In addition, some investors may choose to implement TAA in an attempt to capture medium-term (three- to 12-month) opportunities within asset classes or market segments. For instance, as the Covid-19 pandemic unfolded, we saw initial underperformance and subsequent outperformance of the Chinese equity markets, leading to what some saw as a window of potential TAA opportunities.
SINGAPORE (Apr 9): Implementing crisis-period exposure management and TAA (tactical asset allocation) policies through integrated futures may be an option as investors seek to manage through increased market volatility.
With market volatility rising to the highest level since the 2008 GFC during recent weeks, some investors’ asset-allocation policies may trigger a total portfolio rebalancing and exposure adjustment.
