HIP can invest in the following Authorised Investments:

• Any listed securities, including shares, units or notes which are redeemable, preference or deferred, fully or partly paid and any right, title or interest attached (including a right to subscribe for or convert to any such security whether listed on the ASX or not), and any security which Hyperion Asset Management expects will be quoted on the ASX within a six month period from the date of investment;
  
  
• The taking and/or giving of options to purchase any investment and the taking and/or giving of options to sell any investment which is an Authorised Investment outlined in the first point above;
  
  
• The discount or purchase of bills of exchange, promissory notes or other negotiable instruments accepted, drawn or endorsed by any bank or by the Commonwealth of Australia, any State or Territory of Australia, or by any corporation of at least an investment grade credit rating granted by a recognised credit rating agency in Australia;
  
  
• Deposits with any bank or corporation declared to be an authorised dealer in the short term money market;
  
  
• Debentures, unsecured notes, loan stock, bonds, promissory notes, certificates of deposit, interest bearing accounts, certificates of indebtedness and any other evidence of indebtedness issued by any bank or by the Commonwealth of Australia, any State or Territory of Australia, or any governmental organisation, body or instrumentality of Australia, or, if authorised by the Directors, a corporation of at least an investment grade credit rating granted by a recognised credit rating agency in Australia; and
  
  
• If authorised by Hyperion Flagship Investments Limited, contracts to underwrite or sub-underwrite issues or placements of any authorised investment outlined in the first bullet point above.

It is HIP's current policy to manage the portfolio within the following guidelines:

• Exposure to a minimum of 20 different companies to give the portfolio adequate diversification; and
  
  
• The majority of shareholdings to be invested in companies that have a market value of at least $10 million.

HIP will aim to maintain more than 90 per cent of available funds in equity investments at all times. The remaining funds will be held in bank bills, similar cash securities and on deposit in the short term money market.