Research

Total Portfolio Approach (TPA) content hub

A collection of publications and content around the total portfolio approach (TPA)

Total portfolio approaches have been evolved by some leading organisations around the world as a more ‘joined up’ investment philosophy that results in a more streamlined approach to portfolio construction.


Total Portfolio Approach cover
 

Research paper

This paper includes discussions on the findings of a global study into current and future asset allocation practices of leading asset owners, and describes the research investigations being carried out in the Thinking Ahead Institute to take this concept further.

TPA It's about time front cover image

 
In this paper, we urge for a switch of thinking to better connect the total portfolio with the fund goals. Such thinking leads to an alternative approach to portfolio construction, in which the central theme is to construct the portfolio of assets such that there is a continuous and dynamic focus on achieving the explicit objectives of the AO. Such thinking has been embedded in alternative methodologies which are referred to collectively as total portfolio approaches.
    Roger Urwin of Thinking Ahead Institute
Forum post – It’s a drag: why TPA is superior to SAA

 

A total portfolio approach (TPA) to portfolio construction has been described as a “more joined up” process. Importantly it starts with clearly specified investment goals, there is competition for capital among all investment opportunities, rather than filling asset class buckets, and it is dynamic.


TPA info-graphic

 

Source: Thinking Ahead Institute

The key to simplifying a complex organisation and understanding its effectiveness is to break it down into its three functional parts:
■ Governance model – organisational structure, resources, decision making, technology
■ People model – talent, culture, employee value proposition, incentives
■ Investment model – beliefs, risk framework, portfolio construction process, systems and tools.

Amundi TPA paper

Amundi Investment Insights paper
Multi Asset: a solid total portfolio approach for a complex world

 

In their complementary paper Amundi share their vision of TPA from an asset manager’s standpoint, describing how it resonates with their approach to asset allocation.


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Events

Total portfolio approach symposium |10-11 March 2020

Summary
Event slide deck