Asset Allocation Solution
Customizing a Diversified Investment Solution
A large institutional client with a significant mandate required an investment strategy that was both dynamic and would not burden its board of directors with the need to conduct manager searches as market conditions changed or special investment opportunities arose .
Specifically, the client organization was seeking to align long-term portfolio returns with liabilities tied to both payouts and inflation. They provided their risk/return requirements in terms of a minimum annual return over the Consumer Price Index (CPI) and a volatility range. There were virtually no investment restrictions; the client encouraged full use of Wellington Management's broad, global range of asset classes and investment approaches.
Wellington Management's Asset Allocation team:
- Collaborated with the firm's portfolio management and research professionals to determine a subset of potential investment approaches that would contribute to meeting the client's needs
- Used proprietary modeling tools to scenario-test a variety of investment approach combinations in differing investment environments
- Reviewed the resulting recommended structure, approach, and process with the client, and received approval to manage the mandate
The approach includes allocations to a variety of long and long/short equity approaches plus a portable alpha component.
Features:
We provide a variety of investment communications to our clients.
Our client base encompasses a range of institutions worldwide.
We exist for our clients and are driven by their needs.
—Wellington Management Goals, Strategy and Culture Statement