Investment Management

Purpose

Investment management is the ongoing responsibility for a portfolio once objectives, constraints and risk tolerance have been agreed in writing. The mandate defines what the portfolio is intended to do; the management process keeps the portfolio aligned with that intention as markets, cash-flow needs and circumstances change.

Approach

1. 01

   Document objectives, time horizon, liquidity needs and constraints in an investment policy before capital is committed.

2. 02

   Translate the policy into a strategic asset allocation with defined ranges rather than fixed points.

3. 03

   Select exposures on the basis of research, cost, structure, liquidity and their role within the whole portfolio.

4. 04

   Monitor exposures continuously and rebalance according to agreed tolerances rather than short-term market views.

5. 05

   Review the mandate itself on a scheduled basis, and whenever circumstances materially change.

Where it fits

The governing layer. Every other capability is expressed through the mandate that investment management maintains.

• Investors who prefer decisions to be implemented within an agreed framework rather than approved transaction by transaction.
• Portfolios where consistency of process across market cycles matters more than tactical activity.