Tactical Asset Allocation

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Tactical Asset Allocation (TAA)

Portfolio strategy that allows active departures from the normal asset mix according to specified objective measures of value. Often called active management. It involves forecasting asset returns, volatilities, and correlations. The forecasted variables may be functions of fundamental variables, economic variables, or even technical variables.

Tactical 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 attains those profits, the money manager returns to the basic set of securities it originally contained. 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.
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The tactical asset allocation must be tracked against benchmarks tailored to the strategic asset allocation to determine what value has been added or subtracted by tactical asset decisions.
ETFs can be used to implement tactical asset allocation (TAA) strategies that produce higher returns than a basic ETF purchase with less risk.
As CIO, Gary will be in charge of the overall investment policy of Private Banking and will lead a core team that will provide strategic and tactical asset allocation advice to Private Banking clients for investments across several asset classes.
In such cases, financial advisors may consider incorporating a more tactical approach to asset allocation and products that accommodate tactical asset allocation strategies.
Most of that evidence has about a three-year base, and it leads almost all of us these days to get excited about tactical asset allocation, growth stocks, stock options, portfolio insurance, and so on.
Donoghue & Co is a registered investment advisor delivering tactical asset allocation solutions to individual and institutional separate account clients as well as mutual fund clients.
The new appointees, who will formally join in March, will work within the tactical asset allocation research and strategy area.
Specialist investment advice: asset overlays, asset rebalancing, collateral management, derivatives, hedging, illiquid assets, responsible investment, stock lending, structured products, transition management, development and management of the PPF investment approach, Liability Driven Investment (LDI) management, strategic asset allocation and/or tactical asset allocation and other areas fund manager due diligence, analysis of co-investment/direct opportunities manager monitoring, research and selection in new/existing asset classes, operational reviews and other areas.

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