02 — Capability · BC-1760.20
Investment Portfolio Management
Keep each client portfolio invested as its mandate requires, by setting allocation, choosing securities or models, and rebalancing as markets and clients change. Portfolio management of change initiatives sits in the cross-industry portfolio capability.
- Discretionary Management
- Asset Allocation
- Investment Management
- Managed Accounts
In scope
- Investment mandates, policies and guidelines
- Strategic and tactical asset allocation
- Model portfolios and security selection
- Rebalancing, drift control and post-trade guideline and risk monitoring
Out of scope
- Portfolio management of projects and investments in change (see BC-180)
- Investing short-term surplus cash, including a bank's own liquidity buffer (see BC-230.10)
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Used in · 2
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Decomposes into · 6
- BC-1760.20.10Investment Mandate DefinitionAgree and record each client's investment objectives, benchmark, restrictions and fiduciary duties so every portfolio decision can be checked against them.
- BC-1760.20.20Strategic & Tactical AllocationSet and periodically review the long-term mix of asset classes that best meets each mandate's return and risk aims, with tactical tilts within agreed ranges.
- BC-1760.20.30Model Portfolio MaintenanceMaintain the model portfolios advisers and managers apply to many accounts, and publish changes to every account that follows them.
- BC-1760.20.40Security Research & SelectionResearch funds, equities, bonds and other instruments and decide which to buy, hold or sell within each mandate.
- BC-1760.20.50Account Rebalancing & Drift ControlDetect when an account drifts from its target allocation or model and generate the trades that bring it back, considering tax and cost.
- BC-1760.20.60Portfolio Risk & Guideline MonitoringCheck held portfolios after trading against mandate guidelines, and measure ex-ante risk, tracking error and fund liquidity risk so breaches and drift are caught and escalated.