Chapter 21

Managing Your Portfolio

Putting it all together

‘There is a difference between knowing the path and walking the path.’


Top-down you have allocated your assets and, from the bottom up, you have selected the underlying investments for your portfolio. Now you need to marry these two opposite perspectives together into a coherent portfolio.

Portfolio construction does that. It involves deciding how much to allocate to each underlying investment, ensuring your portfolio is efficiently aligned with your investment strategy.

In this chapter we review portfolio construction and implementation. We cover the steps to transfer your investment strategy and fund selection from a theoretical exercise into an actual portfolio and its ongoing ...

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