Sovereign and pension funds are abandoning fixed asset-class targets for a single risk budget. It works — until private assets enter the picture. (Second in a series)
The Total Portfolio Approach has become the governance model of choice for large institutional investors. Its logic is austere and appealing. A board no longer argues over how much to hold in equities versus real estate versus private credit. Instead it approves one thing: a level of risk, expressed as a plain portfolio of listed stocks and bonds.
Source: PE International · Summarized by HeadlinesBriefing