Glossary
Tactical Asset Allocation
Tactical Asset Allocation refers to a deliberate, time-limited deviation from the strategic target allocation in order to take advantage of current market conditions or opportunities. It operates within the deviation ranges set out in the Investment Guidelines and is regularly assessed for effectiveness.
At a glance
- Tactical adjustments are temporary in nature and serve to exploit market movements opportunistically within agreed limits.
- They require continuous market monitoring and active portfolio management by the wealth manager.
- Past tactical positioning does not allow conclusions about future results.
Frequently asked questions
The strategic allocation defines the long-term target structure of the portfolio and remains largely stable. The tactical allocation allows short-term deviations from it in order to respond to market developments. Both levels work together and are constrained by the Investment Guidelines.
Part of the topic
Discretionary Mandates
This entry is for general information purposes only and does not constitute investment, legal or tax advice. It is a simplified summary of the legal position and tax treatment.