Nowadays, ESG reporting became mandatory in lots of countries. The portfolio manager, in addition to his fiduciary duty, has to respond of its ESG policy and its implementation in its fund. Here, we will expand on a carbon attribution methodology.
In portfolio management, the combination of SAA and TAA portfolios is key to build robust funds.
The SAA reflects the long term view of the management team on the different assets, while the TAA allows to implement short-term views and adds a tilt to SAA, hopefully adding some alpha to the fund.
In this article we look into the incorporation of TAA and its sizing along an existing SAA portfolio.