In the first papers of this series, we addressed the issues of how institutional investors should set their investment objectives – a key element of any Investment Policy Statement (IPS) – and how to articulate their asset allocation across different horizons.
Another component of IPS relates to the definition of asset classes included in an investment universe and how to group them. This issue of asset segmentation has meaningful consequences on investment governance and the portfolio construction process. This paper aims to answer the following questions:
- What is the benefit of segmenting your asset universe?
- What are investors’ asset segmentation practices?
- What is the impact of investors’ segmentation decisions on the governance of an allocation process?
- How can asset segmentation be adapted to the risk of rising inflation?
You can now read the full whitepaper at the link below
