What is the portfolio for?
Define objectives, the investment horizon, liquidity needs and the constraints within which decisions are made.
Institutional investment perspectives
Asset management,with a longer view.
An editorial reference on how institutional portfolios are designed, governed and reviewed.
The institutional perspective
From objectives to oversight
Institutional portfolios start with a purpose. The mandate sets out the objectives, time horizon, constraints and measures used to evaluate results.
The Centre follows that mandate through portfolio design, ongoing risk review and the responsibilities that come with ownership.
Investment framework
How a mandate becomes a portfolio
Four questions for reviewing how an institutional investment process is designed and governed.
How is it built?
Connect asset allocation, diversification and manager selection to the mandate and the chosen benchmark.
What is changing?
Review exposures, performance and liquidity alongside changes to assumptions or market conditions.
Who is accountable?
Document decision rights, reporting responsibilities and when an issue should be escalated.
Risk and stewardship
Oversight after the allocation
Risk oversight
Review how the portfolio might respond to changing conditions and whether its exposures remain within the mandate.
- Concentration across managers, sectors and markets
- Liquidity under normal and stressed conditions
- Review frequency, thresholds and escalation
Investment stewardship
Consider how asset owners and managers exercise ownership rights and report on their activities.
- Engagement and voting responsibilities
- How stewardship activity is recorded
- Accountability to asset owners and beneficiaries
Industry references
Read the source material
Portfolio planning, stewardship and liquidity risk resources from industry and regulatory bodies.