Strategic asset allocation (SAA) defines the long-term average positioning of a portfolio with regard to the different asset types (for example 60% equities + 40% bonds) and sometimes also with regard to the different asset classes (for example 5% of the portfolio can be held in below investment grade bonds). Conversely, tactical asset allocation (TAA) defines the short- or medium-term exposure to the asset types and classes based on the market assessment and the derived return expectations for the different asset classes by the portfolio manager. With regard to this, the TAA can lead to over- or underweights of regions,