Specify/Investor Objectives Constraints & Preferences

Quantify Return Requirement & Risk Tolerance

Develop Appropriate Investment Policy

Document Approved Investment Policy

Appoint Investment Policy Committee

Develop Micro & Macro Market Expectations

Recommend Appropriate Asset Allocation

Fundamental Qualitative/Quantitative Research

Develop Portfolio Management Strategy
(Passive, Semi-Active, Active)

Select Asset Classes
(Domestic, Foreign, Equity, Fixed Income)

Incorporate Alternative Asset Classes
(Real Estate, Venture Capital)

Recommend Asset Mix
(Percent of Total Wealth in Equity)

Manage Portfolio Risk Exposure

Implement Strategy Though Cost-Effective/Timely Trades

Monitor Portfolio

Re-Evaluate Portfolio Strategy, Market Expectations, and Investor Needs

Rebalance Portfolio if Necessary

Evaluate Portfolio and Manager Performance Relative to Investor Objectives and Appropriate Benchmarks