TAA Is Back
Pensions & Investments (09/03/01) Vol. 104, No. 37 p.1; Anand, Vineeta

Tactical asset allocation (TAA) has made a quiet comeback in 2001 after a brief respite. "TAA was dead and buried," according to David Lunt, managing director of quantitative analysis at Wells Capital. But all that changed this year, when four of the largest managers exceeded $7 billion in assets. One of them is Wells Capital Management, which has almost doubled its assets in TAA to $4 billion just this year. Similarly, Mellon Capital Management picked up 10 new clients this year and now has $32 billion in domestic TAA. However, TAA has not won everyone's hearts. Edgar Peters, chief investment officer at PanAgora Asset Management, does not think much of the strategy. Peters says he expects interest in TAA to rise as investors make peace with the fact that the stock market is not going to stabilize anytime soon.

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