Investment Policy Statement
How the Paper Mandate will be invested
Managed Funds usually have a Product Disclosure Statement (PDS) or an Investment Memorandum (IM). That is too much legalese for Paper Mandate. A simple Investment Policy Statement (IPS), governing the rules of investing will do the trick.
Objective
Primary Goal: To achieve a total return exceeding the S&P/ASX 300 Accumulation Index over a rolling 12-month period
Secondary Goal: To document all investment decisions, the qualitative and quantitative “why”.
Investment Universe
Primary Focus: S&P/ASX 300 constituents.
Non Index: Allowance for 15% max non-Index names.
Exclusions: No unlisted assets, crypto-assets, or OTC pink sheets.
Risk Parameters & Constraints
Capital Base: $1,000,000 (No further additions)
Concentration: 15 to 30 holdings
Position Size: 12% of Total Portfolio Value at cost
Sector Limit: Single sector Active Max 30%
Execution
Buy Discipline: Considering liquidity and sizing.
Sell Discipline: Thesis complete or broken. Rebalancing or trimming.
Reporting
Market Notes: Market events, trading activity and portfolio analysis.
Deep Dives: Stock thesis write-ups
Lessons in Red: Post mortem analysis on mistakes.