Portfolio optimisation constraints

Setting a portfolio constraint

The following constraints can set to restrict the portfolio construction process.

Constraint	Description
Ensure government guarantee is respected for fixed interest	Sets a maximum allocation to a given institution that satisfies the gov bank guarantee.
Minimum stock holding (% of portfolio)	Sets a minimum number of stocks to use in portfolio construction.
Maximum percentage of portfolio in direct stocks %	Sets a maximum allocation to any 1 particular stock.
Maximum duration on term deposits (months)	Sets a liquidity constraint for any TD investments.
Maximum holding per asset	Sets a maximum holding to any 1 particular asset for all asset types.
Minimum number of holdings	Sets a minimum number of investments for all asset types.
Maximum overall portfolio fee %	Sets a maximum overall portfolio fee
Max CGT amount	Sets a maximum CGT incurred for portfolio switching. Note: This applies to existing portfolios only.
Max transaction amount	Sets a maximum transaction cost (buy/sell/brokerage) in adjusting the existing portfolio.
Max total transaction cost	Sets a maximum transaction & CGT cost incurred.
Max ongoing fee amount	Sets a maximum ongoing investment fee for the proposed portfolio.
Max years to recover transaction costs	Sets a maximum timeframe to recover upfront transaction costs. (Note: the annual fee of the existing v proposed portfolio is compared and measured against the implementation costs to determine recovery timeframe).