Pension fund executives need to be patient when investing in tactical asset allocation strategies, said Jim Biundo, president of the investment management subsidiary of U S WEST, Englewood, Colo. Speaking at the P&I Investment Management Conference today in Washington, Mr. Biundo warned his colleagues they shouldn't start a program unless they are willing to live with 18 to 24 months of underperformance. But he added TAA can increase the overall performance of the fund without creating additional portfolio risk.
U S WEST had about 1% of its $9.6 billion in defined benefit assets in TAA as of Sept. 30.
