> ## Documentation Index
> Fetch the complete documentation index at: https://docs.eosb.org/llms.txt
> Use this file to discover all available pages before exploring further.
# Investments
> How a trust's money is invested: portfolio frameworks, assets, valuations, snapshots, allocation variance and returns.
Money the trustee sends to the fund manager is invested so the trust grows. The fund manager does the investing; the trustee and the employer watch it, read-only.
## The building blocks
| Concept | What it is | Who |
| - | - | - |
| **Portfolio framework** | A trust's portfolio, and the **policy allocation**: the percentage to hold in each asset type. Must total 100%. | Fund manager creates and activates |
| **Asset** | Something the portfolio holds: a government bond, a fixed deposit, shares, property and so on. Each asset type has its own details. | Fund manager |
| **Carrying value** | What an asset is currently recorded as worth. | Changed by valuations and write-offs |
| **Asset register** | Every asset and its value on a given date. | Calculated live, or frozen in a snapshot |
| **Month-end snapshot** | A frozen copy of the register at month-end. Reports and ROI are built from it. | Fund manager creates |
| **Allocation variance** | How far the actual mix is from the policy mix. | Calculated |
| **Benchmark** | A reference rate, such as the 91-day Treasury bill rate, to compare returns with. | Admin maintains and assigns |
## What each action does to the money
| Action | Trust cash with the fund manager | Portfolio value |
| - | - | - |
| Buy an asset | Down by the purchase price | Up by the same amount |
| Record income (coupon, interest, dividend) | Up | Unchanged |
| Record an increase or decrease in value | Unchanged | Up or down |
| Write off an asset | Unchanged | Down to zero for that asset |
| Return money to the trust | Down | Unchanged |
So the trust's total wealth is **cash with the fund manager + portfolio value + cash in the trust itself**.
## Lifecycles
Assets can only be bought for an **active** framework, and only in asset types in its policy allocation.
A month is published and locked about a week after it ends. Until then, a new portfolio shows **No published months yet**.
## Reading allocation variance
Each asset type is compared with its policy percentage:
| Status | Meaning | What to do |
| - | - | - |
| Within tolerance | Close to policy. | Nothing. |
| Watch | Drifting from policy. | Keep an eye on it. |
| Outside tolerance | Too far from policy. | The trustee asks the fund manager to rebalance, or they agree a new policy. |
A large **positive** variance means the portfolio holds **less** of that type than the policy requires — for example after a write-off.
## Reading ROI
ROI is the return on the money invested over a period, built from month-end snapshots.
* Use a **month-end** date such as 30 September; other dates have no snapshot.
* **Annualised ROI** shows **N/A** until there is enough history.
* **Against benchmark** shows **N/A** until the administrator assigns a benchmark to the portfolio.
## Who sees what
| | Fund manager | Trustee | Employer |
| - | - | - | - |
| Frameworks, assets, income, valuations, write-offs | Creates | — | — |
| Asset register | Yes | Yes | Yes |
| Allocation variance | Yes | Yes | Yes |
| Asset ROI | Yes | Yes | Yes |
| Portfolio ROI | Yes | Yes | Yes |
Guides: [fund manager](/fund-manager/portfolio-frameworks), [trustee](/trustee/portfolio-oversight), [employer](/employer/portfolio).
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