TFM ensures our investing activities collectively produce the best possible portfolio for the Fund that maximizes long-term returns without taking undue risk. This is achieved through:
- Working with our Board of Directors to clearly articulate and interpret our mandate, objectives and key constraints;
- Designing optimal investment portfolios at all horizons which benefit from the Fund’s structural and developed advantages and the three general sources of investment returns – diversification, security selection and strategic positioning;
- Aligning activities within the Investment Departments to support our overall investment strategy, including allocating capital between investment departments and providing medium- and near-term portfolio guidance;
- Building and operating an investment process that supports total portfolio aims; and
- Balance-sheet management, including leverage and liquidity;
- Managing the Total Fund’s financing activities;
- Overseeing global trading and execution of all public assets (excluding credit) across all major markets on behalf of all investment departments and the Balancing Portfolio.
TFM is responsible for implementing an investment framework that includes:
- Tactical and strategic portfolio construction, including managing trade-offs between exposures, leverage, and liquidity;
- Partnership with Investment Departments to allocate to investment strategies; and
- Managing the total fund investment cycle, including the processes, systems and data needed to structure the portfolios.
TFM comprises six groups:
Portfolio Design & Construction (PD&C)
Delivers tactical and strategic portfolio design and construction. This group is responsible for recommending the Fund’s risk appetite and allocation at all relevant horizons.
Active Investment Management (AIM)
Maximizes the risk-adjusted return of the Active Portfolio by ensuring the Fund has the best possible combination of active programs. The group manages the Active Portfolio and acts as a connector between the Fund’s investment framework and the business lines within the investment departments.
Applied Research and Models (ARM)
Delivers impactful research and develops quantitative models and analytical tools that support the department in its management of the Fund.
Exposure, Leverage & Liquidity Management (ELLM)
Responsible for management and delivery of the Fund’s exposures, leverage and liquidity. The integrated group dynamically manages the balancing portfolio and the balance sheet to optimize the trade-offs between exposures, leverage and liquidity. Additionally, the group manages the Total Fund’s financing activities, including collateral optimization and sourcing of liquidity through unsecured, secured and synthetic financing.
Strategy & Operations (S&O)
Works with the leadership team to design, monitor and drive implementation of the TFM strategy and objectives, helps manage key internal and external relationships, acts as the liaison for TFM to the rest of the Fund, and provides stewardship and support for implementation of the Total Portfolio Investment Framework.
Trading
Oversees global trading and execution of all public assets (excluding credit) across all major markets on behalf of all investment departments and the Balancing Portfolio.