Strategic Versus Tactical Asset Allocation

 

We recommend that Trustees focus on setting a strategic asset allocation that achieves their specific investment objectives, such as income, growth and risk appetite.

 

We do not recommend Tactical Asset Allocation under normal circumstances since nearly all academic studies find that it does not add value, particularly when the additional risks and costs are taken into account. 

 

We recommend that the Trust's strategic asset allocation is reviewed annually to determine whether there have been any significant changes in the financial market assumptions or the investment objectives of the Trust.

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