Total Portfolio Approach The peer funds are evenly spread on this attribute
TPA = total portfolio approach
SAA = strategic asset allocation
TPA will be defined in different ways having technical, governance and cultural elements Our definition is as follows ▪ TPA is developing the best quality portfolio for the particular fund goals adopting best ideas, dynamic management and a holistic approach ▪ SAA is creating a policy benchmark suited to
spectrum
the longer-term fund goals and allocating to asset class portfolios that are sized to align with the benchmark
Present practices lie on a spectrum between the SAA and TPA end points. We use a 0 → 5 scale for this spectrum The 2.4 current average reflects a current even split of practices between SAA-heavy, middling and TPA- heavy groups. The 3.1 ambition shows the desired direction, but most organisations recognise the multi-strand change program needed to transition Comparison | AOPS 2.5 current, 3.6 desired
DC peers average
0
5
2.4
3.1
SAA
TPA
n=17
Current position
Desired future position in the next few years
19
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