Investment Policy Statement

1. Introduction

This Investment Policy Statement (IPS) outlines the investment objectives, guidelines, and strategies for managing the investment portfolio of the Q=Petersen Family Office. The purpose of this IPS is to provide a clear framework for decision-making, risk management, and performance evaluation.

2. Investment Objectives

• Preservation of Capital: Prioritize the protection and preservation of the Family's assets over the long term.
• Growth of Capital: Achieve reasonable growth of capital to meet future financial needs, including intergenerational wealth transfer and to preserve purchasing power.
• Generation of Income: Generate regular income streams to support current expenses and fulfill short to medium-term financial requirements. Maintain returns in excess of inflation.
• Diversification: Maintain a well-diversified portfolio across asset classes, sectors, and geographic regions to reduce overall investment risk.
• Risk Management: Manage investment risk prudently by employing a disciplined approach to asset allocation, security selection, and portfolio construction.

3. Asset Allocation

QP Management will adopt a strategic asset allocation approach, guided by the following target allocation ranges. Rebalancing will be conducted periodically to maintain target allocations.

4. Investment Strategies

• Public Equities: Diversified portfolio of global equities including large-cap, mid-cap, and small-cap stocks with emphasis on fundamental analysis, quality management, and long-term growth prospects. Active and passive strategies employed as appropriate.
• Fixed Income: Investment-grade bonds, government securities, high-quality corporate bonds, and private credit focused on capital preservation and income generation with careful duration and credit quality management.
• Alternative Investments: Private equity, hedge funds, real estate, and commodities to enhance diversification, reduce correlation to traditional asset classes, and enhance risk-adjusted returns.
• Cash & Equivalents: Maintained for liquidity, opportunistic investments, and capitalizing on market dislocations.

5. Performance Benchmarks

6. Risk Management

• Diversification: Spread investments across asset classes, sectors, and geographic regions to mitigate concentration risk.
• Asset Allocation: Maintain a disciplined approach to balance risk and return objectives.
• Monitoring & Review: Regularly monitor performance against benchmarks and objectives with periodic reviews of changing market conditions.
• Stress Testing: Conduct stress tests to evaluate portfolio resilience under adverse scenarios and identify potential vulnerabilities.
• Risk Mitigation: Implement hedging strategies, derivatives, and other risk management techniques to protect capital during market downturns.

7. Governance & Reporting

QP Management will establish clear governance structures and processes to oversee the implementation of this IPS. Responsibilities for investment decision-making, execution, and monitoring will be clearly defined. Regular performance reports including portfolio holdings, asset allocation, performance attribution, and risk analysis will be provided to family members and key stakeholders.

8. Conclusion

This Investment Policy Statement serves as a guiding framework for managing the investment portfolio of the Q=Petersen Family Office. It reflects the investment objectives, risk tolerance, and values of the family, while providing flexibility to adapt to changing market conditions. The Family Office will adhere to the principles outlined in this IPS to achieve its long-term financial goals while preserving and growing assets for future generations.