Portfolio Construction

Dynamic Asset Allocation

Definition

What is Dynamic Asset Allocation?

An approach that changes asset weights as markets, valuations, or investor circumstances change.

Example in practice

Equity exposure falls automatically as portfolio volatility rises.

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The complete collection of investments owned by an investor or managed under one mandate.

The process of selecting and combining investments to meet return, risk, liquidity, and time-horizon objectives.

A long-term target mix of asset classes based on an investor's objectives and constraints.

A statistic ranging from minus one to plus one that describes how two return series move together.

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