Dynamic Asset Allocation
Definition
What is Dynamic Asset Allocation?
An approach that changes asset weights as markets, valuations, or investorA person or organisation that commits capital with the expectation of a financial return. circumstances change.
Example in practice
How This Looks in Practice
Equity exposure falls automatically as portfolioThe complete collection of investments owned by an investor or managed under one mandate. volatilityThe degree and frequency of price or return fluctuations. rises.
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Related Terms
Portfolio
The complete collection of investments owned by an investor or managed under one mandate.
Portfolio ConstructionPortfolio Construction
The process of selecting and combining investments to meet return, risk, liquidity, and time-horizon objectives.
Portfolio ConstructionStrategic Asset Allocation
A long-term target mix of asset classes based on an investor's objectives and constraints.
Portfolio AnalyticsCorrelation
A statistic ranging from minus one to plus one that describes how two return series move together.