Guidelines are crucial in demarcating an investment manager’s playing field as they are the most effective method for pension funds to communicate their risk profile and preferences. Whether it is deviation versus the benchmark or the amount invested in credit, guidelines allow a manager to understand their clients’ comfort levels. Therefore, setting clear guidelines is crucial in avoiding future disappointments.
Still, guidelines are often thought of as a necessary evil by managers, who can
The week on Risk.net, July 7-13, 2018Receive this by email