Glossary
Policy portfolio
A policy portfolio is the long-term asset mix, with targets and ranges, that a policy adopts as its strategic allocation and often its benchmark.
The policy portfolio is the asset mix a board or committee chooses to meet its objectives. It is written as target weights per asset class, usually with minimum and maximum ranges. Many policies also use it as the benchmark, calling it the policy index or policy benchmark.
A UK pension scheme’s statement of investment principles must state policies on the kinds of investments to be held and the balance between them. That balance is the policy portfolio in all but name. The actual portfolio drifts from it as markets move, and rebalancing brings it back.
The policy portfolio becomes monitorable as a table of bands. In Acclimetry, these strategic bands are governed rules: an asset allocation range per class, approved and versioned. Example: with equities at a 50% target and a 40% to 60% range, a 63% weight breaches the hard maximum.
See also
Sources
- Occupational Pension Schemes (Investment) Regulations 2005, reg 2 (statement of investment principles) · OGL v3.0 · Read on12 October 2026
- Acclimetry rule-template registry (32 templates, methodology options, reason codes and 108 engine-checked cases; backend commit 8197063) · cite only · Read on12 October 2026