Global Tactical Asset Allocation for Institutional Investment Management

The Alberta Investment Management Corporation (AIMCo) was established in 2008 to manage approximately C$70 billion on behalf of 26 pension, endowment, and government reserve funds in the Province of Alberta. The fund’s over-arching goal is to earn incremental return on risk over what our clients could achieve by passively implementing their policy asset mix with equity and fixed income index funds. One way to add return in excess of passive portfolios is through our Global Tactical Asset Allocation (GTAA) strategy. In this brief note, we provide a description of the ways in which AIMCo has developed and executed its GTAA process over the past few years. In so doing, we hope to offer some insights to other institutional investors that might be considering or preparing to launch a similar GTAA or tilting policy. We conclude that executing a successful GTAA requires developing world-class talent, systems, process and governance.

Keywords: Institutional Investment, Finance, Asset Allocation, Asset Management

Suggested Citation: Suggested Citation

de Bever, Leo and Bachher, Jagdeep and Chuyan, Roman and Monk, Ashby, Global Tactical Asset Allocation for Institutional Investment Management (December 3, 2012). Available at SSRN: https://ssrn.com/abstract=2184619 or http://dx.doi.org/10.2139/ssrn.2184619