Dynamic asset allocation


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Dynamic asset allocation

An asset allocation strategy in which the asset mix is quantitatively shifted in response to changing market conditions, as in a portfolio insurance strategy, for example.

Dynamic Asset Allocation

An active management strategy for a portfolio or fund with a basic set of securities. The money manager changes the securities represented in the portfolio or fund as needed in order to take advantage of short-term profits. However, once the portfolio or fund has attains those profits, the money manager returns to the basic set of securities originally in it. The money manager may use fundamental, technical, and/or macroeconomic analysis in determining when and how to change the securities in the portfolio or fund.
References in periodicals archive ?
QMA, the quantitative equity and dynamic asset allocation business of PGIM, applies a disciplined, research-driven approach that seeks to identify and capture alpha opportunities and combines factor exposures to create diversified, risk-aware strategies designed for long-term, consistent performance.
Research connected with Bernstein's Dynamic Asset Allocation program indicated that, as a rule of thumb, investors in a 60/40 mix could expect about a 10% reduction in annualized volatility over time, with little--if any--sacrifice of return.
For long-term strategic or short-term dynamic asset allocation, for example, we were in a better position to grab market opportunities that would suit us best.
Next, several dynamic asset allocation approaches based on our business cycle indicator (CLI) are examined.
Dynamic asset allocation that can change with market conditions and client objectives is what works best in a volatile environment, he added.
Providing resources, education and actuarial consulting, the program aims to help financial professionals and their clients walk through the key steps for shutting down a plan, including termination strategies, execution of a Dynamic Asset Allocation (DAA) strategy, plan termination administration and final distribution of assets.
You need to have a dynamic asset allocation in order to adapt your investments to the environment.
CPPI Methodology is a well reputed dynamic asset allocation mechanism, which allows you to invest up to 100 per cent in the stock market, with full protection of your invested capital.
Then the team designed a dynamic asset allocation strategy in which the funded status of the plan can trigger changes to its asset allocation, and the funded status together with the level of interest rates can trigger changes in the plan's interest-rate hedge ratio.
A prime example is the Dynamic Asset Allocation service that AllianceBernstein employs as sub-advisor for Transamerica Asset Management's VA portfolio.
Stergios Saloustros, head of dynamic asset allocation at the unit, said, 'It would make good sense in the long-term for emerging markets total exposure to be at high single digit to low double-digit.
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