A model portfolio which is developed to provide a standard for measuring the manager's risk/ return performance, and to reflect the investor's preferred level of risk over a complete market cycle benchmark portfolio will typically include individual sector indices as benchmarks for each asset class held within the portfolio.
represents the debt manager's neutral liability position and represents the minimum cost subject to an acceptable level of risk. The manager may make active decisions to deviate from the neutral position with the intention of adding value to the actual portfolio. The performance of the manager is judged by comparing the total cost of the actual portfolio with the total cost of the benchmark portfolio.
the personalized asset allocation that has been selected as the primary strategy to meet each client's objectives. This portfolio is developed jointly by the client and a team of advisors. Portfolio action will deviate from this "neutral" position when the investment management team deems it appropriate.