FYI: Tactical asset-allocation funds enjoyed a burst of popularity after the financial crisis. Proponents argued that tactical allocation can be valuable in bear markets or amid heavy volatility given their flexibility. Tactical managers typically eschew investing in a static mix of investments like a manager of a traditional balanced fund would. Instead, they rapidly shift between asset classes, often in following macroeconomic or trend-following strategies.
Regards,
Ted
http://news.morningstar.com/articlenet/article.aspx?id=734857
Comments
I currently own only one fund that Morningstar classifies as a tactical fund and that is BAICX. However, I have a couple of others that are "fund of funds" and they adjust their allocations somewhat based upon their reading of the markets. They are ISFAX, LABFX and CTFAX. I hold CTFAC and ISFAX in my hybrid income sleeve and LABFX in my growth and income domestic hybrid sleeve. BAICX is held in my growth and income global hybrid sleeve.
I guess I tactically allocate to a certain extent because during periods when stocks apear overbought and selling at high P/E Ratios I have been raising my allocation to cash and reducing my allocation to stocks. Likewise, in view of the Fed's long awaited rate increase, I have reduced my allocation in bonds and repositioned my income sleeves with more than the normal allocations towards short duration, bank loan, and convertible security funds plus I also hold some multi sector and conserative allocation funds that can choose from a wide spectrum of income generating and other securities.
So, I guess, in a mild sense, I am a tactical allocator too. I think with what I do just comes with being a good seasoned investor. After all, to be a good hunter one has to know how to read the signs of the woods and wildlife.
Thanks again for an enjoyable read.
Old_Skeet