Risk &
Portfolio Management
Managing risk and crafting alpha in daily activities
Mission
The Risk & Portfolio Management group (RPM) is tasked with four mandates to enable efficient risk usage and enhance returns:
1. Risk Management:
Ensure proper preparation
2. Multi-Asset Strategies:
Manage portfolios and build solutions
3. Trust Management:
Manage the Trust as one portfolio
4. Trust Strategy:
Improve Trust portfolio construction
James Nield
Collectively, the team is responsible for managing the Government Bonds, Risk Parity and Alternative Risk Premia portfolios, which account for 21% of Trust assets. Additional details on each of the four mandates are laid out below.
Risk Management
The mandate is to ensure proper preparation. Activities include:
- Develop a risk budget to manage active risk across departments
- Identify, prepare, and manage key risks on both a daily basis via risk signals and monthly via a Risk Monthly Management Committee publication
- Create “Battle Plans” to help prepare for key risks
- Provide updates on Trust risk profile via semi-annual Board Report
- Complete risk certifications on new external public mandates
Multi-Asset Strategies
To improve Trust risk and return, the team seeks to build and invest in strategies with the objective to:
- Generate positive alpha
- Create scalable innovations
- Internalize as appropriate
- Build repeatable processes
Trust Management
The mandate is to manage the Trust as one portfolio and add craftsmanship alpha to daily activities. Activities include:
- Rebalance the Trust as needed
- Source liquidity to support investment exposures
- Manage cash investments
- Coordinate securities lending activity to generate additional revenue
Trust Strategy
The goal of Trust Strategy is to improve Trust portfolio construction in the following ways:
- Research the economic and market environment
- Conduct Market Intelligence initiatives to monitor market conditions and industry trends
- Organize Strategic Asset Allocation studies to recommend asset class policy weights
- Support the Asset Allocation Committee in day-to-day Trust portfolio construction decisions