The rules we invest by.
The mandate sets out what the Fund may invest in, how much risk it may take, and how decisions are made. It applies for the 2026-2027 academic year and is reviewed at least annually.
01Purpose and objectives
Prune Hill Capital is a student-led, non-profit investment fund at Royal Holloway, University of London, operating under the Business School. Its primary objectives are:
- To provide participating students with practical experience in investment analysis, portfolio management, and risk management.
- To preserve and grow capital over the long term, within a clearly defined risk framework.
- To operate strictly on a non-profit basis: no student or staff member may receive personal financial benefit from Fund performance; all gains remain within or are distributed through approved RHUL structures for student benefit.
02Organisation structure
2.1 Core team
The Fund is governed by a core student leadership team and overseen by an Academic Adviser and an Advisory Board.
| Role | Responsibility |
|---|---|
| Chief Investment Officer (CIO) | Leads investment process; chairs Investment Committee; primary contact for Adviser, broker, and Advisory Board. |
| Risk & Compliance Officer | Monitors mandate adherence; maintains risk register; checks all trades pre-execution. |
| Operations & Reporting Officer | Manages reporting, document control, and operational workflows. |
| Head of Research | Leads the research function; coordinates Portfolio Managers and Analysts; oversees research standards, investment theses, research allocation, and the research pipeline. |
| Portfolio Managers | Sector/geography-specific research; present trade pitches; monitor assigned areas. |
| Analysts | Support the Head of Research and PMs with company research, financial modelling, valuation, industry analysis, and monitoring. |
2.2 Advisory Board
The Advisory Board comprises 3 or more individuals with finance or academic expertise. Members serve two-year terms and attend at least one annual review meeting per year. The Advisory Board provides non-executive guidance on strategy, governance, and long-term development.
2.3 Academic Adviser and broker relationship
The Academic Adviser is the authorised signatory for the Fund's brokerage account, which is held under RHUL's institutional framework. All account-level communications with the broker are routed through the Academic Adviser. Student officers interact with the broker operationally under this framework.
03Permissible investments
3.1 Permitted instruments
- Listed equities (ordinary shares) on recognised, regulated stock exchanges in developed markets.
- ETFs and index funds giving diversified equity exposure, with a preference for ESG-screened or sustainability-themed funds (e.g. ESGU, ESGV, ICLN, ESGD, VSGX).
- Cash and cash equivalents (cash held at the broker, highly liquid money market instruments).
3.2 Prohibited instruments
- Derivatives (options, futures, swaps, CFDs, spread bets).
- Leverage or margin (no borrowing to invest).
- Cryptoassets or unregulated digital tokens.
- Unlisted or private securities, crowdfunding, or peer-to-peer lending.
- Fossil fuel companies (exploration, production, refining, storage or transportation of oil, gas or coal), in line with RHUL's divestment policy.
- Controversial sectors: armaments, gambling, adult entertainment, tobacco, or companies in serious and ongoing breach of international norms on human rights or environmental standards.
04Asset allocation and concentration limits
4.1 Target allocation by asset class
| Asset class | Target range | Rationale |
|---|---|---|
| Equities (individual stocks) | 60-80% | Core growth driver; diversified across sectors and geographies. |
| ETFs (incl. ESG/thematic) | 15-30% | Broad exposure reduces single-stock concentration. |
| Cash / cash equivalents | 5-15% | Liquidity buffer and capital available for new opportunities. |
4.2 Geographic exposure
| Geography | Indicative range | Example instruments |
|---|---|---|
| United Kingdom | 20-40% | UK-listed equities and ESG ETFs |
| United States | 30-50% | S&P 500 equities, ESGU, ESGV |
| International developed (ex-UK/US) | 10-30% | ESGD, VSGX, European/Asian equities |
| Emerging markets | 0-10% | ESG-screened EM ETFs only |
4.3 Example holdings (illustrative)
Illustrative examples of positions consistent with this mandate. They do not constitute investment recommendations.
| Type | Example | Rationale |
|---|---|---|
| ESG ETF (US) | iShares ESG Aware MSCI USA ETF (ESGU) | Broad US equity exposure with ESG screen; primary benchmark constituent. |
| Clean energy ETF | iShares Global Clean Energy ETF (ICLN) | Thematic alignment with RHUL sustainability commitments. |
| UK equity | Unilever PLC (ULVR.L) | Large-cap, ESG-positive UK stock with global diversification. |
4.4 Concentration limits
No individual security should normally exceed 10% of total portfolio value.
