Tactical Global Management (TGM), the specialist Australianowned asset allocation manager, has diversified its business through the launch of a market-neutral global equity fund. The TGM Tactical Global Equity Fund will be run from the firm’s London office by a new team including Hicham Najem, Priya Parameswaran and Adrian Luck, reporting to the firm’s founder, Peter Higgs, who is also based in
TGM was formed in
Brisbane about 10 years ago by Higgs and a team from Suncorp Investment Management, pioneering TAA strategies for Australian super funds. It currently provides global macro, currency overlay and rebalancing services over about US$7 billion for Australian and overseas clients.
Higgs described the new equity fund as “next generation”, using a twotier structure from a library of longterm equity strategies with a tactical overlay to protect against short-term market gyrations. He said: “Traditional market-neutral funds usually provide performance through exposure to three basic risk factors – value, size and momentum – and have a static or inert mix of exposures to these factors.
“In contrast, the TGM (fund) has a large library of strategies carefully designed to create focussed exposure to more than 30 risk factors, including fundamental, market, quality, macroeconomic and risk appetite factors. “Plus, it has a proprietary dynamic tactical overlay that actively adjusts the exposure of the portfolio across the strategies to ensure the portfolio has a diversified exposure to the risk factors that are being remunerated by the market at that time and avoids those that are penalised.”