Retirement plan fiduciaries have increasingly turned to tactical asset allocation strategies in hopes of better results.
The trend began with the financial crisis of 2008, when buy-and-hold strategies failed to deliver. Since then, concerns over monetary policy and asset class repricing, equity valuations, rising interest rates and a better understanding of participant risk tolerance have boosted interest in TAA.
Instead of taking a passive approach, TAA-managed funds promote themselves as offering a "dynamic" approach that adjusts portfolio allocations based on market conditions. Many 401(k) plans include target-date fund or target-risk investment options in their mix that use a TAA strategy of some kind.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