Exposure to any one sector should not normally exceed 40% of total portfolio value.
Normally at least 5%; not above 30% for extended periods without committee approval.
The Head of Research coordinates research priorities, allocation of coverage, and research standards across PMs and Analysts.
05Investment process
5.1 Research and meetings
- Bi-weekly research meetings: held in person on the RHUL campus when possible, with an online option available.
- Quarterly review meeting: a formal in-person meeting to review portfolio performance, rebalancing needs, and mandate compliance.
- Annual review meeting: a full review of the mandate, benchmarks, risk limits, and the Advisory Board's input, attended by the Academic Adviser and at least one Advisory Board member.
5.2 Trade process
- Research: PMs and Analysts develop investment ideas and written analysis under the coordination of the Head of Research.
- Pitching: Portfolio Managers present ideas to the Investment Committee with written analysis covering investment thesis, valuation, ESG factors, risks, and expected return.
- Committee decision: the Investment Committee (CIO, Risk & Compliance Officer, Operations & Reporting Officer, PMs, and Academic Adviser) discusses, votes, and approves trades.
- Execution: approved trades are executed, checked against risk limits by the Risk & Compliance Officer, and recorded in the trade blotter and minutes.
06Risk tolerance and drawdown limits
The Fund has a moderate risk tolerance consistent with long-term equity investing and its educational mission.
- Maximum drawdown trigger: a portfolio drawdown of 15% over any rolling six-month period, or 20% over any rolling twelve-month period, triggers a formal investment and leadership review (see Succession Policy Section 6.3).
- No leverage or margin may be used under any circumstances.
- All positions must remain within the concentration limits set out in Section 4.
07Benchmarks
Performance is evaluated against ESG-focused benchmarks reflecting the Fund's sustainable mandate.
| Benchmark | Ticker | Use |
|---|---|---|
| iShares ESG Aware MSCI USA ETF | ESGU | Primary US exposure |
| iShares ESG Aware MSCI EAFE ETF | ESGD | Primary International developed |
| Vanguard ESG US Stock ETF | ESGV | Additional |
| iShares Global Clean Energy ETF | ICLN | Additional |
| Vanguard ESG International Stock ETF | VSGX | Additional |
The Investment Committee may adjust the primary benchmark annually based on portfolio composition, subject to Academic Adviser approval.
08Student fund partnerships
Prune Hill Capital may collaborate with other student-led investment funds at UK universities for educational and research purposes, including joint investment case competitions, shared sector research, and cross-fund educational events.
- No partnership may result in the pooling of capital or create financial obligations on RHUL.
- All partnership arrangements are subject to Academic Adviser approval and are managed by the Stakeholder Relations / Communications Officer.
09Liquidity and time horizon
- The Fund invests only in instruments that are daily-liquid under normal market conditions.
- Typical holding period: months to years. High-frequency or purely speculative trading is not consistent with this mandate.
10Governance and decision-making
- All investment decisions are made through the Investment Committee in accordance with the approved governance framework.
- The Risk & Compliance Officer checks proposed trades against this mandate before execution.
- Breaches must be reported, corrected promptly, and documented in minutes and reports.
11Allocation of profits and hardship support
11.1 Initial growth phase
During the initial growth phase, all net investment gains are retained within the Fund to build a sustainable capital base. No distributions are made while assets under management and the track record remain at an early stage.
11.2 Future contribution to hardship or access support
Once the Fund reaches a scale and stability agreed by the Academic Adviser, up to 30% of realised net profits in a given financial year may be transferred to an approved hardship, bursary, or access fund within RHUL, subject to formal annual approval and compliance with University financial regulations.
12Amendments
This mandate should be reviewed at least annually, or sooner if required by changes in University policy, donor conditions, or regulatory requirements. Any amendments require written approval from the Academic Adviser.