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For asset owners adopting the Total Portfolio Approach (TPA), a key opportunity to improve total-fund outcomes is tactical asset allocation, which seeks to capitalize on short-term market dislocations through dynamic allocation across assets. In this paper, we argue that systematic Global Tactical Asset Allocation (GTAA) overlays provide a transparent, scalable, and capital-efficient way to implement such views. By expressing investment opportunities through a rules-based, cross-asset framework, GTAA enables active-risk capital to be deployed in a measurable, repeatable, and governance-friendly manner.
The paper explores how systematic GTAA may help asset owners:
Diversify sources of return through strategies that can exhibit low or negative correlation to reference portfolios.
Allocate active risk more effectively by making risk easier to measure, budget and compare across investment opportunities.
Access a broader opportunity set across asset classes, investment styles and alternative signals.
Maintain capital efficiency and liquidity through overlays generally implemented using highly liquid futures.
Strengthen portfolio diagnostics through transparent, rules-based strategies that can help investors better understand macro risk exposures across market regimes.
6070724_PGIM
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PGIMはお客様からの信頼を大切にし、プライバシーを尊重しています。当社は、お客様の利便性を向上させるためにクッキーを使用しています。クッキー設定の管理や、当社による情報保護の取り組みについての詳細は、PGIMプライバシーセンターでご確認いただけます。
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