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

London.

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.” 

 

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