Definitions for "Tactical Asset Allocation"
Another name for Portfolio Optimization.
A process by which the Asset Allocation of a fund is changed on a short-term basis to take advantage of perceived differences in relative values of the various asset class es. A variation of asset allocation around a benchmark. (See also Strategic Asset Allocation).
An approach where the weighting to different asset classes is changed frequently - up to several times per year - as a function of the expected performance from each asset class in the short run (see Market Timing).