Curian Capital LLC, a Denver registered investment advisory unit of London's Prudential PLC, said it has expanded its custom style portfolios with the addition of the Curian Tactical Advantage Strategy.
The strategy uses an asset allocation approach that seeks to capture opportunities for growth while actively managing risk within the portfolio, Curian Capital said this week.
Unlike traditional buy-and-hold asset allocation models that utilize long-term target allocations to major asset classes, the Curian Tactical Advantage Strategy incorporates a proactive approach to managing asset allocations within defined parameters set within a client's base investment policy, the unit said.
The goal is to capture incremental returns over time by tilting portfolio weightings toward "attractive" asset classes relative to other asset classes, according to cyclical trends in the market, Curian Capital said.
The new strategy uses a proprietary asset allocation model developed for Curian by Ned Davis Research Inc. The model provides ongoing summary allocation recommendations based on an objective assessment of current primary market trends.
Tactical strategies are particularly well suited for times of increased volatility, when the long-term direction of the market is unclear, Curian Capital said.
The unit provides fee-based separately managed account platforms to financial professionals. It had $2.6 billion of assets under management as of Dec. 31.
