these rules is legally required.
Context ∞ Investment mandates frequently appear in crypto news when discussing institutional adoption of digital assets, particularly for pension funds and large endowments. The debate centers on whether existing mandates permit or prohibit investment in volatile digital assets, or if they require specific amendments. Regulatory bodies often scrutinize changes to mandates to ensure investor protection. Clearer guidance and evolving regulatory stances may lead to more institutions modifying their mandates to include digital assets.