Global Tactical Asset Allocation

In portfoliomanagement investing in a diversified range of overseas markets such as currency, equities and bonds via physical securities and derivatives. This can take the form of a portfolio overlay or of funds. A GTAA portfolio is managed separately from a pension fund and will invest in those assets that best suit the risk return profile requested by the trustees. An attraction of GTAA is its lack of correlation with the equity and bond portions of the pension fund. However it is relatively complicated for pension fund managers to manage because there are more moving variablesand methods. These include the use of derivatives and hedging techniques.