Mandate
Three percent tracking error
The mandate allows 3% tracking error. You are running 1.1%, which means most of the fee is being charged for the benchmark. Underperformance so far this year: 40bps.
All simulators
Allocation, tracking error and mandates
Asset Management simulator
Your seat: Multi-asset desk, institutional manager
The benchmark, the fee and the client's patience are all constraints. Take enough active risk to earn the mandate without drifting away from it.
What you'll learn
- How tracking error, active share and fees decide whether a fund can win
- Why asset allocation outweighs security selection over a full cycle
- How flows, exclusions and capacity limits reshape a portfolio
Who it's for
Institutional multi-asset, wealth and consultant-facing roles.
It works as interview prep: you'll have made the calls an interviewer asks about, and seen what happens when you get them wrong.
Decisions from your first year
Three calls a year. Here's the kind of thing that lands on your desk before your first promotion.
Asset allocation
Rates moved, the mix did not
Government bonds now yield more than your equity earnings yield. The mandate permits 30-70% equities; you are at 68%.
Mandate constraints
The exclusion list arrives
The client adds a fossil-fuel exclusion mid-mandate. Those names are 8% of your benchmark and have been the strongest performers this year.
The ladder
Each rank has its own bar for returns and standing. Clear both to move up.
- Investment Analyst
- Portfolio Manager
- Senior PM
- Head of Multi-Asset
- Deputy CIO
- Chief Investment Officer
Terms you'll use
- AUM
- Assets under management.
- Redemption
- Investors withdrawing capital from an open-ended fund.
- Market regime
- The prevailing pricing and risk environment.
- Portfolio emissions
- The carbon footprint of what you own, not what you occupy.
- Transition risk
- The risk that policy and technology strand your asset.