reference portfolio

“We used to have a long-term portfolio, but it was sort of like so long that it didn't capture medium-term trends. So now we have a reference portfolio, and it's designed to take into account particular sort of aspect of the cycle.”

“The risk budgeting process says, alright, we've got a bunch of opportunities, we'll put them into these five different baskets, is what we call them, and then we'll allocate some risk through time to those things, and then the teams are then tasked with going …”

“In the beginning, we started with a strategic asset allocation. From 2010, we switched to a portfolio construction approach where we use a reference portfolio.”

“You're able to much better attribute accountability for decisions because in an SAA world, you can never actually be at five percent infrastructure. So why are you not there? Are you not there because management has chosen not to be there because they don't re…”

“Eighty-twenty. So it's a pretty growthy portfolio. So there's 65 developed market equities, 10 emerging market, five New Zealand equities, that adds up to 80, and then 20% fixed income.”

“With our proposed approach for the total portfolio, the board adopts a reference portfolio, and that corresponds to a particular amount of risk, but it's the management that is using its initiative to propose the portfolio and to invest the portfolio. The mana…”

“One of the big advantages of having A total portfolio approach with the reference portfolio is you tend to have a more stable risk appetite through time, and it'll be transparent if risk is taken up or down.”