Quick LP Calculator
Allocation Policy Calculator
Read the target, permitted range and current allocation from one policy view.
For a $5bn portfolio with a 12% target and ±3-point band, where does the current allocation sit?
Results
Allocation policy at a glance
Illustrative estimate based on the assumptions shown.
How it is calculated
Variance = current allocation − target; permitted range = target ± deviation
All percentage differences use percentage points and every dollar amount uses the same current portfolio denominator.
What this tells you
Read the result in context
This combined view separates the target gap from the wider permitted band. Being underweight or overweight does not automatically mean the allocation is outside policy.
Frequently asked questions
Can an allocation be underweight but still within policy?
Yes. The target is the midpoint; the permitted band defines whether the current allocation is inside policy.
Why use percentage points?
Subtracting two allocation percentages produces a percentage-point difference.
What denominator is used?
Target, current, minimum and maximum dollar amounts all use the current total portfolio value entered.