Asset allocation
Strategic targets, tactical deviations, and allocation bands.
Asset allocation
| Concept | Explanation | |---|---| | Strategic allocation | Long-term target mix based on objectives and capacity. | | Tactical allocation | Temporary deviation based on valuation or market conditions. | | Risk asset | Exposure expected to provide growth but subject to meaningful loss. | | Defensive asset | Exposure intended to preserve liquidity or reduce volatility. | | Allocation band | Permitted range around a target weight. |