• Home /
• About us /
• Sponsorship /
• Contact us /
• Site map

Tactical Asset Allocation

Tactical asset allocation (TAA) aims to take advantage of market inefficiencies and opportunities by systematically shifting asset class weightings relative to a benchmark.

Global TAA resources

We believe that well-formulated TAA strategies offers a highly effective means to generate a high-quality alpha stream for clients. We have therefore dedicated extensive resources to this area within our Global Multi-Asset Group (GMAG).

To create TAA solutions, we leverage the skills of  more than 30 strategists, portfolio managers, research specialists and client portfolio managers networked across London, New York, Tokyo, Hong Kong and Singapore.

Pair-wise bets

Our tactical asset allocation process focuses on maximizing the opportunity set of pair-wise asset bets. By doing so, our objective is to identify and position portfolios to access the widest available sources of uncorrelated alpha.

We have also discovered that a combination of active TAA plus active currency overlay provides significant diversification benefits as historically alpha from these two overlay products has had a correlation of zero.

We manage TAA mandates against a variety of different strategic allocations and risk levels. We have a unique approach to risk management, which allows our approach to be fully flexible in dealing with tailor-made mandates and ensures that risk budgets are allocated in the most effective manner.

New TAA opportunities

Using our extensive research capabilities, we are continually seeking out examples of inefficiencies in new markets to increase our opportunity set and expand the number of pair-wise decisions we can take in a portfolio.