When CAIA approached me to write the closing piece for
Innovation Unleashed: The Rise of Total Portfolio Approach
from the eyes of a practitioner and advisor, I eagerly accepted the
opportunity. Total Portfolio Approach (TPA) is an approach that WTW
had adopted early in how we think about implementing portfolios,
but it didn't just "happen" overnight. Like any
enduring idea, our understanding of TPA and the subsequent papers
we wrote on the subject were shaped by our own observations,
experience, trial and error, and the support of asset owner
partners who joined us on the journey.
After working in consulting for two decades, I can confidently
say that strategic asset allocation (SAA) is ubiquitous across most
of the clients I work with. It fits the idea of clear
accountabilities and separation of duty. The Board sets investment
policy and the investment team focuses on implementation.
Investment teams wait anxiously to hear how the SAA dictates their
allocation and
