What is Total Portfolio Approach? A Practitioner Summary

This summary paper provides a practitioner-focused overview of the Total Portfolio Approach (TPA), a framework gaining traction among institutional investors seeking to manage portfolios more coherently in increasingly dynamic and complex market environments.

While Strategic Asset Allocation (SAA) has long served as the dominant paradigm—offering structure and clarity in stable regimes—its reliance on fixed weights and static assumptions has proven less effective amid growing allocations to illiquid assets, macroeconomic regime shifts, and liquidity constraints.

We clarify what TPA is—and what it is not—by framing it as a mindset centered on integration, adaptability, and total fund accountability. Rather than managing investments in siloed mandates, TPA treats the portfolio as a unified balance sheet, where decisions are guided by forward-looking risk, liquidity, and return considerations.

We outline key enabling elements, including governance design, cultural alignment, and tools for market monitoring and portfolio construction.

This paper is a condensed companion to our full-length article titled “Total Portfolio Approach” published in The Journal of Portfolio Management, offering a clear and accessible guide for institutions evaluating whether TPA is the right approach for their investment context.

Redouane Elkamhi – University of Toronto – Rotman School of Management

Jacky S.H. Lee – Healthcare of Ontario Pension Plan; Journal of Portfolio Management; Journal of Financial Data Science