Tactical Asset Allocation - TAA


DEFINITION of '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.

BREAKING DOWN 'Tactical Asset Allocation - TAA'

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.

  1. Strategic Asset Allocation

    A portfolio strategy that involves setting target allocations ...
  2. Dynamic Asset Allocation

    A portfolio management strategy that involves rebalancing a portfolio ...
  3. Asset Allocation

    An investment strategy that aims to balance risk and reward by ...
  4. Portfolio Manager

    The person or persons responsible for investing a mutual, exchange-traded ...
  5. Asset

    1. A resource with economic value that an individual, corporation ...
  6. Active Management

    The use of a human element, such as a single manager, co-managers ...
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