An investment mandate is more than a strategy label. It is the operating agreement that connects an investor’s objective to the decisions a manager is permitted to make.
Start With Constraints, Not Ambition
Objectives matter, but constraints make them actionable. Time horizon, liquidity requirements, tolerance for loss, permitted instruments and concentration limits all shape what a suitable mandate can reasonably contain.
- Objective and intended role in the wider portfolio
- Permitted markets, instruments and exposure boundaries
- Liquidity terms and expected review cadence
- Reporting basis, fees and custody responsibilities
- Conditions that trigger review, escalation or termination
A mandate is most valuable when it helps people make disciplined decisions under pressure.
Reporting Should Trace Back to the Mandate
A report should make it possible to compare what happened with what was authorised. That means presenting outcomes beside exposure, risk, period, methodology and the decisions that shaped the result.