Tactical Asset Allocation - TAA

Tactical Asset Allocation - TAA

An active management portfolio strategy that rebalances the percentage of assets held in various categories in order to take advantage of market pricing anomalies or strong market sectors.

Notes:

This strategy allows portfolio managers to create extra value by taking advantage of certain situations in the marketplace. It is as a moderately active strategy since managers return to the portfolio's original strategic asset mix when desired short-term profits are achieved.

See also: Active Management, Asset, Asset Allocation, Portfolio, Portfolio Manager, Strategic Asset Allocation