Portfolio construction involves the selection of asset classes and investment managers that meet the return and risk targets. The aim is to reach your end-game target with a high degree of certainty in a wide range of economic scenarios.
Firstly we’ll determine the parameters/philosophy we’ll use to design the portfolio. We want to understand your views but our preference is to build a portfolio that:
- Gains exposure to genuinely diversified sources of return
- Uses passive management to cost-effectively access market exposure where possible
- Avoids the cost and complexity of using of an excessive number of managers
- Avoids conflicts of an adviser using their own products, which we don’t do
We’ll then incorporate this into the portfolio design:
- Determine the ultimate end-game portfolio, what we’re building towards
- The initial portfolio (recognising the long-term “target”)
- How the initial portfolio evolves over time
Finally we will advise you on how to transition the portfolio through the journey potentially using triggers based on funding level, yields or other market conditions.
Upcoming event

Monday, 14 March 2022
Pension Scheme Impacts of Russian Disinvestment

XPS Investment | Quarterly Update
Choppy gilt yields put pressure on pension scheme funding levels
XPS Fiduciary Management FM Watch 2021
How do fiduciary managers de-risk as schemes approach their long-term funding targets?
First green gilt issued. What does this mean for pension schemes?
Investment Fund ESG review 2021
ESG Integration: How Fiduciary Managers stack up
Does your scheme’s ESG strategy reflect your trustees’ views?

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