Asset Allocation is the most important determinant of overall portfolio performance. Despite this, many investment portfolios are managaged on the most rudimentary systems for recording policy weights and monitoring the actual positions against those weights. Ryedale's asset allocation system provides a robust, high-quality, and institutionally-trusted solution for managing portfolios against policy weights.
At the top level the portfolio is conceived as allocating a policy weight to each of a number of model assets. Visualizing this top-level view entails setting up appropriate model assets, assigning a policy weight to each, and describing which securities in the portfolio contribute as exposure to the which model assets.
An actual view of the portfolio is obtained by aggregating the securities held under each model asset. A comparison of the model view with the actual view easily identifies differences between policy weights and actual weights, and if necessary alerts the manager and/or compliance officer. The manager can easily rebalance portfolios using the system's order generation tools. Orders raised in the system can be subject to a peer review and approval process and once approved they can be transmitted electronically to external asset managers.
Our asset allocation software is used extensively at CalPERS where $13 billion of public pension assets rely on it for the following functions: