The portfolio construction process is composed of a series of three well‐defined steps:
Identify initial fund candidates for further analysis by screening Fidelity mutual fund universe based on historical performance and risk attributes.
Select model risk levels and corresponding sample asset mixes from the range of Target Asset Mixes
Select subset of mutual funds from investment universe to construct a portfolio which seeks to optimize dividend income for a given level of risk
For a more detailed explanation of the portfolio construction process, please see the methodology document (PDF).