Tactical asset allocation (TAA)

Tactical asset allocation (TAA) is the short-term positioning a manager takes around the strategic targets. A manager who expects bonds to outperform might hold 35% against a 30% target. The policy allows this as long as the weight stays inside the range.

The strategic ranges set the boundary: TAA operates inside them, never beyond. A tactical overweight that pushes a class past its maximum is a breach of the policy, whatever the rationale. The view behind a tilt does not change how the limit is measured.

In Acclimetry, strategic bands are governed rules and tactical positions are the manager’s own. Monitoring results come from the strategic band, so a tactical target that is missed is not a policy breach. See strategic asset allocation and allocation ranges.