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CD Portfolio Pty Ltd manages only the capital of its founding family. It does not accept external capital and has no external investor base.
No position has to be sold to meet a redemption. Capital stays in cash when no asset meets the valuation threshold.
Holdings are not selected to track an index. An index contains businesses the office has not underwritten and would not own outright.
The office measures against the objectives in the Investment Policy Statement: preservation, income and specific exposures.
Rebalancing within policy ranges and new positions below 3% of the book are executed by the office. Positions above 3%, changes to policy, and any use of leverage, hedging or derivatives require family sign-off.
Audit, custody, specialist tax and legal advice are engaged from external firms rather than performed in-house.
The family receives a written quarterly record covering positions, performance against policy, fees paid, and any deviations with the reason for each. Monthly net asset values are not published.
Questions received on this note.
Scale, fee income and external scrutiny. Scale matters only where an opportunity requires it. Fee income is not part of the office's activity. External scrutiny is replaced by a written policy, an independent custodian and an external audit.
The office measures against the objectives in the Investment Policy Statement — preservation, income and specific exposures — rather than against an index.
An annual policy review by the family, a quarterly written record that lists deviations with the reasons for them, and independent custody and audit.
Rarely, and only where the structure does not introduce a party with a different time horizon. Shared ownership usually brings shared exit timing.
These notes describe how one family office manages its own capital. They are general information only and are not personal financial advice.
Occasional writing on family office structure, governance and the advantages that come with managing only your own capital.
