Dynamic asset allocation on the rise as pension plans face an era of controlled disorder
By Prof. Amin Rajan This question has come to the fore as the swirling clouds of geopolitical events have elevated the role of dynamic asset allocation (DAA). They have challenged the timehonoured primacy of strategic asset allocation (SAA), with fixed weights for different asset classes with long-term return targets. This rigid set-it/forget-it approach worked well in the longest bull run after the 2008 global financial crisis. Since 2022, however, concerted steep rises in interest rates by key central banks to curb...
