Advisory Services

The Strategic Asset Allocation Workbench Tool is one of the most essential investment decisions for public asset managers. Its purpose is to determine a portfolio’s long-term optimal profile based on the institution’s investment objectives, risk tolerance, and investment horizon. This includes deciding on key portfolio characteristics such as currency composition, duration of fixed income assets, eligible asset classes, and their optimal allocations in the portfolio. A robust quantitative assessment of the risk and return for the various asset classes and potential portfolios under forward-looking capital market assumptions is an essential input in making these decisions.

RAMP provides the Workbench Tool as a stand-alone simulation-based financial modeling tool designed to support analysts and decision makers in the strategic asset allocation process for fixed-income, equity, and multi-asset class portfolios. The tool was built with two overarching objectives: (1) to help users learn fixed income modeling and asset allocation techniques; and (2) to provide an analytical framework to generate estimates to support asset allocation decisions, provided that users have mastered Workbench’s conceptual framework and capabilities, and assumed ownership of all underlying inputs and assumptions.

The Workbench Tool provides a framework, methodology and set of quantitative tools to model fixed income and other asset classes, generate asset return projections, and optimize portfolios according to the user’s risk and return preferences and constraints. There are four modules, which are integrated within a process to generate risk and return expectations and translate these expectations into optimal asset allocation decisions in accordance with an organization’s investment policy and preferences.


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